Question 1

Explain the concept of total quality management. How is it different from the quality inspection of a final product just before being packaged?

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Question 2

What marketing potential does the Internet offer small business owners?

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Question 3

Describe why a small business might gain a competitive edge over its rivals by using a focus on the customer, devotion to quality, paying attention to convenience, concentration on innovation, dedication to service, and emphasis on speed.

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Question 4

Mini-Case 9-1: Customers: Key to Success
Lloyd Dixon has owned and operated a small dress shop for the past three years. Each fashion season, Lloyd attends the apparel shows and he is always very impressed by the glamour and the hundreds of different manufacturers, all with the merchandise that they say will be this season's biggest sellers. Lloyd caters to an older market and baby boomers. He hopes to tap into the upscale market.
After his first year of operation, Lloyd recognized that some of his merchandise was not selling. The "inventory close-out sale" did rescue his investment in this merchandise but did not make him a profit or contribute much to his overhead. Lloyd knew that it was not reasonable to expect to sell everything you bought, but he was not sure exactly how much of his inventory was comprised of slow movers. Lloyd believed that when he went into business he knew what women wanted in dresses. He had always prided himself on having good taste. When he had the opportunity to open this store, he was confident that he could choose merchandise that would be well received. In the first three years of operations, sales have not met Lloyd's expectations.
-How could Lloyd realistically create a competitive advantage by giving customer service a focus in his business?

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Lloyd Dixon...

Question 5

How can Marvin develop "stellar" customer service?

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Question 6

Studies have found that customers value convenience and easy access to goods and services.

Accepted Answer

Various studies and surveys have demonstrated that customers prioritize convenience, easy access, and seamless experiences when it comes to shopping for goods and services.

Question 7

Case 9-2: TQM and TV in Omaha
Nobody who knew Marvin Tollison ever met a man who liked television better. In the Navy, he had the opportunity to learn a great deal about his trade. When he finished his tour of duty, Marvin opened a television repair shop back home in Omaha, Nebraska. Over the years the quality of his workmanship, his fair prices, and his general overall good nature made his business flourish. Marvin had a way of finding men and women like himself when expansion was needed.
Over 17 years, the business had grown from a one-man shop operating in his garage to a 38-employee television repair staff that was dispatched to customers by two-way truck radio. Over the years, the time between a customer's call and the television repairman getting to the home had increased to about two days because the repairmen were taking longer with each call. Call-backs (having to "re-repair" equipment)are up significantly. Marvin wasn't sure, but he thought some of his customers were going elsewhere for service.
-Can Marvin use TQM to develop a competitive edge? If so, what would you recommend he do?

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Nobody...

Question 8

Why is it important for a small business to keep existing customers satisfied? How can a company achieve such customer satisfaction?

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Question 9

Describe what is meant by bootstrap marketing. What objectives should a bootstrap marketing plan accomplish? List at least five bootstrap marketing tactics your small business might be able to use successfully.

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Question 10

The best way for a small business to ensure quality products is to use quality inspections.

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Question 11

Most businesses are finding technology provides efficiency and speed in providing a wide array of services to their customers.

Accepted Answer

Technology has revolutionized the way businesses operate and has made it easier for them to provide many services to their customers quickly and efficiently. This has helped businesses to remain competitive and enhance their customer experience.

Question 12

Total quality management (TQM)works best when it becomes an integral part of a small company's strategy and focuses on continuous improvement in the quality the company delivers to customers.

Accepted Answer

TQM is a management approach that focuses on continuous improvement of processes, products, and services to provide quality output that meets or exceeds customer expectations. It involves all employees in the organization and aims to enhance customer satisfaction, reduce costs, and increase productivity. TQM works best when it is integrated into a company's overall strategy and becomes a part of its culture. It requires a long-term commitment to quality improvement and involves continuous monitoring, measurement, and feedback to identify opportunities for improvement. TQM is not just a one-time initiative but a continuous process of improvement that requires the involvement and commitment of all employees in the organization.

Question 13

Because a majority of the average company's sales come from present customers, few can afford to alienate any customers.

Accepted Answer

This statement is true as it highlights the importance of customer retention for businesses. It is more cost-effective to retain customers than to acquire new ones, and therefore, companies cannot afford to alienate any customers.

Question 14

The Internet allows creative small business owners to make their companies look as big as their larger rivals.

Accepted Answer

The Internet provides small business owners with various tools and resources that can help them create a professional and polished online presence, giving them the ability to compete with larger businesses on a level playing field. Through social media, website design, and online marketing tactics, small businesses can present themselves as established and credible companies to potential customers. This can help them gain a competitive edge and reach a broader audience.

Question 15

For many small businesses, nonprice competition (focusing on factors other than price)is a more effective strategy than trying to beat larger competitors in a price war.

Accepted Answer

Nonprice competition allows small businesses to differentiate themselves from larger competitors and appeal to customers based on factors such as quality, customer service, and unique offerings. Price wars often lead to lower profit margins and can be unsustainable for small businesses.

Question 16

Adding innovative products and services is important to a companies' success and small entrepreneurial companies may be able to respond faster than larger organizations.

Accepted Answer

Small entrepreneurial companies often have less bureaucracy and can pivot quickly to meet market demand, while larger organizations may have more red tape and be slower to adapt to change. Introducing new and innovative products and services can help companies stay competitive and attract new customers, so this agility can give smaller organizations an advantage.

Question 17

Providing low prices is the most effective way for a small business to attract and maintain a growing customer base.

Accepted Answer

While low prices may be a factor in attracting customers, it is not always the most effective strategy. Small businesses can also differentiate themselves through quality, customer service, unique products or services, and convenience. Maintaining low prices may also not be sustainable for a small business in the long run.

Quiz 9: Building a Powerful Bootstrap Marketing Plan