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Chapter 9
Customer Relationship Management and Supply Chain Management
1) Over time, the customer relationship with vendors has become more personal.
Answer: False
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
3) The real problem with interacting with customers over the Web is that the company does not have an
opportunity to make a good first impression in person.
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
Answer: False
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
5) CRM means that a company should interact with its customers as a group.
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Answer: False
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
6) Properly designed CRM systems provide a single, enterprisewide view of each customer.
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
7) In the past, customer data has been located all over the company, typically in the functional areas.
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
9) Transactional CRM systems provide interactive communication with the customer throughout the
organization.
Answer: False
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
Information System, Third Canadian Edition Rainer
10) For purposes of efficiency, customer data are best stored in the functional areas of the organization.
Answer: False
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
11) Collaborative CRM systems provide interaction with customers throughout the entire organization.
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
12) Operational CRM systems support the front-office business processes which directly interact with
customers.
Answer: True
Learning Objective: Describe the two major components of operational CRM systems, and list three applications
used in each component, and provide at least one example of how businesses use each application
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
Answer: True
Learning Objective: Describe the two major components of operational CRM systems, and list three applications
used in each component, and provide at least one example of how businesses use each application
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
14) If you have visited Amazon’s Web site previously and then return, Amazon recommends other books that
you might like. This is called cross-selling.
Answer: True
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Learning Objective: Describe the two major components of operational CRM systems, and list three applications
used in each component, and provide at least one example of how businesses use each application
15) Mobile CRM systems are targeting customers through their portable devices such as smart phones.
Answer: True
Learning Objective: Compare and contrast mobile CRM systems, on-demand CRM systems, and open-source
CRM systems and identify one main advantage and one main drawback of each.
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Easy
16) Open-source CRM software doesn’t have as many features or functions as other DRM software.
Answer: False
Learning Objective: Compare and contrast mobile CRM systems, on-demand CRM systems, and open-source
CRM systems and identify one main advantage and one main drawback of each..
Section Reference: 9.4 Other Types of Customer Relationship Management Systems Systems
Difficulty: Easy
17) Modern organizations are concentrating on their core competencies and on becoming more flexible and
agile.
Answer: True
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
18) Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished,
outbound products.
Answer: False
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
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19) Sourcing from external suppliers occurs in the upstream portion of the supply chain.
Answer: True
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
20) Packaging and assembly take place in the downstream portion of the supply chain.
Answer: False
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
21) There are typically four flows in the supply chain: materials, information, returns, and financial.
Answer: False
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
22) The goal of SCM systems is to reduce friction along the supply chain.
Answer: True
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
Answer: False
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Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
Answer: True
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
25) Whether forecasters overestimate or underestimate demand, the company still faces problems.
Answer: True
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
Answer: False
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
27) The most common solution to supply chain problems is building inventories.
Answer: True
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Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
28) Horizontal integration is a business strategy in which a company buys its suppliers.
Answer: False
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
29) Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply
chain.
Answer: False
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems. Identify two major challenges in
setting accurate inventory levels throughout the supply chain, and describe three popular strategies to solve
supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
30) Internet protocol data interchange is a communication standard that enables business partners to
electronically exchange routine documents.
Answer: False
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Easy
Answer: True
Information System, Third Canadian Edition Rainer
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Easy
32) The Internet-based extranet is much less costly than proprietary networks.
Answer: True
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Easy
Answer: True
Learning Objective: Provide real-world applications for customer relationship management and supply chain
management.
Section Reference: Opening Case
Difficulty: Medium
34) Odds of selling to existing customers = 15%, compared to the odds of selling to new customers = 50%.
Answer: False
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: Defining Customer Relationship Management
Difficulty: Easy
35) P.F. Chang followed active Twitter accounts to make the most of the customer experience.
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: IT’s About Business: An Instantaneous CRM Effort
Difficulty: Easy
36) Customer-facing and customer-touching applications both involve directly interacting with the customers to
solve their problems.
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Answer: False
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
Answer: True
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: IT’s About Business: Refining the Call Center
Difficulty: Easy
Answer: False
Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.
Section Reference: Analytical Customer Relationship Management Systems
Difficulty: Easy
39) Open-source CRM has much more favorable pricing compared to on-premises CRM.
Answer: True
Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: Other Types of Customer Relationship Management Systems
Difficulty: Easy
40) One of the challenges with CRM is the customer is always right and now has more power than ever with the
Internet.
Answer: True
Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: Other Types of Customer Relationship Management Systems
Difficulty: Easy
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Answer: False
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: Supply Chains
Difficulty: Easy
Answer: True
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: Supply Chain Management
Difficulty: Easy
Answer: True
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: Supply Chain Management
Difficulty: Medium
Answer: False
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: Information Technology Support for Supply Chain Management
Difficulty: Hard
Answer: False
Learning Objective: Summarize the fundamental concepts and skills related to customer relationship
management and supply chain management.
Section Reference: Closing Case
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Difficulty: Easy
46) Haya noticed that college students needed to dress up for presentations but never seemed to have any ties,
or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports
themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s
monitors that would display in the dining halls and student union. Haya needs to decide on her CRM strategy
before she can decide on her CRM systems.
Answer: True
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
47) Haya noticed that college students needed to dress up for presentations but never seemed to have any ties,
or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports
themed ties as well as solid colored ties in her school colors. She can put an announcement on the school’s
monitors that would display in the dining halls and student union.
Answer: False
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Medium
48) Over time, the customer relationship with vendors has become more impersonal for all of the following
reasons except:
Answer: d
Learning Objective: Provide real-world applications for customer relationship management and supply chain
management.
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Section Reference: Opening Case: The Next Step in Customer Relationship Management
Difficulty: Hard
a) A process
b) A set of technologies
c) An information system
d) A way of thinking and acting
e) A set of decisions
Answer: d
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Medium
Answer: a
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Medium
a) Telephone contact
b) E-mail
c) Web sites
d) Customer visits to a store
e) None of these – all are touch points
Answer: e
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
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a) a profile
b) a record
c) a 360-degree view
d) a file
e) a consolidated customer map
Answer: c
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
53) Which of the following is the most important enabler of the 360-degree view of the customer across an
organization?
Answer: b
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Hard
Answer: a
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Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
55) _____ systems support the front-office business processes which directly interact with customers.
a) CRM
b) Collaborative CRM
c) Operational CRM
d) Analytical CRM
e) Transactional CRM
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Hard
56) _____ includes those areas where customers directly interact with the company.
a) CRM
b) Analytical CRM
c) Customer-facing CRM
d) Customer-touching CRM
e) Transactional CRM
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
57) Which of the follow statements is false about customer interaction centers (CIC)?
Answer: d
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Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
58) The sales, marketing, and service functions are part of:
a) CRM
b) analytical CRM
c) operational CRM
d) collaborative CRM
e) transactional CRM
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
59) In _____, company representatives use multiple communication channels to support the communications
preferences of customers.
a) telesales rooms
b) group decision support rooms
c) videoconferencing centers
d) sales team meetings
e) customer interaction centers
Answer: e
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
60) _____ is the component of an operational CRM system that automatically records all the aspects in a sales
transaction process.
a) Inbound telesales
b) Outbound telesales
c) Sales team efforts
d) Sales force automation
e) The customer help desk
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Answer: d
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
61) _____ is the practice of marketing additional related products to customers based on a previous purchase.
a) Bundling
b) Up-selling
c) Re-selling
d) Additional selling
e) Cross-selling
Answer: e
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
62) AT&T sells telephone services that include local and long-distance service, voice mail service, caller ID, and
digital subscriber line access to the Internet. This is a form of:
a) up-selling
b) cross-selling
c) bundling
d) customer relationship management
e) customer intimacy
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
63) You are in the market for a small economy car. The salesperson has you drive the economy car, and then
hands you the keys to a mid-size car of the same brand for you to drive. The salesperson is engaged in:
a) up-selling
b) cross-selling
c) bundling
d) customer relationship management
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e) customer intimacy
Answer: a
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
64) _____ is a sales strategy where the business person will provide to customers the opportunity to purchase
higher-value related products.
a) Bundling
b) Up-selling
c) Re-selling
d) Additional selling
e) Cross-selling
Answer: b
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
a) Up-selling, re-selling
b) Bundling, cross-selling
c) Up-selling, bundling
d) Cross-selling, re-selling
e) Re-selling, additional selling
Answer: b
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
66) A check-in kiosk at the airport would be what type of CRM application?
a) Inbound telesales
b) Customer touching
c) Outbound telesales
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d) Sales
e) Customer facing
Answer: b
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
67) _____ are simple tools for answering repetitive customer questions.
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Easy
Answer: d
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
69) _____ systems study customer behavior and perceptions to provide business intelligence.
a) CRM
b) Collaborative CRM
c) Operational CRM
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d) Analytical CRM
e) Transactional CRM
Answer: d
Learning Objective: Define “analytical CRM systems,” and describe four purposes forwhich businesses use these
systems.
Section Reference: 9.3 Analytical Customer Relationship Management Systems
Difficulty: Easy
70) _____ creates statistical models of customer behavior and the value of customer relationships over time.
a) CRM
b) Analytical CRM
c) Operational CRM
d) Collaborative CRM
e) Transactional CRM
Answer: b
Learning Objective: Define “analytical CRM systems,” and describe four purposes for which businesses use these
systems.
Section Reference: 9.3 Analytical Customer Relationship Management Systems
Difficulty: Easy
71) _____ is a CRM system that is hosted by an external vendor in the vendor’s data center.
a) Mobile CRM
b) Analytical CRM
c) Operational CRM
d) On-demand CRM
e) Customer-facing CRM
Answer: d
Learning Objective: Compare and contrast mobile CRM systems, on-demand CRM systems, and open-source
CRM systems. Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,” and
identify one main advantage and one main drawback of each.
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Easy
72) Potential problems with on-demand CRM include all of the following except:
Answer: a
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “open source CRM systems,”
and identify one main advantage and one main drawback of each..
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Medium
73) The benefits of open-source CRM include all of the following except:
a) It is easy to customize
b) It is favorably priced
c) It has more functionality than in-house CRM systems
d) Updates and error fixes occur rapidly
e) It has extensive support information available
Answer: c
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “open source CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Medium
74) Trends that have led to the supply chain concept include all of the following except:
Answer: c
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Hard
75) _____ is the ability for all organizations in a supply chain to access or view relevant data on purchased
materials as these materials move through their suppliers’ production processes and transportation networks to
their receiving docks.
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Answer: a
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Medium
76) _____ is the time between the receipt of incoming goods and the dispatch of finished, outbound products.
a) Inventory turnover
b) Inventory velocity
c) Inventory speed
d) Inventory time
e) Inventory production
Answer: b
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
77) A(n) _____ refers to the flow of materials, information, money, and services from raw material suppliers,
through factories and warehouses to the end customers.
a) demand chain
b) business process
c) manufacturing process
d) supply chain
e) enterprise resource process
Answer: d
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
78) A company’s suppliers, suppliers’ suppliers, and the processes for managing them is the:
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a) suppliers’ chain
b) external supply chain
c) upstream portion of the supply chain
d) downstream portion of the supply chain
e) entire supply chain
Answer: c
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
79) Packaging, assembly, or manufacturing take place in which segment of the supply chain?
a) Upstream
b) Internal
c) Downstream
d) External
e) None of these
Answer: b
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
80) A company’s organization and processes for distributing and delivering products to its final customers is the:
a) suppliers’ chain
b) external supply chain
c) upstream portion of the supply chain
d) downstream portion of the supply chain
e) entire supply chain
Answer: d
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
81) Distribution or dispersal takes place in which segment of the supply chain?
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a) Upstream
b) Internal
c) Downstream
d) External
e) None of these
Answer: c
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
82) _____ are the physical products, raw materials, and supplies that flow along a supply chain.
a) Reverse flows
b) Reverse logistics
c) Material flows
d) Information flows
e) Financial flows
Answer: c
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
83) Returned products, recycled products, and disposal of materials or products are called:
a) reverse flows
b) returns
c) material flows
d) information flows
e) financial flows
Answer: a
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
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84) _____ involve money transfers, payments, credit card information and authorization, payment schedules, e-
payments, and credit-related data.
a) Reverse flows
b) Reverse logistics
c) Material flows
d) Information flows
e) Financial flows
Answer: e
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Easy
Answer: c
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
Answer: d
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
Information System, Third Canadian Edition Rainer
Answer: e
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
88) In the _____, the production process begins with a customer order.
Answer: c
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
89) Which of the following is not a problem along the supply chain?
Answer: d
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
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90) The _____ is erratic shifts in orders up and down the supply chain.
Answer: c
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Easy
Answer: e
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
92) Which of the following is not responsible for the bullwhip effect?
Answer: e
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
Information System, Third Canadian Edition Rainer
93) Which of the following is not a possible solution to supply chain problems?
a) Vertical integration
b) Building inventories
c) Information sharing
d) Horizontal integration
e) The bullwhip effect
Answer: d
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
94) When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale
terminal and transmits that data to the company that makes the diapers. When it is necessary, the diaper
company restocks the diapers in that Wal-Mart store. This process is called:
Answer: c
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
Answer: b
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Information System, Third Canadian Edition Rainer
Difficulty: Medium
a) It is inflexible
b) Business processes may have to be restructured
c) It is expensive, but ongoing operating costs are low
d) Multiple EDI standards exist
e) It is difficult to make quick changes
Answer: c
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Medium
Answer: a
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Medium
98) Extranets use _____ technology to make communication over the Internet more secure.
a) telepresence
b) anti-malware
c) virtual private network
d) voice-over IP
e) videoconferencing
Answer: c
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Information System, Third Canadian Edition Rainer
Difficulty: Easy
99) The FedEx extranet that allows customers to track the status of a package is an example of which type of
extranet?
Answer: a
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Medium
100) _____ portals automate the business processes involved in purchasing products between a single buyer
and multiple suppliers.
a) Distribution
b) Corporate
c) Affiliate
d) Intranet
e) Procurement
Answer: e
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Easy
101) Refer to Opening Case – The Next Step in CRM: Which of the following is false?
Answer: d
Information System, Third Canadian Edition Rainer
Learning Objective: Summarize the fundamental concepts and skills related to customer relationship
management and supply chain management.
Section Reference: Opening Case: The Next Step in Customer Relationship Management
Difficulty: Medium
102) Refer to IT’s About Business 9.2– Chinatrust Philippines CRM Effort: Some of the advantages that a business
can capitalize on by implementing a CRM include:
Answer: e
Learning Objective: Provide real-world applications for customer relationship management and supply chain
management.
Section Reference: IT’s About Small Business: 9.1 An instantaneous CRM effort
Difficulty: Medium
103) Refer to IT’s About Business 9.1 – An Instantaneous CRM Effort: Which of the following is true?
Answer: c
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: IT’s About Business: 9.2 An Instantaneous CRM Effort
Difficulty: Medium
104) Refer to IT’s About Business 9.3– Refining the Call Center: The case discusses research that indicates that
pairing callers to the call center with like-minded representatives can result in benefits. Which of the following is
not one of the benefits?
Answer: e
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: IT’s About Business: 9.3 Refining the Call Center
Difficulty: Medium
105) Refer to example 9.2 Harry Rosen Inc: Which of the following is a CRM feature that was used to solve a
problem that Harry Rosen was facing with its customers?
Answer: e
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each..
Section Reference: Example 9.2
Difficulty: Medium
106) Refer to example 9.3: Baxter Canada: Which of the following statements is true?
Answer: a
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: Example 9.3
Difficulty: Medium
107) Refer to Case 9.2 – Information Technology Helps Cannondale Manage Its Complex Supply Chain: A bill of
materials for a product does not include which of the following?
a) Time to produce
b) Raw materials and quantity of each needed to produce
c) Assemblies and quantity of each needed to produce
Information System, Third Canadian Edition Rainer
Answer: a
Learning Objective: Summarize the fundamental concepts and skills related to customer relationship
management and supply chain management.
Section Reference: Case 9.2: Information Technology Helps Cannondale Manage Its Complex Supply Chain
Difficulty: Medium
108) Refer to Case 9.2 – Information Technology Helps Cannondale Manage Its Complex Supply Chain: Which of
the following was not one of Cannondale’s objectives when evaluating IT solutions to their manufacturing
system?
Answer: e
Learning Objective: Summarize the fundamental concepts and skills related to customer relationship
management and supply chain management.
Section Reference: Case 9.2: Information Technology Helps Cannondale Manage Its Complex Supply Chain
Difficulty: Medium
109) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Which of the following is true about
Haya’s supply chain?
Answer: c
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Hard
Information System, Third Canadian Edition Rainer
110) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Haya orders 40 ties in each of the
school colors and 10 in each of four sports. Which of the following is true about Haya’s supply chain?
Answer: a
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Hard
111) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Haya orders 40 ties in each of the
school colors and 10 in each of four sports. Which of the following is true about Haya’s supply chain?
Answer: c
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Hard
112) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Haya knows she needs to manage her
relationship with her supplier. Which of the following is true?
Answer: e
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Hard
113) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Haya orders 40 ties in each of the
school colors and 10 in each of four sports. She almost instantly sold out of all the sport themed ties. She
decides to approach each of the sports teams on campus to see if they would be willing to buy ties “in bulk”.
Which of the following is true about Haya’s supply chain?
Answer: b
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Hard
114).____________ profiling means a company will not just suggest content you might like but will figure out
how you think so that the company can determine what you will “fall for” so the company can create a better
sales pitch.
a) Directed
b) Taste
c) Persuasion
d) Micro-
Answer: c
Learning Objective: Provide real-world applications for customer relationship management and supply chain
management.
Information System, Third Canadian Edition Rainer
115) It costs __________ times more to sell to a new customer than to sell to an existing one.
a) 2
b) 4
c) 6
d) 8
Answer: c
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: Defining Customer Relationship Management
Difficulty: Medium
116) By increasing customer __________ rate by 5%, profits could increase by ______%.
a) acquisition, 50
b) acquisition, 85
c) retention, 50
d) retention, 85
Answer: d
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: Defining Customer Relationship Management
Difficulty: Medium
117) Which of the following does NOT contribute to the value of a customer?
a) Loyalty
b) Number of purchases
c) Profitability
d) Size
Answer: d
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: Defining Customer Relationship Management
Difficulty: Easy
Information System, Third Canadian Edition Rainer
118) _____________ is used to get rid of customer information silos within the organization.
Answer: c
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: Defining Customer Relationship Management
Difficulty: Easy
a) global
b) intuitive
c) quick
d) social
Answer: b
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: IT’s About Business: An Instantaneous CRM Effort
Difficulty: Medium
120) Operational CRM is the component of CRM that supports the ________-office business processes.
a) back
b) front
c) inside
d) outside
Answer: b
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
a) directing
Information System, Third Canadian Edition Rainer
b) facing
c) interacting
d) touching
Answer: b
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
122) _________ are organizations that use the CIC to create a call list for the sales team, whose members
contact sales prospects.
a) Call centers
b) Customer interaction boards
c) Inbound teleservices
d) Outbound telesales
Answer: d
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
123) _______ management CRM systems are used to target sales opportunities by finding new customers or
companies for future sales.
a) Contact
b) Future
c) Opportunity
d) Sales
Answer: d
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Medium
124) __________ is a sales strategy in which the sales person will provide customers the opportunity to
purchase higher-value related products or services as opposed to, or along with, the customer’s initial product
or service selection.
Information System, Third Canadian Edition Rainer
a) Bundling
b) Cross-selling
c) Personalization
d) Up selling
Answer: d
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
Answer: d
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
a) Actions
b) Emotions
c) Reactions
d) Thoughts
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: IT’s About Business: Refining the Call Center
Difficulty: Medium
127) __________ CRM systems are used to create statistical models of customer behavior, to determine the
value of customer relationships over time, and to create forecasts about acquiring, retaining, and losing
customers.
a) Analytical
Information System, Third Canadian Edition Rainer
b) Collaborative
c) Operational
d) Statistical
Answer: a
Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.
Section Reference: Analytical Customer Relationship Management Systems
Difficulty: Easy
a) Business intelligence
b) Campaign management
c) Data mining
d) OLAP
Answer: b
Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.
Section Reference: Analytical Customer Relationship Management Systems
Difficulty: Medium
a) Campaign management
b) Data mining
c) Loyalty program
d) Personalized web page
Answer: b
Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.
Section Reference: Analytical Customer Relationship Management Systems
Difficulty: Medium
a) Cost
b) Integration difficulty
c) Strategic advantage
d) Vendor reliability
Answer: a
Information System, Third Canadian Edition Rainer
Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: Other Types of Customer Relationship Management Systems
Difficulty: Medium
131) ______ CRM is a CRM system that is hosted by an external vendor in the vendor’s data center.
a) On-demand
b) On-premises
c) Open-source
d) Mobile
Answer: a
Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: Other Types of Customer Relationship Management Systems
Difficulty: Easy
Answer: b
Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: IT’s About Business: Mobile CRM on a Smartphone
Difficulty: Easy
a) Downstream
b) Internal
c) Instream
d) Upstream
Answer: a
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: Supply Chains
Information System, Third Canadian Edition Rainer
Difficulty: Easy
a) Downstream
b) Internal
c) Instream
d) Upstream
Answer: d
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: Supply Chains
Difficulty: Easy
135) _________ flows are all data related to demand, shipments, orders, returns, and schedules as well as
changes in any of these data.
a) Financial
b) Information
c) Material
d) Schedule
Answer: b
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: Supply Chains
Difficulty: Easy
a) Financial
b) Information
c) Material
d) Schedule
Answer: b
Learning Objective: Identify and discuss three popular strategies used to solve supply chain problems.
Section Reference: Supply Chain Management
Difficulty: Medium
Information System, Third Canadian Edition Rainer
a) Cost
b) Quality
c) Scope
d) Time
Answer: c
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: Supply Chain Management
Difficulty: Hard
138) The _________ model involves an educated guess about customer demand.
a) make-to-order
b) mass customization
c) pull
d) push
Answer: d
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: Supply Chain Management
Difficulty: Easy
a) deficient inventory
b) excess inventory
c) mass customization
d) mass production
Answer b
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: Supply Chain Management
Difficulty: Easy
140) ___________ is an inventory strategy where the supplier monitors inventory and then replenishes the
products when needed.
Information System, Third Canadian Edition Rainer
a) Bundling
b) Just-in-time
c) Vendor-managed inventory
d) Vertical integration
Answer: c
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: Information Technology Support for Supply Chain Management
Difficulty: Easy
141) Vertical integration is a business strategy in which a company purchases its ______ suppliers.
a) Downstream
b) Internal
c) Instream
d) Upstream
Answer: d
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: Information Technology Support for Supply Chain Management
Difficulty: Easy
a) Cost
b) Length
c) Productivity
d) Security
Answer: a
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: Information Technology Support for Supply Chain Management
Difficulty: Easy
a) Cost
b) Flexibility
c) Security
Information System, Third Canadian Edition Rainer
d) Standards
Answer: C
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: Information Technology Support for Supply Chain Management
Difficulty: Easy
a) CRM
b) ERP
c) FAIS
d) SCM
Answer: d
Learning Objective: Summarize the fundamental concepts and skills related to customer relationship
management and supply chain management.
Section Reference: Closing Case
Difficulty: Easy
145) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Which of the following customer
touch points will give Haya the most information after her first weekend of selling?
Answer: e
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Easy
146) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
Information System, Third Canadian Edition Rainer
school’s monitors that would display in the dining halls and student union. Which of the following should Haya
consider during her first month of operation?
Answer: c
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Hard
147) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Which of the following should Haya
focus on during her first month of operation?
Answer: e
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
148) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Haya begins collecting data about her
customers by having them sign up for Promotional Emails at her store. She collects their names and Email
address on her form. How might she use the customer data?
e) Marketing
Answer: e
Learning Objective: Define “analytical CRM systems,” and describe four purposes for which businesses use these
systems..
Section Reference: 9.3 Analytical Customer Relationship Management Systems
Difficulty: Hard
149) Haya noticed that college students needed to dress up for presentations but never seemed to have any
ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer
sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the
school’s monitors that would display in the dining halls and student union. Haya begins to notice that her sports
ties are selling really well. Which of the following should be her next step?
Answer: a
Learning Objective: Define “analytical CRM systems,” and describe four purposes for which businesses use these
systems.
Section Reference: 9.3 Analytical Customer Relationship Management Systems
Difficulty: Medium
150) Describe the various customer touch points in any organization. Which ones are more effective for you as
college students?
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Medium
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
Information System, Third Canadian Edition Rainer
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Medium
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems, Analytical CRM
Difficulty: Medium
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each..
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Medium
155) Describe the reasons that so many companies think mobile CRM is the CRM system of the future.
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each..
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Medium
Learning Objective: Summarize the fundamental concepts and skills related to customer relationship
management and supply chain management.
Section Reference: Case 9.2: Information Technology Helps Cannondale Manage Its Complex Supply Chain
Difficulty: Medium
157) Describe supply chain visibility and explain why it is important to an organization.
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Information System, Third Canadian Edition Rainer
Difficulty: Medium
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Medium
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Medium
160) Explain what “upstream” and “downstream” are within a supply chain.
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: 9.5 Supply Chains
Difficulty: Medium
161) Differentiate between the pull model and the push model.
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
162) Describe the various methods that companies use to solve problems along their supply chains.
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Information System, Third Canadian Edition Rainer
Difficulty: Medium
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
165) Describe why the customer – vendor relationship has become more impersonal.
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Hard
166) Explain why the concept of a customer relationship management system became necessary.
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Section Reference: 9.1 Defining Customer Relationship Management
Difficulty: Medium
167) What is the rationale behind customer-touching applications? Explain four such applications.
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: 9.2 Operational Customer Relationship Management Systems
Difficulty: Hard
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each..
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Medium
Learning Objective: Define “mobile CRM systems,” “on demand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each..
Section Reference: 9.4 Other Types of Customer Relationship Management Systems
Difficulty: Medium
170) Describe the supply chain of your university. Be sure to include all three segments.
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Medium
171) Describe vertical integration. How does this concept relate to supply chain management?
Learning Objective: Identify two major challenges in setting accurate inventory levels throughout the supply
chain, and describe three popular strategies to solve supply chain problems.
Section Reference: 9.6 Supply Chain Management
Difficulty: Hard
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Medium
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: 9.7 Information Technology Support for Supply Chain Management
Difficulty: Medium
Answer: CRM
Learning Objective: Define customer relationship management and collaborative CRM, and identify the primary
functions of both processes.
Information System, Third Canadian Edition Rainer
175) A _________ is a centralized office set up to receive and transmit a large volume of requests by telephone.
Learning Objective: Describe the two major components of operational CRM systems, list three applications
used in each component, and provide at least one example of how businesses use each application.
Section Reference: Operational Customer Relationship Management Systems
Difficulty: Easy
176) ______ CRM provides business intelligence by analyzing customer behavior and perceptions.
Answer: Analytical
Learning Objective: Define analytical CRM systems, and explain how businesses use these systems.
Section Reference: Analytical Customer Relationship Management Systems
Difficulty: Easy
177) _________ CRM is an interactive CRM system that enables an organization to conduct communications
related to sales, marketing, and customer service activities though a mobile medium for the purpose of building
and maintaining relationships with its customers.
Answer: Mobile
Learning Objective: Define “mobile CRM systems,” “ondemand CRM systems,” and “opensource CRM systems,”
and identify one main advantage and one main drawback of each.
Section Reference: Other Types of Customer Relationship Management Systems
Difficulty: Easy
178) _____________ flows are all transfers of money, payments, and credit-related data.
Answer: Financial
Learning Objective: Define the term supply chain, and describe the three components and the three flows of a
supply chain.
Section Reference: Supply Chains
Difficulty: Easy
179) ______________________ portals automate the business processes involved in upstream supply chain
flows.
Information System, Third Canadian Edition Rainer
Answer: Procurement
Learning Objective: Define “electronic data interchange (EDI),” “extranet,” and “portal,” and explain how each of
these applications helps support supply chain management.
Section Reference: Information Technology Support for Supply Chain Management
Difficulty: Medium
Information System, Third Canadian Edition Rainer
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