This Document Contains Chapters 9 to 11 BPI009 Customer Relationship Management Multiple Choice Questions 1. Which of the following is not one of the three phases in the evolution of CRM? A. Reporting B. Analyzing C. Processing D. Predicting Answer: C. Processing Rationale: Processing is not one of the three phases in the evolution of CRM. 2. What helps an organization identify its customers across applications? A. CRM reporting technologies B. CRM analyzing technologies C. CRM processing technologies D. CRM predicting technologies Answer: A. CRM reporting technologies Rationale: Reporting helps an organization identify its customers across applications. 3. What is an organization performing when it asks questions such as "why was customer revenue so high"? A. CRM reporting technologies B. CRM analyzing technologies C. CRM processing technologies D. CRM predicting technologies Answer: B. CRM analyzing technologies Rationale: Why was customer revenue so high is analyzing. 4. What is an organization performing when it asks questions such as "which customers are at risk of leaving"? A. CRM reporting technologies B. CRM analyzing technologies C. CRM processing technologies D. CRM predicting technologies Answer: D. CRM predicting technologies Rationale: Which customers are at risk of leaving is predicting. 5. Which question below represents a CRM reporting technology example? A. Why did sales not meet forecasts? B. What customers are at risk of leaving? C. What is the total revenue by customer? D. All of the above Answer: C. What is the total revenue by customer? Rationale: Total revenue by customer is a report. 6. Which question below represents a CRM analyzing technology question? A. Why did sales not meet forecasts? B. What customers are at risk of leaving? C. What is the total revenue by customer? D. All of the above Answer: A. Why did sales not meet forecasts? Rationale: Why did sales not meet forecasts is analyzing. 7. Which question below represents a CRM predicting technology question? A. Why did sales not meet forecasts? B. What customers are at risk of leaving? C. What is the total revenue by customer? D. All of the above Answer: B. What customers are at risk of leaving? Rationale: What customers are at risk of leaving is predicting. 8. Which of the following operational CRM technologies does the sales department typically use? A. Campaign management, contact management, opportunity management B. Sales management, contact management, contact center C. Sales management, call scripting, opportunity management D. Sales management, contact management, opportunity management Answer: D. Sales management, contact management, opportunity management Rationale: Sales management, contact management, and opportunity management is generally used by sales departments. 9. Which of the following operational CRM technologies does the marketing department typically use? A. Contact center, web-based self-service, call scripting B. Contact center, cross-selling and up-selling, web-based self-service C. List generator, opportunity management, cross-selling and up-selling D. List generator, campaign management, cross-selling and up-selling Answer: D. List generator, campaign management, cross-selling and up-selling Rationale: List generator, campaign management, and cross-selling and up-selling is generally used by marketing departments. 10. Which of the following operational CRM technologies does the customer service department typically use? A. Contact center, web-based self-service, call scripting B. Sales management, contact management, opportunity management C. List generator, opportunity management, cross-selling and up-selling D. List generator, campaign management, cross-selling and up-selling Answer: A. Contact center, web-based self-service, call scripting Rationale: Contact center, web-based self-service, and call scripting is generally used by customer service departments. 11. What compiles customer information from a variety of sources and segments the information for different marketing campaigns? A. Campaign management system B. Cross-selling C. Up-selling D. List generator Answer: D. List generator Rationale: This is the definition of list generator. 12. What guides users through marketing campaigns performing such tasks as campaign definition, planning, scheduling, segmentation, and success analysis? A. Campaign management system B. Cross-selling C. Up-selling D. List generator Answer: A. Campaign management system Rationale: This is the definition of campaign management system. 13. What is McDonald's performing when it asks its customers if they would like to super-size their meals? A. Campaign management B. Cross-selling C. Up-selling D. Down-selling Answer: C. Up-selling Rationale: Up-selling is increasing the value of the sale. 14. Which of the following represents sales force automation? A. Helping an organization identify its customers across applications B. Selling additional products or services to a customer C. A system that automatically tracks all of the steps in the sales process D. Selling larger products or services to a customer Answer: C. A system that automatically tracks all of the steps in the sales process Rationale: This is the definition of sales force automation. 15. What automates each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts? A. Sales management systems B. Contact management systems C. Opportunity management systems D. None of the above Answer: A. Sales management systems Rationale: This is the definition of sales management systems. 16. What maintains customer contact information and identifies prospective customers for future sales? A. Sales management system B. Contact management system C. Opportunity management system D. Sales force automation system Answer: B. Contact management system Rationale: This is the definition of contact management systems. 17. What targets sales opportunities by finding new customers or companies for future sales? A. Sales management system B. Contact management system C. Opportunity management system D. Sales force automation system Answer: C. Opportunity management system Rationale: This is the definition of opportunity management systems. 18. Which of the following was one of the first CRM components built to address the issues that sales representatives were struggling with the overwhelming amount of customer account information they were required to maintain and track? A. Sales management system B. Contact management system C. Opportunity management system D. Sales force automation system Answer: D. Sales force automation system Rationale: One of the first CRM components built to help address sales issues was the sales force automation system. 19. What is the primary difference between contact management and opportunity management? A. Contact management deals with new customers, opportunity management deals with existing customers B. Contact management deals with existing customers, opportunity management deals with existing customers C. Contact management deals with new customers, opportunity management deals with new customers D. Contact management deals with existing customers, opportunity management deals with new customers Answer: D. Contact management deals with existing customers, opportunity management deals with new customers Rationale: Contact management deals with existing customers, opportunity management deals with new customers. 20. Which of the following is where customer service representatives answer customer inquiries and respond to problems through a number of different customer touch points? A. Contact center B. Web-based self-service C. Call scripting D. None of the above Answer: A. Contact center Rationale: This is the definition of contact center. 21. What allows customers to use the web to find answers to their questions or solutions to their problems? A. Contact center B. Web-based self-service C. Call scripting D. None of the above Answer: B. Web-based self-service Rationale: This is the definition of web-based self-service. 22. What accesses organizational databases that track similar issues or questions and automatically generate the details to the CSR who can then relay them to the customer? A. Contact center B. Web-based self-service C. Call scripting D. None of the above Answer: C. Call scripting Rationale: This is the definition of call scripting. 23. What is automatic call distribution? A. Automatically dials outbound calls and when someone answers, the call is forwarded to an available agent B. Directs customers to use touch-tone phones or keywords to navigate or provide information C. A phone switch routes inbound calls to available agents D. None of the above Answer: C. A phone switch routes inbound calls to available agents Rationale: This is the definition of automatic call distribution. 24. What is interactive voice response (IVR)? A. Automatically dials outbound calls and when someone answers, the call is forwarded to an available agent B. Directs customers to use touch-tone phones or keywords to navigate or provide information C. A phone switch routes inbound calls to available agents D. None of the above Answer: B. Directs customers to use touch-tone phones or keywords to navigate or provide information Rationale: This is the definition of interactive voice response. 25. What is predictive dialing? A. Automatically dials outbound calls and when someone answers, the call is forwarded to an available agent B. Directs customers to use touch-tone phones or keywords to navigate or provide information C. A phone switch routes inbound calls to available agents D. None of the above Answer: A. Automatically dials outbound calls and when someone answers, the call is forwarded to an available agent Rationale: This is the definition of predictive dialing. 26. Which of the following is not considered a feature in a contact center? A. Automatic call distribution B. Interactive voice response C. Predictive dialing D. Automatic predictive dialing Answer: D. Automatic predictive dialing Rationale: Automatic predictive dialing does not exist. 27. What focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection? A. Supplier relationship management B. Partner relationship management C. Employee relationship management D. None of the above Answer: A. Supplier relationship management Rationale: This is the definition of supplier relationship management. 28. What focuses on keeping vendors satisfied by managing alliance partner and reseller relationships that provide customers with the optimal sales channel? A. Supplier relationship management B. Partner relationship management C. Employee relationship management D. None of the above Answer: B. Partner relationship management Rationale: This is the definition of partner relationship management. 29. What provides employees with a subset of CRM applications available through a web browser? A. Supplier relationship management B. Partner relationship management C. Employee relationship management D. None of the above Answer: C. Employee relationship management Rationale: This is the definition of employee relationship management. 30. Which industries will want to keep using CRM as a major strategic focus in the future? A. Industries whose products are unique B. Industries whose products are difficult to differentiate C. Industries whose products are exclusive D. Industries whose products are distinctive Answer: B. Industries whose products are difficult to differentiate Rationale: Industries whose products are difficult to differentiation will want to continue to focus on building strong customers relationships in the future. True/False Questions 31. RFM stands for Regency, Frequency, and Monetary. Answer: False Rationale: RFM stands for Recency (not regency), Frequency, and Monetary Value. 32. The evolution of CRM is reporting, analyzing, and predicting. Answer: True Rationale: The evolution of CRM is reporting, analyzing, and predicting. 33. List generators fall under the category of the sales department's CRM tools. Answer: False Rationale: List generators fall under the category of the marketing department's CRM tools. 34. Contact management falls under the category of the customer service department's CRM tools. Answer: False Rationale: Contact management falls under the category of the sales department's CRM tools. 35. Call scripting falls under the category of the sales department's CRM tools. Answer: False Rationale: Call scripting falls under the category of the customer service department's CRM tools. Fill in the Blank Questions 36. Customer relationship management involves managing all aspects of a customer's relationship with an organization to increase customer ____________ and retention and an organization's profitability. Answer: Loyalty 37. An organization can find its most valuable customers by using a formula that industry insiders call Recency, ______________, and Monetary Value. Answer: Frequency 38. The three phases of CRM include (1) reporting, (2) ____________, and (3) predicting. Answer: Analyzing 39. _________ technologies help organizations identify their customers across applications. Answer: Reporting 40. "Why did sales not meet forecasts?" is an example of _________ technologies in CRM. Answer: Analyzing 41. Sales management, contact management, and __________ management are the three primary operational CRM technologies used in the sales department. Answer: Opportunity 42. Contact center, web-based self-scripting, and __________ scripting are the three primary operational CRM technologies used in the customer service department. Answer: Call 43. List generator, ________ management, and cross-selling/up-selling are the three primary operational CRM technologies used in the marketing department. Answer: Campaign 44. List ____________ compile customer information from a variety of sources and segment the information for different marketing campaigns. Answer: Generators 45. ___________ management systems guide users through marketing campaigns performing such tasks as campaign definition, planning, scheduling, segmentation, and success analysis. Answer: Campaign 46. Cross-selling is selling _________ products or services to a customer. Answer: Additional 47. McDonald's is _________ selling when it asks their customers if they would like an apple pie with their meal. Answer: Cross 48. McDonald's is ____________ selling when it asks their customers if they would like to super-size their meals. Answer: Up 49. __________ management systems automate each phase of the sales process, helping individual sales representatives coordinate and organization all of their accounts. Answer: Sales 50. _________ management systems maintain customer contact information and identify prospective customers for future sales. Answer: Contact 51. _________ management systems target sales opportunities by finding new customers or companies for future sales. Answer: Opportunity 52. _________ dialing automatically dials outbound calls and when someone answers, the call is forwarded to an available agent. Answer: Predictive 53. ___________ scripting systems access organizational databases that track similar issues or questions and automatically generate the details to the CSR who can then relay them to the customer. Answer: Call 54. ___________ relationship management focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection. Answer: Supplier 55. _________ relationship management focuses on keeping vendors satisfied by managing alliance partner and reseller relationships that provide customers with the optimal sales channel. Answer: Partner Essay Questions 56. Describe three CRM technologies used by marketing departments. Answer: Three marketing operational CRM technologies: List generators-compile customer information from a variety of sources and segment the information for different marketing campaigns. Campaign management systems-guide users through marketing campaigns. Cross-selling and up-selling. Cross-selling-selling additional products or services. Up-selling-increasing the value of the sale. 57. Describe three CRM technologies used by sales departments. Answer: Three sales operational CRM technologies: Sales management systems-automate each phase of the sales process, helping individual sales representatives coordinate and organization all of their accounts. Contact management systems-maintains customer contact information and identifies prospective customers for future sales. Opportunity management systems-target sales opportunities by finding new customers or companies for future sales. 58. Describe three CRM technologies used by customer service departments. Answer: Three customer service operational CRM technologies: Contact center (call center)-where CSRs answer customer inquiries and respond to problems through different touchpoints. Web-based self-service-allow customers to use the web to find answers to their questions or solutions to their problems. Call scripting-access organizational databases that track similar issues or questions and automatically generate the details to the CSR who can then relay them to the customer. 59. Compare customer relationship management, supplier relationship management, partner relationship management, and employee relationship management. Answer: Supplier relationship management (SRM)-focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection. Partner relationship management (PRM)-focuses on keeping vendors satisfied by managing alliance partner and reseller relationship that provide customers with the optimal sales channel. Employee relationship management (ERM)-provides employees with a subset of CRM applications available through a web browse. 60. Summarize the future of customer relationship management. Answer: CRM future trends include: CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers. CRM will continue to be a major strategic focus for companies. CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers. CRM suites will incorporate PRM and SRM modules. BPI010 Enterprise Resource Planning Multiple Choice Questions 1. Which of the following is not one of the three most common core ERP components focusing on internal operations? A. Accounting and finance B. Production and materials management C. Business intelligence D. Human resources Answer: C. Business intelligence Rationale: Business intelligence is an extended ERP component. 2. Which activities do accounting and finance components perform? A. Track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities. B. Handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control. C. Manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management. D. None of the above. Answer: C. Manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management. Rationale: These are the primary activities performed by the accounting and finance components. 3. Which activities do production and materials management components perform? A. Track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities. B. Handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control. C. Manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management. D. None of the above. Answer: B. Handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control. Rationale: These are the primary activities performed by the production and materials management components. 4. Which activities do human resource components perform? A. Track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities B. Handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control C. Manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management D. None of the above Answer: C. Manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Rationale: These are the primary activities performed by the human resource components. 5. Which component is a credit-management feature typically included? A. Accounting and finance components B. Production and managerial management components C. Human resource components D. Production and materials management components Answer: A. Accounting and finance components Rationale: One of the best features of an accounting and finance component is its credit management feature. 6. Which component can help an organization determine such things as the identification of individuals who are likely to leave the company unless additional compensation or benefits are provided? A. Accounting and finance components B. Production and managerial management components C. Human resource components D. Production and materials management components Answer: C. Human resource components Rationale: These activities are performed by the human resource component. 7. Which of the following is an extended ERP component? A. Business intelligence B. Ebusiness C. Customer relationship management D. None of the above Answer: D. None of the above Rationale: All of the above are included in extended ERP. 8. Which extended ERP component collects information used throughout an organization, organizes it, and applies analytical tools to assist managers with decisions? A. Business intelligence B. Ebusiness C. Customer relationship management D. Supply chain management Answer: A. Business intelligence Rationale: These are the primary activities performed by business intelligence. 9. What are two of the primary features of ebusiness components? A. Eprocurement B. Elogistics C. Eprocurement and elogistics D. None of the above Answer: C. Eprocurement and elogistics Rationale: Elogistics and eprocurement are both included in the ebusiness component. 10. Which channels do ERP vendors need to build for access into the ERP systems? A. One channel for customers (B2B) B. One channel for suppliers C. One channel for partners D. All of the above Answer: D. All of the above Rationale: An ERP vendor must build access for all of the above. 11. According to Meta Group, what is the average time it takes for the average company to see results from an ERP solution? A. 2 to 6 months B. 8 to 18 months C. 18 to 36 months D. Impossible to determine Answer: B. 8 to 18 months Rationale: According to Meta Group, it can take anywhere from 8 to 18 months to see ERP benefits. 12. According to Meta Group, what is the average savings from a successful ERP implementation? A. $500,000 B. $1.6 million C. $5 million D. Impossible to determine Answer: B. $1.6 million Rationale: According to Meta Group, average cost savings are $1.6 million. 13. Which of the following is a primary risk associated with an ERP implementation? A. Quality B. Lost information C. Cost D. Employee turnover Answer: C. Cost Rationale: Cost is the biggest risk of an ERP implementation. 14. Which of the following is a common ERP benefit? A. Integrate financial information B. Standardize and speed up manufacturing processes C. Reduce inventory D. All of the above Answer: D. All of the above Rationale: All of the above are common ERP benefits. 15. Which of the following is not a common ERP benefit? A. Standardize manufacturing processes B. Speed up manufacturing processes C. Standardize human resource information D. Speed up human resources Answer: D. Speed up human resources Rationale: ERPs have no control over human resources. 16. Which of the following is an associated ERP cost? A. Purchasing the software B. Hiring external experts to help implement the system correctly C. Redefining processes D. All of the above Answer: D. All of the above Rationale: All of the above are ERP costs. 17. Which of the following is not an associated ERP cost? A. Customization B. Integration and testing C. Reduce inventory D. Data conversion Answer: C. Reduce inventory Rationale: Reducing inventory is not a cost. 18. Which of the following is not one of the three biggest vendors in the ERP market? A. SAP B. Oracle C. Microsoft D. None of the above Answer: C. Microsoft Rationale: Microsoft is not a major ERP vendor. 19. What does an ERP vendor's future success depend on? A. Its ability to incorporate Internet, ebusiness, and wireless technology B. Its ability to incorporate Internet, interface, and wireless technology C. Its ability to incorporate Interface, ebusiness, and wireless technology D. None of the above Answer: B. Its ability to incorporate Internet, interface, and wireless technology Rationale: An ERP must incorporate the Internet, interface, and wireless technology if it wants to stay competitive in the future. 20. What is the single most important force reshaping the architecture and functionality of ERP systems? A. Internet B. Interface C. Wireless technology D. Ebusiness Answer: A. Internet Rationale: The Internet is the greatest force reshaping ERP. 21. Which three basic attributes do successful ERP projects share? A. Overall fit B. Off the rack C. Off the rack and tailored to fit D. Custom made Answer: A. Overall fit Rationale: Successful ERP projects share three basic attributes, including overall fit, proper business analysis, and solid implementation plans. True/False Questions 22. Production and materials management is a core ERP component. Answer: True Rationale: Production and materials management is a core ERP component. 23. Business intelligence is both a core and extended ERP component. Answer: False Rationale: Business intelligence is an extended ERP component. 24. SCM, CRM, and ERP are all extended ERP components. Answer: False Rationale: Only SCM and CRM all extended ERP components. ERP is not extended ERP component. 25. Elogistics manage the transportation and storage of goods. Answer: True Rationale: This is the definition of elogistics. 26. Oracle and SAP are the biggest ERP vendors. Answer: True Rationale: Oracle and SAP are the biggest ERP vendors. 27. Off the rack, off the rack and tailored to fit, and custom made are the three ways that a customer typically buys a suit and can be applied to the purchase of an ERP systems. Answer: True Rationale: These are the three ways that a customer typically purchases a suit. Fill in the Blank Questions 28. Enterprise resource planning ____________ all departments and functions through an organization into a single IT system so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations. Answer: Integrates 29. _____________ ERP components are the traditional components included in most ERP systems and they primarily focus on internal operations. Answer: Core 30. ____________ ERP components are the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations. Answer: Extended 31. Human resource component is one of the three most common _________ ERP components. Answer: Core 32. _________ and materials management is one of the three most common core ERP components. Answer: Production 33. Accounting and finance components manage accounting data and ______________ processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management. Answer: Financial 34. Most organizations manage their relationships with customers by setting ___________ limits. Answer: Credit 35. Production and materials management components handle the various aspects of production planning and execution such as __________ forecasting, production scheduling, job cost accounting, and quality control. Answer: Demand 36. Human resource components track ___________ information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities. Answer: Employee 37. Human resource components have the ability to identify employees that are likely to ________ the company. Answer: Leave 38. Business intelligence, customer relationship management, supply chain management, and __________ are the four most common extended ERP components. Answer: Ebusiness 39. The business intelligence component of an ERP system typically collects information used throughout the organization, organizes it, and applies analytical tools to assist managers with ________. Answer: Decisions 40. ____________ manages the transportation and storage of goods. Answer: Elogistics 41. __________ is the B2B purchase and sale of supplies and services over the Internet. Answer: Eprocurement 42. Integrating financial information is a common ERP ______________. Answer: Benefit 43. Standardizing and speeding up manufacturing processes is a common ERP _____________. Answer: Benefit 44. Reducing inventory is a common ERP __________. Answer: Benefit 45. Hiring external experts to help implement the system correctly is a common ERP ___________. Answer: Cost 46. Redefining processes is a common ERP ___________. Answer: Cost 47. Customization is a common ERP _________. Answer: Cost Essay Questions 48. Compare core enterprise resource planning components and extended enterprise resource planning components. Answer: Core ERP components-traditional components include din moat ERP systems and they primarily focus on internal operations. Extended ERP components-extra components that meet the organizational needs not covered by the core components and primarily focus on external operations. 49. Describe the three primary components found in core enterprise resource planning. Answer: Accounting and finance components-manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management. Production and materials management components-handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control. Human resource components-track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities. 50. Describe the four primary components found in extended enterprise resource planning systems. Answer: Business intelligence-describe information that people use to support their decision-making efforts. Customer relationship management-involves managing all aspects of a customer's relationships with an organization to increase customer loyalty and retention and an organization's profitability. Supply chain management-involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. Ebusiness-means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners. 51. Explain the benefits and risks associated with enterprise resource planning systems. Answer: ERP benefits include integrate financial information, integrate customer order information, standardize and speed up manufacturing processes, reduce inventory, and standardize human resource information. ERP risks (costs) include software costs, consulting fees, process rework, customization, integration and testing, and data warehouse integration and data conversion. 52. Explain the future of enterprise resource planning systems. Answer: Future of ERP includes Internet-continue to help organizations integrate data and process across functional departments; Interface-customizable employee browsers; Wireless technology-support a mobile workforce; and Lines between SCM, CRM, and ERP will continue to blur. BPI011 Ebusiness Multiple Choice Questions 1. What is a kiosk? A. The B2B purchase and sale of supplies and services over the Internet B. Involves buying through prenegotiated contracts with qualified suppliers C. Buying commodity-like products which is transaction-oriented, and rarely involves a long-term or ongoing relationship between buyers and sellers D. A publicly accessible computer system that has been set up to allow interactive information browsing Answer: D. A publicly accessible computer system that has been set up to allow interactive information browsing Rationale: This is the definition of a kiosk. 2. What is an ISP? A. The B2B purchase and sale of supplies and services over the Internet B. Involves buying through prenegotiated contracts with qualified suppliers C. Buying commodity-like products which is transaction-oriented, and rarely involves a long-term or ongoing relationship between buyers and sellers D. A company that provides individuals and other companies access to the Internet along with additional related services, such as website building Answer: D. A company that provides individuals and other companies access to the Internet along with additional related services, such as website building Rationale: This is the definition of ISP. 3. Which of the following offers an extensive array of unique services such as its own version of a web browser? A. Internet service provider (ISP) B. Online service provider (OSP) C. Application service provider (ASP) D. Wireless Internet service provider (WISP) Answer: B. Online service provider (OSP) Rationale: This is the definition of OSP. 4. What allows subscribers to connect to a server at designated hotspots or access points using a wireless connection? A. Internet service provider (ISP) B. Online service provider (OSP) C. Application service provider (ASP) D. Wireless Internet service provider (WISP) Answer: D. Wireless Internet service provider (WISP) Rationale: This is the definition of WISP. 5. What is a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers? A. Internet service provider (ISP) B. Online service provider (OSP) C. Application service provider (ASP) D. Wireless Internet service provider (WISP) Answer: C. Application service provider (ASP) Rationale: This is the definition of ASP. 6. What defines the specific responsibilities of the service provider and sets the customer expectations? A. Service level agreement B. Spamdexing C. Real simple syndication D. Eprocurement Answer: A. Service level agreement Rationale: This is the definition of service level agreement. 7. What is a pop-up ad? A. A small web page containing an advertisement that appears on the web page outside of the current website loaded in the web browser B. A form of ad that users do not see until they close the current web browser screen C. Allows businesses to generate commissions or royalties from an Internet site D. Provides products that are specific to trading partners in a given industry Answer: A. A small web page containing an advertisement that appears on the web page outside of the current website loaded in the web browser Rationale: This is the definition of pop-up ad. 8. Which of the following is not one a common tool for accessing Internet information? A. Kiosk B. Extranet C. Intranet D. WISP Answer: D. WISP Rationale: A WISP is not a tool for accessing Internet information. 9. Which of the following is not a common form of service provider? A. ISP B. RSS C. OSP D. ASP Answer: B. RSS Rationale: RSS is real simple syndication and not a form of service provider. 10. Which company used a kiosk to secure a sale? A. Mazda B. Pratt & Whitney C. Citigroup D. Wal-Mart Answer: A. Mazda Rationale: Mazda used a kiosk to secure the sale of a car. 11. Which company uses an extranet for its suppliers so they can view detailed product information? A. Mazda B. Pratt & Whitney C. Citigroup D. Wal-Mart Answer: D. Wal-Mart Rationale: Wal-Mart uses an extranet for its suppliers. 12. Which of the following is not a common ISP service? A. Web hosting B. Availability C. Real simple syndication D. Hard-disk storage space Answer: C. Real simple syndication Rationale: RSS is not a common ISP service. 13. What is a website in which items are posted on a regular basis and displayed in reverse chronological order? A. RSS B. Podcasting C. SEO D. Blog Answer: D. Blog Rationale: This is the definition of blog. 14. What is a family of web feed formats used for web syndication of programs and content? A. RSS B. Podcasting C. SEO D. Blog Answer: A. RSS Rationale: This is the definition of real simple syndication. 15. What is the distribution of audio or video files over the Internet to play on mobile devices and personal computers? A. RSS B. Podcasting C. SEO D. Blog Answer: B. Podcasting Rationale: This is the definition of podcasting. 16. What is a set of methods aimed at improving the ranking of a website in search engine listings? A. RSS B. Podcasting C. SEO D. Blog Answer: C. SEO Rationale: This is the definition of search engine optimization. 17. What is an online ad? A. A box running across a web page that is often used to contain advertisements B. Allows businesses to generate commissions or royalties from an Internet site C. A technique that induces websites or users to pass on a marketing message to other websites or users D. The ability of an organization to give its customers the opportunity to tailor products or services to customer's specifications Answer: A. A box running across a web page that is often used to contain advertisements Rationale: This is the definition of online ad. 18. What is an associate program? A. A box running across a web page that is often used to contain advertisements B. Allows businesses to generate commissions or royalties from an Internet site C. A technique that induces websites or users to pass on a marketing message to other websites or users D. The ability of an organization to give its customers the opportunity to tailor products or services to customer's specifications Answer: B. Allows businesses to generate commissions or royalties from an Internet site Rationale: This is the definition of associate program. 19. What is viral marketing? A. A box running across a web page that is often used to contain advertisements B. Allows businesses to generate commissions or royalties from an Internet site C. A technique that induces websites or users to pass on a marketing message to other websites or users D. The ability of an organization to give its customers the opportunity to tailor products or services to customer's specifications Answer: C. A technique that induces websites or users to pass on a marketing message to other websites or users Rationale: This is the definition of viral marketing. 20. What is mass customization? A. A box running across a web page that is often used to contain advertisements B. Allows businesses to generate commissions or royalties from an Internet site C. A technique that induces websites or users to pass on a marketing message to other websites or users D. The ability of an organization to give its customers the opportunity to tailor products or services to customer's specifications Answer: D. The ability of an organization to give its customers the opportunity to tailor products or services to customer's specifications Rationale: This is the definition of mass customization. 21. Which of the following is not a method marketing and sales departments use to generate revenue on the Internet? A. RSS B. SEO C. ISP D. Podcasting Answer: C. ISP Rationale: ISP is not a method for generating revenue on the Internet for marketing and sales departments. 22. What is a financial cyber mediary? A. An Internet-based company that facilitates payments over the Internet B. A mechanism for sending a payment from a checking or savings account C. A system that sends bills over the Internet and provides an easy-to-use mechanism to pay the bill D. Both software and information-the software provides security for the transaction and the information includes payment and delivery information Answer: A. An Internet-based company that facilitates payments over the Internet Rationale: This is the definition of financial cyber mediary. 23. What is an electronic check? A. An Internet-based company that facilitates payments over the Internet B. A mechanism for sending a payment from a checking or savings account C. A system that sends bills over the Internet and provides an easy-to-use mechanism to pay the bill D. Both software and information-the software provides security for the transaction and the information includes payment and delivery information Answer: B. A mechanism for sending a payment from a checking or savings account Rationale: This is the definition of electronic check. 24. What is electronic bill presentation and payment? A. An Internet-based company that facilitates payments over the Internet B. A mechanism for sending a payment from a checking or savings account C. A system that sends bills over the Internet and provides an easy-to-use mechanism to pay the bill D. Both software and information-the software provides security for the transaction and the information includes payment and delivery information Answer: C. A system that sends bills over the Internet and provides an easy-to-use mechanism to pay the bill Rationale: This is the definition of EBPP. 25. What is a digital wallet? A. An Internet-based company that facilitates payments over the Internet B. A mechanism for sending a payment from a checking or savings account C. A system that sends bills over the Internet and provides an easy-to-use mechanism to pay the bill D. Both software and information-the software provides security for the transaction and the information includes payment and delivery information Answer: D. Both software and information-the software provides security for the transaction and the information includes payment and delivery information Rationale: This is the definition of a digital wallet. 26. Which of the following is not an online consumer payment method? A. EBPP B. Digital wallet C. Electronic Data Interchange D. Financial cyber mediary Answer: C. Electronic Data Interchange Rationale: EDI is an online business payment method, not consumer payment method. 27. Which of the following is not an online business payment method? A. Financial EDI B. Financial cyber mediary C. EDI D. None of the above Answer: B. Financial cyber mediary Rationale: A financial cyber mediary is an online consumer payment method, not a business payment method. 28. What is a standard format for exchanging business data? A. Financial EDI B. Financial cyber mediary C. Electronic Data Interchange D. None of the above Answer: C. Electronic Data Interchange Rationale: This is the definition of EDI. 29. What is a standard electronic process for B2B market purchase payments? A. Financial EDI B. Financial cyber mediary C. EDI D. None of the above Answer: A. Financial EDI Rationale: This is the definition of financial EDI. 30. Which of the following is not an ebusiness security technology? A. Encryption B. SEO C. SET D. SSL Answer: B. SEO Rationale: SEO is search engine optimization and is not an ebusiness security technology. True/False Questions 31. Electronic data interchange (EDI) is a standard format for exchanging business data. Answer: True Rationale: This is the definition of EDI. 32. Content providers are companies that use the Internet to distribute copyrighted content, including news, music, games, books, movies, and many other types of information. Answer: True Rationale: This is the definition of content provider. 33. Online brokers act as intermediaries between buyers and sellers of goods and services. Answer: True Rationale: This is the definition of online brokers. Fill in the Blank Questions 34. ___________ refers to using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways. Answer: Reintermediation 35. ___________ are agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance ebusiness. Answer: Intermediaries 36. ____________ providers are companies that use the Internet to distribute copyrighted content, including news, music, games, books, movies, and many other types of information. Answer: Content 37. ___________ brokers act as intermediaries between buyers and sellers of goods and services. Answer: Online 38. ___________ measures the visitor interactions with the target ad. Answer: Interactivity 39. ___________ is the B2B purchase and sale of suppliers and services over the Internet. Answer: Eprocurement 40. In a ___________ socket layer (1) creates a secure and private connection between a client and server computer, (2) encrypts the information, and (3) sends the information over the Internet. Answer: Secure 41. ___________ scrambles information into an alternative form that requires a key or password to decrypt the information. Answer: Encryption 42. A secure electronic ___________ is a transmission security method that ensures transactions are secure and legitimate. Answer: Transaction Essay Questions 43. Describe the four common tools an organization can use to access Internet information. Answer: An organization can use four common tools to access Internet information. Intranet-an internalized portion of the Internet, protected from outside access, that allows an organization to provide access to information and application software to only its employees. Extranet-an intranet that is available to strategic allies (such as customers, suppliers, and partners) Portal-a website that offers a broad array of resources and services, such as email, online discussion groups, search engines, and online shopping malls. Kiosk-a publicly accessible computer system that has been set up to allow interactive information browsing. 44. Compare ISPs, OSPs, and ASPs. Be sure to include an overview of common services provided by each. Answer: There are three common forms of service providers including: Internet service provider (ISP)-a company that provides individuals and other company's access to the Internet along with additional related services, such as website building. Many but not all ISPs are telephone companies. ISPs provide services such as Internet transit, domain name registration and hosting, dial-up or DSL access, leased line access, and collocation. ISPs mostly provide access to the Internet and charge a monthly access fee to the consumer. Online service provider (OSP)-offers an extensive array of unique services such as its own version of a web browser. An OSP offers services such as access to private computer networks and information resources such a bulletin boards, downloadable programs, news articles, chat rooms, and electronic mail services. Application service provider (ASP)-a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers. Software offered using an ASP model is also sometimes called On-demand software. The most limited sense of this business is that of providing access to a particular application program (such as medical billing) using a standard protocol such as HTTP. The need for ASPs has evolved from the increasing costs of specialized software that have far exceeded the price range of small to medium sized businesses. As well, the growing complexities of software have lead to huge costs in distributing the software to end-users. Through ASPs, the complexities and costs of such software can be cut down. In addition, the issues of upgrading have been eliminated from the end-firm by placing the onus on the ASP to maintain up-to-date service. 45. Describe how marketing, sales, financial services, and customer service departments can use ebusiness to increase revenues or reduce costs. Answer: Marketing and sales departments can use Internet marketing strategies such as online ads, associate programs, viral marketing, mass customization, personalization, blogs, and podcasting to increase the company's visibility. These types of marketing techniques provide an easy way to penetrate a new geographic territory and extend global reach. Large, small, or specialized businesses can use their online sales sites to sell on a worldwide basis with little extra cost. Accounting departments can use ebusiness to help distribute information with greater convenience and richness than is currently available. They can also offer a variety of online payment methods such as financial cybermediaries, electronic checks, electronic bill presentment and payment, electronic data interchange, financial EDI, and digital wallets. Customer service departments can use ebusiness to enable customers to help themselves with the communications capability of a traditional customer response system available 24 x 7 over the Internet. Test Bank for Business Driven Technology Paige Baltzan 9780073376844, 9781259924927, 9781260727814, 9780073376905
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