Deck 3: Serving Customers

Question 1

Organizations exist to provide value to some client or customer group.

Answer 1

True

Question 2

Strategists are at risk of developing organizational competencies that have little or no market value.

Answer 2

True

Question 3

Mass customized products can sometimes demand a premium price.

Answer 3

True

Question 4

It is clear in mass customization when the manufacturer 'owns' the customer and when the retailer 'owns' the customer.

Question 5

Customer demands are increasing in nearly every sector we can think of.

Question 6

Customers are the enemy of the firm.

Question 7

Product and buyer attributes can be used to create a market segmentation strategy.

Question 8

It is important to define a firm as customer-oriented, even if that firm can't provide the resources required to meet customer needs.

Question 9

Very few large firms have detailed information about customers.

Question 10

Nearly every firm is affected by demographic trends.

Question 11

There is no such thing as too much service.

Question 12

All retailers should strive for an incredibly high level of service.

Question 13

You have been a customer all of your life.

Question 14

A customer-based strategy allows a large number of customers to personalize product characteristics.

Question 15

Customer contact is a measure of the amount of user involvement in planning, executing and delivering a good or service.

Question 16

The Internet has not changed firms' relationships to customers.

Question 17

Instead of selling and buying products alone, many manufacturers are selling services and purchasing services alongside tangible goods.

Question 18

In the military, strategy helps determine life and death contests.

Question 19

Encyclopedia Britannica's is the most popular online encyclopedia.

Question 20

Otis Elevator competes on the basis of its price.

Question 21

Which of the following companies has not applied a mass customization strategy?

A) Nike
B) Levi's
C) Brooks
D) Adidas
E) Dell

Question 22

Which of the following is the best example of a high customer contact industry?

A) Farming
B) Public transport
C) Gourmet restaurant
D) Manufactured commodity

Question 23

Which of the following is the best example of a low customer contact industry?

A) Mining
B) Fast food
C) Health centre
D) Library

Question 24

Which of the following is not true about successful customer strategies?

A) Respect customers as capable of identifying and making decisions
B) Require little organizational support to become practical
C) Assume that customer needs and interests will change and require adaptation
D) Adopt a 'partnership' perspective in responding to needs

Question 25

Which of the following is not a key question in Abell's Customer-Based Business
Model?

A) How much will customers pay?
B) Who is being satisfied?
C) What is being satisfied?
D) How are customer needs satisfied?

Question 26

Which TWO of the following best describe components of buyer behaviour?

A) Age
B) Degree of brand loyalty
C) Education
D) Lifestyle

Question 27

Intellectual capital best describes which of the following?

A) Customers, technology, human capital
B) Goods, services, environment
C) Knowledge, skills, capabilities
D) Reputation, professionalism, skills

Question 28

Over ___ of American consumers have bought and sold stocks, bonds, or mutual funds.

A) 1%
B) 10%
C) 50%
D) 90%

Question 29

Which of the following is not typically seen by physicians as the value added to heath care?

A) Convenient parking
B) Latest technology
C) Physician credentials
D) Quality care

Question 30

Which of the following features is mostly likely to affect customer perceptions of a good?

A) Ambience
B) Functionality
C) Interaction
D) Trustworthiness

Question 31

Which of the following features is most likely to affect customer perception of a service?

A) Aesthetics
B) Ambience
C) Functionality
D) Reputation

Question 32

Which of the following firms is not a good example of a firm that provides an experience-oriented strategy?

A) Amazon
B) Barnes and Noble
C) Borders
D) IKEA

Question 33

Which of the following is not true about why newspapers exist?

A) They have sufficient product circulation.
B) They provide an important hard copy version of online content.
C) They can use circulation numbers to attract advertising revenue.
D) They have found ways to create economies of scale in printing and distribution.

Question 34

Customers' direct involvement in the creation of goods, services or experiences they consume is known as:

A) Competition
B) Coproduction
C) Cost sharing
D) Customer focus

Question 35

Which of the following is an example of cost sharing?

A) Full service gas station
B) Professional museum tour guide
C) Self check-in at airport
D) Theatre

Question 36

What percentage of the high-wage working population in the US and Europe provide services?

A) 20%
B) 50%
C) 80%
D) 99%

Question 37

Which of the following best reflects an external perspective?

A) What are our competencies?
B) What are our strengths?
C) How do we stack up to our competitors?
D) What do our customers look like?

Question 38

Which of the following best reflects the initially unintended service provided by the town library in the case example?

A) Community meeting area for retired people
B) Informal day-care center for 'latchkey' children
C) Resource center for local genealogists
D) Study center for college students

Question 39

________ models of human behaviour assume that most people are intrinsically well-meaning in their interactions with others.

A) Customer-centered
B) Human capital
C) Positive
D) Service

Question 40

Which of the following is true about Encyclopedia Brittanica?

A) It is less accurate than Wikipedia.
B) It reacted immediately to Encarta and Funk and Wagnall's electronic encyclopedia.
C) Its hard-bound sets of encyclopedias sold for $1500-2000.
D) It has always understood its competitors and customers.

Question 41

What are some key factors that customers care about when shopping for goods?

Question 42

What are some key factors that customers care about when shopping for services?

Question 43

What are some key factors that customers tend to care about in terms of the environment?

Question 44

Give one example of a retailer that is making use of an 'experience-oriented' strategy. Very briefly, what are they offering?

Question 45

Can some customers be too expensive to serve? Why or why not? Give an example.

Question 46

Why is the customer relationship increasingly critical?

Question 47

What are some guidelines for a customer-based business model?

Question 48

How do companies gather data to identify and understand their customers?

Question 49

What is a service mentality? Provide an example.