Test Bank For Business Driven Information Systems 4th Edition by Paige Baltzan

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Test Bank For Business Driven Information Systems 4th Edition by Paige Baltzan

Description

 

WITH ANSWERS

 

Business Driven Information Systems 4th Edition by Paige Baltzan  
Test Bank

 

Chapter 02

Identifying Competitive Advantages

 

Multiple Choice Questions

  1. What is a competitive advantage?
    A. A product that an organizations customers place a lesser value on than similar offerings from a competitor
    B. A product or service that an organizations customers value more highly than similar offerings from a supplier
    C. A service that an organizations customers place a lesser value on than similar offerings from a supplier
    D. A product or service that an organizations customers place a greater value on than similar offerings from a competitor

 

  1. What occurs when an organization can significantly impact its market share by being the first to market with a competitive advantage?
    A. Private exchange
    B. First-mover advantage
    C. Environmental scanning
    D. Loyalty program

 

  1. What is the acquisition and analysis of events and trends in the environment external to an organization?
    A. Private exchange
    B. First-mover advantage
    C. Environmental scanning
    D. Loyalty program

 

  1. Which company uses environmental scanning to determine everything from how well competing products are selling to the strategic placement of its own products?
    A. Kia
    B. FedEx
    C. Frito Lay
    D. Audi

 

 

  1. All of the following are common tools used in industry to analyze and develop competitive advantages, except:
    A. Five Forces Model
    B. Three Generic Strategies
    C. Competitive analysis model
    D. Value chain analysis

 

  1. What does the Five Forces Model help determine the relative attractiveness of?
    A. A product
    B. A company
    C. An industry
    D. An investment

 

  1. Michael Porter, a University Professor at Harvard Business School, identified four competitive forces that can hurt potential sales. Which of the following is not one of the forces Porter identified?
    A. Knowledgeable customers can force down prices by pitting rivals against each another
    B. Influential suppliers can drive down profits by refusing to purchase any products
    C. New market entrants can steal potential investment capital
    D. Substitute products can steal customers

 

  1. Which of the following is not one of Porters Five Forces?
    A. Buyer power
    B. Supplier power
    C. Threat of substitute buyers
    D. Rivalry among existing competitors

 

  1. Which of the following forces is commonly reduced through the use of a loyalty program?
    A. Buyer power
    B. Supplier power
    C. Threat of new entrants
    D. Rivalry among existing competitors

 

 

  1. Which of the following represents buyer power in Porters Five Forces Model?
    A. Low when buyers have many choices of whom to buy from and high when their choices are few
    B. Assessed by analyzing the ability of buyers to directly impact the price they are willing to pay for an item
    C. Assessed by analyzing the ability of suppliers to directly impact the amount of products that are developed
    D. High when buyers have many customers of whom to buy from and low when their customers are few

 

  1. Which of the following represents supplier power in Porters Five Forces Model?
    A. Assessed by the suppliers ability to directly impact the price they are charging for supplies
    B. Low when buyers have few choices of whom to buy from and high when their choices are many
    C. High when buyers have many choices of whom to buy from and low when their choices are few
    D. Assessed by the buyers ability to directly impact the amount of product the company products

 

  1. Which of the following is an example of a loyalty program?
    A. Frequent-flier programs for airlines
    B. Frequent-stayer programs for hotels
    C. Frequent-dining programs for restaurants
    D. All of the above

 

  1. What is an entry barrier?
    A. A product feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
    B. A service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
    C. A product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive
    D. A product or service feature that customers no longer expect from organizations in a particular industry and do not need to be offered by an entering organization to compete and survive

 

 

  1. What are costs that can make customers reluctant to switch to another product or service?
    A. Buyer power
    B. Switching costs
    C. Threat of substitute products or services
    D. Rivalry among existing competitors

 

  1. What is high when competition is fierce in a market and low when competition is more complacent?
    A. Buyer power
    B. Supplier power
    C. Threat of substitute products or services
    D. Rivalry among existing competitors

 

  1. If supplier power is high, how can the supplier directly influence the industry?
    A. Charging higher prices
    B. Limiting quality or services
    C. Shifting costs to industry participants
    D. All of the above

 

  1. Product differentiation occurs when a company develops unique differences in its products with the intent to influence demand. Which of the following is a reason why a company would use product differentiation?
    A. Reduce rivalry
    B. Increase switching costs
    C. Reduce substitute products
    D. All of the above

 

  1. All of the following are part of Porters Three Generic Strategies, except:
    A. Broad cost leadership
    B. Broad differentiation
    C. Focused strategy
    D. Business process strategy

 

 

  1. Which of the following is Hyundai using as its generic strategy?
    A. Broad cost leadership
    B. Broad differentiation
    C. Focused cost leadership
    D. Focused differentiation

 

  1. Which of the following is Hummer using as its generic strategy?
    A. Broad cost leadership
    B. Broad differentiation
    C. Focused cost leadership
    D. Focused differentiation

 

  1. Which of the following is considered a business process?
    A. Processing a customers order
    B. Processing a customers inquiry
    C. Processing a customers complaint
    D. All of the above

 

  1. Which of the following can an organization use to evaluate the effectiveness of its business processes?
    A. Porters Five Forces Model
    B. Three generic strategies
    C. Value chain
    D. First-mover advantage strategy

 

  1. Which approach views an organization as a series of processes, each of which adds value to the product or service for each customer?
    A. Low cost strategy
    B. Business process
    C. Value chain
    D. First-mover advantage

 

 

  1. Which part of the value chain acquires raw materials and manufactures, delivers, markets, sells, and provides after-sales services?
    A. Primary value activities
    B. Secondary value activities
    C. Support value activities
    D. None of the above

 

  1. Which of the following supports the primary value activities in the value chain?
    A. Value added activities
    B. Secondary value activities
    C. Support value activities
    D. None of the above

 

  1. Which part of the value chain includes firm infrastructure, human resources management, technology development, and procurement?
    A. Primary value activities
    B. Secondary value activities
    C. Support value activities
    D. None of the above

 

 

True / False Questions

  1. A competitive advantage is typically temporary, unless it is a first-mover advantage.
    True    False

 

  1. Buyer power, supplier power, threat of products or services, threat of new entrants, and rivalry among existing competitors are all included in Porters Five Forces Model.
    True    False

 

  1. Switching costs are typically used to decrease Porters three generic strategies.
    True    False

 

 

  1. An entry barrier is typically used to influence the rivalry among existing competitors.
    True    False

 

  1. Kia is following a broad differentiation strategy.
    True    False

 

 

Fill in the Blank Questions

  1. A(n) ________ advantage is a product or service that an organizations customers place a greater value on than similar offerings from a competitor.
    ________________________________________

 

  1. A first mover advantage occurs when an organization can significantly impact its market share by being the first to market with a __________ advantage.
    ________________________________________

 

  1. Environmental scanning is the acquisition and analysis of events and trends in the environment _________ to an organization.
    ________________________________________

 

  1. Porters Five Forces Model helps to determine the relative attractiveness of a(n) _____________.
    ________________________________________

 

  1. Buyer power, supplier power, threat of substitute products or services, threat of new ________, and rivalry among existing competitors are all included in Porters Five Forces Model.
    ________________________________________

 

 

  1. ______________ power in the Porters Five Forces Model is assessed by the suppliers ability to directly impact the price they are charging for supplies.
    ________________________________________

 

  1. ______________ power in the Porters Five Forces Model is assessed by analyzing the ability of buyers to directly impact the price they are willing to pay for an item.
    ________________________________________

 

  1. _________ programs reward customers based on the amount of business they do with a particular organization.
    ________________________________________

 

  1. The travel industry is famous for its _________ programs.
    ________________________________________

 

  1. A(n) ___________ chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material.
    ________________________________________

 

  1. ____________ costs are costs that can make customers reluctant to switch to another product or service.
    ________________________________________

 

  1. An entry __________ is a product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive.
    ________________________________________

 

 

  1. Rivalry among existing competitors is ________ when competition is fierce in a market.
    ________________________________________

 

  1. Audi is following a broad _________ strategy with its Quattro model which is available at several price points.
    ________________________________________

 

  1. A(n) __________ process is a standardized set of activities that accomplishes a specific task, such as processing a customers order.
    ________________________________________

 

  1. Marketing and selling a product or service is considered a _________ value activity in the value chain.
    ________________________________________

 

  1. ___________ value activities in the value chain acquire raw materials that manufactures, delivers, markets, sells, and provides after-sales services.
    ________________________________________

 

  1. _________ value activities include firm infrastructure, human resource management, technology development, and procurement.
    ________________________________________

 

 

Essay Questions

  1. Explain why competitive advantages are typically temporary.

 

 

 

 

  1. Explain how Frito Lay uses environmental scanning.

 

 

 

 

  1. Describe and compare buyer power and supplier power in Porters Five Forces Model. Also, explain how an organization can manipulate buyer power and supplier power.

 

 

 

 

  1. List and describe Porters three generic strategies and provide an example of a company that is using each strategy.

 

 

 

 

 

  1. Explain value chains and the differences between primary and support value activities.

Chapter 04

Measuring the Success of Strategic Initiatives

 

Multiple Choice Questions

  1. What type of metrics measure throughput, speed, and availability?
    A. Efficiency IT metrics
    B. Effectiveness IT metrics
    C. All of the above
    D. None of the above

 

  1. What types of metrics measure customer satisfaction?
    A. Efficiency IT metrics
    B. Effectiveness IT metrics
    C. Both efficiency and effectiveness IT metrics
    D. None of the above

 

  1. According to Peter Drucker, what are managers who do things right addressing?
    A. Efficiency
    B. Effectiveness
    C. Both efficiency and effectiveness
    D. Customer metrics

 

  1. According to Peter Drucker, what are managers who do the right things addressing?
    A. Efficiency
    B. Effectiveness
    C. Both efficiency and effectiveness
    D. Customer Metrics

 

  1. What percentage of total capital expenditures on IT are some organizations spending?
    A. 5 percent
    B. 25 percent
    C. 50 percent
    D. 75 percent

 

 

  1. Which country is ranked first in terms of egovernment effectiveness?
    A. United States
    B. Canada
    C. Denmark
    D. Australia

 

  1. Which country is ranked first in terms of egovernment efficiency?
    A. United States
    B. Canada
    C. Denmark
    D. Australia

 

  1. Which of the following is not a type of efficiency IT metric?
    A. Speed
    B. Availability
    C. Usability
    D. Throughput

 

  1. Which of the following is not a type of effectiveness IT metric?
    A. Customer satisfaction
    B. Conversion rates
    C. Financial
    D. Web traffic

 

  1. Which term is used to describe the ease with which people perform transactions and/or find information?
    A. Usability
    B. Customer satisfaction
    C. Financial
    D. Conversion rates

 

 

  1. What is measured by such benchmarks as satisfaction surveys, percentage of existing customers retained, and increases in revenue dollars per customer?
    A. Usability
    B. Customer satisfaction
    C. Financial
    D. Conversion rates

 

  1. What is eBay constantly benchmarking?
    A. IT efficiency
    B. IT effectiveness
    C. IT efficiency and IT effectiveness
    D. Usability

 

  1. What types of security must an organization offer its customers when it provides them with the ability to purchase products over the Internet?
    A. Encryption and SSL
    B. SSL and HTTP
    C. Encryption and HTTP
    D. All of the above

 

  1. What are the measures called that are tied to business drivers?
    A. IT efficiency
    B. IT effectiveness
    C. Key performance indicators
    D. None of the above

 

  1. When considering the graph depicting the interrelationships between efficiency and effectiveness, where does an organization ideally want to operate?
    A. Upper right-hand corner
    B. Lower left -hand corner
    C. Upper left-hand corner
    D. Lower right-hand corner

 

 

  1. Which of the following do customer effectiveness metrics typically focus on?
    A. Market share
    B. Customer acquisition
    C. Customer profitability
    D. All of the above

 

  1. What do most companies measure to determine the success of their websites?
    A. Throughput
    B. Speed
    C. Traffic
    D. Availability

 

  1. What is the small file called that is deposited on a hard drive by a website containing information about customers and their web activities?
    A. Click-through
    B. Cookie
    C. Banner ad
    D. Interactivity

 

  1. What is a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser?
    A. Click-through
    B. Cookie
    C. Banner ad
    D. Interactivity

 

  1. What is a small ad called on one website that advertises the products and services of another business, usually another dot-com business?
    A. Click-through
    B. Cookie
    C. Banner ad
    D. Interactivity

 

 

  1. Which of the following is a type of metric based on clickstream data?
    A. Length of stay on the website
    B. Number of abandoned registrations
    C. Number of abandoned shopping carts
    D. All of the above

 

  1. All of the following are types of website visitors, except:
    A. Usability visitor
    B. Session visitor
    C. Identified visitor
    D. Tracked visitor

 

  1. Which category of website metrics measures the number of times a particular web page has been viewed by visitors in a given time period?
    A. Visitor metric
    B. Exposure metric
    C. Service metric
    D. Hit metric

 

  1. What category of website metrics does stickiness, or visit duration time belong to?
    A. Service metric
    B. Exposure metric
    C. Visit metric
    D. Hit metric

 

  1. Which type of metric measures when a visitor reaches a website and their computer sends a request to the sites computer server to begin displaying pages?
    A. Visitor metric
    B. Exposure metric
    C. Visit metric
    D. Hit metric

 

 

  1. Which of the following is not a typical CRM metric?
    A. Sales metrics
    B. Service metrics
    C. Marketing metrics
    D. Inventory metrics

 

  1. Which of the following is a type of SCM metric?
    A. Customer order promised cycle time
    B. Customer order actual cycle time
    C. Inventory replenishment cycle time
    D. All of the above

 

  1. What type of metrics include number of prospective customers, number of new customers, and number of retained customers?
    A. CRM metrics
    B. SCM metrics
    C. BPR metrics
    D. ERP metrics

 

  1. What type of metrics include number of marketing campaigns, new customer retention rates, and number of responses by marketing campaign?
    A. CRM metrics
    B. SCM metrics
    C. BPR metrics
    D. ERP metrics

 

  1. What type of metrics include number back order, customer order promised cycle time, and customer order actual cycle time?
    A. CRM metrics
    B. SCM metrics
    C. BPR metrics
    D. ERP metrics

 

 

  1. What is a management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action?
    A. The balanced cycle time
    B. Porters Five Forces
    C. Porters Three Generic Strategies
    D. The balanced scorecard

 

  1. The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives. Which of the following is not one of the four perspectives in the balanced scorecard?
    A. The leading perspective
    B. The internal business process perspective
    C. The customer perspective
    D. The financial perspective

 

  1. Out of the hundreds of possible CRM metrics there is a rule for how many metrics should be tracked and analyzed at any given management level. What is the rule?
    A. Best practice is to track and analyze no more than two (plus or minus two) metrics
    B. Best practice is to track and analyze no more than five (plus or minus two) metrics
    C. Best practice is to track and analyze no more than seven (plus or minus two) metrics
    D. None of the above as it depends on the type of industry

 

  1. The balanced scorecard was developed by Drs. Robert Kaplan of the Harvard Business School and David Norton. Which systems does the balanced scorecard measure?
    A. CRM and ERP
    B. BPR and ERP
    C. SCM and ERP
    D. SCM and CRM

 

 

True / False Questions

  1. Benchmarks are baseline values the system seeks to attain.
    True    False

 

 

  1. Canada is ranked first in terms of egovernment efficiency IT metrics.
    True    False

 

  1. Effectiveness IT metrics include throughput, speed, and availability.
    True    False

 

  1. Customer metrics assess the management of customer relationships by the organization.
    True    False

 

  1. Measuring the amount of website traffic is the best way to determine a websites success.
    True    False

 

 

Fill in the Blank Questions

  1. ___________ IT metrics measures the performance of the IT system itself including throughput, speed, and availability.
    ________________________________________

 

  1. _________ IT metrics measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases.
    ________________________________________

 

  1. __________ focuses on how well an organization is achieving its goals and objectives.
    ________________________________________

 

 

  1. _________ focuses on the extent to which an organization is using its resources in an optimal way.
    ________________________________________

 

  1. ________ are baseline values the system seeks to attain.
    ________________________________________

 

  1. ______________ is a process of continuously measuring system results, comparing those results to optimal system performance, and identifying steps and procedures to improve system performance.
    ________________________________________

 

  1. ______________ is the amount of information that can travel through a system at any point in time.
    ________________________________________

 

  1. Web _________ includes a host of benchmarks such as the number of page-views, the number of unique visitors, and the average time spent viewing a web page.
    ________________________________________

 

  1. System _____________ is the number of hours a system is available for use by customers and employees.
    ________________________________________

 

  1. __________ metrics assess the management of customer relationships by the organization.
    ________________________________________

 

 

  1. A large amount of website _______ does not necessarily indicate large sales.
    ________________________________________

 

  1. _________ is the percentage of potential customers who visit a site and actually buy something.
    ________________________________________

 

  1. A(n) ____________ is a count of the number of people who visit one site and click on an advertisement that takes them to the site of the advertiser.
    ________________________________________

 

  1. ___________________ is a(n) unfilled customer order.
    ________________________________________

 

  1. A ___________________ is a management system, in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action.
    ________________________________________

 

 

Essay Questions

  1. Explain the difference between efficiency and effectiveness.

 

 

 

 

 

  1. Define the relationship between benchmark and benchmarking.

 

 

 

 

  1. Explain the interrelationships of efficiency and effectiveness IT metrics.

 

 

 

 

  1. Describe how an organization should determine the efficiency and effectiveness of its website.

 

 

 

 

  1. Describe and identify visitor, exposure, visit, and hit website metrics.

Chapter 07

Storing Organizational Information-Databases

 

Multiple Choice Questions

  1. Which of the following types of information can be found in a database?
    A. Inventory
    B. Transactions
    C. Employees
    D. All of the above

 

  1. Which of the following database structures stores information in a tree-like structure that allows repeating information using parent/child relationships, in such a way that it cannot have too many relationships?
    A. Hierarchical database
    B. Network database
    C. Relational database model
    D. All of the above

 

  1. Which of the following database structures offers a flexible way of representing objects and their relationships?
    A. Hierarchical database
    B. Network database
    C. Relational database model
    D. All of the above

 

  1. In the relational database model, what is a person, place, thing, transaction, or event about which information is stored?
    A. Entity
    B. Logical view
    C. Attribute
    D. Physical view

 

 

  1. In the relational database model, what are characteristics or properties of an entity?
    A. Entity
    B. Logical view
    C. Attribute
    D. Physical view

 

  1. What are characteristics or properties of an entity called?
    A. Attributes
    B. Fields
    C. Columns
    D. All of the above

 

  1. Why do relational databases use primary keys and foreign keys?
    A. To create a database
    B. To create physical relationships
    C. To create logical relationships
    D. All of the above

 

  1. What is a primary key?
    A. A field (or group of fields) that uniquely identifies a given entity in a table
    B. A primary key of one table that appears as an attribute in another table and acts to provide a logical relationship among the two tables
    C. Characteristics or properties of an entity
    D. A field (or group of fields) that uniquely identifies a given attribute in a table

 

  1. What is a foreign key?
    A. A field (or group of fields) that uniquely identifies a given entity in a table
    B. A primary key of one table that appears as an attribute in another table and acts to provide a logical relationship among the two tables
    C. Characteristics or properties of an entity
    D. A field (or group of fields) that uniquely identifies a given attribute in a table

 

 

  1. All of the following are advantages of database-stored information, except:
    A. Increased flexibility
    B. Increased performance
    C. Increased information redundancy
    D. Increased information integrity

 

  1. Which of the following is incorrect in reference to a database?
    A. Can be relational or network
    B. Information is accessed by logical structure
    C. Information is accessed by physical structure
    D. Users can access different views of information

 

  1. What is the physical view of information?
    A. Deals with the physical storage of information on a storage device such as a hard disk
    B. Deals with the logical storage of information on a storage device such as a hard disk
    C. Focuses on how users logically access information to meet their particular business needs
    D. Focuses on how users physically access information to meet their particular business needs

 

  1. Which of the following is correct in reference to a database?
    A. A database can support only one logical view
    B. A database can support many physical views
    C. A database can support many logical views
    D. A database can support up to 3 logical views

 

  1. What refers to how well a system can adapt to increased demands?
    A. Scalability
    B. Performance
    C. Redundancy
    D. Information integrity

 

 

  1. Which of the following measures how quickly a system performs a certain process or transaction?
    A. Scalability
    B. Performance
    C. Redundancy
    D. Information integrity

 

  1. What is information redundancy?
    A. Duplication of information
    B. Storing the same information in multiple places
    C. Storing duplicate information in multiple places
    D. All of the above

 

  1. What is the primary problem with redundant information?
    A. It is difficult to determine which values are the most current
    B. It is often inconsistent
    C. It is difficult to determine which values are the most accurate
    D. All of the above

 

  1. Which of the following is true in regards to the elimination of redundant information?
    A. Uses additional hard disk space
    B. Makes performing information updates harder
    C. Improves information quality
    D. All of the above

 

  1. What are the rules that help ensure the quality of information?
    A. Information integrity
    B. Integrity constraints
    C. Relational integrity constraints
    D. Business-critical integrity constraints

 

 

  1. What are the rules that enforce basic and fundamental information-based constraints?
    A. Information integrity
    B. Integrity constraint
    C. Business-critical integrity constraint
    D. Relational integrity constraint

 

  1. Which of the following is a valid type of integrity constraint?
    A. Relational-critical integrity constraint
    B. Business integrity constraint
    C. Relational integrity constraint
    D. Business-critical integrity constraint

 

  1. What type of integrity constraint does not allow someone to create an order for a nonexistent customer?
    A. Relational integrity constraint
    B. Business-critical integrity constraint
    C. Information-critical integrity constraint
    D. None of the above

 

  1. All of the following are business-critical integrity constraints, except:
    A. System will not allow an entry for an order for a nonexistent customer
    B. System will not allow returns of fresh produce after 15 days past delivery
    C. System will not allow shipping a product to a customer who does not have a valid address
    D. Systems will not allow shipping of a nonexistent product to a customer

 

  1. Which of the following uses a DBMS to interact with a database?
    A. Users of accounting programs
    B. Users of human resource programs
    C. Users of marketing programs
    D. All of the above

 

 

  1. What is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database?
    A. Customer-driven website
    B. Data-driven website
    C. Customer-driven database
    D. Data-driven database

 

  1. What type of website is best to build for a general informational website with static information?
    A. Data-driven website
    B. Static website
    C. Relational website
    D. All of the above

 

  1. What type of website is best to build for a website with continually changing information including press releases, new product information, and updated pricing?
    A. Data-driven website
    B. Static website
    C. Relational website
    D. All of the above

 

  1. Which of the following is not an advantage of building a data-driven website?
    A. Minimizes human error
    B. Cuts production and update costs
    C. Improves or maximizes stability
    D. Minimizes or reduces efficiency

 

 

  1. What is a forward integration?
    A. Takes information entered into a given system and sends it to the application generation component
    B. Takes information entered into a given system and sends it automatically to all downstream systems and processes
    C. Takes information entered into a given system and sends it automatically to all upstream systems and processes
    D. Takes information entered into a given system and sends it to the DBMS

 

  1. What is a backward integration?
    A. Takes information entered into a given system and sends it to the application generation component
    B. Takes information entered into a given system and sends it automatically to all downstream systems and processes
    C. Takes information entered into a given system and sends it automatically to all upstream systems and processes
    D. Takes information entered into a given system and sends it to the DBMS

 

  1. What is an integration?
    A. Allows separate systems to communicate directly with each other
    B. Takes information entered into a given system and sends it to the database
    C. Takes information entered into a given system and sends it to other processes
    D. Takes information entered into a given system and sends it to the DBMS

 

 

True / False Questions

  1. A foreign key is a field (or group of fields) that uniquely identifies a given entity in a table.
    True    False

 

  1. One of the advantages found in a relational database is increased information redundancy.
    True    False

 

 

  1. Relational integrity constraints are rules that enforce basic and fundamental information-based constraints.
    True    False

 

  1. A data-driven website is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database.
    True    False

 

  1. Ideally, an organization only wants to build forward integrations.
    True    False

 

 

Fill in the Blank Questions

  1. The ___________ database model is a type of database that stores its information in the form of logically related two-dimensional tables.
    ________________________________________

 

  1. Customer ID, Customer Name, Contact Name, and Customer Phone are all types of ____________.
    ________________________________________

 

  1. A(n) ___________ key in the relational database model is a primary key of one table that appears as an attribute in another table.
    ________________________________________

 

  1. A _______________ key is a field that uniquely identifies a given entity in a table.
    ________________________________________

 

 

  1. The _________ view of information deals with the physical storage of information on a storage device such as a hard disk.
    ________________________________________

 

  1. The ________ view of information focuses on how users logically access information to meet their particular business needs.
    ________________________________________

 

  1. ______________ is the duplication of information, or storing the same information in multiple places.
    ________________________________________

 

  1. ______________ integrity constraints are rules that enforce business rules vital to an organizations success.
    ________________________________________

 

  1. _________ integrity is a measure of the quality of information.
    ________________________________________

 

 

Essay Questions

  1. Evaluate the advantages of the relational database model.

 

 

 

 

 

  1. Compare relational integrity constraints and business-critical integrity constraints.

 

 

 

 

  1. Describe the role and purpose of a database management system.

 

 

Chapter 11

Building a Customer-Centric Organization-Customer Relationship Manag

 

Multiple Choice Questions

  1. CRM allows an organization to accomplish all of the following, except:
    A. Provide better customer service
    B. Make call centers more efficient
    C. Complicate marketing and sales processes
    D. Help sales staff close deals faster

 

  1. What is the top CRM business driver?
    A. Inventory control
    B. Increase revenues
    C. Competitive advantage
    D. Automation/productivity/efficiency

 

  1. Which of the following is not one of the CRM business drivers?
    A. Inventory control
    B. Increase revenues
    C. Accountability
    D. Automation/productivity/efficiency

 

  1. Which of the following represents operational CRM?
    A. Supports traditional transactional processing
    B. Supports day-to-day front-office operations
    C. Supports operations that deal directly with the customers
    D. All of the above

 

 

  1. What supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers?
    A. Analytical CRM
    B. Operational CRM
    C. Personalization
    D. All of the above

 

  1. What made-to-order views can analytical CRM tools slice-and-dice customer information into?
    A. Customer value
    B. Customer spending
    C. Customer segmentation
    D. All of the above

 

  1. What can analytical CRM modeling tools discover?
    A. Identify opportunities for expanding customer relationships
    B. Identify opportunities for cross-selling
    C. Identify opportunities for up-selling
    D. All of the above

 

  1. What occurs when a website can know enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person?
    A. Operational CRM
    B. Analytical CRM
    C. Personalization
    D. All of the above

 

  1. Which of the following is the first CRM implementation strategy?
    A. Define information needs and flows
    B. Build an integrated view of the customer
    C. Clearly communicate the CRM strategy
    D. Implement in iterations

 

 

  1. What is the formula that an organization can use to find its most valuable customers?
    A. RFM reporting, features, monetary value
    B. RFM reporting, frequency, market share
    C. RFM recency, frequency, monetary value
    D. RFM recency, features, market share

 

  1. What is the term that identifies how frequently a customer purchases items?
    A. Recency
    B. Frequency
    C. Monetary value
    D. Reporting

 

  1. What is the term that defines how recently a customer purchased items?
    A. Recency
    B. Frequency
    C. Monetary value
    D. Reporting

 

  1. What is the term that defines how much a customer spends on each purchase?
    A. Recency
    B. Frequency
    C. Monetary value
    D. Reporting

 

  1. What are the three phases in the evolution of CRM?
    A. Recency, analyzing, predicting
    B. Reporting, analyzing, predicting
    C. Recency, analytical, processes
    D. Reporting, analytical, predicting

 

 

  1. Which of the following statements is incorrect?
    A. CRM reporting technologies help organizations identify their customers across other applications.
    B. CRM analysis technologies help organizations segment their customers into categories such as best and worst customers.
    C. CRM predicting technologies help organizations make predictions regarding customer behavior such as which customers are at risk of leaving.
    D. CRM predicting technologies help organizations identify their customers across other applications.

 

  1. What is another term that represents CRM reporting technologies that help organizations identify their customers across other applications?
    A. Customer identification
    B. Customer segmentation
    C. Customer predicting
    D. All of the above

 

  1. What is another term that represents CRM analysis technologies that help organizations segment their customers into categories such as best and worst customers?
    A. Customer identification
    B. Customer segmentation
    C. Customer predicting
    D. All of the above

 

  1. Who did Business 2.0 rank as number one in the top 50 people who matter most in business?
    A. Bill Gates
    B. You the business analyst
    C. Michael Dell
    D. Youthe customer

 

 

  1. Which of the following is not one of the questions asked during the reporting phase?
    A. What is the total revenue by customer?
    B. How many units did we manufacture?
    C. Where did we sell the most products?
    D. Who are our customers?

 

  1. Which of the following is not one of the questions asked during the analyzing phase?
    A. What customers are at risk of leaving?
    B. Why was customer revenue so high?
    C. Why did sales not meet forecasts?
    D. Who are our customers?

 

  1. Which of the following is not one of the questions asked during the predicting phase?
    A. What is the total revenue by customer?
    B. What products will the customer buy?
    C. Who are the best candidates for a mailing?
    D. What is the lifetime profitability of a customer?

 

  1. Which of the following is not a CRM industry best practice?
    A. Define information needs and flows
    B. Build an integrated view of the customer
    C. Scalability for organizational growth
    D. Implement in the big bang approach

 

  1. Which company experienced difficulty with answering their call center phone?
    A. The New York Times
    B. The New York Knicks
    C. Brother International Corporation
    D. 1-800-Flowers.com

 

 

  1. Which company turned brand loyalty into brand relationships by using the vast amounts of information it collected to better understand customers needs and expectations?
    A. The New York Times
    B. The New York Knicks
    C. Brother International Corporation
    D. 1-800-Flowers.com

 

  1. Which company has spent the last decade researching core customers to find similarities among groups of readers?
    A. The New York Times
    B. The New York Knicks
    C. Brother International Corporation
    D. 1-800-Flowers.com

 

 

True / False Questions

  1. CRM is a technology based on the premise that those organizations that understand the needs of individual customers are best positioned to achieve sustainable competitive advantage in the future.
    True    False

 

  1. The business world is shifting from customer focus to product focus.
    True    False

 

  1. The Internet can completely replace the phone and face-to-face communications with customers.
    True    False

 

  1. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its suppliers.
    True    False

 

 

  1. Back-office operations deal directly with the customer.
    True    False

 

 

Fill in the Blank Questions

  1. A customer strategy starts with understanding who the companys __________ are and how they help the company meet strategic goals.
    ________________________________________

 

  1. ___________ CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers.
    ________________________________________

 

  1. ___________ CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers.
    ________________________________________

 

  1. ___________ occurs when a website can know enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person.
    ________________________________________

 

  1. ___________ office operations deal directly with the customer.
    ________________________________________

 

 

Essay Questions

  1. List and describe several benefits an organization can receive from CRM.

 

 

 

 

  1. Compare operational CRM and analytical CRM.

 

 

 

 

  1. List and describe the primary forces driving the explosive growth of CRM.

 

 

 

 

  1. Define the relationship between decision making and analytical CRM.

 

 

 

 

 

  1. List and describe the industry best practices for implementing a successful CRM system.

 

Chapter 13

Creating Innovative Organizations

 

Multiple Choice Questions

  1. What does digital Darwinism imply?
    A. Organizations which can adapt to the new demands placed on them for surviving in the information age are doomed to extinction
    B. Organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction
    C. Organizations which can adapt to new information systems are doomed to extinction
    D. Organizations which cannot adapt to new information systems are doomed to exile

 

  1. Which of the following is an example of a disruptive technology?
    A. Oracles database software
    B. Sonys transistor-based consumer electronics (transistor radio)
    C. Intels low-end microprocessor
    D. All of the above

 

  1. Which of the following is an example of a sustaining technology?
    A. Porsches faster car
    B. Intels low-end microprocessor
    C. Sonys transistor-based consumer electronics (transistor radio)
    D. All of the above

 

  1. Which company is expecting to gain the majority of its returns on existing investments?
    A. Dell Computer
    B. Johnson & Johnson
    C. Procter & Gamble
    D. Phillips Petroleum

 

 

  1. Which company is expecting to gain the majority of its returns on new investments?
    A. General Motors
    B. Sears Roebuck
    C. Dell Computer
    D. Phillips Petroleum

 

  1. What is a global public network of computer networks that pass information from one to another using common computer protocols?
    A. Protocol
    B. Internet
    C. World Wide Web
    D. Hypertext Transport Protocol

 

  1. What is a global hypertext system that uses the Internet as its transport mechanism?
    A. Protocol
    B. Internet
    C. World Wide Web
    D. Hypertext Transport Protocol

 

  1. What are the standards that specify the format of data as well as the rules to be followed during transmission?
    A. Protocol
    B. Internet
    C. World Wide Web
    D. Hypertext Transport Protocol

 

  1. What is the Internet standard that supports the exchange of information on the WWW?
    A. Protocol
    B. Internet
    C. World Wide Web
    D. Hypertext Transport Protocol

 

 

  1. Which of the following is a reason for the growth of the World Wide Web?
    A. The microcomputer revolution
    B. Advancements in networking hardware
    C. Web pages being easy to create and flexible
    D. All of the above

 

  1. What is information richness?
    A. A global public network of computer networks that pass information from one to another using common computer protocols
    B. Refers to the depth and breadth of information transferred between customers and businesses
    C. Refers to the number of people a business can communicate with, on a global basis
    D. Occurs when those with access to technology have great advantages over those without access to technology

 

  1. What is information reach?
    A. A global public network of computer networks that pass information from one to another using common computer protocols
    B. Refers to the depth and breadth of information transferred between customers and businesses
    C. Refers to the number of people a business can communicate with, on a global basis
    D. Occurs when those with access to technology have great advantages over those without access to technology

 

  1. What is the digital divide?
    A. A global public network of computer networks that pass information from one to another using common computer protocols
    B. Refers to the depth and breadth of information transferred between customers and businesses
    C. Refers to the number of people a business can communicate with, on a global basis
    D. Occurs when those with access to technology have great advantages over those without access to technology

 

 

  1. Which of the following is not one of the Internets impacts on information?
    A. Easy to compile
    B. Improved content
    C. Digital divide
    D. Increased richness

 

  1. What is the reason why Polaroid went bankrupt?
    A. It failed to have innovative technology and a captive customer base
    B. One-hour film processing and digital cameras stole its market share
    C. People who want instant access to their pictures also want a third party involved
    D. All of the above

 

  1. What percentage of the worlds population are Internet users?
    A. 5 percent
    B. 15 percent
    C. 35 percent
    D. 50 percent

 

  1. What was the initial name of the Internet?
    A. HTTP
    B. ARPANET
    C. IETF
    D. IAB

 

  1. Which of the following entities is solely responsible for overseeing the Internet and setting standards?
    A. Internet Engineering Task Force (IETF)
    B. Internet Architecture Board (IAB)
    C. Internet Engineering Steering Group (IESG)
    D. All of the above

 

 

  1. Which two events occurred that forever changed the web and the amount and quality of available information?
    A. Information reach and information richness
    B. Tim Berners-Lees first website and the invention of the microprocessor
    C. Tim Berners-Lees first website and Marc Andreesens NCSA Mosaic computer program
    D. Marc Andreesens NCSA Mosaic computer program and the invention of the microprocessor

 

  1. What is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Interneta more mature, distinctive medium characterized by user participation, openness, and network effects?
    A. Web 1.0
    B. Web 2.0
    C. Web 3.0
    D. All of the above

 

  1. Which of the following is incorrect in relation to Web 2.0?
    A. Web 2.0 means a new version of the WWW
    B. Web 2.0 refers to changes in the ways software developers make use of the web as a platform
    C. Web 2.0 does not mean a new version of the WWW
    D. Web 2.0 refers to changes in the ways users make use of the web as a platform

 

  1. Web 3.0 has many different meanings. Which of the following is not one of the descriptions of Web 3.0?
    A. The evolution of web usage and interaction among several separate paths
    B. Transforms the web into a database
    C. Makes content accessible by multiple nonbrowser applications
    D. Transforms the web into a data warehouse

 

 

  1. What is an evolving extension of the WWW in which web content can be expressed not only in natural language, but also in a format that can be read and used by software agents, thus permitting them to find, share, and integrate information more easily?
    A. Web 2.0
    B. The semantic web
    C. Web 3.0
    D. All of the above

 

 

True / False Questions

  1. Disruptive technology tends to provide us with better, faster, and cheaper products.
    True    False

 

  1. Disruptive and new technologies typically cut into the low-end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies.
    True    False

 

  1. Dell computers ranks highest on the list for expecting returns from new investments.
    True    False

 

  1. Information reach refers to the number of people a business can communicate with, on a global basis.
    True    False

 

  1. What is best for an organizations current business could ruin it in the long term.
    True    False

 

 

Fill in the Blank Questions

  1. A(n) ___________ technology is a new way of doing things that initially does not meet the needs of existing customers.
    ________________________________________

 

  1. A(n) ___________technology produces an improved product customers are eager to buy.
    ________________________________________

 

  1. According to Christensen, companies may have placed too great an emphasis on satisfying customers ______ needs, while forgetting to adopt new disruptive technology that will meet customers future needs.
    ________________________________________

 

  1. Technology companies such as Intel and Cisco Systems were among the first to seize the ______________ to overhaul their operations.
    ________________________________________

 

  1. The Innovators ___________ is a book by Clayton M. Christensen.
    ________________________________________

 

  1. The ___________ is a global public network of computer networks that pass information from one to another using common computer protocols.
    ________________________________________

 

  1. ___________ are the standards that specify the format of data as well as the rules to be followed during transmission.
    ________________________________________

 

 

  1. The WWW is a global _________ system that uses the Internet as its transport mechanism.
    ________________________________________

 

  1. Information __________ refers to the depth and breadth of information transferred between customers and businesses.
    ________________________________________

 

  1. The digital ___________ occurs when those with access to technology have great advantages over those without access to technology.
    ________________________________________

 

 

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