Chapter 9 BIS

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) churn rate B) CLTV C) cost per lead D) cost per sale

CLTV

All CRM packages contain modules for PRM and ERM.

false

Operational CRM applications include tools for A) identifying buying patterns. B) calculating CLTV. C) salesforce automation. D) pinpointing unprofitable customers.

salesforce automation

Analytical CRM uses tools to analyze customer data collected from the firm's customer touch points and from other sources

true

In the pre-Internet environment, supply chain coordination was hampered by the difficulties of making information flow smoothly among different internal supply chain processes

true

Major CRM application software vendors include Oracle and SAP

true

Uncertainties arise in any supply chain because of A) inaccurate or untimely information. B) poor integration between systems of suppliers, manufacturers, and distributors. C) inefficient or inaccurate MIS. D) unforeseeable events

unforseeable events

Analyzing customer buying patterns is an example of A) CLTV. B) analytical CRM. C) operational CRM. D) demand planning.

analytical CRM

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications. A) operational CRM B) analytical CRM C) operational SCM D) analytical SFA

analytical CRM

Analytical CRM applications A) include tools for marketing automation. B) provide consolidated data for operational CRM applications. C) are based on data consolidated from operational CRM applications. D) provide customer-facing applications

are based on data consolidated from operational CRM applications

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

assigning and managing customer service requests

Enterprise software is built around thousands of predefined business processes that reflect A) the firm's organization. B) industry goals. C) best practices. D) cutting edge workflow analyses.

best practices

In order to achieve maximum benefit from an enterprise software package, a business A) customizes the software to match all of its business processes. B) uses only the processes in the software that match its own processes. C) changes the way it works to match the software's business processes. D) selects only the software that best matches its existing business processes

changes the way it works to match the software's business processes

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

churn rate

When tailoring a particular aspect of a system to the way a company does business, enterprise software can provide the company with A) configuration tables. B) Web services. C) data dictionaries. D) middleware.

configuration tables

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

cross-selling

Which supply chain planning function determines how much product is needed to satisfy all customer demands? A) distribution management B) replenishment planning C) demand planning D) order planning

demand planning

A build-to-order supply-chain model is also called a ________ model. A) supply-based B) demand-driven C) replenishment-driven D) push-based

demand-driven

A company's organizations and processes for distributing and delivering products to the final customers is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain

downstream portion of the supply chain

Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other. A) e-business suites B) ERP systems C) middleware D) legacy systems

e-business suites

Which of the following statements about enterprise applications is not true? A) Enterprise applications require organizational learning. B) Enterprise applications introduce "switching costs." C) Enterprise applications are based on organization-wide definitions of data. D) Enterprise applications are best implemented when few changes in business processes are required.

enterprise applications are best implemented when few changes in business processes are required

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

enterprise software is expressly built to allow companies to mimic their unique business practices

Supply chain ________ systems manage 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) demand B) delivery C) planning D) execution

execution

Dell Inc. is an example of a push-based model

false

Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers.

false

Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain

false

Supply chain execution systems enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product.

false

The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers

false

Supply chain planning systems A) track the physical status of goods. B) identify the transportation mode to use for product delivery. C) track the financial information involving all parties. D) track the status of orders

identify the transportation mode to use for product delivery

Marketing modules in CRM systems would provide tools for A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information

identifying profitable and unprofitable customers

Capabilities of supply chain execution systems would not include A) identifying the optimal transportation mode. B) tracking the flow of finished goods. C) managing materials. D) managing warehouse operations

identifying the optimal transportation mode

From your reading of the chapter's opening case, NVIDIA implemented new information systems in order to achieve which of the following business objectives? A) customer and supplier intimacy B) operational excellence C) survival D) improved decision making

improved decision making

Which of the following is not one of the key challenges facing global supply chains? A) geographical distances B) increased costs C) time zones D) cultural differences

increased costs

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

increased inventory levels

Components or parts of finished products are referred to as A) upstream materials. B) raw materials. C) secondary products. D) intermediate products.

intermediate products

Which of the following would not be considered a contact point? A) e-mail B) Web site C) Intranet D) retail store

intranet

Which of the following is an important capability for sales processes that is found in most major CRM software products? A) returns management B) lead management C) channel promotions management D) events management

lead management

Which of the following is not one of the main challenges in implementing enterprise applications? A) high cost of software B) loss of ownership of data C) complex to install and configure D) dependence on third-party vendors

loss of ownership of data

SFA modules in CRM systems would provide tools for A) assigning and managing customer service requests. B) capturing prospect and customer data. C) identifying profitable and unprofitable customers. D) managing sales prospect and contact information

managing sales prospect and contact information

Customer relationship management systems typically provide software and online tools for sales, customer service, and A) marketing. B) account management. C) advertising. D) public relations

marketing

Systems that enable a firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product best describes supply chain ________ systems. A) demand B) delivery C) planning D) execution

planning

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

planning, execution

) Supply chain complexity and scale increases when firms A) move to globalization. B) manage the procurement, manufacturing, and distribution functions themselves. C) produce products and services that coordinate with hundreds or more firms and suppliers. D) modify their existing workflows to comply with supply-chain management systems.

produce products and services that coordinate with hundreds or more firm suppliers

The bullwhip effect is countered by A) globalization. B) disintermediation. C) implementing an SCM. D) reducing information uncertainty.

reducing information uncertainty

________ management is an important capability for customer service processes that is found in most major CRM software products. A) Returns B) Lead C) Account D) Events

returns

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

select the functions of the system you wish to use

Which of the following is not an example of next-generation enterprise applications? A) open-source solutions B) social CRM C) solutions incorporating SCM D) solutions incorporating SOA

solutions incorporating SCM

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 A) distribution channel. B) supply chain. C) value chain. D) marketing channel.

supply chain

Which of the following is not an example of the benefits enterprise systems provide to firms? A) Products are shipped to stores more quickly. B) When products are ordered, the manufacturing and logistics teams are notified immediately. C) There is more accurate sales information for managers to analyze. D) The cost of information systems falls, making the firm more productive.

the cost of information systems falls, making the firm more productive

A ________ is a method of interaction with a customer, such as telephone or customer service desk. A) point of presence B) touch point C) sales point D) client channel

touch point

) Cross-selling is the marketing of complementary products to customers

true

) Inefficiencies in a supply chain are primarily caused by inaccurate information

true

Enterprise systems require fundamental changes in the way the business operates.

true

PRM provides a firm and its distributors trade information and distributes leads about customers.

true

Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.

true

The bullwhip effect is the distortion of information about the demand for a product as it passes from one entity to the next across the supply chain

true

Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating budget

true

Which of the following is not a potential "switching cost"? A) employee training B) upgrading software C) new hardware D) new documentation

upgrading software

A company's suppliers, supplier's suppliers, and the processes for managing relationships with them is the A) supplier's internal supply chain. B) external supply chain. C) upstream portion of the supply chain. D) downstream portion of the supply chain.

upstream portion of the supply chain