Deck 10: The Payoff of IDIC: Using Mass Customization to Build Learning Relationships

Question 1

On average, an American shopper has to choose among _______ times as many products as he actually buys.

A) 10
B) 100
C) 1,000
D) 10,000

Answer 1

100

Question 2

The mass production of goods and services in lot sizes of one is known as:

A) mass customization
B) mass configuration
C) mass production
D) a and b

Answer 2

a and b

Question 3

What technique helps customization reduce a company's all-in costs?

A) modularization
B) speculative manufacturing
C) make-to-forecast model
D) personalization

Answer 3

modularization

Question 4

The demand chain includes all of the following except:

A) sales
B) production
C) marketing
D) customer service

Question 5

Failing to align supply-chain management with demand-chain management results in:

A) underdelivering
B) overdelivering
C) lost share-of-customer opportunities
D) all of the above

Question 6

Creating a customized product for a customer through dialogue with that customer is known as:

A) adaptive customization
B) cosmetic customization
C) collaborative customization
D) transparent customization

Question 7

The two kinds of customization that provide the greatest competitive advantage are:

A) adaptive and cosmetic
B) collaborative and transparent
C) adaptive and collaborative
D) cosmetic and transparent

Question 8

Which of the following characterizes mass customization (vs. mass production)?

A) economies of scale
B) make to forecast
C) speculative shipping costs
D) demand chain management

Question 9

The difference between what customers want and what they're willing to settle for is:

A) customer satisfaction
B) customer sacrifice
C) customer experience
D) customer dissatisfaction

Question 10

What primarily drives the success of mass customization?

A) customer collaboration
B) offering "bundled" options
C) extensive inventory
D) unique personalization

Question 11

Which of the following aspects would be part of a customer's enhanced need set?

A) timing or frequency
B) promotion and marketing communication
C) related products or services
D) help lines and product support

Question 12

Which customization activities would most likely increase a customer's long-term value?

A) expanding the need set
B) improving the quality of the product
C) improving service quality
D) all of the above

Question 13

Which of the following companies would benefit least from creating value streams?

A) furniture retailer
B) bookseller
C) home builder
D) clothing retailer

Question 14

Discuss the four levels of customization, according to Pine and Gilmore. Which types provide the most opportunity for customers to get exactly what they want-and why does this not provide a competitive advantage?

Question 15

How might a company that offers products difficult to customize still mass customize for their customers? What other aspects might it customize to provide a high-value product? Create a scenario in which a computer software company might create such an offering for a customer.

Question 16

Name and fully describe the three levels of customer needs a "product-as-service" potentially meets, as described by the authors.

Question 17

Explain how business rules can drive personalization.