Chapter 12 Enterprise Systems for Management 1
Chapter 12
Customer Relationship Management
True-False Questions
1. CRM implementations should be technology driven.
Answer: False Difficulty: Medium Page Reference: 308
2. CRM stands for “Customer Reporting Management”.
Answer: False Difficulty: Easy Page Reference: 308
3. CRM is a brand new concept.
Answer: False Difficulty: Easy Page Reference: 308
4. CRM provides support for front-end customer facing functionality.
Answer: True Difficulty: Easy Page Reference: 309
5. Organizations first implemented CRM to capture customer data for analysis.
Answer:True Difficulty: Medium Page Reference: 309
6. Allowing customers to obtain information via Internet-based inquiries helped organizations
to scale up their call center operations.
Answer:False Difficulty: Hard Page Reference: 310
7. CRM systems made personalized marketing and customized promotions more feasible.
Answer:True Difficulty: Medium Page Reference: 310
8. CRM systems lack integration with the enterprise wide data collection and analysis systems.
Answer:False Difficulty: Medium Page Reference: 311
9. The use of CRM systems has triggered some concerns about infringing on individual
privacy.
Answer:True Difficulty: Medium Page Reference: 311
10. Internet technologies are not very useful for collecting consumer data.
Answer:False Difficulty: Medium Page Reference: 311
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
,2 Enterprise Systems for Management
11. Customer tracking and profiling are key tools for effective CRM.
Answer:True Difficulty: Medium Page Reference: 312
12. The Internet makes it easier for customers to switch vendors.
Answer:True Difficulty: Medium Page Reference: 312
13. CRM systems are not oriented towards delivering strategic value for an organization.
Answer:False Difficulty: Medium Page Reference: 312
14. Improving communication and reducing costs are examples of tactical benefits of a CRM
system.
Answer:True Difficulty: Hard Page Reference: 312
15. Analytical CRM systems provide front and back-end support for sales and marketing.
Answer:False Difficulty: Medium Page Reference: 313
16. Operational CRM systems improve the efficiency of CRM delivery and support processes.
Answer:True Difficulty: Hard Page Reference: 313
17. Analytic CRM systems make use of sophisticated data warehousing and data mining
software.
Answer:True Difficulty: Medium Page Reference: 313
18. Vlogs are examples of common channels for collaborative CRM systems.
Answer:False Difficulty: Hard Page Reference: 313
19. The CRM portal helps to integrate all the different channels for interacting with the
customer.
Answer:True Difficulty: Medium Page Reference: 313
20. A good CRM system can automate all the customer relationships.
Answer:False Difficulty: Medium Page Reference: 313
21. The key goal of campaign management is to generate “leads”.
Answer:True Difficulty: Easy Page Reference: 314
22. The goal of service management is to convert leads into customers.
Answer:False Difficulty: Medium Page Reference: 314
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
,Chapter 12 Enterprise Systems for Management 3
23. The focus of market research is finding ways to increase the duration and intensity of
customer relationships.
Answer:False Difficulty: Hard Page Reference: 314
24. A good CRM system requires a closed knowledge management loop which consolidates,
analyzes and shares the customer information.
Answer:True Difficulty: Hard Page Reference: 315
25. Customer profiling makes it harder to have individualized contact with a customer.
Answer:False Difficulty: Medium Page Reference: 315
Multiple Choice Questions
26. CRM should not be implemented as a(n) ___________________ system or all at one time.
a. core
b. transactional
c. inter-organizational
d. single
Answer:d Difficulty: Medium Page Reference: 321
27. When implementing CRM, there must be __________________ not only from management
but also from individual users and departments.
a. planning
b. buy-in
c. data
d. decisions
Answer:b Difficulty: Medium Page Reference: 321
28. Implementing a CRM system is difficult because there ________________________ of
CRM functions scattered across a variety of different business areas.
a. vendors
b. networks
c. pieces
d. data sharing
Answer:c Difficulty: Medium Page Reference: 321
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
, 4 Enterprise Systems for Management
29. Every CRM system is unique and must be ______________________ to the needs of the
organization.
a. customized
b. processed
c. analyzed
d. reverse engineered
Answer:a Difficulty: Medium Page Reference: 321
30. Management must decide to go with a ______________________ CRM solution or select a
single vendor to support all the CRM requirements.
a. expanded
b. web-enabled
c. reengineered
d. best-of-breed
Answer:d Difficulty: Hard Page Reference: 321
31. In recent years, the CRM market is moving towards ______________________ vendors due
to consolidation, mergers and acquisitions among CRM software vendors.
a. improved
b. bigger
c. fewer
d. more
Answer:c Difficulty: Easy Page Reference: 321
32. Because they collect and organize consumer data and make it easier to share it, CRM
systems have come under fire for ___________________ and ethical violations.
a. security
b. information
c. privacy
d. business
Answer:c Difficulty: Medium Page Reference: 321
33. Legislation has been passed that restricts collecting data from ___________________ even
though they are a powerful buying segment.
a. religious groups
b. political groups
c. children
d. ethnic groups
Answer:c Difficulty: Easy Page Reference: 322
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 12
Customer Relationship Management
True-False Questions
1. CRM implementations should be technology driven.
Answer: False Difficulty: Medium Page Reference: 308
2. CRM stands for “Customer Reporting Management”.
Answer: False Difficulty: Easy Page Reference: 308
3. CRM is a brand new concept.
Answer: False Difficulty: Easy Page Reference: 308
4. CRM provides support for front-end customer facing functionality.
Answer: True Difficulty: Easy Page Reference: 309
5. Organizations first implemented CRM to capture customer data for analysis.
Answer:True Difficulty: Medium Page Reference: 309
6. Allowing customers to obtain information via Internet-based inquiries helped organizations
to scale up their call center operations.
Answer:False Difficulty: Hard Page Reference: 310
7. CRM systems made personalized marketing and customized promotions more feasible.
Answer:True Difficulty: Medium Page Reference: 310
8. CRM systems lack integration with the enterprise wide data collection and analysis systems.
Answer:False Difficulty: Medium Page Reference: 311
9. The use of CRM systems has triggered some concerns about infringing on individual
privacy.
Answer:True Difficulty: Medium Page Reference: 311
10. Internet technologies are not very useful for collecting consumer data.
Answer:False Difficulty: Medium Page Reference: 311
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
,2 Enterprise Systems for Management
11. Customer tracking and profiling are key tools for effective CRM.
Answer:True Difficulty: Medium Page Reference: 312
12. The Internet makes it easier for customers to switch vendors.
Answer:True Difficulty: Medium Page Reference: 312
13. CRM systems are not oriented towards delivering strategic value for an organization.
Answer:False Difficulty: Medium Page Reference: 312
14. Improving communication and reducing costs are examples of tactical benefits of a CRM
system.
Answer:True Difficulty: Hard Page Reference: 312
15. Analytical CRM systems provide front and back-end support for sales and marketing.
Answer:False Difficulty: Medium Page Reference: 313
16. Operational CRM systems improve the efficiency of CRM delivery and support processes.
Answer:True Difficulty: Hard Page Reference: 313
17. Analytic CRM systems make use of sophisticated data warehousing and data mining
software.
Answer:True Difficulty: Medium Page Reference: 313
18. Vlogs are examples of common channels for collaborative CRM systems.
Answer:False Difficulty: Hard Page Reference: 313
19. The CRM portal helps to integrate all the different channels for interacting with the
customer.
Answer:True Difficulty: Medium Page Reference: 313
20. A good CRM system can automate all the customer relationships.
Answer:False Difficulty: Medium Page Reference: 313
21. The key goal of campaign management is to generate “leads”.
Answer:True Difficulty: Easy Page Reference: 314
22. The goal of service management is to convert leads into customers.
Answer:False Difficulty: Medium Page Reference: 314
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
,Chapter 12 Enterprise Systems for Management 3
23. The focus of market research is finding ways to increase the duration and intensity of
customer relationships.
Answer:False Difficulty: Hard Page Reference: 314
24. A good CRM system requires a closed knowledge management loop which consolidates,
analyzes and shares the customer information.
Answer:True Difficulty: Hard Page Reference: 315
25. Customer profiling makes it harder to have individualized contact with a customer.
Answer:False Difficulty: Medium Page Reference: 315
Multiple Choice Questions
26. CRM should not be implemented as a(n) ___________________ system or all at one time.
a. core
b. transactional
c. inter-organizational
d. single
Answer:d Difficulty: Medium Page Reference: 321
27. When implementing CRM, there must be __________________ not only from management
but also from individual users and departments.
a. planning
b. buy-in
c. data
d. decisions
Answer:b Difficulty: Medium Page Reference: 321
28. Implementing a CRM system is difficult because there ________________________ of
CRM functions scattered across a variety of different business areas.
a. vendors
b. networks
c. pieces
d. data sharing
Answer:c Difficulty: Medium Page Reference: 321
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
, 4 Enterprise Systems for Management
29. Every CRM system is unique and must be ______________________ to the needs of the
organization.
a. customized
b. processed
c. analyzed
d. reverse engineered
Answer:a Difficulty: Medium Page Reference: 321
30. Management must decide to go with a ______________________ CRM solution or select a
single vendor to support all the CRM requirements.
a. expanded
b. web-enabled
c. reengineered
d. best-of-breed
Answer:d Difficulty: Hard Page Reference: 321
31. In recent years, the CRM market is moving towards ______________________ vendors due
to consolidation, mergers and acquisitions among CRM software vendors.
a. improved
b. bigger
c. fewer
d. more
Answer:c Difficulty: Easy Page Reference: 321
32. Because they collect and organize consumer data and make it easier to share it, CRM
systems have come under fire for ___________________ and ethical violations.
a. security
b. information
c. privacy
d. business
Answer:c Difficulty: Medium Page Reference: 321
33. Legislation has been passed that restricts collecting data from ___________________ even
though they are a powerful buying segment.
a. religious groups
b. political groups
c. children
d. ethnic groups
Answer:c Difficulty: Easy Page Reference: 322
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
