Question 1

The benefits of open-source CRM include all of the following except:

Accepted Answer

Open-source CRM systems generally offer similar levels of functionality to in-house CRM systems, so they do not necessarily have more functionality.

Question 2

_____ is a CRM system that is hosted by an external vendor in the vendor's data center.

Accepted Answer

On-demand CRM, also known as Software-as-a-Service (SaaS) CRM, is a CRM system that is hosted by an external vendor in the vendor's data center. Users access the system through the internet, typically paying a subscription fee to use the software.

Question 3

Which of the following statements concerning CRM is not true?

Accepted Answer

CRM is designed for companies to interact with customers as individuals, not as a group. It focuses on personalized communication and understanding individual customer needs and preferences.

Question 4

A call center is a type of customer interaction center.

Accepted Answer

A call center is a centralized department that handles incoming and outgoing customer interactions via telephone, email, chat, or other communication channels. Therefore, it is a type of customer interaction center.

Question 5

The ___________ is comprised of a company's suppliers, suppliers' suppliers, and the processes for managing them.

Accepted Answer

The question is asking for the segment of the supply chain that includes a company's suppliers and the processes for managing them. This is the upstream segment of the supply chain, which includes a company's suppliers, suppliers' suppliers, and their related processes. The downstream segment of the supply chain includes a company's customers and distribution channels. The internal segment of the supply chain refers to a company's own internal processes for managing inventory, production, and logistics. Therefore, the best choice is C) upstream segment of the supply chain.

Question 6

Which of the following technologies is(are) used by analytic CRM systems?

Accepted Answer

Analytic CRM systems use a combination of data warehouses and data mining, decision support systems, and transaction processing systems to analyze customer data and make informed business decisions. Therefore, all of these technologies are used by analytic CRM systems.

Question 7

Sales force automation is a customer-facing application.

Accepted Answer

Sales force automation software is designed to help sales teams manage their customer interactions more efficiently and effectively. It is a customer-facing application as it allows sales reps to track and manage customer interactions and automate certain tasks to better serve their customers.

Question 8

Small companies do not have to worry about CRM as it is only essential for large organizations..

Accepted Answer

This statement is false. CRM (Customer Relationship Management) is important for all companies, regardless of their size. Even small companies can benefit from having a CRM to manage customer interactions, track sales and marketing efforts, and improve overall customer satisfaction.

Question 9

In the downstream segment of the supply chain, managers coordinate the receipt of orders from customers, develop a network of warehouses, select carriers to deliver their products to customers, and develop invoicing systems to receive payments from customers.

Accepted Answer

This statement accurately describes the role and responsibilities of managers in the downstream segment of the supply chain.

Question 10

Analytic CRM systems can be used for the following purposes except:

Accepted Answer

Analytic CRM systems can be used for forecasting future profitability, providing guidelines for future product development, and designing targeted marketing campaigns. However, they are not typically used for delivering future product information to customers.

Question 11

____ is a CRM system that enables organizations to conduct communications related to customer management through portable media.

Accepted Answer

Mobile CRM is a system designed for portable devices, such as smartphones and tablets, which allows organizations to manage their customer relationships and related communications anywhere and anytime. It offers employees the necessary tools to access customer data, update records, and communicate with customers while on the go.

Question 12

The basic idea behind CRM is to treat all customers in exactly the same way and give them the same great service.

Accepted Answer

The basic idea behind CRM is to treat different customers differently based on their needs, preferences and behaviors, and develop personalized relationships with them in order to enhance customer satisfaction and increase loyalty.

Question 13

Operational CRM systems support the front-office business processes, which directly interact with customers.

Accepted Answer

Operational CRM systems focus on customer-facing business processes such as sales, marketing, and customer service.

Question 14

_____ systems support the front-office business processes, which directly interact with customers.

Accepted Answer

Operational CRM systems are designed to support the customer-facing business processes, such as sales, marketing, and customer service. These processes involve direct interaction with customers and are essential for building and maintaining customer relationships. Therefore, operational CRM systems are the best choice to support front-office business processes. Business intelligence CRM, collaborative CRM, analytical CRM, and transactional CRM each focus on a different aspect of customer relationship management and do not specifically support front-office business processes.

Question 15

The complete data set on a customer is called:

Accepted Answer

A 360-degree view is the complete collection of data on a customer, including all interactions and touchpoints across channels and departments. This includes information such as purchase history, demographic information, communication preferences, and past customer service interactions. Options A, B, D, and E all capture some aspect of customer data, but they do not convey the comprehensive nature of a 360-degree view.

Question 16

CRM systems are designed to focus companies' marketing efforts on a large and broad group of people.

Accepted Answer

CRM systems are designed to focus companies' marketing efforts on a specific and targeted group of people, usually those who have shown interest or interacted with the company before.

Question 17

Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.

Accepted Answer

Supply chain visibility refers to the ability to track and monitor the movement of goods and materials throughout the supply chain, from raw materials to finished products. It does not specifically refer to the time between receipt of incoming goods and dispatch of outbound products.

Question 18

The sales, marketing, and service functions are part of:

Accepted Answer

The sales, marketing, and service functions are part of Operational CRM, which is focused on the day-to-day interactions between the company and its customers, including sales automation, marketing automation, and customer service automation. Business intelligence CRM and Analytical CRM are focused on analyzing customer data to gain insights and make strategic decisions. Collaborative CRM is focused on integrating customer feedback and input into the company’s operations. Transactional CRM is focused on managing customer interactions during specific transactions, such as sales or support requests.

Question 19

_____ systems analyze customer data for designing and executing targeted marketing campaigns.

Accepted Answer

Analytical CRM systems use customer data to identify patterns and help design targeted marketing campaigns. Business Intelligence CRM systems are focused on analyzing data related to the overall business performance, rather than just customer data. Operational CRM systems are focused on the day-to-day interactions with customers, such as sales and customer service. Collaborative CRM systems aim to improve communication and collaboration among different departments that interact with customers. Transactional CRM systems focus on recording and managing customer transactions.

Question 20

Companies use CRM systems to recreate the intimate personal relationship that once existed between them and their customers.

Accepted Answer

CRM systems are designed to help companies manage and improve their relationships with customers by providing centralized data, tracking interactions, and enabling personalized communication. The goal is to create a seamless and personalized customer experience, similar to the intimacy of a personal relationship.

Quiz 10: Customer Relationship Management and Supply Chain Management