MKT 411 Test 4
Tire manufacturer Firebridge sells tires to retail firm A. Average annual sales for firm A is $55,000. Average profit margin is 15%. The expected lifetime is 10 years. Using a discount rate of 15 percent, calculate the Customer Lifetime Value of firm A and choose the closest answer below:
$41,405
If the average service rate is 12 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.
0.565
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 six minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in the queue?
0.900 customers
Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 3 customers per hour, determine the mean interarrival time.
20 minutes
Facility location has ____________on the supply chain.
A long-term impact
Regional trade agreements assist with which of the following?
All of these choices are correct
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?
All of these choices are corret
Examples of regional trade agreements include all of the following EXCEPT:
Association of Indian Markets (AIM)
Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n):
Business cluster
Milan, Wall Street, and Detroit are examples of ____________.
Business clusters
When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as:
Continuous connectivity
A practical independent measure firms can take to improve information security is:
Continuously monitor employee desktop applications, e-mails 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
Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as:
Customer churn
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
According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will:
Decrease the costs in the supply chain
All of the following are considerations used in designing service layouts EXCEPT:
Ease of access to parking lot
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
T/F - A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better.
False
T/F - The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits.
False
The goal of an efficient queuing system is that customers never have to wait in a queue.
False
A customer's lifetime value is calculated by:
Finding the NPV of a customer's projected lifetime profits for the firm
Why do so many CRM programs fail?
Firms concentrate more on the CRM software instead of taking care of customers Hide
A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n):
Foreign Trade Zone
Which of the following is NOT a technique for managing customers' perceived waiting times:
Hiding the wait time
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.
IDK???
The first step in the weighted-factor rating technique is to:
Identify all factors considered important to the facility location decision
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
Service provided by multiple servers acting in parallel is referred to as:
Multiple-channel queuing system
Your company allows customers to "opt-out" of receiving email advertisements. 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:
Post transaction customer service
A customer who enters the waiting line but leaves the system prior to receiving service is said to have:
Reneged
All of the following are included in the five dimensions of service quality EXCEPT:
Responsibility
Which of the following secures the right of employees to decide whether to join or financially support a union?
Right-to-work laws
A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a:
Sales territory management system
David Maister's First Rule of Service is:
Satisfaction = perception − expectation
Which of the following is one of the most basic and important activities of CRM?
Segmenting customers
According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region?
Server factory
The four primary activities of concern in service response logistics are the management of:
Service capacity, waiting times, distribution channels and service quality
As capacity utilization approaches 1.0, which of the following tends to happen?
Services become more congested
Which of the following is a difference between goods and services?
Services cannot be inventoried
Which of the following is NOT a reason for locating in a business cluster?
Sophisticated retailers
________________ is important because what we do today will affect future generations.
Sustainable development
The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on:
Tariffs
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 location considered for a new manufacturing facility.
The breakeven point for these two locations is 625 units per year
CRM systems today require less training because:
They are designed to be more user-friendly
T/F - According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives.
True
T/F - High tariffs encourage multinational corporations to set up factories to produce locally.
True
T/F - The European Union (EU) is considered a regional trade agreement.
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
Which of the following is an example of a person that would be considered to provide a Pure Service?
a. Management Consultant b. Musical Entertainer c. Attorney/Lawyer d. All of these choices are correct.
Which of the following is a critical issue in sustainable development?
climate change
The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________.
gaps
Which of the following are required elements of an effective CRM initiative?
idk
Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products?
idk???
A basic strategy for managing capacity is:
level demand strategy
