Question 1

Which metric is based on the relationship between the revenue produced by a specific customer,the expenses incurred in acquiring and servicing that customer,and the expected life of the relationship between the customer and the company?
A)Churn rate
B)CLTV
C)Cost per lead
D)Cost per sale

Accepted Answer

The metric 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 is called Customer Lifetime Value (CLTV). Churn rate measures the percentage of customers who stop doing business with a company over a certain period. Cost per lead measures the cost of acquiring each lead, and cost per sale measures the cost of making a sale to a customer.

Question 2

In a ________ strategy,components arrive exactly at the moment they are needed,and finished goods are shipped as they leave the assembly line.
A)just-in-time
B)bullwhip
C)safety stock
D)downstream

Accepted Answer

The given description matches the just-in-time (JIT) inventory strategy, which aims to minimize inventory levels by receiving components only when they are needed and shipping finished goods as soon as they are produced, in order to avoid unnecessary holding costs and waste. The bullwhip effect refers to the amplification of demand variability as it moves upstream in the supply chain, while safety stock is a buffer inventory kept to mitigate the risk of stockouts or supply disruptions, and downstream refers to the direction of material flow towards the final customer.

Question 3

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

Accepted Answer

The answer of The bullwhip effect is countered by:
A)globalization.
B)disintermediation.
C)implementing an...

Question 4

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

Accepted Answer

Solutions incorporating SCM are not an example of next-generation enterprise applications because they are not focused on the latest technologies and trends.

Question 5

________ consists of a set of interdependent software modules that support basic internal business processes for finance and accounting,human resources,manufacturing and production,and sales and marketing.
A)SCM software
B)PRM software
C)Enterprise software
D)Service platforms

Accepted Answer

Enterprise software is designed to support core business activities and processes such as finance and accounting, human resources, manufacturing and production, and sales and marketing. It consists of interdependent software modules that work together to improve business efficiency and productivity. SCM software is focused on managing the supply chain, PRM software focuses on managing partner relationships, and service platforms provide tools for managing customer service and support. Therefore, none of these options would be the best fit for the given description.

Question 6

A company's supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.

Accepted Answer

This statement accurately describes what a supply chain represents.

Question 7

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)ESS
B)SAP
C)on-demand
D)business intelligence

Accepted Answer

The features mentioned such as data visualization, flexible reporting, and ad hoc analysis are all components of business intelligence solutions. Therefore, the best choice is D, business intelligence.

Question 8

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.

Accepted Answer

The measurement of the number of customers who stop using or purchasing products or services from a company is called churn rate. Switching costs refer to the costs incurred by customers when they switch to a competitor's product or service. CLTV (Customer Lifetime Value) refers to the total amount of revenue that a customer is expected to generate throughout their relationship with a company. Switch rate is not a commonly used term in this context.

Question 9

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system.

Accepted Answer

The answer of A company having difficulty with timely delivery...

Question 10

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

Accepted Answer

This statement is not true as enterprise applications often require changes in business processes to align with the system's functionality and best practices. Implementing an enterprise application without considering process changes can lead to limited adoption and suboptimal results.

Question 11

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

Accepted Answer

Analyzing customer buying patterns falls under analytical CRM, which involves using data analysis and mining to gain insights into customer behavior and trends. CLTV (Customer Lifetime Value) is a metric used to calculate the long-term value of a customer to a business. Operational CRM primarily focuses on automating and streamlining customer-facing business processes. Demand planning involves forecasting and managing demand for a product or service.

Question 12

The downstream portion of the supply chain includes retailers and customers.

Accepted Answer

The downstream portion of the supply chain refers to the movement of goods and information from the manufacturer to the retailer and ultimately to the customer. Therefore, retailers and customers are considered part of the downstream portion of the supply chain.

Question 13

________ CRM includes customer-facing applications such as tools for sales force automation,call center and customer service support,and marketing automation.
A)Operational
B)Social
C)Web-based
D)Sales force

Accepted Answer

Operational CRM focuses on the automation of customer-facing processes such as sales, marketing, and customer support. This includes sales force automation, call center and customer service support, and marketing automation tools. Social CRM, on the other hand, focuses on social interactions and engagement with customers, while web-based CRM simply refers to the delivery of CRM applications over the web.

Question 14

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

Accepted Answer

Operational CRM applications include tools for salesforce automation, which refers to the automation of the sales process, including lead management, opportunity management, and sales forecasting. Choice A, B, and D are more related to analytical CRM applications that are used for customer analysis and decision-making.

Question 15

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

Accepted Answer

Analytical CRM applications are typically used for data analysis and business intelligence purposes. They are based on data warehouses that consolidate data from various operational CRM applications. This allows organizations to analyze customer behavior, preferences, and patterns over time, and use this information to make more informed business decisions. While marketing automation and customer-facing applications may be part of an organization's overall CRM strategy, they are not specific to analytical CRM applications.

Question 16

With new flows of information made possible by Web-based tools,supply chain management can more easily follow a push-based model.

Accepted Answer

Web-based tools enable a pull-based model of supply chain management, where information flows from the consumer to the producer. This allows better coordination of demand and supply based on real-time information, resulting in a more efficient and responsive supply chain.

Question 17

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

Accepted Answer

Analytical CRM applications are designed to analyze customer data to provide insights into customer behaviors and preferences, which can be used to improve business performance. Operational CRM applications, on the other hand, are focused on customer-facing activities such as sales, marketing, and customer service. Operational SCM applications focus on improving supply chain activities, while analytical SFA applications analyze sales data to improve sales performance.

Question 18

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

Accepted Answer

The answer of Enterprise application vendors have created ________ to...

Question 19

To model its existing supply chain and make better decisions about managing inventory,a firm would implement the type of SCM called supply chain execution systems.

Accepted Answer

Supply chain execution systems focus on the efficient execution of supply chain activities such as transportation, warehousing, and order fulfillment. To model and analyze the supply chain, a firm would implement supply chain planning systems.

Question 20

________ 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)PRM
B)SFA
C)ERM
D)CLTV

Accepted Answer

SFA (Sales Force Automation) 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. PRM (Partner Relationship Management) modules help manage relationships with distributors, dealers, and other partners. ERM (Employee Relationship Management) modules help manage relationships with employees. CLTV (Customer Lifetime Value) is a metric used to estimate the total value a customer will bring to a business over their entire lifetime.

Quiz 8: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

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?

In a ________ strategy,components arrive exactly at the moment they are needed,and finished goods are shipped as they leave the assembly line.

The bullwhip effect is countered by:

Which of the following is not an example of next-generation enterprise applications?

________ consists of a set of interdependent software modules that support basic internal business processes for finance and accounting,human resources,manufacturing and production,and sales and marketing.

A company's supply chain describes how raw materials are transformed into finished products and shipped to retailers and customers.

Enterprise application vendors are now including ________ features,such as tools for data visualization,flexible reporting,and ad hoc analysis,as part of the application.

The measurement of the number of customers who stop using or purchasing products or services from a company is called:

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain planning system.

Which of the following statements about enterprise applications is not true?

Analyzing customer buying patterns is an example of:

The downstream portion of the supply chain includes retailers and customers.

________ CRM includes customer-facing applications such as tools for sales force automation,call center and customer service support,and marketing automation.

Operational CRM applications include tools for:

Analytical CRM applications:

With new flows of information made possible by Web-based tools,supply chain management can more easily follow a push-based model.

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes ________ applications.

Enterprise application vendors have created ________ to make their own customer relationship management,supply chain management,and enterprise systems work closely together with each other.

To model its existing supply chain and make better decisions about managing inventory,a firm would implement the type of SCM called supply chain execution systems.

________ 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.