Question 1

Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Accepted Answer

Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Question 2

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

Accepted Answer

According to total quality management philosophy, the customer, not managers in quality control or engineering, defines what quality is.

Question 3

A value chain is a chain of functional activities that transform inputs into finished goods or services customers value.

Accepted Answer

A company's value chain is the coordinated series or sequence of functional activities necessary to transform inputs such as new product concepts, raw materials, component parts, or professional skills into the finished goods or services customers value and want to buy.

Question 4

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes.

Accepted Answer

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes-or the result can be disaster.

Question 5

Total quality management is a technique that focuses on improving the quality of an organization's products and services.

Accepted Answer

Total quality management is a technique that focuses on improving the quality of an organization's products and services.

Question 6

Higher product quality can increase efficiency and thereby lower operating costs.

Accepted Answer

Higher product quality can increase efficiency and thereby lower operating costs and boost profits.

Question 7

High-quality products are characterized by low prices.

Accepted Answer

Providing high-quality products creates a brand-name reputation for an organization's products and allows the organization to demand a higher price for its products.

Question 8

Innovation refers to producing goods and services that have attributes-such as design, styling, performance, and reliability-that customers perceive as being superior to those found in competing products.

Accepted Answer

Quality means producing goods and services that have attributes-such as design, styling, performance, and reliability-that customers perceive as being superior to those found in competing products.

Question 9

The fewer the inputs required to produce a given output, the lower is the efficiency and the higher the cost of outputs.

Accepted Answer

The fewer the inputs required to produce a given output, the higher is efficiency and the lower the cost of outputs.

Question 10

Quality is a concept that can be applied to manufacturing but not to service organizations.

Accepted Answer

Quality is a concept that can be applied to the products of both manufacturing and service organizations.

Question 11

Soliciting information and suggestions about improvements from employees is one of the steps in implementing a successful TQM program.

Accepted Answer

Employees are a major source of information about the causes of poor quality, so it is important that managers establish a system for soliciting employee suggestions about improvements that can be made.

Question 12

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers less desired product attributes for the same price.

Accepted Answer

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers more desired product attributes for the same price.

Question 13

A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry.

Accepted Answer

Although managers must seek to improve their responsiveness to customers by improving how the value chain operates, they should not offer a level of responsiveness to customers that results in costs becoming too high-something that threatens an organization's future performance and survival. For example, a company that customizes every product to the unique demands of individual customers is likely to see its costs grow out of control.

Question 14

Total quality management requires the cooperation of managers of certain functions of an organization.

Accepted Answer

TQM requires the cooperation of managers in every function of an organization and across functions.

Question 15

Each functional activity along the value chain adds value to a product when it raises costs and decreases the price a company can charge for it.

Accepted Answer

Each functional activity along the chain adds value to the product when it lowers costs or gives the product differentiated qualities that increase the price a company can charge for it.

Question 16

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer.

Accepted Answer

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer. The efficiency with which this is carried out can significantly lower costs and create more value.

Question 17

A newsletter publisher in a small town accepts subscription requests and handles queries only through the town's mail services. The publishing unit keeps track of its customers by entering or modifying customer information in a book. This publisher is using a customer relationship management technique.

Accepted Answer

Customer relationship management is a technique that uses IT and technology to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Question 18

Successful innovation gives an organization something unique about its products that can strengthen its competitive advantage.

Accepted Answer

Successful innovation gives an organization something unique or different about its products that rivals lack-more sophisticated products, production processes, or strategies and structures that strengthen its competitive advantage.

Question 19

A high-quality, well-designed product will always be successful in the market.

Accepted Answer

Even the best-designed product can fail if the marketing function hasn't devised a careful plan to persuade people to buy it and try it out-or to make sure customers really want it. For this reason, marketing often conducts consumer research to discover unmet customer product needs and to find better ways to tailor existing products to satisfy customer needs.

Question 20

Market function is the engineering and scientific research activities involved in innovating new or improved products that add value to a product.

Accepted Answer

Product development is the engineering and scientific research activities involved in innovating new or improved products that add value to a product.

Quiz 9: Value Chain Management: Functional Strategies for Competitive Advantage

Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

A value chain is a chain of functional activities that transform inputs into finished goods or services customers value.

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes.

Total quality management is a technique that focuses on improving the quality of an organization's products and services.

Higher product quality can increase efficiency and thereby lower operating costs.

High-quality products are characterized by low prices.

Innovation refers to producing goods and services that have attributes-such as design, styling, performance, and reliability-that customers perceive as being superior to those found in competing products.

The fewer the inputs required to produce a given output, the lower is the efficiency and the higher the cost of outputs.

Quality is a concept that can be applied to manufacturing but not to service organizations.

Soliciting information and suggestions about improvements from employees is one of the steps in implementing a successful TQM program.

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers less desired product attributes for the same price.

A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry.

Total quality management requires the cooperation of managers of certain functions of an organization.

Each functional activity along the value chain adds value to a product when it raises costs and decreases the price a company can charge for it.

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer.

Successful innovation gives an organization something unique about its products that can strengthen its competitive advantage.

A high-quality, well-designed product will always be successful in the market.

Market function is the engineering and scientific research activities involved in innovating new or improved products that add value to a product.