Test Bank For Enterprise Systems for Management 2nd Edition By Luvai Jeffrey

Enterprise Systems for Management, 2e (Motiwalla/Thompson)
Chapter 12 Customer Relationship Management

1) CRM implementations should be technology driven.
Answer: FALSE
Diff: 2 Page Ref: 333

2) CRM stands for "Customer Reporting Management."
Answer: FALSE
Diff: 1 Page Ref: 333

3) CRM is a brand new concept.
Answer: FALSE
Diff: 1 Page Ref: 333

4) CRM provides support for front-end customer facing functionality.
Answer: TRUE
Diff: 1 Page Ref: 334

5) Organizations first implemented CRM to capture customer data for analysis.
Answer: TRUE
Diff: 2 Page Ref: 334

6) Allowing customers to obtain information via Internet-based inquiries helped organizations to
scale up their call center operations.
Answer: FALSE
Diff: 3 Page Ref: 335

7) CRM systems made personalized marketing and customized promotions more feasible.
Answer: TRUE
Diff: 2 Page Ref: 335

8) CRM systems lack integration with the enterprise wide data collection and analysis systems.
Answer: FALSE
Diff: 2 Page Ref: 336

9) The use of CRM systems has triggered some concerns about infringing on individual privacy.
Answer: TRUE
Diff: 2 Page Ref: 336

10) Internet technologies are not very useful for collecting consumer data.
Answer: FALSE
Diff: 2 Page Ref: 336

11) Customer tracking and profiling are key tools for effective CRM.
Answer: TRUE
Diff: 2 Page Ref: 338
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,12) The Internet makes it easier for customers to switch vendors.
Answer: TRUE
Diff: 2 Page Ref: 338

13) CRM systems are not oriented towards delivering strategic value for an organization.
Answer: FALSE
Diff: 2 Page Ref: 338

14) Improving communication and reducing costs are examples of tactical benefits of a CRM
system.
Answer: TRUE
Diff: 3 Page Ref: 338

15) Analytical CRM systems provide front and back-end support for sales and marketing.
Answer: FALSE
Diff: 2 Page Ref: 338

16) Operational CRM systems improve the efficiency of CRM delivery and support processes.
Answer: TRUE
Diff: 3 Page Ref: 338

17) Analytic CRM systems make use of sophisticated data warehousing and data mining
software.
Answer: TRUE
Diff: 2 Page Ref: 339

18) Vlogs are examples of common channels for collaborative CRM systems.
Answer: FALSE
Diff: 3 Page Ref: 339

19) The CRM portal helps to integrate all the different channels for interacting with the
customer.
Answer: TRUE
Diff: 2 Page Ref: 339

20) A good CRM system can automate all the customer relationships.
Answer: FALSE
Diff: 2 Page Ref: 339

21) The key goal of campaign management is to generate "leads."
Answer: TRUE
Diff: 1 Page Ref: 339

22) The goal of service management is to convert leads into customers.
Answer: FALSE
Diff: 2 Page Ref: 339


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,23) The focus of market research is finding ways to increase the duration and intensity of
customer relationships.
Answer: FALSE
Diff: 3 Page Ref: 339

24) A good CRM system requires a closed knowledge management loop which consolidates,
analyzes and shares the customer information.
Answer: TRUE
Diff: 3 Page Ref: 340

25) Customer profiling makes it harder to have individualized contact with a customer.
Answer: FALSE
Diff: 2 Page Ref: 340

26) Some of the current CRM vendors originally started off in the SCM market.
Answer: FALSE
Diff: 3 Page Ref: 341

27) SFA tools help sales personnel to track sales leads and contact with customer.
Answer: TRUE
Diff: 2 Page Ref: 341

28) The call center has become a common source for customers to find quick answers to
complex technical questions.
Answer: FALSE
Diff: 3 Page Ref: 341

29) The growth in data being generated by web-driven business has been a driver for data mining
and analytics functionality.
Answer: TRUE
Diff: 2 Page Ref: 341

30) No single CRM software package can provide all the functionality needed for a
comprehensive CRM system.
Answer: TRUE
Diff: 3 Page Ref: 341

31) Typical CRM systems follow a cloud architecture.
Answer: FALSE
Diff: 2 Page Ref: 342

32) A company may also choose a hosted architecture where the CRM vendor runs and
maintains the CRM applications and data on their own web site.
Answer: TRUE
Diff: 2 Page Ref: 343



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, 33) Improvements in the speed and security of the Internet have recently spurred interest and
demand for in-sourced CRM systems.
Answer: FALSE
Diff: 2 Page Ref: 343

34) One key concern about hosted CRM applications is that they do occasionally experience
downtime and this can really hurt the company whose application is hosted.
Answer: TRUE
Diff: 2 Page Ref: 343

35) The hardware requirements document will outline what the new CRM system capabilities
should be. So this is a crucial document in the CRM implementation.
Answer: FALSE
Diff: 2 Page Ref: 345

36) Hosted CRM systems have become an attractive alternative for small and large sized firms.
Answer: FALSE
Diff: 2 Page Ref: 345

37) Paying a CRM vendor to host your CRM applications is a less expensive alternative to
purchasing licenses to CRM software and running it yourself.
Answer: TRUE
Diff: 2 Page Ref: 345

38) CRM project deadlines should be firm to account for the organizations ability to change and
not simply adhering to a delivery schedule set by a vendor.
Answer: FALSE
Diff: 2 Page Ref: 345

39) At the beginning of a CRM implementation, management and personnel should agree on the
metrics that need to be captured by the software.
Answer: TRUE
Diff: 2 Page Ref: 346

40) It is easier and more economical to implement an ERP with a CRM system.
Answer: FALSE
Diff: 2 Page Ref: 346

41) 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
Diff: 2 Page Ref: 347



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