Test Bank Ch. 1, 5, 7, 8

Question 1

The various services offered by Google, such as Gmail (e-mail), Google Drive (word processing), or Google Calendar, are good examples of ________.

A) cloud computing
B) computer assembling
C) data mining
D) systems integration
E) internetworking

Answer 1

A) cloud computing

Question 2

Identify a key factor of globalization.

A) evolution of technology
B) anchor point milestones
C) concept development projects
D) timeboxing strategies
E) external interface requirements

Answer 2

A) evolution of technology

Question 3

The Internet of Things and the massive amounts of data generated enabled the creation of service-oriented business models. Identify this model.

A) service
B) servitization
C) extreme data
D) big data
E) a database

Answer 3

B) servitization

Question 4

TransCorp is an IT firm that is looking to outsource its payroll processes. Which of the following statements, if true, would most strengthen the decision to outsource?

A) Companies in other countries can do the same amount of work at a comparable cost.
B) Outsourcing has become a trend among most firms in developed nations.
C) Companies in other countries are more efficient in all aspects of work and are also cost effective.
D) Firms across the globe are adopting cloud computing systems.
E) The firm is enjoying good profit margins.

Answer 4

C) Companies in other countries are more efficient in all aspects of work and are also cost effective.

Question 5

Which of the following is a governmental challenge of operating in the digital world?

A) differences in power distance and uncertainty avoidance
B) import and export regulations
C) aging population in the United States
D) videoconferences across different time zones
E) availability of labor force and salary differences

Answer 5

B) import and export regulations

Question 6

Which of the following is a geoeconomic challenge of operating in the digital world?

A) differences in network infrastructures
B) differences in the concept of time and life focus
C) differences in measurement units
D) differences in export and import regulations
E) differences in languages

Answer 6

A) differences in network infrastructures

Question 7

Which of the following statements is true about information systems (IS) and information technology (IT)?

A) IT programs have a stronger managerial focus than IS programs.
B) IS programs have a stronger data retrieval capacity than IT programs.
C) Software and telecommunications are present in IS, but excluded from IT.
D) The difference between IT and IS is increasing due to globalization.
E) IT programs are more technical than IS programs.

Answer 7

E) IT programs are more technical than IS programs.

Question 8

Which of the following statements is true about information?

A) It has no meaning in and of itself.
B) It organizes or manipulates knowledge to make it suitable for a given task.
C) It is a set of unformatted words and numbers.
D) It is a representation of reality.
E) It is the ability to make predictions based on data.

Answer 8

D) It is a representation of reality.

Question 9

Which of the following statements is true about knowledge?

A) It has no meaning in and of itself.
B) It is a set of unformatted words and numbers.
C) It is the ability to understand information.
D) It helps to convert information into raw data.
E) It has little value in comparison with raw data.

Answer 9

C) It is the ability to understand information.

Question 10

Which of the following is true about the responsibility of an IS manager in the context of information systems management?

A) He is the highest-ranking official and is responsible for IS use throughout the firm.
B) He is responsible for managing an existing information system.
C) He is the lowest-ranking official responsible for managing databases throughout the organization.
D) He is responsible for managing security measures of a newly installed information system.
E) He is the highest-ranking official and is responsible for strategic planning throughout the organization.

Answer 10

B) He is responsible for managing an existing information system.

Question 11

In information systems management, a systems consultant is responsible for ________.

A) analyzing business requirements and selecting information systems that meet those needs
B) coding, testing, debugging, and installing programs
C) auditing information systems for compliance with internal and external standards
D) managing security measures and disaster recovery
E) providing information systems knowledge to external clients

Answer 11

E) providing information systems knowledge to external clients

Question 12

Which of the following core competencies are part of an IS personnel’s technical knowledge and skills?

A) systems analysis and design
B) integrating subsystems and systems
C) interpersonal skills and group dynamics
D) network administration
E) technological communication and presentation

Answer 12

D) network administration

Question 13

Which of the following core competencies is part of an IS personnel’s business knowledge and skills?

A) cloud computing
B) technological communication and presentation
C) systems development life cycle
D) integrating subsystems and systems
E) virtualization

Answer 13

B) technological communication and presentation

Question 14

Which of the following core competencies is part of an IS personnel’s systems knowledge and skills?

A) hardware platforms
B) virtualization
C) information gathering and analysis
D) cabling and network interface cards
E) application software

Answer 14

C) information gathering and analysis

Question 15

The process of connecting separate information systems and data to improve business processes and decision making is known as ________.

A) database development
B) business intelligence
C) systems integration
D) cloud computing
E) data mining

Answer 15

C) systems integration

Question 16

Which of the following types of information systems creates, stores, analyzes, and manages spatial data?

A) electronic commerce system
B) collaboration system
C) virtualization system
D) geographic information system
E) decision support system

Answer 16

D) geographic information system

Question 17

Identify the purpose of a transaction processing system used in organizations.

A) to support the activities within a specific functional area of the firm
B) to handle day-to-day business event data at the operational level of the organization
C) to produce detailed information to help manage a firm or part of a firm
D) to support the coordination of suppliers, product or service production, and distribution
E) to enable customers to buy goods and services from a firm’s Web site

Answer 17

B) to handle day-to-day business event data at the operational level of the organization

Question 18

Which of the following can be cited as an example of a supply chain management system?

A) procurement planning
B) market analysis
C) knowledge portal
D) sales force automation
E) product demand forecasting system

Answer 18

A) procurement planning

Question 19

Microsoft’s Exchange/Outlook and Lotus Notes provide people with e-mail, automated calendaring, and online, threaded discussions, enabling close contact with others, regardless of their location. Identify this type of information system.

A) collaboration system
B) office automation system
C) data mining and visualization system
D) functional area information system
E) geographic information system

Answer 19

A) collaboration system

Question 20

With respect to the types of information systems used in organizations, an automated system for analyzing bank loan applications is an example of a(n) ________ system.

A) geographic information
B) electronic commerce
C) social software
D) visualization
E) intelligent

Answer 20

E) intelligent

Question 21

With respect to types of information systems used in organizations, an inventory management and planning system is an example of a(n) ________ system.

A) geographic planning
B) management information
C) electronic commerce
D) virtualization
E) social software

Answer 21

B) management information

Question 22

With respect to the types of information systems used in organizations, an Online Analytical Processing (OLAP) system is an example of a(n) ________ system.

A) business intelligence
B) geographic information
C) electronic commerce
D) office automation
E) social software and collaboration

Answer 22

A) business intelligence

Question 23

With respect to the types of information systems used in organizations, a product demand forecasting system is an example of a(n) ________ system.

A) visualization
B) geographic information
C) decision support
D) social software
E) electronic commerce

Answer 23

C) decision support

Question 24

With respect to the types of information systems used in organizations, sales force automation is an example of a(n) ________ system.

A) customer relationship management
B) electronic commerce
C) geographic information
D) supply chain management
E) data mining and visualization

Answer 24

A) customer relationship management

Question 25

With respect to the types of information systems used in organizations, financial, operations, and human resource management is an example of a(n) ________ system.

A) social software
B) data mining and visualization
C) geographic information
D) enterprise resource planning
E) electronic commerce

Answer 25

D) enterprise resource planning

Question 26

Select the statement below that best describes computer ethics.

A) It is used to describe moral issues and standards of conduct as they pertain to the use of information systems.
B) It is used to describe moral issues and standards of conduct as they pertain to the use of networks.
C) It is used to describe moral issues and standards of conduct as they pertain to the users of networks.
D) It is used to describe the moral issues of how users interact with other users.
E) It is used to describe how issues are resolved between knowledge workers.

Answer 26

A) It is used to describe moral issues and standards of conduct as they pertain to the use of information systems.

Question 27

The ________ Act of 1986 made it much more difficult for anyone, including the government, to eavesdrop on phone conversations.

A) Electronic Communication Modernization
B) Internet Privacy
C) Sarbanes-Oxley
D) Gramm-Leach-Bliley
E) Electronic Communications Privacy

Answer 27

E) Electronic Communications Privacy

Question 28

WorldTravel (www.worldtravel.com) is a travel Web site that provides detailed information about the different places that tourists can visit across the globe. Additionally, it also helps visitors to book tickets and hotels in these destinations. Which of the following, if true, would most assure the customers of their online privacy?

A) When collecting personal information, WorldTravel explicitly states the purpose of the information and that it will not be used for anything else.
B) WorldTravel informs its members that it is following the best practices in the industry.
C) When collecting personal information, WorldTravel explicitly tells all of its customers that the information collected will be protected by a third party who specializes in this domain.
D) WorldTravel decides not to send any spam mails to any of its members.
E) When collecting personal information, WorldTravel explicitly tells all of its customers that the information collected is protected under the Electronic Communications Privacy Act.

Answer 28

A) When collecting personal information, WorldTravel explicitly states the purpose of the information and that it will not be used for anything else.

Question 29

Which of the following steps should be taken by a person to ensure his or her privacy online?

A) Avoid Web sites that are monitored by independent organizations.
B) Visit Web sites anonymously.
C) Adjust his or her Web browser settings to save cookies.
D) Ensure he or she receives a confirmation e-mail whenever he or she buys products online.
E) Maintain only one e-mail account and use it when making online purchases.

Answer 29

B) Visit Web sites anonymously.

Question 30

Traditionally, companies are organized around five distinct functional areas. Which of the following is one of them?

A) supply chain management
B) risk management
C) technology management
D) communication management
E) systems management

Answer 30

A) supply chain management

Question 31

An online retailer has finished creating a customer record. Identify the retailer’s next step in an order-to-cash process.

A) create order
B) allocate stock
C) pick, pack, and ship
D) prepare and send invoice
E) check customer's creditworthiness

Answer 31

E) check customer’s creditworthiness

Question 32

In the order-to-cash process, checking credit is followed by ________.

A) collecting payment
B) creating an order
C) allocating stock
D) picking, packing, and shipping
E) preparing and sending the invoice

Answer 32

B) creating an order

Question 33

In an order-to-cash process, identify the next step that the online retailer takes after creating an order for a customer.

A) collect payment
B) create customer record
C) check and allocate stock
D) pick, pack, and ship
E) prepare and send invoice

Answer 33

C) check and allocate stock

Question 34

Subprocesses of the procure-to-pay process include ________.

A) collecting the payment
B) creating customer records
C) price and terms negotiations
D) creating customer satisfaction
E) speeding up the collection process

Answer 34

C) price and terms negotiations

Question 35

Which of the following is the first step in the procure-to-pay process?

A) negotiate price and terms
B) issue purchase order
C) receive goods
D) receive invoice
E) settle payment

Answer 35

A) negotiate price and terms

Question 36

An effective ________ process can help to obtain favorable conditions, reduce transaction costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders.

A) procure-to-pay
B) procure-to-buy
C) find-to-buy
D) procure-to-sell
E) find-to-sell

Answer 36

A) procure-to-pay

Question 37

In the procure-to-pay process, the negotiation of price and terms is followed by ________.

A) settling the payment
B) creating the customer record
C) issuing the purchase order
D) receiving the goods
E) receiving the invoice

Answer 37

C) issuing the purchase order

Question 38

________ immediately after the purchase order is issued in the procure-to-pay process.

A) Payment is settled
B) Price and terms are negotiated
C) Credit is checked
D) Goods are received
E) Invoices are received

Answer 38

D) Goods are received

Question 39

Receiving the goods is followed by ________ in the procure-to-pay process.

A) settling the payment
B) negotiating the price and terms
C) issuing the purchase order
D) creating the order
E) receiving the invoice

Answer 39

E) receiving the invoice

Question 40

The organization waits for an order, allowing the organization to initiate a ________ sequence to move the order through the production process.

A) pushing
B) rotating
C) working
D) pulling
E) propelling

Answer 40

D) pulling

Question 41

In core business processes, which of the following uses a push-based approach?

A) order-to-cash
B) procure-to-pay
C) production-to-order
D) make-to-stock
E) make-to-order

Answer 41

D) make-to-stock

Question 42

________ activities are performed by the functional areas that process inputs and produce outputs.

A) Base
B) Core
C) Support
D) Extended
E) Focus

Answer 42

B) Core

Question 43

Which of the following is a core activity according to the value chain model?

A) human resource activities
B) technology development
C) operations and manufacturing
D) administrative activities
E) infrastructure activities

Answer 43

C) operations and manufacturing

Question 44

Administrative activities focus on the ________.

A) design and development of applications that support the primary business activities
B) hardware and software that must be implemented to support the applications that the primary activities use
C) business activities associated with employee management
D) processes and decision making to orchestrate the day-to-day operations of an organization
E) purchasing of goods and services that are required as inputs for the primary activities

Answer 44

D) processes and decision making to orchestrate the day-to-day operations of an organization

Question 45

The two most likely benefits realized from utilizing enterprise systems are improvements in ________.

A) improved customer interaction and improved supplier integration
B) reduced inventory and reduced operating expenses
C) reduced lead times for manufacturing and improved customer interaction
D) availability of information and increased interaction throughout the organization
E) improved compliance with standards and improved supplier integration

Answer 45

D) availability of information and increased interaction throughout the organization

Question 46

A system that communicates across organizational boundaries is also referred to as a(n) ________ system.

A) legacy
B) interorganizational
C) intraorganizational
D) internally focused
E) stand-alone

Answer 46

B) interorganizational

Question 47

Customers can purchase ________ software off the shelf to help them with their personal documents and communications.

A) personalized
B) tailored
C) packaged
D) custom
E) bespoke

Answer 47

C) packaged

Question 48

________ software is written by third-party vendors to support standardized and repetitive tasks.

A) Packaged
B) Unpacked
C) Custom
D) Practices-based
E) Process-based

Answer 48

A) Packaged

Question 49

________ management is a systematic, structured approach to improvement, in which people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures, such as quality, cycle time, or cost.

A) Business process
B) Business activity
C) Business service
D) Application performance
E) Application service

Answer 49

A) Business process

Question 50

In the 1990s, business process management was known as ________.

A) business systems management
B) business process reengineering
C) business service reengineering
D) application performance management
E) application service management

Answer 50

B) business process reengineering

Question 51

According to business process management, identify the management’s next step after developing a vision for the organization.

A) They should identify the ways in which information systems can be used to improve the various business processes.
B) They should design and implement a prototype of the new processes.
C) They should manage the information technology to be used from a business transaction perspective.
D) They should identify the critical processes that are to be redesigned.
E) They should understand and measure the existing processes as a baseline for future improvements.

Answer 51

D) They should identify the critical processes that are to be redesigned.

Question 52

According to business process management, identify the next step taken by management after identifying the ways in which the information systems can be used.

A) identifying the critical processes that are to be redesigned
B) understanding and measuring the existing processes as a baseline for future improvements
C) reducing costs and shortening the time it takes to get products to market
D) designing and implementing a prototype of the new process
E) developing a vision for the organization that specifies the business objectives

Answer 52

D) designing and implementing a prototype of the new process

Question 53

How is business process management similar to quality improvement approaches such as total quality management?

A) They are intended to be cross-functional approaches to improve an organization.
B) They focus on radical redesign and drastic improvement of processes.
C) They focus on incremental change of processes.
D) They focus on the activities typically occurring at the operational level of the organization.
E) They focus on providing capabilities for discovering “hidden” predictive relationships while conducting a forecast.

Answer 53

A) They are intended to be cross-functional approaches to improve an organization.

Question 54

The ________ process entails the process related to selling goods or services.

A) procure-to-pay
B) make-to-order
C) order-to-cash
D) make-to-stock
E) goods-to-market

Answer 54

C) order-to-cash

Question 55

Two-tier ERP strategy can support operations at the corporate level, while providing the needed ________ at the subsidiary level.

A) interoperability and reliability
B) reliability and componentization
C) flexibility and agility
D) interoperability and accessibility
E) scalability and manageability

Answer 55

C) flexibility and agility

Question 56

Which of the following statements about a just-in-time strategy is true?

A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.
B) Companies using this strategy allow suppliers to manage the manufacturer’s inventory levels based on pre-established service levels.
C) Companies using this strategy maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
D) Companies using this strategy try to optimize their ordering quantities such that parts or raw materials arrive just when they are needed for production.
E) A manufacturer or retailer using this strategy shares real-time sales data with suppliers who maintain inventory levels based on pre-established agreements.

Answer 56

D) Companies using this strategy try to optimize their ordering quantities such that parts or raw materials arrive just when they are needed for production.

Question 57

Which of the following statements about vendor-managed inventory (VMI) is true?

A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
B) Manufacturers using the VMI business model manage the inventories themselves and send out requests for additional items to the vendors as needed.
C) Companies using this strategy try to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.
E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.

Answer 57

D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.

Question 58

One major problem affecting supply chains are ripple effects referred to as the ________ effect.

A) backflush
B) multiplier
C) bullwhip
D) incremental
E) stockwhip

Answer 58

C) bullwhip

Question 59

Computer maker Dell realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a ________ system.

A) scan-based trading
B) customer-managed inventory
C) just-in-time inventory management
D) vendor-managed inventory
E) just-in-case inventory management

Answer 59

C) just-in-time inventory management

Question 60

MaXoSteel Inc. has been supplying steel to Agis Corp., a well-known car manufacturer, for the past three years. Concerned employees at MaXoSteel can directly access Agis’ inventory and sales information via electronic data interchange. This allows MaXoSteel to monitor Agis’ inventory levels on a real-time basis. The system has worked well for both companies so far and there has never been any delay in the supply of steel. Which of the following steps, if taken by Agis, would most strengthen its supply chain strategy?

A) Agis Corp.’s management decides to take strong measures for increasing its safety stock of all raw materials.
B) Agis takes measures to add wholesalers and retailers into its supply chain.
C) Agis wants to purchase MaXoSteel in order to reduce dependency.
D) Agis takes measures to directly contact the consumers by removing wholesalers and retailers from its supply chain.
E) Agis takes measures to ensure that the information shared with MaXoSteel is not shared with outsiders.

Answer 60

E) Agis takes measures to ensure that the information shared with MaXoSteel is not shared with outsiders.

Question 61

Which of the following is the key use of the distribution planning module of supply chain management?

A) to ensure that the materials required for production are available when needed
B) to forecast and plan anticipated demand for products
C) to optimize the allocation of available supply to meet demand
D) to support production processes taking into account capacity and material constraints
E) to support receiving, storing, and picking of goods in a warehouse

Answer 61

C) to optimize the allocation of available supply to meet demand

Question 62

The key use of the order promising module of supply chain management is to ________.

A) work with partners across the supply network to improve accuracy of demand forecasts, reduce inventory buffers, and improve customer service
B) monitor key performance indicators to assess performance across the supply chain
C) manage logistics between company locations or from company to customers, taking into account transportation modes and constraints
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times

Answer 62

E) provide answers to customer relationship management queries regarding product availability, costs, and delivery times

Question 63

The key use of the manufacturing execution module of supply chain management is to ________.

A) forecast and plan anticipated demand for products
B) support production processes, taking into account capacity and material constraints
C) ensure that the materials required for production are available where needed and when needed
D) assign optimal safety stock and target stock levels in all inventories in the supply network
E) support receiving, storing, and picking of goods in a warehouse

Answer 63

B) support production processes, taking into account capacity and material constraints

Question 64

Demand planning and estimating leads to the development of the overall ________.

A) sourcing plan
B) demand paging
C) production plan
D) demand forecast
E) safety stock plan

Answer 64

D) demand forecast

Question 65

Production scheduling ________.

A) focuses on the coordination of all activities needed to create the product or service
B) focuses on delivering products or services to consumers as well as warehousing
C) leads to the development of a sourcing plan
D) leads to the development of inventory estimates
E) provides immediate communication and feedback to and from customers

Answer 65

A) focuses on the coordination of all activities needed to create the product or service

Question 66

Analytical tools are used to optimally utilize materials, equipment, and labor during the ________ process of supply chain planning.

A) demand forecasting
B) production scheduling
C) distribution planning
D) inventory planning
E) safety stock scheduling

Answer 66

B) production scheduling

Question 67

Inventory and safety stock planning ________.

A) leads to the development of the overall demand forecast
B) focuses on the coordination of all activities needed to create a product or service
C) leads to the development of a sourcing plan
D) focuses on delivering products or services to consumers as well as warehousing
E) leads to the development of a transportation schedule

Answer 67

C) leads to the development of a sourcing plan

Question 68

The ability to track products as they move through the supply chain and to foresee external events is a characteristic of ________.

A) supply chain visibility
B) supply chain sustainability
C) supply chain analytics
D) supply network collaboration
E) supply chain risk management

Answer 68

A) supply chain visibility

Question 69

________ refers to the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution.

A) Supply chain integration
B) Supply chain optimization
C) Supply chain strategy
D) Supply chain visibility
E) Supply chain analytics

Answer 69

E) Supply chain analytics

Question 70

________ is the extent to which a company’s supply chain is focusing on maximizing customer service with lesser focus on procurement, production, and transportation costs.

A) Supply chain visibility
B) Supply chain effectiveness
C) Supply chain analytics
D) Supply chain efficiency
E) Supply network collaboration

Answer 70

B) Supply chain effectiveness

Question 71

Which of the following is an example of supply chain efficiency?

A) Aubrey Express, a consultancy, focuses on providing superior service to its clients.
B) Fyroff, an automobile manufacturing company, has high spare parts availability.
C) Glassico, a soft drink manufacturing company, introduces a new soft drink flavor.
D) Timeplz, a watch manufacturing company, positions itself as a prestige brand.
E) Xenthix, an electronics company, sources its raw materials in ways that keep its costs low.

Answer 71

E) Xenthix, an electronics company, sources its raw materials in ways that keep its costs low.

Question 72

________ is a standard for exchanging structured information over the Web.

A) Extensible Markup Language
B) JavaScript
C) MySQL
D) Active Server Pages
E) Unified Modeling Language

Answer 72

A) Extensible Markup Language

Question 73

________ allow(s) designers of Web documents to create their own customized tags, enabling the definition, transmission, validation, and interpretation of data between applications and between organizations.

A) MySQL
B) Active Server Pages
C) Extensible Markup Language
D) Perl
E) Unified Modeling Language

Answer 73

C) Extensible Markup Language

Question 74

________ is the use of electromagnetic energy to transmit information between a reader (transceiver) and a processing device.

A) Radio frequency identification
B) High capacity color barcoding
C) Interferometric modulator display
D) Photonic computing
E) Electronic product coding

Answer 74

A) Radio frequency identification

Question 75

________ are designed to automate the business processes that occur before, during, and after sales transactions between a supplier and multiple customers.

A) Customer portals
B) Supplier portals
C) B2C portals
D) Marketplace portals
E) Transaction portals

Answer 75

A) Customer portals

Question 76

Which of the following statements is true about supply chain management (SCM)?

A) SCM systems are used to improve business processes that span organizational boundaries.
B) SCM systems cannot automate the supply chain.
C) SCM systems are often integrated with legacy systems.
D) SCM systems are used by mostly smaller organizations.
E) SCM systems are great standalone systems, but cannot be integrated with an ERP system.

Answer 76

A) SCM systems are used to improve business processes that span organizational boundaries.

Question 77

Marketing researchers have found the cost of trying to win back customers who have gone elsewhere can be up to ________ times as much as keeping a current one satisfied.

A) 2
B) 10-20
C) 25-40
D) 50-100
E) 150-200

Answer 77

D) 50-100

Question 78

Which of the following portrays the improved integration benefit of a customer relationship management (CRM) system?

A) Integrate all information for all points of contact with the customers–marketing, sales, and service–so that all who interact with customers have the same view and understanding of current issues.
B) Improved record keeping and efficient methods of capturing customer complaints help to identify and solve problems faster.
C) Integrated information removes information handoffs, speeding both sales and support processes.
D) Information from the CRM can be integrated with other systems to streamline business processes and gain business intelligence as well as make other cross-functional systems more efficient and effective.
E) Tracking customer behavior over time helps to identify future opportunities for product and service offerings.

Answer 78

D) Information from the CRM can be integrated with other systems to streamline business processes and gain business intelligence as well as make other cross-functional systems more efficient and effective.

Question 79

Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?

A) to track global spending on suppliers
B) to encourage the bullwhip effect
C) to develop demand forecasts
D) to portray a positive corporate image
E) to collaborate demand and production planning

Answer 79

D) to portray a positive corporate image

Question 80

Which of the following examples explains the improved planning benefit of using a customer relationship management (CRM) system?

A) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster
B) learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively
C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies
D) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
E) providing integrated information that removes information handoffs, thereby speeding both sales and support processes

Answer 80

C) providing mechanisms for managing and scheduling sales follow-ups to assess satisfaction, repurchase probabilities, time frames, and frequencies

Question 81

Which of the following examples portrays the 24/7/365 operation of a customer relationship management (CRM) system?

A) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on
B) enabling improved record keeping and efficient methods of capturing customer complaints that help to identify problems faster
C) tracking customer behavior over time that helps to identify future opportunities for product and service offerings
D) App-based technologies that remove information handoffs, thereby speeding both sales and support processes
E) learning how each customer defines product and service quality so that customized product,
pricing, and services can be designed or developed collaboratively

Answer 81

A) Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on

Question 82

________ customer relationship management (CRM) systems help to create mass e-mail marketing campaigns wherein each consumer receives an individualized e-mail based on their prior purchase history.

A) Structured
B) Operational
C) Analytical
D) Integrated
E) Collaborative

Answer 82

B) Operational

Question 83

Which of the following is a component of an operational customer relationship management (CRM) system?

A) sales force automation
B) data warehouse
C) enterprise resource planning system
D) data mining and visualization
E) business intelligence

Answer 83

A) sales force automation

Question 84

Identify a key technology in analytical customer relationship management (CRM) systems.

A) failure effect and mode analysis
B) probabilistic risk assessment
C) neural networks
D) data mining
E) cognitive science

Answer 84

D) data mining

Question 85

________ is the first component of an operational customer relationship management system that supports a broad range of business processes, such as tracking and managing customer history and preferences, account and contact management, and order processing and tracking.

A) Enterprise marketing management
B) Sales force automation
C) Data warehousing
D) Execution management
E) Customer service and support

Answer 85

B) Sales force automation

Question 86

Organizations that effectively utilize ________ can more easily customize marketing campaigns from the segment level to even the individual customer.

A) operational customer relationship management (CRM)
B) integrated customer relationship management (CRM)
C) analytical customer relationship management (CRM)
D) collaborative design automation
E) sales force automation

Answer 86

C) analytical customer relationship management (CRM)

Question 87

Identify the factors that help in building models of customer demand in an analytical customer relationship management (CRM) system.

A) sales forecasting and performance analyses
B) account and contact management
C) price, quality, and satisfaction analysis of competitors
D) customer history and preferences management
E) order processing and tracking

Answer 87

C) price, quality, and satisfaction analysis of competitors

Question 88

________ systems facilitate the sharing of information across the various departments of an organization in order to increase customer satisfaction and loyalty.

A) Collaborative customer relationship management (CRM)
B) Data warehousing
C) Operational customer relationship management (CRM)
D) Analytical customer relationship management (CRM)
E) Data mining

Answer 88

A) Collaborative customer relationship management (CRM)

Question 89

Many ________ systems used by organizations combine a variety of tools supporting both synchronous and asynchronous communication and collaboration.

A) groupware
B) firmware
C) spyware
D) malware
E) mashup

Answer 89

A) groupware

Question 90

Which of the following is a collaboration management tool that is used to facilitate virtual or collocated meetings?

A) Internet forums
B) video conferencing
C) blogs
D) fax
E) intranets

Answer 90

E) intranets

Question 91

________ is an example of an electronic conferencing tool.

A) MS Outlook
B) Apple FaceTime
C) Wikipedia
D) Google Docs
E) MS SharePoint

Answer 91

B) Apple FaceTime

Question 92

________ is an example of a collaboration management tool.

A) MS Outlook
B) MS SharePoint
C) Google Talk
D) Apple FaceTime
E) Wikipedia

Answer 92

B) MS SharePoint

Question 93

Which of the following statements is true about collaboration?

A) Two or more people cooperating.
B) Two or more people working together on a project team.
C) Two or more people meeting together at lunch.
D) Two or more people working together to achieve a common goal.
E) Two or more people working together.

Answer 93

D) Two or more people working together to achieve a common goal.

Question 94

Which of the following is a basic concept associated with Web 2.0?

A) shift in user’s preference from online sites to encyclopedias as sources of unbiased information
B) shift in user’s role from the passive consumer of content to its creator
C) shift in user’s interest from sharing information to finding information
D) shift in user’s lifestyle due to increased purchasing power
E) shift in user’s preference to environment-oriented products

Answer 94

B) shift in user’s role from the passive consumer of content to its creator

Question 95

The ________ Web, originally envisioned by Tim Berners-Lee, one of the founders of the Internet, is a set of design principles that will allow computers to be able to better index Web sites, topics, and subjects.

A) semantic
B) affiliate
C) folksonomy
D) collaborative
E) phishing

Answer 95

A) semantic

Question 96

Which of the following is a reason for the development of the semantic Web?

A) Web pages were designed to be understood by people, but not by computers.
B) Users are able to use any device in any network for any service.
C) Users provide a lot of unnecessary personal information on social networking sites.
D) Widgets cannot be integrated into Web pages.
E) Users are skeptical while making purchases online due to the fear of getting cheated.

Answer 96

A) Web pages were designed to be understood by people, but not by computers.

Question 97

The concept of ________ is based on the notion that distributed groups of people with a divergent range of information and expertise will be able to outperform the capabilities of individual experts.

A) cognitive dissonance
B) creative commons
C) collective intelligence
D) consensus democracy
E) preference elicitation

Answer 97

C) collective intelligence

Question 98

The term “podcasting” is a misnomer because podcasts ________.

A) are concerned with the dissemination of information to a narrow audience
B) cannot be played on Apple’s iPods
C) are not related to distribution of digital media for digital devices
D) are concerned with outsourcing tasks to a large group of people or community
E) can be played on a variety of devices in addition to Apple’s iPods

Answer 98

E) can be played on a variety of devices in addition to Apple’s iPods

Question 99

________ is data about data.

A) Multi data
B) Data house
C) Metadata
D) Data system
E) Pointer data

Answer 99

C) Metadata

Question 100

________ can be used to visualize user-generated content on a site.

A) Crowdsourcing
B) Tag clouds
C) Phishing
D) Podcasts
E) Pharming

Answer 100

B) Tag clouds

Question 101

A(n) ________ system allows users to publish, edit, version track, and retrieve digital content, such as documents, images, audio files, videos, or anything else that can be digitized.

A) social presence
B) collective intelligence
C) application sharing
D) content management
E) peer production

Answer 101

D) content management

Question 102

WordPress is a(n) ________.

A) social networking Web site
B) microblog
C) content management system
D) instant messaging application
E) e-commerce Web site

Answer 102

C) content management system

Question 103

________ is the creation of goods or services by self-organizing communities.

A) Peer production
B) A folksonomy
C) A journal
D) Groupware
E) Crowdsourcing

Answer 103

A) Peer production

Question 104

Amazon.com took crowdsourcing mainstream with its micro-task marketplace called ________.

A) Mechanical Turk
B) Citizen Science
C) Smart Mob
D) Click Workers
E) Crowd Fixing

Answer 104

A) Mechanical Turk

Question 105

________ sites create social online communities where individuals with a broad and diverse set of interests meet and collaborate.

A) Crowdsourcing
B) Social cataloging
C) Social networking
D) Social bookmarking
E) Media sharing

Answer 105

C) Social networking

Question 106

________ attempts to increase the relevance of search results by including content from blogs and microblogging services.

A) Social search
B) OpenSearch
C) Enterprise search
D) Metasearch
E) Netsearch

Answer 106

A) Social search

Question 107

Which of the following statements is true about viral marketing?

A) It uses the network effect to increase brand awareness.
B) It uses everyday people as a cheap labor force.
C) It is the dissemination of information to a narrow audience.
D) It enables people to work on a variety of Internet related projects in more flexible ways.
E) It is used to market a product without the audience realizing it.

Answer 107

A) It uses the network effect to increase brand awareness.

Question 108

According to Thomas Baekdal, which of the following is a critical factor for the success of a viral marketing campaign?

A) restricting access to viral content
B) doing what the audience expects
C) making sequels
D) restricting easy distribution
E) distributing products for free

Answer 108

C) making sequels

Question 109

Which of the following conditions is essential for successful Enterprise 2.0 implementation?

A) Enterprise 2.0 should avoid involvement of senior management members of an organization.
B) Enterprise 2.0 should be driven by a specific usage context.
C) Enterprise 2.0 should appeal to future end users of the application and not the organization’s members.
D) Enterprise 2.0 should be independent of the organization’s workforce.
E) Enterprise 2.0 should be independent of the organization’s culture.

Answer 109

B) Enterprise 2.0 should be driven by a specific usage context.