SCM final 10-12
Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 6 customers per hour, determine the mean interarrival time.
10 minutes
Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as:
Customer churn
Which of the following customer service elements can be classified as examples of post-transaction elements?
Customer complaint resolution
CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called:
Customer defection analysis
A country that imposes high tariffs discourages foreign-based companies from importing goods and they also may encourage multinational corporations to set up local factories to produce items locally in order to avoid those high tariffs.
True
The Wal-Mart effect is best described by which of the following?
Information technologies have allowed large retailers to maintain good productivity growth rates
A list of quality-of-life factors would most likely include education system, healthcare system, effectiveness of law enforcement, and travel infrastructure (roads/highways).
True
A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.
True
If λ = 6 CUSTOMERS/HOUR and μ = 11 CUSTOMERS/HOUR, in a single server model, find the probability that there will be exactly 1 person in LINE.
0.135
If the average service rate is 15 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes.
0.49
The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.)
0.75
The average transaction at an automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in line? (Choose the closest answer.)
3.000 Customers
CRM Plan Development
A CRM project requires a well-developed set of objectives, a plan that fits within the corporate strategy, and appropriate process for choosing the correct CRM applications, integration or replacement of existing methods, personnel requirements, training, policy development, continued maintenance, and cost and time frame for implementation
Since many companies do not have the knowledge, resources (money/people), or capability of building an infrastructure to support a CRM program, many companies have chosen to outsource this responsibility to a(n):
ASP (application service provider)
According to the textbook, which of the following statements is TRUE?
ASP stands for application service provider
Which of the following is an example of a person that would be considered to provide a Pure Service?
Attorney/Lawyer, Management Consultant, Musical Entertainer, All of these
Which of the following are required elements of an effective CRM initiative?
Automating the salesforce, Segmenting customers, Personalizing customer communications through the use of cross-selling, All of these
Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time. This phenomenon is called:
Baumol's Disease
According to the textbook, which of the following statements is TRUE?
CRM stands for customer relationship management
Which of the following is a reason that experts have referred to China as being a primary location of business in this century?
China is one of the largest recipients of foreign direct investment, China is the second largest exporter to the US, China's population accounts for over 20% of the world's population, All of these
The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of:
Cross-selling
Which of the following customer service elements can be classified as examples of pre-transaction elements?
Customer service policies and the company's choice of organizational structure
Which of the following statements about consumer focused programs/initiatives is TRUE?
Customers want additional support services and other offerings that add value to their initial product or service purchases, CRM programs are simple in that they involve treating customers properly and making them feel valued, CRM programs are complex in that they involve identifying all customers, their needs, and then creating a system geared towards completely satisfying the customer. All of these
Which of the following strategies is being followed by a company that is based on creating a service that is considered to offer unique service elements for which customers may consider paying higher prices?
Differentiation Strategy
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events, like birthdays and anniversaries, this is referred to as:
Event-based marketing
A country that imposes high tariffs encourages foreign-based companies to import goods.
False
A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability.
False
A retailer with two checkout stands is an example of a single-channel, multiple-phase queuing system.
False
A service bundle describes the explicit service purchased.
False
According to the textbook, two models that utilize quantitative data, which can help determine the attractiveness of one location versus another, are the Break-Even Model and the Extrapolated Average Cost Model.
False
Balking occurs when customers decide to leave the queue after some length of waiting time in the queue.
False
Baumol's disease refers to the fact that multiple factor productivity measures tend to be bad, because firms often concentrate on improving one, while neglecting others.
False
Business clusters are areas of extremely high competition where companies that are in the same industry compete for labor, materials, and distribution. They are typically a sign of an unstable economy and are thus likely to produce low levels of innovation and productivity.
False
CRM Programs often fail because they tend to involve suppliers who have their own objectives which can differ from the host CRM company. CRM programs should insulated from first tier⎯suppliers who may widen the scope of the program to point where it could yield few if any results.
False
Facility location is a business decision that ultimately has minimal impact on issues like the cost of supplies, facilities, and materials, as well as lead times and customer service levels since trade-offs tend to negate gains in any single category.
False
If an organization wanted to set up a facility in an area near a number of advanced suppliers, competitors, and research facilities in order to have access to current information on materials, components, and technologies the organization would likely set up a source factory.
False
It is best to segregate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization. Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can create confusion inside the organization.
False
Many multinational corporations are moving their factories and headquarters out of China and into Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers. The more attractive customer markets are developing in the Southeast Asian region, not in China.
False
One problem with services is that they cannot expand globally.
False
Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.
False
Service organizations need to consider the fact that the services they provide are not consumed by the immediate customer, rather, services are typically passed on to customers farther down a distribution channel.
False
Since the 1950s, the percentage of manufacturing and agriculture related jobs has increased much more rapidly than the percentage of service related jobs in United States due to the use of technology and mass production techniques developed during that time.
False
The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American countries.
False
The optimal capacity utilization for an organization would be 100%.
False
Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertailment facilities.
False
Up until now CRM has been very effective for most companies because it has focused on building customers' trust and loyalty, ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.
False
When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.
False
While a well planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM and Toyota since their touches with the customer are few.
False
While most economies have grown through the growth of manufacturing industries, India has experienced an increase in the standard of living because of rapid growth of agricultural industries and a drop in the services related industries.
False
While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location, because of the Internet, the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.
False
Which of the following organizations would be considered an example of a global service?
FedEx, Deutsche Bank, Wal-Mart International, All of these
Some companies import components, use them in the production of their end items, and ultimately export them to other countries. If a company wanted to import the components duty-free, use those components in the production of their end items, and then export them to other countries, they would most likely utilize a(n):
Foreign Trade Zone
Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination:
Hub and spoke
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility. 40,000 + 20x = 25,000 + 50x = 15,000 = 30x = 500 units
LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $40,000 $20 Site B $25,000 $50 Site A is the desired location if the production rate is 650 units per year
Which of the following regional trade agreements is paired with the appropriate region of the world?
MERCOSUR − Argentina, Brazil, Paraguay, and Uruguay
Which of the following organizations were featured as two of the main providers of CRM software applications?
Net Suite and Oracle
Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.
Offshore factory
Which of the following is a method that organizations typically use in attempting to effectively manage the relationships between the organization and its customers at the customer service level?
Reengineering and/or automating call centers based on past call center data, Developing web sites that allow customers to access their personal accounts and/or information like hours of operation, store locations, and product information, Utilizing CRM programs to administer personalized surveys based specific customer segments, All of these
When studying queuing models, a customer who enters the waiting line but leaves the system prior to receiving service is said to have:
Reneged
Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join or financially support a labor union. These laws are called:
Right-to-work laws
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.
SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.20 90 18 70 14 80 16 Currency Stability 0.50 80 40 90 45 80 40 Proximity to Market 0.30 80 24 80 24 80 24 Site B
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.
SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.20 90 65 90 Currency Stability 0.50 80 90 80 Proximity to Market 0.30 80 80 80 All sites are equally attractive
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.
SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.30 90 27 80 24 80 24 Currency Stability 0.40 80 32 85 34 80 32 Proximity to Market 0.30 80 24 80 24 80 24 Site A
Which of the following are required elements of an effective CRM initiative?
Segmenting customers
Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers, minimize exchange risk, and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes.
Server factory
The number of customers per day an organization's service delivery systems are designed to serve within a certain time frame is referred to as:
Service Capacity
While there are many questions and concerns that must be addressed before a final location is determined, there are basically three levels of location decisions. Which of the following is not one of those three levels of location decisions?
Territory and quadrant selection
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.
The breakeven point for these two locations is 1500 units per year
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?
The stability in the location considered, Environmental issues regulated by domestic laws or international trade agreements, Access to suppliers from the location considered, All of these
Which of the following items would be considered a facilitating product?
The tools used to fix your car at an auto shop
Which of the following would result in an INCREASE in productivity?
The value/amount of the inputs used stays the same and the value/amount of outputs increases
A very popular fast food restaurant is presently staffed with three cash register attendants that are taking orders. Upon entering the restaurant, customers must choose from three separate lines, each of which leads to one of the three registers. Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant. To analyze this situation you would use the queuing model for an infinite source, multiple servers, and multiple channels.
True
As customers navigate through a website CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that individual customer.
True
Because integrated supply chains require good suppliers to act as good supply-chain customer partners, CRM programs should include first-tier customer training and education to ensure proper use of purchase products.
True
China's economy is shifting from labor-intensive industries to arrears like marketing and the production of high technology products that typically provide higher levels of value.
True
Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.
True
Facility location is a business decision that will ultimately impact issues like the cost of supplies, facilities, and materials, as well as lead times and customer service levels.
True
Future trends in CRM include coping with the delicate issue of privacy, outsourcing CRM programs to technical specialists, and adapting CRM programs for global use.
True
If an organization wanted to set up a facility in an area near a number of advanced suppliers, competitors, and research facilities in order to have access to current information on materials, components, and technologies the organization would likely set up an outpost factory.
True
In order to maximize customer satisfaction/visits, service organizations must be able to identify customer needs, create systems that can quickly satisfy these needs in a cost-effective manner, hire, train, and schedule service representatives effectively, utilize technology effectively, and conveniently locate service facilities.
True
It is best to integrate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization. Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can help managers make more informed customer-focused decisions.
True
Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.
True
Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way.
True
Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers. The more attractive customer markets are developing in China.
True
One important element for CRM is to segment customers on the basis of things like products purchased, sales history, demographic information, and desired product features.
True
Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world.
True
Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.
True
Service facilities are normally decentralized.
True
Since the 1950s, the percentage of service related jobs has increased much more rapidly than the percentage of manufacturing and agriculture related jobs in United States due to the use of technology and mass production techniques developed during that time.
True
Some of the ways customers evaluate the customer service capabilities of an organization are through their experiences with human response call centers, automated response call centers, consumer web sites, and field service employees.
True
The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and MERCOSUR, an agreement between Argentina, Brazil, Paraguay, and Uruguay to develop a common South American market.
True
Through the use permission marketing programs, customers are allowed to select the type of communications companies can make with them. Actually, customers can even choose to be completed eliminated from both e-mail and traditional mailing lists.
True
When a customer takes their automobile to a carwash, the carwash provides state utility to the vehicle.
True
When trying to gauge a nation's competitiveness a manager may want to consult one of two primary world competitiveness rankings, the World Competitiveness Yearbook published by IMD and The Global Competitiveness Report prepared by the World Economic Forum.
True
When web sites suggest other items for purchase based on already purchased items, this is an example of Cross-Selling.
True
While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.
True
While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood, California because companies can easily collaborate, compete, and share knowledge, some high-tech clusters have developed in areas with emerging economies such as Mexico, Singapore, and India.
True
While many developing countries are attractive to companies seeking out low labor costs, there are other important factors such as productivity levels, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important, in determining facilities' location.
True
Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?
Utilizing fewer facilitating products
The three generic competitive strategies are:
cost leadership, differentiation, and focus