Question 1

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. Though Keiko's products are priced lower than Global's, the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech. What can Keiko do to obtain LZT's order?

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Question 2

Which of the following is true for activity-based costing (ABC)?

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The answer of Which of the following is true for...

Question 3

A profitable customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing the customer.

Accepted Answer

A profitable customer is defined as one that brings in more revenue than the company spends on attracting, selling, and servicing them.

Question 4

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

Accepted Answer

Customer profitability analysis (CPA) aligns customers along columns and products along rows to show the profitability of selling a product to a customer. This analysis helps businesses to understand which customers are most valuable and which products are generating the most profit.

Question 5

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Accepted Answer

Customer churn refers to the number or percentage of customers who leave a company's service or product over a given period of time. Cable TV operators and cellular carriers often face high levels of customer churn due to intense competition, changing technology, and other factors.

Question 6

Create a value proposition for cell phone manufacturer LZT.

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Question 7

A profitable customer yields a ________.

Accepted Answer

A profitable customer yields a revenue stream that exceeds the company's cost stream.

Question 8

What are the steps in a customer value analysis?

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Question 9

Explain customer-perceived value.

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Question 10

What are the measurement techniques for monitoring satisfaction?

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Question 11

Compare and contrast the typical traditional organization chart for an organization against the modern customer-oriented organization chart.

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Question 12

Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Berry's can use to discover the problem.

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Question 13

A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer.

Accepted Answer

A profitable customer is a customer who generates more revenue than the cost of acquiring and servicing them over time. This is the ideal type of customer for a company to have, as they contribute to the company's overall profitability. A prospector is a company that seeks out new, untapped markets or opportunities. A market challenger is a company that is looking to gain market share from its competitors. A market nicher is a company that specializes in serving a specific niche market. A pioneer customer is an early adopter of a new product or service.

Question 14

Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

Accepted Answer

Conformance quality refers to the degree to which a product meets its design specifications and fulfills its intended purpose. It does not necessarily reflect the performance of the product, but rather whether it meets the requirements set forth by the manufacturer. Therefore, if two products meet their respective promised quality levels, they have the same conformance quality, regardless of their actual performance differences.

Question 15

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?

Accepted Answer

The answer of Cell phone manufacturer LZT has to choose...

Question 16

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.

Accepted Answer

Customer profitability analysis (CPA) is best conducted using activity-based costing (ABC) because it assigns costs to specific activities and then to the products or services based on their use of those activities. This helps to accurately determine the profitability of specific customers by analyzing their actual costs of servicing them.

Question 17

The 80-20 rule reflects the idea that ________.

Accepted Answer

The 80-20 rule, also known as the Pareto principle, states that 80% of the effects come from 20% of the causes. In terms of business, this means that 80% of a company's profits are generated by the top 20% of customers. Therefore, the best choice is D, which states that the top 20% of customers often generate 80% of the company's profits.

Question 18

Explain total customer satisfaction.

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Question 19

Give an example of two products that have different performance quality but are of equal conformance quality.

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Question 20

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Accepted Answer

Customer lifetime value (CLV) is a metric that describes the net present value of the stream of future profits expected over the customer's lifetime purchases. It is a way for businesses to estimate the total economic value that a customer brings to the company over time. CLV takes into account the costs associated with acquiring, serving, and retaining the customer, and is used to guide decisions about pricing, marketing, and customer service.

Quiz 5: Creating Long-Term Loyalty Relationships

Which of the following is true for activity-based costing (ABC) ?