Deck 2: Your Business Idea: the Quest for Value

Question 1

Perceived costs can be seen as being composed of three elements: monetary, time and psychic.

Answer 1

True

Question 2

There is universal consensus as to what factors make up perceived customer value.

Answer 2

False

Question 3

Customer value can be defined as the difference between perceived benefits and perceived costs.

Answer 3

True

Question 4

Small businesses generally have no need of any formal market research.

Question 5

Quality function deployment is an approach that takes the desires of consumers and explores how well the individual activities of the business are meeting those desires.

Question 6

Quality function deployment as an approach can only be used in manufacturing concerns.

Question 7

The concept of customer value is based essentially on the price of the product or service.

Question 8

It is ineffectual to listen to customers through comment cards and online surveys.

Question 9

Since many customers don't know exactly what they want small business owners should only listen to him/herself.

Question 10

Studies that indicated that firms with superior customer value outperform their competitors on ROI and market share gains.

Question 11

For any particular product customer value tends to be consistent across all customers.

Question 12

One way of gathering information about customers is through loyalty programs.

Question 13

Epistemic value is associated with a sense of novelty or simple fun.

Question 14

The concept of functional value relates to the product or services ability to perform its utilitarian purpose.

Question 15

Market segmentation is the division of any market into a subset of customers.

Question 16

The monetary component of perceived value is singularly associated with the purchase price of the product or service.

Question 17

It is estimated that only 15% of American customers have loyalty to a single retailer, yet these customers generate between 55% 7% of that retail sales.

Question 18

Net present value discounts the value of future cash flows. It recognizes the time value of money.

Question 19

The only question a small business should ask is how much they can charge their customers.

Question 20

Small businesses should only produce products and services that they know with a high degree of certainty, in advance, what customers will want.

Question 21

A recent study indicated that R&D performance by small US companies grew slightly faster than the comparable performance for larger US firms.

Question 22

The estimated cost of regaining a dissatisfied customer over retaining a current customer has the following multiple:

A) 3
B) 5
C) 7
D) 10
E) 20

Question 23

Innovation involve new ways in which the product or service might be used; new ways it can be packaged; and new ways of identifying customers.

Question 24

Some products that were initially created by small businesses include: air conditioner, high-resolution CAT scanner and outboard engine.

Question 25

For the period 2003 - 2007, small firms increased their R&D spending by more than 40% compared to approximately 33% increase for large companies.

Question 26

Customer Relationship Management software packages are too complex, too difficult and too expensive to ever be used in the small business environment.

Question 27

Creativity in any organization can be stopped by failing to ask the right questions, failing to think in new ways and failing to tolerate creativity.

Question 28

The estimated cost of gaining a new customer over retaining a current customer has the following multiple:

A) 3
B) 5
C) 7
D) 10
E) 20

Question 29

Cloud computing is not appropriate for the small business environment.

Question 30

Small business has always been a driver of new products and services.

Question 31

It has been estimated that word-of-mouth is the primary factor in between 20% to 50% of all purchasing decisions.

Question 32

The type of value, identified by Sheth, Newman and Gross, which is derived from a particular context or social-cultural setting, is

A) Social Value
B) Emotional Value
C) Functional Value
D) Conditional Value
E) Epistemic Value

Question 33

Smaller businesses could greatly benefit by recognizing and emerging social or consumer trends.

Question 34

The successful creation of customer value can significantly enhance a firm's cash loan.

Question 35

The ability to track or identified social trends is too expensive for small businesses.

Question 36

The type of value, identified by Sheth, Newman and Gross, which evokes an affective response, is

A) Social Value
B) Emotional Value
C) Functional Value
D) Conditional Value
E) Epistemic Value

Question 37

The type of value, identified by Sheth, Newman and Gross, which is generated by a sense of fun or novelty, is

A) Social Value
B) Emotional Value
C) Functional Value
D) Conditional Value
E) Epistemic Value

Question 38

The type of value, identified by Sheth, Newman and Gross that involves a sense of relationship with other groups through the use of images and symbols is

A) Social Value
B) Emotional Value
C) Functional Value
D) Conditional Value
E) Epistemic Value

Question 39

The type of value, identified by Sheth, Newman and Gross, which relates to the product or services ability to perform its utilitarian function, is

A) Social Value
B) Emotional Value
C) Functional Value
D) Conditional Value
E) Epistemic Value

Question 40

Innovation is limited to the work of engineers and scientists and large R&D facilities.

Question 41

Loyalty programs are used by what percentage of U.S. households?

A) Less than 15%
B) Slightly more than 25%
C) Slightly more than 40%
D) Slightly more than 65%
E) Slightly more than 80%

Question 42

The difference between perceived benefits and perceived costs is ______________.

Question 43

In the "House of Quality" the section that used for assessing engineering characteristics is known as

A) Customer Requirements
B) Competitive Assessment Matrix
C) Relationship Matrix
D) The "Roof" of the house
E) The "Basement"

Question 44

In the "House of Quality" the section that illustrates the correlation between customer needs and engineering characteristics is known as

A) Competitive Assessment Matrix
B) Engineering Characteristics
C) Relationship Matrix
D) The "Roof" of the house
E) The "Basement"

Question 45

Innovation refers to

A) Development of new products
B) Development of new services
C) Development of new packaging
D) Development of new ways of distributing
E) All of the above

Question 46

In the "House of Quality" the section that evaluates the position of the company with respect to its competitors is known as

A) Customer Requirements
B) Engineering Characteristics
C) Relationship Matrix
D) The "Roof" of the house
E) Competitive Assessment Matrix

Question 47

What element is least likely to be considered part of the reason for making customer value the focus of the business' existence?

A) Identifying unmet customer needs
B) Generating a profit
C) Understanding the value proposition desired by customers
D) Understanding how your business' value proposition is different than competitors
E) None of the above

Question 48

It has been estimated that Word-of-mouth advertising is the primary factor in what percentage of all purchasing decisions

A) 0% to 10%
B) 10 to 20%
C) 20% to 50%
D) 40% to 80%
E) 60% to 100%

Question 49

The concept that one could identify which customers might be most profitable is known as

A) Voice of the Customer
B) Quality Function Deployment
C) Customer Lifetime Value
D) Net Present Value
E) None of the above

Question 50

Small firms can track, inexpensively, trends by

A) Hiring market research firms
B) Hiring psychics
C) Hire clipping services
D) Using online tools, like Google Trends
E) None of the above

Question 51

Small businesses that focus on niche markets can gain sales if they can

A) Find out of the way locations
B) Find unique/odd spokespersons
C) Identify new social and consumer trends
D) Refuse sales to the broad number of customers
E) Sell overseas

Question 52

In the "House of Quality" the section that illustrates the correlation between engineering characteristics is known as

A) Customer Requirements
B) Competitive Assessment Matrix
C) Relationship Matrix
D) The "Roof" of the house
E) The "Basement"

Question 53

_________ is the basis of value involves a sense of relationship with other groups through the use of images or symbols.

Question 54

The dimensions along which a market may be segmented are

A) Price, income and customer
B) Geographic, demographic and psychographic
C) Demographic, price and industry
D) Geographic, industry and price
E) Income, price and industry

Question 55

The former Federal Trade Commission estimated that satisfied customers tell how many other customers about their satisfactory experience

A) 2
B) 4
C) 5
D) 7
E) 10

Question 56

The three components of perceived cost are:

A) Operating cost, purchase cost and maintenance cost
B) Fixed cost, variable cost, and overhead cost
C) Monetary cost, time cost, and psychic cost
D) Purchase cost, variable cost, and time cost
E) Operating cost, time cost, and fixed cost

Question 57

In the "House of Quality" the section that what the customer desires (the Whats) is known as

A) Customer Requirements
B) Engineering Characteristics
C) Relationship Matrix
D) The "Roof" of the house
E) The "Basement"

Question 58

The basis of value that relates to the products or services ability to perform its utilitarian purpose is known as ?????_____________.

Question 59

In the "House of Quality" the section that illustrates the means by which the company seeks to meet customer needs (the Hows) is known as

A) Customer Requirements
B) Engineering Characteristics
C) Relationship Matrix
D) The "Roof" of the house
E) The "Basement"

Question 60

Which of the following is not a reason for the failure of having creativity in organizations?

A) Failure to ask why type of questions
B) Failure to wish for more
C) Failure to hire only creative people
D) Failure to record ideas
E) Failure to express ideas

Question 61

Smaller firms can track trends at no or nominal cost by using ______________ tools.

Question 62

The division of a market into several portions that are different from each other is known as___________.

Question 63

___________________refers to a service approach which hopes to build a long-term sustainable relationship with customers.

Question 64

How would you define customer value?

Question 65

A recent study indicated that R&D performance at smaller companies ________________ than comparable performance at larger U.S. firms.

Question 66

A measure of the revenue generated by the customer, the cost generated for that particular customer and the projected retention rate of that customer over their lifetime is also known as the _____________.

Question 67

___________ refers to the situation in which a vendor's software does not reside on the small businesses.

Question 68

What are the different types of perceived costs?

Question 69

Why is customer value important?

Question 70

The discounting value of future cash flows minus the original investment is also known as the ____________.

Question 71

The element of cost that can be associated with factors that might do stress in the customer is known as the _________ component.

Question 72

A technique that is associated with the concept of Voice of the Customer (VOC) which is used to design new products and services or to improve existing ones by exploring how well individual activities are meeting those desires is known as ____________.

Question 73

Epistemic value is generated by a sense of_____________.

Question 74

One reason why smaller firms may be more innovative than their larger competitors is that small firms have less _________.

Question 75

What are the different types of customer value?

Question 76

_________ is the basis of value that is derived from the ability to evoke an affective response.

Question 77

One way smaller firms can compete with larger competitors is by being better at the process of _____________.

Question 78

A basis of value that is derived from a particular context or socio-cultural setting is known as _______________.

Question 79

Components that consist of the purchase, operating, service, switching and opportunity cost associated with any product or service is known as the ___________of cost.

Question 80

An attempt to identify the real wants and needs of the customer is sometimes referred to as the ________________.