Test Database

Chapter 10 – Customer Management

1. A retailer would use an omni-channel strategy to provide service to the customer from anywhere in the supply chain.a. Trueb. False

2. In today’s supply chain it is the producer and the distributor that controls the buying experience.a. Trueb. False

3. In a vertically integrated channel strategy intermediaries perform all customer-facing activities.a. Trueb. False

4. Customer today’s value the experience they receive from suppliers as much as the products and services.a. Trueb. False

5. Customers receive economic value when they leverage a product or service to generate additional value beyond the initial cost.a. Trueb. False

6. Customer reliability is defined as the capability of the product or service to consistently perform as it has in the past or will perform according to new features.a. Trueb. False

7. CRM is a major facilitator of supply chain collaboration.a. Trueb. False

8. Partner relationship management (PRM) is considered a customer experience management (CEM) function.a. Trueb. False

9. Customer order packing, delivery, and invoicing are essential attributes of customer order dependability.a. Trueb. False

10. Benchmarking will assist companies in improving customer service management.a. Trueb. False

Multiple Choice

11. Which of the following components should be addressed by a world-class customer service strategy?a. customer concernsb. customer and supplier concernsc. customer, employee, and supplier concernsd. customer, employee, supplier, and shareholder concerns

12. Line item fill rate, shipments by due dates, stock outs, cycle times, and other similar process data are elements used during which of the following activities of order management?a. order entryb. order processingc. order allocationd. order monitoring

13. The prime objective of customer relationship management (CRM) is toa. Ensure adequate sales margins are being maintained.b. Facilitate the capture of demand data for forecasting.c. Build profitable, sustainable relations with customers.d. Generate pricing and promotions that meet production output.

14. Which of the following is the primary reason organizations need to implement CRM?a. Improves sales volumes even at the cost of profitsb. Helps ensure competitive survivalc. Creates a single supply chaind. Creates a single contact channel

15. Which of the following is the development of lifetime customers by training staff to optimize each customer’s experience?a. Operationsb. Analysisc. Relationship buildingd. Collaboration

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16. Which of the following is true of lifetime customers?a. They have higher marketing costs.b. It gets increasingly harder to satisfy lifetime customers.c. Lifetime customers offer fewer but more valuable revenue opportunities.d. Lifetime customers have a win-win dependency with the supplier.

17. The margin lost by a firm for each lost sale because there is no inventory on hand isa. The cost of overstocking the product.b. The cost of stocking the product.c. The cost of understocking the product.d. The cost of overselling the product.

18. Which of the following is an industry term for methodologies and technologies that help an enterprise manage customer relationships in an organized and efficient manner?a. SCMb. ERPc. CRMd. ERM

19. A retailer that provides customer service through a stirefront, an Intenter catelog, and an I-Phone app would be using a a. Omni-channel strategyb. Customer segmentation strategyc. Direct sales strategyd. Product location strategy

20. A customer service channel strategy where the seller performs some of the customer management functions while using sell-side channel partners to perform the remaining tasks is termed?a. Hybrid selling modelb. Third-party delegatedc. Vertically integratedd. Horizontally integrated

21. When considering the introduction of a new product into the marketplace, designers should focus on a. Features that appeal to the customersb. Features that add value to the solutions need by the customerc. Features that solidify brand recognition in the marketplaced. Features that will realize the highest profits at the lowest production costs

22. Customer experience management (CEM) is described as a. Understanding the level of value customers bring to the organization

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b. Understanding how best to identify and retain customersc. Understanding the level of value customers receive from the organizationd. Understanding how to measure customer profitability and build brand

equity

23. An important way to enable fast-flow fulfillment isa. Create targeted marketing plans that pinpoint customer requirementsb. Develop configurable product and service catalogsc. Utilize sources of Internet communicationd. Develop brand features that facilitate product search

24. Perhaps the most important objective of CRM is toa. Develop lifetime customersb. Provide insight to customer profitabilityc. Provide data for new marketing strategiesd. Provide the organization with customer service management and

technologies

25. CRM helps to build effective marketing programs by a. Providing critical customer service datab. Integrating reporting, analytics, and campaign managementc. Acting as a central customer management database for supply chain

collaborationd. Personalizing the communication between seller and buyer

26. The CRM technology that marketers would use to explore new avenues of customer service would be which of the following?a. PRM development and profiling b. Demand sensing applicationsc. Demand shaping applicationsd. Operations optimization

27. Managers concerned with tracking the efficiency of their customer service management (CSM) personnel would most likely deploy which of the following technologies?a. Case managementb. Case history knowledge databasec. Customer portalsd. Time tracking

28. The base step in the development of effective customer service management

is toa. Measure current performanceb. Establish a culture of continuous improvementc. Identify and measure customer requirements and expectations

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d. Determine competitive benchmarks

29. While price is a significant element in customers’ decision to buy, what attribute is probably second?a. Product quality and reliabilityb. Availabilityc. Customer serviced. Product features and options

30. At a minimum, optimum service level a. Balances sales increases with cost increasesb. Increases sales while decreases costsc. Increases the number of channels while increasing salesd. Decreases the number of channel distribution points while increasing

sales

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Answer Key

1. T2. F3. F4. T5. T6. F7. T8. F9. F10. T11. d12. d13. c14. b15. c16. d17. c18. c19. a20. a21. b22. c23. b24. a25. d26. c27. d28. b29. c30. a