Chapter 9 Test Bank 2

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Chapter 9 - Test bank
Management Information Systems (Lebanese International University )
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Management Information Systems, 14e (Laudon)

Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise
Applications
1) From your reading of the chapter's opening case, ACH Food Companies implemented new
information systems in order to achieve which of the following business objectives?
A) customer and supplier intimacy
B) operational excellence
C) survival
D) improved decision making
E) new products and services
Answer: B
Page Ref: 347-348
Difficulty: Difficult
AACSB: Analytical thinking
CASE: Analysis in terms of categorize
LO: 9.1: How do enterprise systems help businesses achieve operational excellence?
2) A suite of integrated software modules for finance and accounting, human resources,
manufacturing and production, and sales and marketing that allows data to be used by multiple
functions and business processes best describes
A) process management software.
B) ERP systems.
C) groupware.
D) application software.
E) supply chain management systems.
Answer: B
Page Ref: 350
Difficulty: Moderate
AACSB: Information technology
CASE: Comprehension
3) Enterprise software is built around thousands of predefined business processes that reflect
A) the firm's organization.
B) industry goals.
C) best practices.
D) cutting edge workflow analyses.
E) the firm's culture.
Answer: C
Page Ref: 351
CASE: Comprehension
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4) Which of the following is not true about enterprise systems?

A) Enterprise systems help firms respond rapidly to customer requests for information or
products.
B) Enterprise system data have standardized definitions and formats that are accepted by the
entire organization.
C) Enterprise software is expressly built to allow companies to mimic their unique business
practices.
D) Enterprise software includes analytical tools to evaluate overall organizational performance.
E) Enterprise systems provide firmwide information to help managers make better decisions.
Answer: C
Page Ref: 352-353
CASE: Evaluation in terms of assess
5) You have been asked to implement enterprise software for a manufacturer of kitchen
appliances. What is the first step you should take?
A) Rewrite the software to support the way the company's business processes work.
B) Select the business processes you wish to automate.
C) Map the company's business processes to the software's business processes.
D) Map the software's business processes to the company's business processes.
E) Select the functions of the system you wish to use.
Answer: E
Page Ref: 351
6) When tailoring a particular aspect of a system to the way a company does business, enterprise
software can provide the company with
A) configuration tables.
B) Web services.
C) data dictionaries.
D) middleware.
E) customized plug-ins.
Answer: A
Page Ref: 351
CASE: Comprehension
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7) In order to achieve maximum benefit from an enterprise software package, a business

A) customizes the software to match all of its business processes.
B) uses only the processes in the software that match its own processes.
C) changes the way it works to match the software's business processes.
D) selects only the software that best matches its existing business processes.
E) retains legacy systems that best work with the software.
Answer: C
Page Ref: 352
8) ________ systems are based on a suite of software models used to support business activities
across the firm.
A) Global
B) Organizational
C) Supply chain
D) Product differentiation
E) Enterprise
Answer: E
Page Ref: 351
CASE: Comprehension
9) Enterprise systems include analytical tools.

Answer: TRUE
Page Ref: 352
CASE: Comprehension
10) An enterprise system helps reduce redundant business processes.

Answer: FALSE
Page Ref: 352
CASE: Comprehension
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11) Identify and describe three major enterprise applications.

Answer: Enterprise systems, customer relationship management, and supply chain management
are three enterprise applications. Enterprise systems are based on a suite of integrated software
modules and a common central database. Enterprise systems utilize enterprise software to
support financial and accounting, human resources, manufacturing and production, and sales and
marketing processes. Enterprise systems provide many benefits including an enterprise-enabled
organization, improved management reporting and decision making, a unified information
systems technology platform, and more efficient operations and customer-driven business
processes.
Supply chain management systems help an organization better manage its supply chain,
including planning, sourcing, making, delivering, and returning items. Supply chain management
software can be categorized as a supply chain planning system or as a supply chain execution
system. A supply chain planning system enables a firm to generate demand forecasts for a
product and to develop sourcing and manufacturing plans for that product. A supply chain
execution system manages the flow of products through distribution centers and warehouses to
ensure that products are delivered to the right locations in the most efficient manner. Supply
chain management benefits include improved customer service and responsiveness, cost
reduction, and cash utilization.
Customer relationship management systems help firms maximize the benefits of their customer
assets. These systems capture and consolidate data from all over the organization and then
distribute the results to various systems and customer touch points across the enterprise.
Customer relationship management systems can be classified as operational or as analytical.
Operational CRM refers to customer-facing applications, such as sales force automation, call
center and customer service support, and marketing automation. Analytical CRM refers to
customer relationship management applications dealing with the analysis of customer data to
provide information for improving business performance. Benefits include increased customer
satisfaction, reduced direct marketing costs, more effective marketing, and lower costs for
customer acquisition and retention.
Page Ref: 350-372
CASE: Analysis in terms of summarize
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12) Identify at least four benefits and four challenges of enterprise systems.
Answer: Benefits include: increasing operational efficiency; providing firmwide information to
help decision making; standardized business processes; greater responsiveness to customer
needs; greater accuracy in fulfilling product demand; reduction of inventory and inventory costs;
reduction in order-to-delivery time; improving business processes; removing redundant
processes and systems; lowering costs through centralized processing; and improved decision
making. Challenges include: the expense of the software and related costs; the time required for
implementation; deep-seated technological changes required, the deep-seated organizational
changes required; overcoming organizational resistance; switching costs; data cleansing work
required.
Page Ref: 353-372
13) You have been hired by Santori, Inc., a small company that imports and distributes an Italian
sparkling water. The company is interested in what benefits an enterprise system would bring.
Would an enterprise system be appropriate for this company? What steps would you take in
determining this?
Answer: An enterprise system may be too expensive, although there are enterprise software
packages that are available to smaller companies. A hosted enterprise application might be the
most economical way to implement an enterprise system. To determine whether this would be
beneficial to Santori, I would first look at their existing business processes. It would be ideal to
determine if their efficiency meets benchmarks in their industry and allows them to be
competitive with other businesses in their niche. Then I would review existing hosted
applications to see how the applications business processes matched up with Santori's. It would
be important to compare the costs of instituting new business processes with the benefits and
cost savings.
Page Ref: 349-372
CASE: Synthesis in terms of devising
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14) Supply chain complexity and scale increases when firms

A) move to globalization.
B) manage the procurement, manufacturing, and distribution functions themselves.
C) outsource more labor.
D) modify their existing workflows to comply with supply-chain management systems.
E) develop products and services that coordinate with many firms and suppliers.
Answer: E
Page Ref: 353
CASE: Analysis in terms of appraise
LO: 9.2: How do supply chain management systems coordinate planning, production, and
logistics with suppliers?
15) A network of organizations and business processes for procuring raw materials, transforming
these materials into intermediate and finished products, and distributing the finished products to
customers is called a
A) distribution channel.
B) supply chain.
C) value chain.
D) marketing channel.
E) information system.
Answer: B
Page Ref: 353
AACSB: Reflective thinking
CASE: Comprehension
16) Components or parts of finished products are referred to as

A) upstream materials.
B) raw materials.
C) secondary products.
D) intermediate products.
E) mid-chain products.
Answer: D
Page Ref: 353
CASE: Comprehension
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17) A company's suppliers, supplier's suppliers, and the processes for managing relationships
with them is the
A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
E) onstream portion of the supply chain.
Answer: C
Page Ref: 354
CASE: Comprehension
18) A company's organizations and processes for distributing and delivering products to the final
customers is the
A) supplier's internal supply chain.
B) external supply chain.
C) upstream portion of the supply chain.
D) downstream portion of the supply chain.
E) onstream portion of the supply chain.
Answer: D
Page Ref: 354
CASE: Comprehension
19) If manufacturers had perfect information, they could implement a

A) hyper-efficient strategy.
B) frictionless strategy.
C) streamlined strategy.
D) bullwhip strategy.
E) just-in-time strategy.
Answer: E
Page Ref: 355
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20) Why is overstocking warehouses not an effective solution for a problem of low availability?
A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases inventory costs.
E) It lowers fill rate.
Answer: D
Page Ref: 355
21) Which of the following traditional solutions enables manufacturers to deal with uncertainties
in the supply chain?
A) safety stock
B) continuous replenishment
C) just-in-time strategies
D) demand planning
E) perfect information
Answer: A
Page Ref: 355
CASE: Comprehension
22) A scheduling system for minimizing inventory by having components arrive exactly at the
moment they are needed and finished goods shipped as soon as they leave the assembly line best
describes a ________ strategy.
A) just-in-time
B) frictionless
C) bullwhip
D) safety-stock
E) streamlined
Answer: A
Page Ref: 355
CASE: Comprehension
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23) A distortion of information about the demand for a product as it passes from one entity to the
next across the supply chain is called the ________ effect.
A) network
B) bullwhip
C) ripple
D) whirlpool
E) diffraction
Answer: B
Page Ref: 355
Difficulty: Easy
AACSB: Application of knowledge
CASE: Comprehension
24) Supply chain software can be classified as either supply chain ________ systems or supply
chain ________ systems.
A) push; pull
B) demand; continual
C) upstream; downstream
D) planning; execution
E) maintenance; development
Answer: D
Page Ref: 355-358
CASE: Comprehension
25) Systems that enable a firm to generate demand forecasts for a product and to develop
sourcing and manufacturing plans for that product best describes supply chain ________
systems.
A) demand
B) delivery
C) optimization
D) execution
E) planning
Answer: E
Page Ref: 355
CASE: Comprehension
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26) Supply chain planning systems perform all of the following functions except
A) establish inventory levels for raw materials and finished goods.
B) identify the transportation mode to use for product delivery.
C) determine where to store finished goods.
D) determine how much product to manufacture in a given time period.
E) track the physical status of goods.
Answer: E
Page Ref: 355-356
CASE: Comprehension
27) Which supply chain planning function determines how much product is needed to satisfy all
customer demands?
A) distribution management
B) replenishment planning
C) demand planning
D) order planning
E) customer planning
Answer: C
Page Ref: 356
CASE: Comprehension
28) Supply chain ________ systems manage the flow of products through distribution centers
and warehouses to ensure that products are delivered to the right locations in the most efficient
manner.
A) demand
B) delivery
C) planning
D) execution
E) optimization
Answer: D
Page Ref: 358
CASE: Comprehension
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29) Capabilities of supply chain execution systems would not include

A) identifying the optimal transportation mode.
B) tracking the flow of finished goods.
C) managing materials.
D) managing warehouse operations.
E) managing the financial information involving all parties.
Answer: A
Page Ref: 358-359
CASE: Comprehension
30) From your reading of the Scott's Miracle-Gro case study, the company implemented SAP
and JDA enterprise and supply chain planning systems to solve what problems?
A) lack of brand recognition
B) lack of coordination among production facilities
C) poor supply chain visibility for management
D) shoddy record-keeping
E) coordination issues caused by the merger of Scott's and MiracleGro
Answer: E
Page Ref: 357-358
31) A supply chain driven by actual customer orders or purchases follows a ________ model.
A) pull-based
B) build-to-stock
C) push-based
D) replenishment-driven
E) optimized
Answer: A
Page Ref: 360
CASE: Comprehension
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32) A build-to-order supply-chain model is also called a ________ model.

A) supply-based
B) demand-driven
C) replenishment-driven
D) push-based
E) market-driven
Answer: B
Page Ref: 360
CASE: Comprehension
33) Concurrent supply chains are made possible by which technology?

A) ERP systems
B) the Internet
C) supply-chain management systems
D) just-in-time supply-chain technologies
E) extranets
Answer: B
Page Ref: 360
Difficulty: Easy
CASE: Comprehension
34) The business value of an effective supply chain management system includes all of the
following except
A) faster time to market.
B) cost reduction.
C) supply matched to demand.
D) improved delivery service.
E) increased inventory levels.
Answer: D
Page Ref: 361
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35) The bullwhip effect is countered by

A) globalization.
B) disintermediation.
C) implementing an SCM.
D) reducing information uncertainty.
E) product differentiation.
Answer: D
Page Ref: 355
CASE: Comprehension
36) As they move through the supply chain, ________ are transformed into finished products
and shipped to retailers and customers.
A) raw materials
B) intermediate products
C) basic products
D) natural resources
E) nascent products
Answer: A
Page Ref: 353
Difficulty: Easy
CASE: Comprehension
37) The total time it takes to complete a business process, from start to finish, is called its
________ time.
A) development
B) cycle
C) fulfillment
D) service
E) actualization
Answer: B
Page Ref: 353
CASE: Comprehension
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38) A company having difficulty with timely delivery of parts to its manufacturing plants should
implement a supply chain ________ system.
A) execution
B) planning
C) optimization
D) management
E) touch point
Answer: A
Page Ref: 358
CASE: Comprehension
39) Supply chain management systems are a type of enterprise system.

Answer: FALSE
Page Ref: 355
CASE: Comprehension
40) The upstream portion of the supply chain consists of the organizations and processes for
distributing and delivering products to the final customers.
Answer: FALSE
Page Ref: 354
CASE: Comprehension
41) Supply chain inefficiencies can waste as much as 25 percent of a company's operating costs.
Answer: TRUE
Page Ref: 355
CASE: Comprehension
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42) Safety stock acts as a buffer for the lack of flexibility in the supply chain.
Answer: TRUE
Page Ref: 355
CASE: Comprehension
43) The bullwhip effect describes consistency and continuity in demand for a product as it passes
from one entity to the next across the supply chain.
Answer: FALSE
Page Ref: 355
CASE: Comprehension
44) Supply chain execution systems enable the firm to generate demand forecasts for a product
and to develop sourcing and manufacturing plans for that product.
Answer: FALSE
Page Ref: 358
CASE: Comprehension
45) Before the Internet, supply chain coordination was hampered by the difficulties of making
information flow smoothly among different internal supply chain processes.
Answer: TRUE
Page Ref: 359
CASE: Comprehension
46) Inefficiencies in a supply chain are primarily caused by inaccurate information.

Answer: TRUE
Page Ref: 354
Difficulty: Easy
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47) In a push-based model of SCM systems, actual customer orders or purchases trigger events
in the supply chain.
Answer: FALSE
Page Ref: 360
CASE: Comprehension
48) In a pull-based model of SCM systems, production master schedules are based on forecasts
of demand for products.
Answer: FALSE
Page Ref: 360
CASE: Comprehension
49) Walmart is an example of a push-based model.

Answer: FALSE
Page Ref: 360
CASE: Comprehension
50) Total supply chain costs represent the majority of operating expenses for many businesses
and in some industries approach 75 percent of the total operating budget.
Answer: TRUE
Page Ref: 361
CASE: Comprehension
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51) Identify two classifications for supply chain software. For each classification, identify five
capabilities.
Answer: Supply chain planning systems and supply chain execution systems are two
classifications for supply chain software. Supply chain planning systems enable a firm to
generate demand forecasts for a product and develop sourcing and manufacturing plans for that
product. Capabilities include order planning, advanced scheduling and manufacturing planning,
demand planning, distribution planning, and transportation planning. Supply chain execution
systems manage the flow of products through distribution centers and warehouses to ensure that
products are delivered to the right locations. Capabilities include order commitments, final
production, replenishment, distribution management, and reverse distribution.
Page Ref: 355-358
52) What additional complexities are faced in global supply chains? How does the Internet help
in managing global supply chains?
Answer: Global supply chains typically span greater geographic distances and time differences
than domestic supply chains and have participants from a number of different countries.
Although the purchase price of many goods might be lower abroad, there are often additional
costs for transportation, inventory, and local taxes or fees. Performance standards may vary from
region to region or from nation to nation. Supply chain management may need to reflect foreign
government regulations and cultural differences. All of these factors impact how a company
takes orders, plans distribution, organizes warehousing, and manages inbound and outbound
logistics throughout the global markets it services. The Internet helps companies manage many
aspects of their global supply chains, including sourcing, transportation, communications, and
international finance. As goods are being sourced, produced, and shipped, communication is
required among retailers, manufacturers, contractors, agents, and logistics providers. With
Internet technology, supply chain members communicate through a Web-based system. Firms
use intranets to improve coordination among their internal supply chain processes, and they use
extranets to coordinate supply chain processes shared with their business partners.
Page Ref: 359-360
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53) Identify two supply chain models. Which is better?

Answer: Push-based and pull-based models were discussed in the textbook. Push-based refers to
a supply chain driven by production master schedules based on forecasts or best guesses of
demand for products. Pull-based refers to a supply chain driven by actual customer orders or
purchases so that members of the supply chain produce and deliver only what customers have
ordered. Pull-based models are better.
Page Ref: 360
Difficulty: Easy
54) Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have
hundreds of smaller nurseries based around the country that grow the plant stock. The majority
of their business is conducted online. Consumers purchase typically small quantities of products
online and Plant Away coordinates the shipping from the most appropriate nursery. What unique
problems might you anticipate they have in their supply chain? What might remedy these
problems?
Answer: Typical problems in supply chains arise from unforeseeable events. In a plant nursery,
variations in the weather, growing season, plant diseases, crop output would be uncertainties.
Other problems might be interstate regulations governing plants allowed in different states, and
making sure plants survive and are healthy during transportation. It would be very important to
have up-to-date forecasting of the weather or growing seasons that could anticipate possible
problems, and analyze and determine the best transportation routes.
Page Ref: 352-361
CASE: Synthesis in terms of devising
55) A ________ is a method of interaction with a customer, such as telephone or customer

service desk.
A) point of presence
B) touch point
C) sales point
D) client channel
E) point of service
Answer: B
Page Ref: 362
CASE: Comprehension
LO: 9.3: How do customer relationship management systems help firms achieve customer
intimacy?
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56) Which of the following would not be considered a contact point?

A) e-mail
B) Web site
C) intranet
D) retail store
E) Facebook
Answer: C
Page Ref: 362
CASE: Comprehension
intimacy?
57) ________ modules use many of the same data, tools, and systems as CRM to enhance
collaboration between a company and its selling partners.
A) SCM
B) SFA
C) ERM
D) DRM
E) PRM
Answer: E
Page Ref: 362
CASE: Comprehension
intimacy?
58) ________ modules deal with issues such as setting objectives, employee performance
management, and performance-based compensation.
A) SCM
B) SFA
C) ERM
D) DRM
E) PRM
Answer: C
Page Ref: 363
CASE: Comprehension
intimacy?
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59) Customer relationship management systems typically provide software and online tools for
sales, customer service, and
A) marketing.
B) account management.
C) advertising.
D) public relations.
E) human resources.
Answer: A
Page Ref: 362-363
CASE: Comprehension
intimacy?
60) SFA modules in CRM systems would provide tools for

A) assigning and managing customer service requests.
B) capturing prospect and customer data.
C) identifying profitable and unprofitable customers.
D) managing sales prospect and contact information.
E) employee performance management.
Answer: D
Page Ref: 363
Difficulty: Easy
CASE: Comprehension
intimacy?
61) CRM systems help businesses obtain which business objective?

A) survival
B) operational excellence
C) new products and services
D) improved decision making
E) customer and supplier intimacy
Answer: E
Page Ref: 367
CASE: Analysis in terms of compare
intimacy?
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62) Customer service modules in CRM systems provide tools for

E) organizing effective marketing campaigns.
Answer: A
Page Ref: 364
Difficulty: Easy
CASE: Comprehension
intimacy?
63) Marketing modules in CRM systems would provide tools for

E) increasing efficiency of call centers.
Answer: C
Page Ref: 364
Difficulty: Easy
CASE: Comprehension
intimacy?
64) Selling a customer with a checking account a home improvement loan is an example of
A) operational CRM.
B) direct marketing.
C) sales force automation.
D) cross-channel promotions.
E) cross-selling.
Answer: E
Page Ref: 365
CASE: Comprehension
intimacy?
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65) All of the following service capabilities would be found in major CRM products except
A) customer satisfaction management.
B) returns management.
C) call center & help desk.
D) service analytics.
E) order management.
Answer: E
Page Ref: 365
CASE: Comprehension
intimacy?
66) Which of the following is an important capability for sales processes that is found in most
major CRM software products?
A) returns management
B) lead management
C) channel promotions management
D) events management
E) customer satisfaction management
Answer: B
Page Ref: 365
CASE: Comprehension
intimacy?
67) Customer relationship management applications dealing with the analysis of customer data to
provide information for improving business performance best describes ________ applications.
A) operational CRM
B) analytical CRM
C) operational SCM
D) analytical SFA
E) operational SFA
Answer: B
Page Ref: 366
CASE: Synthesis in terms of applying
intimacy?
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68) Operational CRM applications include tools for

A) identifying buying patterns.
B) calculating CLTV.
C) salesforce automation.
D) pinpointing unprofitable customers.
E) creating segments for targeted marketing.
Answer: C
Page Ref: 366
CASE: Comprehension
intimacy?
69) Which of the following is not one of the four types of customers described in the case study
on Graybar?
A) core customers
B) opportunistic customers
C) marginal customers
D) service-drain customers
E) niche customers
Answer: E
Page Ref: 368
CASE: Comprehension
intimacy?
70) Analyzing customer buying patterns is an example of

A) CLTV.
B) analytical CRM.
C) operational CRM.
D) demand planning.
E) cross-selling.
Answer: B
Page Ref: 366
CASE: Comprehension
intimacy?
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71) Which metric is based on the relationship between the revenue produced by a specific
customer, the expenses incurred in acquiring and servicing that customer, and the expected life
of the relationship between the customer and the company?
A) churn rate
B) customer lifetime value
C) cost per lead
D) cost per sale
E) customer average value
Answer: B
Page Ref: 366
CASE: Comprehension
intimacy?
72) The measurement of the number of customers who stop using or purchasing products or
services from a company is called
A) switching costs.
B) churn rate.
C) CLTV.
D) switch rate.
E) turnover percentage.
Answer: B
Page Ref: 367
CASE: Comprehension
intimacy?
73) Walmart's continuous replenishment system is an example of a ________ model.

A) push-based
B) pull-based
C) enterprise-based
D) supply chain optimization
E) forecast-based
Answer: B
Page Ref: 360
CASE: Comprehension
intimacy?
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74) ________ modules in CRM systems help sales staff increase their productivity by focusing
sales efforts on the most profitable customers, those who are good candidates for sales and
services.
A) Customer
B) SOA
C) Marketing
D) Complex
E) SFA
Answer: E
Page Ref: 363
CASE: Comprehension
intimacy?
75) ________ CRM includes customer-facing applications such as tools for sales force
automation, call center and customer service support, and marketing automation.
A) Analytical
B) Employee
C) Operational
D) Partner
E) Next-generation
Answer: C
Page Ref: 366
CASE: Comprehension
intimacy?
76) All CRM packages contain modules for PRM and ERM.
Answer: FALSE
Page Ref: 362
Difficulty: Easy
CASE: Comprehension
intimacy?
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77) Major CRM application software vendors include Oracle, SAP, and Salesforce.com.
Answer: TRUE
Page Ref: 363
CASE: Comprehension
intimacy?
78) Cross-selling is the marketing of complementary products to customers.

Answer: TRUE
Page Ref: 365
CASE: Comprehension
intimacy?
79) CRM software can help organizations identify high-value customers for preferential
treatments.
Answer: TRUE
Page Ref: 365
CASE: Comprehension
intimacy?
80) Analytical CRM uses tools to analyze customer data collected from the firm's customer touch
points and from other sources.
Answer: TRUE
Page Ref: 366
CASE: Comprehension
intimacy?
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81) Identify and describe the two types of customer relationship management applications.
Answer: Operational CRM and analytical CRM are two types of CRM. Operational CRM refers
to customer-facing applications, such as sales force automation, call center and customer service
support, and marketing automation. Analytical CRM refers to customer relationship management
applications dealing with the analysis of customer data to provide information for improving
business performance.
Page Ref: 366
Difficulty: Easy
intimacy?
82) Identify five benefits of customer relationship management systems.

Answer: Benefits include: better customer service, make call centers more efficient, cross-sell
products more effectively, help sales staff close deals faster, simplify marketing and sales
processes, acquire new profitable customers, sell additional products and services, provide
customer information for developing new products, increase product utilization, reduce sales and
marketing costs, identify and retain profitable customers, optimize service delivery costs, retain
high-lifetime value customers, improve customer loyalty, improve response rates to direct mail,
increase product profitability, respond quickly to market opportunities.
Page Ref: 364-368
intimacy?
83) You have been hired by Croydon Visiting Nurse Services, whose business processes are all
manual, paper-based processes. How might a CRM system benefit them?
Answer: A CRM system that includes patients' health records would allow any nurse to take
over if another needed replacement. Assuming that the nurses had access via laptops or other
PDAs to the system, a new nurse would have instant access to the patients' needs. The CRM
might also be able to record which types of treatments or products customers were most
interested in or gave the greatest benefit to customers, and help anticipate needs. Additionally,
with PRM capabilities, products needed by the nursing service would be more easily anticipated,
ordered, and delivered. Since the employees work in the field, or away from a central office,
Internet-based communications might provide tools for reviewing employee performance.
Page Ref: 361-367
intimacy?
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84) Which of the following statements about enterprise applications is not true?
A) Enterprise applications require organizational learning.
B) Enterprise applications introduce "switching costs."
C) Enterprise applications are based on organization-wide definitions of data.
D) Enterprise applications require fundamental changes in the way a business operates.
E) Enterprise applications are best implemented when few changes in business processes are
required.
Answer: E
Page Ref: 369-370
LO: 9.4: What are the challenges posed by enterprise applications and how are enterprise
applications taking advantage of new technologies?
85) Which of the following is not an example of next-generation enterprise applications?

A) open-source solutions
B) social CRM
C) solutions incorporating SCM
D) solutions incorporating SOA
E) cloud solutions
Answer: C
Page Ref: 371-372
CASE: Comprehension
86) Enterprise application vendors have created ________ to make their own customer
relationship management, supply chain management, and enterprise systems work closely
together with each other.
A) e-business suites
B) ERP systems
C) middleware
D) legacy systems
E) cloud solutions
Answer: A
Page Ref: 371
Difficulty: Easy
CASE: Comprehension
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87) Next-generation enterprise suites use ________ and SOA to link to systems of customers and
suppliers.
A) employee relationship management
B) cross-selling
C) just-in-time strategy
D) Web services
E) operational CRM
Answer: D
Page Ref: 371
CASE: Comprehension
88) Using social networking tools to converse with customers is called

A) analytical CRM.
B) social CRM.
C) operational CRM.
D) PRM.
E) ERM.
Answer: B
Page Ref: 371
Difficulty: Easy
CASE: Comprehension
89) Enterprise application vendors are now including ________ features, such as tools for data
visualization, flexible reporting, and ad-hoc analysis, as part of the application.
A) social media
B) PRM
C) ERM
D) SOA
E) business intelligence
Answer: E
Page Ref: 372
CASE: Comprehension
29

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90) Enterprise systems require fundamental changes in the way the business operates.
Answer: TRUE
Page Ref: 370
CASE: Comprehension
30

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Chapter 9 - Test bank

Management Information Systems (Lebanese International University )

StuDocu is not sponsored or endorsed by any college or university

Management Information Systems, 14e (Laudon)

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4) Which of the following is not true about enterprise systems?

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7) In order to achieve maximum benefit from an enterprise software package, a business

9) Enterprise systems include analytical tools.

10) An enterprise system helps reduce redundant business processes.

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11) Identify and describe three major enterprise applications.

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14) Supply chain complexity and scale increases when firms

16) Components or parts of finished products are referred to as

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19) If manufacturers had perfect information, they could implement a

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29) Capabilities of supply chain execution systems would not include

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32) A build-to-order supply-chain model is also called a ________ model.

33) Concurrent supply chains are made possible by which technology?

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35) The bullwhip effect is countered by

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39) Supply chain management systems are a type of enterprise system.

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

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49) Walmart is an example of a push-based model.

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53) Identify two supply chain models. Which is better?

55) A ________ is a method of interaction with a customer, such as telephone or customer

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56) Which of the following would not be considered a contact point?

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60) SFA modules in CRM systems would provide tools for

61) CRM systems help businesses obtain which business objective?

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62) Customer service modules in CRM systems provide tools for

63) Marketing modules in CRM systems would provide tools for

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68) Operational CRM applications include tools for

70) Analyzing customer buying patterns is an example of

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73) Walmart's continuous replenishment system is an example of a ________ model.

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

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82) Identify five benefits of customer relationship management systems.

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