ITC 761 Exam 3

Supply chain inefficiencies waste as much as ________ percent of a company's operating costs? A) 50 B) 15 C) 35 D) 25 E) 10

25%

What percent of top retailers now have m-commerce websites? A) 27 percent B) 47 percent C) 17 percent D) 57 percent E) 67 percent

47%

According to small world theory, you are only ________ links away from any other person on earth. A) 6 B) 100 C) 2550 D) 5 E) 10

6

According to a 2020 survey of 181 ERP users conducted by Panorama Consulting Group, 38 percent of ERP projects experienced cost overruns, and these overruns averaged ________ percent over budget. A) 75 B) 50 C) 66 D) 25 E) 33

66%

Which of the following applications provides analysis of customer data? A) Analytical ERM B) Operational CRM C) Operational ERM D) Operational SCM E) Analytical CRM

Analytical CRM

Which of the following tools is used to analyze customer buying patterns? A) Demand planning B) CLTV C) Operational CRM D) Analytical CRM E) SFA

Analytical CRM

Which of the following best illustrates the sales revenue model? A) Pandora provides basic services for free but charges a premium for advanced services. B) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. C) Apple accepts micropayments for single music track downloads. D) Netflix charges customers a monthly fee for access to its library of movies. E) eBay receives a small fee from a seller if a seller is successful in selling an item.

Apple accepts micropayments for single music track downloads.

Customer service modules in CRM systems provide tools for: A) managing sales prospect and contact information. B) organizing effective marketing campaigns. C) assigning and managing customer service requests. D) capturing prospect and customer data. E) identifying profitable and unprofitable customers.

Assigning and managing customer service requests

Which of the following types of e-commerce involves businesses selling goods and services directly to individuals via the Internet? A) B2B e-commerce B) C2C e-commerce C) B2C e-commerce D) P2P e-commerce E) M-commerce

B2C e-commerce

Craigslist is an example of: A) B2B e-commerce. B) B2G commerce. C) C2C e-commerce. D) B2C e-commerce. E) M-commerce.

C2C e-commerce.

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company? A) CLTV B) Churn rate C) Cost per lead D) Cost per sale E) Customer average value

CLTV - Customer Lifetime Value

Operational CRM applications include tools for all of the following except: A) customer service support. B) call center support. C) sales force automation. D) calculating CLTV. E) marketing automation.

Calculating CLTV

The measurement of the number of customers who stop using or purchasing products or services from a company is called: A) CLTV. B) turnover percentage. C) switching costs. D) switch rate. E) churn rate.

Churn Rate

Which of the following Internet business models involves a merchant creating an online digital environment that enables people with like interests to share information? A) Service provider B) Transaction broker C) Portal D) Community provider E) Market creator

Community provider

Which of the following statements about enterprise applications is not true? A) Some enterprise applications, such as SCM systems, require multiple organizations to share information and business processes. B) Companies adopting enterprise applications can also save time and money by extensively customizing their applications to fit their business processes. C) Enterprise applications require organizational learning. D) Some enterprise applications, such as CRM systems, typically require some data cleansing work. E) Enterprise applications involve complex software.

Companies adopting enterprise applications can also save time and money by extensively customizing their applications to fit their business processes.

Which of the following enables a company to tailor a particular aspect of enterprise software to the way a company does business? A) Data dictionaries B) Configuration tables C) Groupware D) Middleware E) Web services

Configuration tables

Which of the following is not one of four types of presence to be considered when building an e-commerce presence? A) Websites B) Email C) Offline media D) Corporate E) Social media

Corporate

Selling a customer with a checking account a home improvement loan is an example of: A) sales force automation. B) direct marketing. C) cross-channel promotions. D) cross-selling. E) operational CRM.

Cross-Selling

PepsiCo using Super Bowl viewers to build an online video is an example of: A) prediction markets. B) behavioral targeting. C) crowdsourcing. D) long-tail marketing. E) social shopping.

Crowdsourcing

Which of the following is the last entity in the downstream portion of a supply chain? A) Customers B) Retailers C) Tier 3 suppliers D) Manufacturers E) Distributors

Customers

The total time it takes to complete a business process, from start to finish, is called its ________ time. A) development B) actualization C) fulfillment D) cycle E) service

Cycle

Which supply chain planning function determines how much product is needed to satisfy all customer demands? A) Replenishment planning B) Distribution management C) Order planning D) Demand planning E) Customer planning

Demand Planning

From your reading of the chapter's opening case, which of the answers below is not a reason why Lenzing chose JDA's Sales & Operations Planning software? A) Improve sales forecast accuracy B) Eliminate manual processes C) Minimize the environmental impact of its products D) Create an end-to-end supply chain planning process E) Develop a new business model

Develop a new business model

Removing the business process layers in a distribution channel is called: A) disintermediation. B) BPR. C) market transparency. D) network effects. E) market segmentation.

Disintermediation

Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing. A) asymmetric B) customized C) flexible D) menu E) dynamic

Dynamic

Amazon.com is known primarily for its use of which of the following business models? A) E-tailer B) Market creator C) Transaction broker D) Portal E) Content provider

E-tailer

________ software modules deal with setting employee objectives, performance, and compensation. A) DRM B) SFA C) ERM D) SCM E) PRM

ERM - Employee Relationship Management

Which of the following provides a suite of integrated software modules and a common central database that allows data to be used by multiple functions and business processes? A) Process management software B) ERP systems C) Groupware D) CRM software E) Supply chain management systems

ERP Systems

Which of the following is an example of a company primarily engaged in B2B e-commerce? A) eBay B) Uber C) Elemica D) Yahoo E) Walmart

Elemica

Which of the following is not a business intelligence feature of SAP's next generation business intelligence applications? A) Interactive dashboards B) Ad hoc analysis C) What-if scenario analysis D) Employee relationship management E) AI machine learning

Employee relationship management

CRM systems help businesses achieve which of the following business objectives? A) Automated production forecasts B) Automated accounting processes C) Enhanced customer intimacy D) Faster time to market with new products and services E) Enhanced supplier intimacy

Enhanced customer intimacy

Which of the following is not true about enterprise systems? A) Enterprise software is expressly built to allow companies to support their existing business practices. B) Enterprise systems help firms respond rapidly to customer requests for information or products. C) Enterprise software includes analytical tools to evaluate overall organizational performance. D) Enterprise system data have standardized definitions and formats that are accepted by the entire organization. E) Enterprise systems provide firmwide information to help managers make better decisions.

Enterprise software is expressly built to allow companies to support their existing business practices.

Which of the following statements about exchanges is not true? A) Exchanges are the most successful form of B2B commerce. B) Some exchanges provide vertical markets. C) Go2Paper is an example of an exchange. D) Exchanges are independently owned third-party Net marketplaces. E) Some exchanges enable a spot market.

Exchanges are the most successful form of B2B commerce.

A company having difficulty with timely delivery of parts to its manufacturing plants should implement a ________ system. A) supply chain planning B) bullwhip C) continuous replenishment D) demand forecasting E) supply chain execution

Execution

Which of the following best illustrates the advertising revenue model? A) eBay receives a small fee from a seller if a seller is successful in selling an item. B) Facebook provides a social network for free but shows sponsored content in users' News Feeds. C) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. D) Apple accepts micropayments for single music track downloads. E) Netflix charges customers a monthly fee for access to its library of movies.

Facebook provides a social network for free but shows sponsored content in users' News Feeds.

Which of the following is the largest mobile advertising market? A) Facebook/Instagram B) Microsoft C) Google D) Yahoo E) Twitter

Facebook/Instagram

Geoadvertising sends ads to users based on their: A) GPS locations. B) website behaviors. C) shopping preferences. D) Google Maps settings. E) home addresses.

GPS locations.

The business value of an effective supply chain management system includes all of the following except: A) increased inventory levels. B) cost reduction. C) faster time to market. D) supply matched to demand. E) improved delivery service.

Increased inventory levels

Which of the following dimensions of e-commerce technology has the potential to raise the quality of information? A) Global reach B) Customization C) Information density D) Interactivity E) Richness

Information density

In the supply chain, components or parts are referred to as: A) secondary products. B) raw materials. C) downstream organizations and processes. D) intermediate products. E) upstream materials, organizations, and processes.

Intermediate Parts

Which of the following would not be considered a contact point? A) Email B) Website C) Retail store D) Facebook E) Intranet

Intranet

Which of the following is not a major CRM application software vendor? A) JDA Software B) SAP C) Microsoft D) Salesforce.com E) Oracle

JDA Software

Major CRM software products include which of the following capabilities to support the sales process? A) Returns management B) Lead management C) Events management D) Customer satisfaction management E) Channel promotions management

Lead Management

Using the Internet to find potential customers inexpensively for products that have low demand is an example of: A) crowdsourcing. B) long tail marketing. C) clickstream advertising. D) online profiling. E) behavioral targeting.

Long tail marketing

What is the primary benefit to consumers of disintermediation? A) Faster service B) Lower costs C) Higher quality D) Greater choices E) None, because disintermediation primarily benefits manufacturers.

Lower costs

Compared to traditional markets, digital markets have: A) higher menu costs. B) weaker network effects. C) lower search costs. D) greater asymmetry. E) higher transaction costs.

Lower search costs.

The difference between push- and pull-based models is summarized by which of the following slogans? A) Push what we make, not pull what we make. B) Make what we sell, not sell what we make. C) Make what we push, not push what we sell. D) Sell what we make, not make what we sell. E) Pull what we make, not push what we sell.

Make what we sell, not sell what we make.

The universal standards of the Internet and e-commerce lower which of the following? A) Information density B) Richness C) Ubiquity D) Market entry costs E) Interactivity

Market entry costs

CRM systems typically provide software and online tools for sales, customer service, and: A) human resources. B) account management. C) marketing. D) advertising. E) public relations.

Marketing

Which of the following is not an example of location-based services? A) Foursquare B) Waze C) Uber D) Google Maps E) Netflix

Netflix

Facebook's "like" button is an example of which of the following? A) Collaborative shopping B) Social search C) Social sign-on D) Network notification E) Newsfeed

Network notification

Which of the following is not a major entity in Nike's supply chain? A) Nike's contract suppliers B) Nike's retailers C) Nike's employees D) Nike's customers E) Nike's distributors

Nike's Employees

Major CRM products typically have all of the following service capabilities except: A) returns management. B) order management. C) customer satisfaction management. D) service analytics. E) call center & help desk.

Order Management

________ software modules seek to enhance collaboration between a company and its selling partners. A) PRM B) SCM C) ERM D) SFA E) DRM

PRM

Selling the same goods to different targeted groups at different prices is called: A) cost optimization. B) price gouging. C) price discrimination. D) cost personalization. E) cost customization.

Price discrimination

The process of sourcing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements is called: A) procurement. B) production. C) e-procurement. D) SCM. E) distribution

Procurement

A supply chain driven by actual customer orders is called a ________ model. A) pull-based B) replenishment-driven C) supply-based D) market-driven E) build-to-stock

Pull-Based

Walmart's continuous replenishment system is an example of a(n) ________ model. A) supply chain optimization B) pull-based C) forecast-based D) push-based E) build-to-stock

Pull-Based

A supply chain driven by forecasts or best guesses of consumer demand follows a(n) ________ model. A) build-to-order B) optimized C) pull-based D) demand -driven E) push-based

Push-Based

Coca-Cola implemented enterprise software from SAP that enabled it to achieve all of the following except: A) reducing the cost of raw materials. B) reducing the number of employees. C) reacting faster to market changes. D) improving its bargaining power with suppliers. E) standardizing business processes worldwide.

Reducing the number of employees

Which of the following dimensions of e-commerce technology involves the integration of video, audio, and text marketing messages into a single marketing message and consumer experience? A) Social technology B) Personalization/customization C) Ubiquity D) Richness E) Interactivity

Richness

________ modules in CRM systems help sales staff increase their productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services. A) Complex B) SFA C) SOA D) Customer E) Marketing

SFA - Sales Force Automation

Which of the following is not an example of a next-generation enterprise application? A) Microsoft Dynamics 365 B) Salesforce.com's Einstein AI C) Social CRM D) SAP R/3 E) SAP S/4HANA Cloud

Sap R/3

The effort required to locate a suitable product is called: A) search costs. B) shopping costs. C) menu costs. D) location costs. E) price discrimination.

Search costs

Which of the following marketing formats is sales-oriented, rather than branding-oriented or a mix? A) Display ads B) Lead generation C) Rich media D) Search engine E) Video

Search engine

You have been asked to implement enterprise software for a manufacturer of kitchen appliances. What is the first step you should take? A) Map the software's business processes to the company's business processes. B) Select the business processes you wish to automate. C) Map the company's business processes to the software's business processes. D) Rewrite the software to support the way the company's business processes work. E) Select the functions of the system you wish to use.

Select the functions of the system you wish to use.

Which of the following enables a business to connect customer conversations and relationships from social networking sites to CRM processes? A) Operational CRM B) ERM module C) Social CRM D) PRM module E) Analytical CRM

Social CRM

A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a(n): A) supply chain. B) marketing channel. C) information system. D) value chain. E) distribution channel.

Supply Chain

Which of the following enables a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product? A) Supply chain optimization system B) Supply chain delivery system C) Supply chain execution system D) Supply chain planning system E) Supply chain demand system

Supply Chain Planning System

The WMS that Haworth Incorporated uses is an example of which of the following? A) Supply chain execution system B) Build-to-order model C) Supply chain planning system D) Just-in-time strategy E) Continuous replenishment system

Supply chain execution system

Which of the following manages the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner? A) Supply chain execution system B) Supply chain demand system C) Supply chain optimization system D) Supply chain planning system E) Supply chain delivery system

Supply chain execution system

Schneider National is an example of which of the following? A) Distributor B) Tier 1 supplier C) Third-party logistics provider D) Contract manufacturer E) Tier 2 supplier

Third-Party Logistics Provider

Which of the following statements about EDI is not true? A) Today, EDI is only used for document automation. B) EDI systems are increasingly web-enabled. C) About 80 percent of online B2B e-commerce is still based on EDI. D) Many organizations still use private networks for EDI. E) Each major industry in the United States has EDI standards.

Today, EDI is only used for document automation.

A ________ is an interaction with a customer. A) sales point B) touch point C) point of service D) point of presence E) client channel

Touch Point

Supply chain planning systems perform all of the following functions except: A) establish inventory levels for raw materials and finished goods. B) determine how much product to manufacture in a given time period. C) determine where to store finished goods. D) track the physical status of goods. E) identify the transportation mode to use for product delivery.

Track the physical status of goods.

All of the following are examples of social commerce companies except: A) Facebook. B) Uber. C) Instagram. D) Twitter. E) Pinterest.

Uber

The ________ includes a company's suppliers, the suppliers' suppliers, and the processes for managing relationships with them? A) intermediate portion of the supply chain B) upstream portion of the supply chain C) supplier's internal supply chain D) downstream portion of the supply chain E) logistics supply chain

Upstream portion of the supply chain

Which of the following is a milestone for the Phase 1: Planning phase of developing an e-commerce presence? A) Social media plan B) Web mission statement C) Mobile media plan D) Functional website E) Website plan

Web mission statement

Compared to traditional goods, digital goods have: A) higher inventory costs. B) a lower marginal cost of production on a per unit basis. C) lower initial production costs. D) higher marginal costs. E) higher delivery costs.

a lower marginal cost of production on a per unit basis.

To eliminate excessively high inventories of its Pampers disposable diapers at various points along its supply chain because of such distorted information, Procter & Gamble did all of the following except: A) use more accurate demand forecasting. B) revise its supply chain processes. C) revise its sales processes. D) revise its marketing processes. E) add safety stock.

add safety stock

Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party. A) complexity B) competition C) discrimination D) asymmetry E) transparency

asymmetry

Enterprise software is built around thousands of predefined business processes that reflect: A) best practices. B) the firm's culture. C) government regulations. D) cutting edge workflow analyses. E) industry benchmarks.

best practices

A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect. A) network B) diffraction C) bullwhip D) whirlpool E) ripple

bullwhip

An environment where consumers can share their shopping experiences with one another by viewing products, chatting, or texting about brands, products, and services is an example of: A) web personal marketing. B) social search. C) collaborative shopping. D) network notification. E) social sign-on.

collaborative shopping.

To achieve the maximum benefit of a new ERP system, Tasty Baking implemented an enterprise system by: A) customizing less than 5 percent of the enterprise system processes. B) using a cloud-based version of the ERP. C) retaining its legacy systems to operate as a backup to the new enterprise system. D) using only the pre-defined processes in the ERP software that matched its own processes. E) changing the ERP software as needed to match their own processes.

customizing less than 5 percent of the enterprise system processes.

Distribution and delivery of products to retailers is part of the: A) downstream portion of the supply chain. B) upstream portion of the supply chain. C) intermediate portion of the supply chain. D) supplier's internal supply chain. E) external supply chain.

downstream portion of the supply chain.

Which of the following best illustrates the transaction fee revenue model? A) Apple accepts micropayments for single music track downloads. B) Yelp receives a fee after steering a customer to a participating website where he or she makes a purchase. C) Pandora provides basic services for free but charges a premium for advanced services. D) eBay receives a small fee from a seller if a seller is successful in selling an item. E) Netflix charges customers a monthly fee for access to its library of movies.

eBay receives a small fee from a seller if a seller is successful in selling an item.

Supply chain execution systems provide all of the following functions except: A) managing materials. B) tracking the flow of finished goods. C) generating demand forecasts for products. D) managing warehouse operations. E) managing the financial information involving all parties.

generating demand forecasts for products

Enterprise systems improve management decision making in all the following ways except: A) determining the profitability of products. B) improving forecasts of consumer behavior. C) providing up-to-the-minute data on sales, inventory, and production. D) providing more accurate sales and production forecasts. E) implementing standard definitions and formats worldwide.

improving forecasts of consumer behavior.

In a ________ strategy, components arrive exactly at the moment they are needed and finished goods are shipped as soon as they leave the assembly line. A) safety-stock B) bullwhip C) streamlined D) just-in-time E) frictionless

just-in-time

All of the following are examples of supply chain inefficiencies except: A) just-in-time production. B) parts shortages. C) high transportation costs. D) underused plant capacity. E) excessive finished goods.

just-in-time-production

SFA modules in CRM systems provide tools for all of the following except: A) managing customer service requests. B) team selling. C) sales forecasting. D) managing sales prospect and contact information. E) territory management.

managing customer service requests.

Airbnb uses the ________ business model. A) portal B) community provider C) service provider D) transaction broker E) market creator

market creator

In digital markets: A) switching costs decline. B) search costs increase. C) menu costs are lower. D) network costs decline. E) information asymmetry increases.

menu costs are lower

Content providers use ________ systems to process large amounts of very small monetary transactions cost-effectively. A) transaction fee B) mobile payment C) subscription D) affiliate revenue E) micropayment

micropayment

Supply chain software can be classified as either supply chain ________ systems or supply chain ________ systems. A) upstream; downstream B) maintenance; development C) demand; continual D) push; pull E) planning; execution

planning; execution

Procurement involves all of the following except: A) making delivery arrangements. B) production scheduling. C) paying for goods. D) negotiating with suppliers. E) sourcing.

production scheduling.

The bullwhip effect can be countered by: A) disintermediation. B) implementing a CRM. C) reducing information uncertainty. D) globalization. E) product differentiation.

reducing information uncertainty.

Transaction brokers: A) provide a digital environment where buyers and sellers can meet, display products, search for products, and establish prices. B) provide online meeting places where people with similar interests can communicate. C) generate revenue from advertising or from directing buyers to sellers. D) sell physical products directly to consumers or individual businesses. E) save users money and time by processing transactions normally handled in person, by phone, or by mail online.

save users money and time by processing transactions normally handled in person, by phone, or by mail online.

Marketing modules in CRM systems provide tools for all of the following except: A) qualifying leads. B) capturing prospect and customer data. C) tools for assessing its selling partners' performance. D) identifying profitable and unprofitable customers. E) identifying opportunities for cross-selling.

tools for assessing its selling partners' performance.