Question 1

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

Accepted Answer

On average, an American shopper has to choose among 100 times as many products as he actually buys, reflecting the vast array of options available in the market.

Question 2

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

Accepted Answer

Mass customization and mass configuration both involve the production of goods and services in lot sizes of one.

Question 3

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

Accepted Answer

Modularization allows for the customization of products through the use of interchangeable components, which can reduce costs by enabling mass production of standard modules while still offering customization options.

Question 4

The demand chain includes all of the following except:

Accepted Answer

The demand chain focuses on driving demand and customer satisfaction, which includes sales, marketing, and customer service. Production, however, is part of the supply chain, which deals with the supply of products or services.

Question 5

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

Accepted Answer

Failing to align supply-chain management with demand-chain management can lead to underdelivering, overdelivering, and lost share-of-customer opportunities, as it disrupts the balance between supply and demand, affecting customer satisfaction and market share.

Question 6

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

Accepted Answer

Collaborative customization involves working directly with the customer to tailor a product to their specific needs and preferences through dialogue and interaction.

Question 7

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

Accepted Answer

Collaborative and transparent customization provide the greatest competitive advantage because they involve engaging with customers to tailor products or services to their specific needs, enhancing customer satisfaction and loyalty.

Question 8

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

Accepted Answer

Mass customization is characterized by demand chain management, which focuses on tailoring products to meet specific customer demands rather than producing large quantities of a single product. This approach contrasts with mass production, which relies on economies of scale, making to forecast, and speculative shipping costs to produce and distribute products efficiently.

Question 9

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

Accepted Answer

Customer sacrifice is the gap between what customers settle for and what they ideally want, reflecting the compromises they make.

Question 10

What primarily drives the success of mass customization?

Accepted Answer

Customer collaboration is the primary driver of success in mass customization, as it allows businesses to tailor products and services to the specific needs and preferences of individual customers.

Question 11

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

Accepted Answer

Enhanced need set refers to additional products or services that complement the primary product, enhancing the overall customer experience.

Question 12

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

Accepted Answer

The answer of Which customization activities would most likely increase...

Question 13

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

Accepted Answer

The answer of Which of the following companies would benefit...

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?

Accepted Answer

The answer of Discuss the four levels of customization, according...

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.

Accepted Answer

The answer of How might a company that offers products...

Question 16

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

Accepted Answer

The answer of Name and fully describe the three levels...

Question 17

Explain how business rules can drive personalization.

Accepted Answer

The answer of Explain how business rules can drive personalization....

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