EXAM 4 MKT 411
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
The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Sales.
FALSE
According to the text, firms are using social media for all of the following EXCEPT:
To obtain leads for hiring new employees
Which of the following would be considered a quality of life factor?
All of these (education, arts, community safety)
The following facility location technique uses fixed and variable costs to analyze potential locations:
Break-even model
Firms can safeguard customer information by doing which of the following?
Both A and B
Startup and other smaller firms do not typically benefit from locating in cluster areas.
TRUE
Consideration of regional trade agreements is critical to the facility location decision process because of their impact on which of the following?
All of these
Which of the following is a factor in choosing a location?
All of these
Which of the following issues are important to consider when trying to determine the location of a firms location?
All of these
Examples of regional trade agreements include all of the following EXCEPT:
Association of African Markets (AAM)
A particular independent measure firms can take to improve information security is:
Continuously monitor employee desktop applications, emails and phone calls
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
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
The element of a CRM program in which a sutler's lifetime value is calculated is referred to as:
Customer value determination
Which of the following is a critical issue in sustainable development?
Energy consumption/production
Which of the following trade agreements was set up after WWII and originally consisted of six countries?
European Union (EU)
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
All of the following are recommended for designing and implementing a successful CRM program EXCEPT:
Expect employees to "learn on the job" and adapt their way of working.
A "lead factory" is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers in order to have access to the most current information on materials, components, technologies and products.
FALSE
A country that imposes high tariffs encourages foreign-based companies to import goods.
FALSE
According to the text, with increasing globalization the access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.
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
Cloud computing is a term used to describe how a customer navigates a website.
FALSE
Companies that provide on-demand applications are often referred to as data warehouses.
FALSE
Customers of companies, using CRM applications, should not be concerned with their personal information being compromised or being shared with other companies.
FALSE
In general, companies avoid social media sites since they rarely are able to find useful information about customer opinions via blogs and social networking sites.
FALSE
Only employees who will enter CRM data should be involved in the CRM implementation plan.
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
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 European Trade Union (EU) created the worlds largest free trade area.
FALSE
The objectives of any CRM initiative should be focused on what the company can reasonable achieve.
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
Using the weighted factor rating model, the location with the lowest total weighted score is the recommended location.
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 since their touches with the customer are few.
FALSE
While business clusters seem logical in well established areas with developed economies like Silicon Valley and Hollywood, because companies can easily collaborate, compete, and share knowledge, some high tech clusters have developed in areas with emerging economies such as Costa Rica, the Philippines, and Uganda.
FALSE
While the developmental 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 orgnizations facilities.
FALSE
Why do so many CRM programs fail?
Firms concentrate more on the CRM software instead of taking care of customers.
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
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
Which of the following is a project that has environmental implications concerning public health and climate change?
Keystone XL pipeline
Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a:
Knowledge management system
Which of the following regional trade agreements is paired with the appropriate region of the world?
MERSCOSUR- Argentina, Brazil, Paraguay, and Uruguay
The use of quick response codes (QR codes) to retrieve marketing information is a type of:
Mobile marketing
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
Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers. This is referred to as:
Permission marketing
You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of
Posttransaction customer service
The element of a CRM program involved with the use of data-mining software and customer behavior analysis is:
Predicting customer behaviors
Which of the following secures the right of employees to decide whether or not to join or financially support a union?
Right-to-work laws
A system which allows sales managers to obtain current information and reporting capablities regarding each salespersons activities on each customers account is referred to as a:
Sales territory management system
Which of the following are required elements of an effective CRM initiative?
Segmenting customers
Which of the following is one of the most basic and very important actives of CRM?
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
Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers, the type of factory needed can be referred to as a:
Server factory
Cloud based CRM services are particularly useful for:
Small companies with limited resources.
Which of the following is NOT a reason for locating in a business cluster?
Sophisticated retailers
According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as an
Source factory
The Brundtland Commission defines _____ as the ability to meet the needs of the present without compromising the ability of the future generations to meet their own needs.
Sustainable development
A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability.
TRUE
A project with environmental implications is the Keystone XL pipeline.
TRUE
According to the text, customer relationship management refers to building and maintaining profitable long-term customer relationships.
TRUE
According to the text, poor planning is typically the cause for most unsuccessful CRM initiatives.
TRUE
According to the text, the primary objective of an offshore factory is to take advantage of low labor costs.
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
China's economy is shifting from labor intensive industries to areas like marketing and the production of high technology products that typically provide higher levels of value.
TRUE
Facility location is a business decision that will ultimately impact issues like project cost, shareholder and customer reaction, as well as lead times and customer service levels.
TRUE
Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.
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.
TRUE
Private clouds allow corporate users to internally manage their data centers.
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
Safegaurding customer information is a legal and ethical responsibility for any company collecting, processing, and transmitting sensitive customer data.
TRUE
Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.
TRUE
The critical issues in sustainable development are energy consumption/production, air pollution and climate change.
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 completely eliminated from both e-mail and traditional mailing lists.
TRUE
Training managers and users in the key customer contact areas can help the firm to decide what customizations to the CRM applications are required.
TRUE
While a company's Intenet 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 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
You work for a company that segments customers by demographic information information markets specifically to those customers who are located in the Los Angeles area. This is an example of:
Target marketing
Which of the following is a U.S. law which requires compliance by all firms engaged in handling customer information:
The U.S. patriot act
Service facilities are normally decentralized.
True
All of the following are required elements for the development of an effective CRM initiative EXCEPT:
Utilization of MRP
The following facility location technique uses quantitative and qualitative dimensions and is subject to inerpretation and bias by the analyst:
Weighted factor rating model
When a number of interconnected companies and institutions from a particular field are located in a single geographic location, that location is referred to is a:
business cluster
Users in a company can retrieve and study a large amount of information about consumers by housing that information in a. centralized database that is commonly referred to as a:
data warehouse
A retailer with two checkout stands is an example of a single channel, multiple phase queuing system.
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
Service response logistics is the management and coordination of the organizations activities that occur after the service has being performed./
false
the optimal capacity utilization for an organization would be 100%
false
Which of the following factors serves as a magnet for business clusters?
research parks
A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.
true
A very popular fast food restaurant is presently staffed with 3 cash register attendants that are taking orders. Upon entering the restaurant, customers must choose from 3 seperate lines, each of which leads to one of the 3 registers. Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant. To analyze the situation you would use the queuing model for an infinite demand source, multiple servers, and multiple channels.
true
An office setting could be an example of a departmental layout that maximizes closeness desirability.
true
Cross training workers is a typical capacity management technique for times when demand exceeds capacity.
true
Departmental layouts that reduce distances traveled are designed to reduce the travel times of customers when moving from one area to another.
true
In most services, customers are either directly or indirectly involved in the production of the service itself.
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
When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.
true
When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customer.
true
