Question 1

Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Accepted Answer

Gaining a better understanding of customer requirements is a benefit typically expected of customer relationship management (CRM).

Question 2

A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:

Accepted Answer

The answer of A company manufactures special products for select...

Question 3

A firm supplies products and services to a wide variety of industries with varying requirements for responsiveness and reliability.  Many customers across these industries are not satisfied with the firm's ability to meet the lead time and on time delivery requirements.  Which of the following tools is most appropriate for the firm to use to improve customer service?

Accepted Answer

Market segmentation allows the firm to categorize its customers based on their specific needs and requirements, enabling it to tailor its services to improve responsiveness and reliability for different customer groups.

Question 4

Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

Accepted Answer

A supplier alliance agreement is best differentiated from a blanket purchase order by a shared vision of added value. While both agreements involve a long-term commitment between a buyer and a seller, a supplier alliance agreement goes beyond a simple transactional relationship to create a partnership that focuses on mutual benefits and value creation. Efficient material replenishment processes and clearly identified roles for the buyer and seller can be present in both types of agreements, while a sole-source agreement is a separate type of procurement agreement that involves only one supplier for a particular product or service.

Question 5

A return material authorization (RMA) policy is used in reverse logistics to:

Accepted Answer

An RMA policy is primarily used to manage and control the return process, ensuring that only eligible items are accepted for return, thereby reducing unnecessary costs associated with handling and processing ineligible returns.

Question 6

A company's decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?

Accepted Answer

Lifetime customer value (LCV) is a metric that allows a company to calculate the net present value of the profit expected from a customer over the entirety of their "lifetime" as a customer. By charging different prices to different market segments, a company can maximize its overall LCV by adjusting prices to align with each segment's willingness to pay, resulting in higher profits in the long run. The other metrics listed, IRR, NPV, and ROI, are generally used to evaluate the financial performance of projects or investments, but do not directly relate to pricing strategies.

Question 7

A company plans to maximize profitability by charging more for its products at retail locations than on its website. Which of the following segmentation strategies would best support this plan?

Accepted Answer

The channel segmentation strategy would best support this plan as it involves different pricing strategies for different distribution channels, such as retail stores and online platforms. By charging more at retail locations, the company can generate higher profits through the physical store channel while still offering lower prices through its website to attract online customers.

Question 8

The probability of customer dissatisfaction is highest when which of the following conditions exists?

Accepted Answer

Customer dissatisfaction is highest when there is a gap between expected performance and perceived performance, as this directly affects the customer's experience and satisfaction.

Question 9

Maintaining a long-term collaborative relationship with a trading partner requires:

Accepted Answer

Maintaining a long-term collaborative relationship with a trading partner requires both formal and informal communication. It is important to maintain constant communication with your trading partner to ensure that both sides understand how the business is operating. Informal communication such as phone calls and face-to-face meetings can help address any issues that arise quickly, while formal communication like contracts and documents outline the expectations of both parties.

Answer: B 
 Maintaining a long-term collaborative relationship with a trading partner requires interconnected information systems. Flawless communication and data sharing is essential to ensure that both parties have all the necessary information about each other's business operation, supply chain, and inventory. It helps to keep the supply chain flowing and ensures that each party benefits from an optimized process flow.

Answer: D
 Maintaining a long-term collaborative relationship with a trading partner requires standardized terms of agreement. It is important to establish consistent standards for pricing, delivery, and other important aspects of the business relationship. This helps ensure that both parties understand what is expected of each other and avoids any potential misunderstandings. It helps both parties to predict and plan for future risks and opportunities.

Question 10

A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?

Accepted Answer

A centralized distribution center can handle both retail and online sales, however, customized products may require a more efficient and direct shipment process. Direct shipment from the factory to online customers can minimize transportation costs and delivery time for customized products. Local distribution centers may not be efficient for customized products, and cross-docking facilities may not be equipped to handle the production and customization process. Transshipment arrangements may also add unnecessary transportation costs and time for online orders. Therefore, a centralized distribution center serving retailers and direct shipment from the factory serving online sales is the most appropriate option.

Question 11

A company considers outsourcing its information technology support to a low-cost region on another continent. The company currently has no business presence there. Which of the following actions is most effective in helping to select a service provider?

Accepted Answer

Finding a trusted local business agent to help in the search is the most effective way to select a service provider in a low-cost region on another continent because they can provide invaluable local knowledge, contacts, and insights. They can also help facilitate communication, negotiate on behalf of the company, and provide guidance on cultural differences and business practices. Contacting the country's consulate and local government may also provide some useful information, but they are unlikely to have the same level of expertise and connections as a trusted local business agent. Visiting potential providers can be time-consuming and expensive, and may not be feasible in the current pandemic situation. Thus, option D is the best choice.

Question 12

What is the primary role of marketing in supporting supply chain management?

Accepted Answer

The primary role of marketing in supporting supply chain management is developing efficient customer channels. This involves collaborating with supply chain management to identify the most effective ways to get products to customers, including determining the optimal distribution channels, inventory levels, and customer service. Marketing plays a critical role in understanding customer needs and preferences, which informs supply chain decisions related to product development, production, and distribution. While selecting favored supplier partners, focusing on short-term forecasting accuracy, and working with research and development on slow-moving products may also be important aspects of supply chain management, they are not the primary role of marketing in supporting it.

Question 13

Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

Accepted Answer

Shipping directly from the point of manufacture to the customer negates risk pooling benefits because inventory is not consolidated at a central location, which would otherwise help in balancing demand variability across different regions.

Question 14

Which of the following is the most important result when a company implements customer relationship management?

Accepted Answer

The most important result when a company implements customer relationship management is the increased retention of key customers. By building strong relationships with customers, businesses can increase their loyalty and reduce the likelihood of losing them to competitors. While profits, product options, and transaction costs may all be positively impacted by customer relationship management, they are not the primary focus and do not necessarily indicate success in building customer loyalty.

Question 15

Which of the following practices has improved management of the customer pipeline?

Accepted Answer

Sales force automation, which involves using software to automate and streamline sales tasks and processes, has greatly improved management of the customer pipeline. It allows for better tracking and management of leads, helps close deals more efficiently, and provides insights into customer behavior and preferences. Reverse auctions, finite capacity planning, and point-of-purchase metrics are not directly related to managing the customer pipeline.

Question 16

A media company offers a majority of its movies through a specific distributor. The media company is beginning to produce content for a new foreign market to which the distributor has exclusive access. To maximize savings and gain entry to this new market, the media company should:

Accepted Answer

Forming a strategic alliance with the distributor would allow the media company to gain access to the new foreign market while still leveraging the distributor's existing exclusive access. This would likely result in cost savings compared to acquiring the distributor or entering into a partnership or contract.

Question 17

Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

Accepted Answer

Customer relationship management allows organizations to focus on building and maintaining long-term relationships with customers, which in turn can lead to increased customer loyalty and repeat business. By prioritizing excellent customer service, organizations can differentiate themselves from competitors who may rely solely on mass-media marketing to reach larger audiences.

Question 18

An advantage of using a third-party logistics service (3PL) is improved:

Accepted Answer

Third-party logistics providers can achieve economies of scale by serving multiple clients, which can lead to a more efficient cost structure for their services.

Question 19

A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?

Accepted Answer

The strategy being used is using a third-party logistics provider, where the wholesaler is outsourcing its transportation needs to a company specializing in transportation services. This allows the wholesaler to focus on its core competency of wholesaling, while the transportation company handles the logistics of delivery. The other options, selling and leasing back equipment, renting equipment on consignment, and using an owner-operator fleet, all involve the wholesaler retaining ownership and/or control of the transportation assets, which is not the case in this scenario.

Question 20

Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Accepted Answer

Reverse supply chain activity typically peaks nearest the beginning of the decline stage of the product life cycle, as products reach the end of their useful lives and need to be recycled or disposed of in an environmentally responsible manner.

Exam 3: APICS Certified Supply Chain Professional

Which of the following outcomes is a benefit typically expected of customer relationship management (CRM) ?