Question 1

What is the first main activity involved in benchmarking?
A) identifying the world's leading performers
B) identifying internal processes to be improved
C) identifying how the best goods are produced
D) identifying critical market segments

Accepted Answer

Benchmarking begins with identifying internal processes that need improvement. This step is crucial for understanding which aspects of the operation should be compared to industry leaders or competitors to enhance performance.

Question 2

Which of the following has a mandate of advancing the quality movement in Canada by providing advice on change management, organizing events to promote quality, and offering educational certification programs?
A) ISO 9002
B) Total Quality Management
C) Excellence Canada
D) Six Sigma

Accepted Answer

Excellence Canada is an organization dedicated to improving organizational performance across Canada. It fulfills its mandate by providing advice on change management, organizing events to promote quality, and offering educational certification programs.

Question 3

What is a series of related products offered by one company called?
A) product assortment
B) product mix
C) product formula
D) product line

Accepted Answer

A product line refers to a group of related products under a single brand sold by the same company. Companies create product lines as a marketing strategy to capture sales of consumers already buying the brand.

Question 4

Which of the following is a single product line?
A) four-door sedans offered by various automakers
B) 125-passenger jets manufactured by Airbus and Boeing
C) Hershey Kisses in a variety of flavours
D) different brands of toothpaste

Accepted Answer

Hershey Kisses in a variety of flavors represent a single product line because they are variations of the same product (chocolate kisses) offered by the same company (Hershey), differing only in flavor.

Question 5

Which of the following consists of intangible products that firms buy to facilitate their production and operating processes?
A) installations
B) accessories
C) business services
D) operating supplies

Accepted Answer

Business services are intangible products that firms purchase to aid in their production and operational processes, such as consulting, maintenance, and other professional services.

Question 6

Which term refers to the point at which the customer and service provider interact?
A) encounter
B) locus
C) platform
D) zone

Accepted Answer

The term "encounter" refers to the point at which the customer and service provider interact, highlighting the moment of engagement between the two parties.

Question 7

If Honda were to acquire a bicycle manufacturer, what would it add to Honda's product mix?
A) depth
B) width
C) length
D) cluster

Accepted Answer

Acquiring a bicycle manufacturer would add width to Honda's product mix because it would introduce a new product line, expanding the variety of product categories offered by the company.

Question 8

Which of the following involves measuring quality by comparing the company's performance against the industry leaders?
A) benchmarking
B) social referencing
C) satisficing
D) social loafing

Accepted Answer

Benchmarking involves measuring the quality of a company's policies, products, programs, strategies, etc., by comparing them against those of the leading companies in the industry.

Question 9

What is the number of product lines a firm offers referred to as?
A) depth
B) width
C) clusters
D) length

Accepted Answer

The number of product lines a firm offers is referred to as its width. This term describes the variety of different product lines that a company sells.

Question 10

What is a company practising when it institutes a continuous effort to improve products and work processes?
A) total quality management
B) benchmarking
C) ISO 9002 certification
D) process improvement

Accepted Answer

Total Quality Management (TQM) is a comprehensive system for achieving continuous improvement in customer satisfaction. It involves all members of an organization participating in improving processes, products, services, and the culture in which they work.

Question 11

What is adding individual offerings that appeal to different market segments known as?
A) product mix
B) product line
C) product line extension
D) product line depth

Accepted Answer

Product line extension involves adding new products to an existing product line to attract new customers or to appeal to the existing market segments more effectively. It allows a company to reach different customer needs within the same general market.

Question 12

What are finished business products of one producer that become part of the final products of another producer are called?
A) installations
B) accessory equipment
C) supplies
D) component parts and materials

Accepted Answer

Component parts and materials are the finished products of one producer that are used in the production of final products by another producer. These can include both small parts and larger materials that are integral to the final product.

Question 13

What does the combination of product lines represent?
A) product mix
B) product cluster
C) product lifecycle
D) product concept

Accepted Answer

The combination of product lines represents a product mix, which is the total assortment of products that a company offers to its customers.

Question 14

Which product is most likely to be promoted through advertisements rather than through personal selling?
A) oil rigs
B) laptops
C) raw cotton
D) mineral ores

Accepted Answer

Laptops are more likely to be promoted through advertisements because they are consumer goods with a broad market appeal, unlike oil rigs, raw cotton, and mineral ores, which are industrial products typically sold through personal selling due to their specialized nature and high value.

Question 15

Which variable of service quality best represents the service provider's understanding of the customer's needs?
A) tangibles
B) assurances
C) empathy
D) reliability

Accepted Answer

Empathy in service quality refers to the provider's effort to understand and address the individual needs and concerns of the customers, showing care and personalized attention.

Question 16

What does external analysis, conducted during the process of benchmarking, involve?
A) establishing a baseline for comparison with industry leaders
B) identifying business processes that need improvement
C) identifying the strengths and weaknesses of the firm's internal processes
D) gathering information about competing firms perceived as leading performers

Accepted Answer

External analysis in benchmarking involves gathering information about competing firms perceived as leading performers to compare and improve one's own processes.

Question 17

Which variable of service quality best represents the readiness to serve one's customers?
A) tangibles
B) assurances
C) responsiveness
D) empathy

Accepted Answer

Responsiveness is the variable of service quality that best represents the willingness and readiness to help customers and provide prompt service.

Question 18

Which of the following is NOT an activity for benchmarking?
A) continuously repeating the process to search for and identify areas that need improvement
B) comparing internal processes with similar processes of industry leaders
C) identifying processes that need improvement
D) producing more product output at a lower cost-per-unit

Accepted Answer

Benchmarking involves comparing processes, identifying areas for improvement, and continuously seeking improvement. However, producing more product output at a lower cost-per-unit is a goal or outcome of process improvement activities rather than an activity of benchmarking itself.

Question 19

In the business market, what are computer paper, pencils, and office stationery examples of?
A) maintenance items
B) repair items
C) operating supplies
D) accessory equipment

Accepted Answer

Computer paper, pencils, and office stationery are considered operating supplies because they are items that support the day-to-day operations of a business but do not directly enter into the production process.

Question 20

Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?
A) assurance
B) responsiveness
C) empathy
D) reliability

Accepted Answer

Assurance refers to the employees' knowledge and courtesy and their ability to inspire trust and confidence. Russell's behavior of conveying confidence in providing the exact assistance needed is a demonstration of assurance.

Quiz 10: Product and Service Strategies

What is the first main activity involved in benchmarking?

Which of the following has a mandate of advancing the quality movement in Canada by providing advice on change management, organizing events to promote quality, and offering educational certification programs?

What is a series of related products offered by one company called?

Which of the following is a single product line?

Which of the following consists of intangible products that firms buy to facilitate their production and operating processes?

Which term refers to the point at which the customer and service provider interact?

If Honda were to acquire a bicycle manufacturer, what would it add to Honda's product mix?

Which of the following involves measuring quality by comparing the company's performance against the industry leaders?

What is the number of product lines a firm offers referred to as?

What is a company practising when it institutes a continuous effort to improve products and work processes?

What is adding individual offerings that appeal to different market segments known as?

What are finished business products of one producer that become part of the final products of another producer are called?

What does the combination of product lines represent?

Which product is most likely to be promoted through advertisements rather than through personal selling?

Which variable of service quality best represents the service provider's understanding of the customer's needs?

What does external analysis, conducted during the process of benchmarking, involve?

Which variable of service quality best represents the readiness to serve one's customers?

Which of the following is NOT an activity for benchmarking?

In the business market, what are computer paper, pencils, and office stationery examples of?

Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?