Which business computer application system typically begins by collecting customer information such as email, telephone, and social media data, and then combines this with information regarding the customer's buying habits, so that the management team can better anticipate customer desires?

Which business computer application system typically begins by collecting customer information such as email, telephone, and social media data, and then combines this with information regarding the customer's buying habits, so that the management team can better anticipate customer desires?

• A. Customer Relationship Management (CRM) System
• B. Enterprise Resource Planning (ERP) System
• C. Supply Chain Management (SCM) System
• D. Decision Support System (DSS)

Answer: (A)

This question tests recognizing a system focused on collecting and using customer data to predict needs. A Customer Relationship Management (CRM) system is designed to gather information from customers across channels—email, phone, social media—and combine it with buying history and preferences. That integrated view lets management understand patterns, anticipate what customers want, tailor marketing and sales efforts, and improve service and retention. The other options serve different purposes: an Enterprise Resource Planning system coordinates internal processes across the organization; a Supply Chain Management system concentrates on the flow of goods and information through suppliers and distributors; a Decision Support System helps analyze data to assist decisions but isn’t defined by building comprehensive customer profiles to forecast desires.

This question tests recognizing a system focused on collecting and using customer data to predict needs. A Customer Relationship Management (CRM) system is designed to gather information from customers across channels—email, phone, social media—and combine it with buying history and preferences. That integrated view lets management understand patterns, anticipate what customers want, tailor marketing and sales efforts, and improve service and retention.

The other options serve different purposes: an Enterprise Resource Planning system coordinates internal processes across the organization; a Supply Chain Management system concentrates on the flow of goods and information through suppliers and distributors; a Decision Support System helps analyze data to assist decisions but isn’t defined by building comprehensive customer profiles to forecast desires.