Quiz questions for Test 1

How do CRM systems make troubleshooting customer problems easier?

CRMs store information about customer purchases and interactions

Who published "How Competitive Forces Shape Strategy" in the Harvard Business Review in 1979?

Michael E. Porter

Software that businesses use to manage activities in both the internal and external operational environment is known as Enterprise Resource

Planning

In which stage of Herbert Simpson's four stage process for decision making are solutions identified?

Second

Cloud-based ERP systems are a form of

Software as a Service (SaaS).

What is the most likely reason that unstructured decisions are typically made by higher-level management?

They require strategic, long-term thinking.

What is the term for a CRM that tracks the type of sale that is most likely to make a person purchase an item that they have previously viewed on an e-commerce site?

User Experience

IBM estimates the U.S. economy loses over $3.1 trillion per year as a result of

bad data.

What is the MOST direct way in which customer relationship management (CRM) systems can help businesses increase their sales?

by helping them identify and attract prospective customers

How does using a CRM to track customer acquisition rates help organizations improve their future customer acquisition rates?

by revealing whether their marketing efforts are effective or require changes

A key component, and major advantage, of an ERP is its

centralized database.

In a multiple-criteria decision analysis (MCDA), what are you doing when you are identifying available options?

comparing different options in order to determine which are best candidates for measure

Simon sells products with higher perceived values than his competitors' offerings. This provides Simon's firm with

competitive advantage.

Sales managers must identify the customer leads that best fit the company's goals. CRM assists in this aspect of a company's sales process, which is known as

customer qualification.

Sears revolutionized catalog (mail order) sales but failed to make the e-commerce leap. Amazon capitalized on this technology. What concept underlies Amazon's success?

disruptive innovation

Which type of ERP module collects data such as customer information, order history, shipping information, and customer satisfactions measures?

e-commerce operations

A manager is using the organization's ERP software to generate a report that links its human resources data to its overall financial performance. What is one type of HR data that the ERP accounting module could factor into this report?A

employees' payroll and benefits

National Weather Service databases are used by modern supply chain management systems to track weather events that could impact logistics. Which element of a PESTEL analysis does this example represent?

environmental

One benefit of using a CRM system to segment a market (rather than another type of market segmentation tool) is that a good CRM tool

facilitates using the company's own, collected data about customers.

Rather than creating a new product, Chinese manufacturers have been notably successful at adopting a different strategy. They have been able to make and offer a competing product so rapidly that the majority of adopters have a choice when purchasing the product for the first time. This is referred to as a

fast-follower strategy.

While ERP systems offer many competitive advantages to users, particularly those in upper management, a significant disadvantage is their

high costs

What is the third step when applying multiple-criteria decision analysis (MCDA)?

identify and select objectives and criteria

What is the overarching goal of organizations choosing to adopt an enterprise resource planning (ERP) system?

increase operational efficiency

With the increasing presence of Internet e-commerce sites, the force of customers has

increased.

Which is the stage of Herbert Simpson's four stage approach to decision making where the problem is identified?

intelligence

With a product differentiation strategy, a company charges more for its product than its competitors charge for theirs because:

its product is unique in a way that justifies the higher price.

Under what type of system are employees encouraged to halt the manufacturing process in the event of a manufacturing error or safety risk?

lean manufacturing system

Which of the measurable outcomes of the balanced scorecard framework focuses on organizational culture?

learning and growth

Users often find it difficult to implement or even comprehend a new ERP system without significant training because of ERPs' steep

learning curves

Customized communication is best described as

matching the message to the individual customer.

What is a key advanced technology behind CRM analytics?

online analytical processing

Quantifiable values that validate how effectively an organization is accomplishing significant business objectives are called key

performance indicators (KPIs)

What are the five classical functions of managers as identified by management theorist Henri Fayol?

planning, organizing, coordinating, deciding, controlling

What aspect of today's business environment is central to the need for robust transaction management processing systems?

proliferation of e-commerce-based organizations

What is the purpose of executive support systems (ESSs)?

provide output that helps managers make important decisions

In the initiation phase of project management, the client and project manager determine if the project is SMART. What does the R in SMART refer to?

realistic

Coca-Cola and PepsiCo dominate the soft drink market. However, during the 2000s, many customers switched from soft drinks to water, causing Coca-Cola and PepsiCo to develop Dasani and Aquafina. The ability of customers to switch from one product to an alternate product illustrates what Porter called the force of

substitutes.

To calculate an organization's customer equity (CE) value we first determine

the future lifetime revenue the organization's customers will generate.

The concept of "share of customer" focuses on getting

the most business from the fewest customers.

For strategic planning, managers should choose an aggressive strategy if a SWOT analysis reveals that the organization faces weak external ________ and its external opportunities are matched with internal strengths.

threats