Question 1

McDonald's ensures that a customer receives the same fast, friendly, accurate, clean, and reliable service at every McDonald's restaurant. This demonstrates that McDonald's is a company that is

Accepted Answer

By ensuring consistent service at every restaurant, McDonald's is showing its focus on meeting the needs and expectations of its customers.

Question 2

The concept that is redefining how success is measured in an organization is

Accepted Answer

Customer focus is the concept that is redefining how success is measured in an organization. Previously, success was measured solely on financial profitability. However, today's successful organizations are placing more emphasis on delivering value to customers and meeting their needs to achieve long-term success. This shift in focus requires businesses to constantly monitor and improve customer satisfaction and loyalty, leading to improved financial performance.

Question 3

An example of one of the performance metrics at a customer-centric company is

Accepted Answer

Share of wallet refers to the percentage of customer spending on a particular product or brand compared to their overall spending in that category. This metric measures the company's ability to capture a larger portion of the customer's spending and reflects the level of customer loyalty and satisfaction with the brand's products or services. Therefore, it is a key performance metric for a customer-centric company that focuses on maximizing customer lifetime value. Choices A, B, C, and E are also important metrics but do not necessarily reflect a strong customer-centered approach.

Question 4

The type of customer knowledge captured by a customer-centric firm is based on

Accepted Answer

The answer of The type of customer knowledge captured by...

Question 5

McDonald's was the first organization in its industry to offer breakfast. By offering the customer a range of meal options, it wants to

Accepted Answer

By offering breakfast options, McDonald's is aiming to capture a larger portion of the customer's wallet by increasing the number of meals that customers purchase from them throughout the day. This can lead to an increase in overall profitability and market share. Option A may be true, but it is not the primary reason for offering breakfast. Option B and D may also be true, but they are not as directly related to McDonald's decision to offer breakfast. Option E may be a secondary result of capturing more of the breakfast market, but it is not the primary goal.

Question 6

Throughout a customer-focused organization, there is

Accepted Answer

A customer-focused organization must have a clear and shared understanding of the customer in order to make informed decisions about their products and services. This understanding can come from market research, customer feedback, and a focused approach to meeting customer needs. Options A, C, and D are also important for a successful organization, but they are not necessarily specific to a customer-focused approach. Option B, a transaction-oriented philosophy, is not compatible with a true customer focus since it prioritizes short-term sales over long-term customer satisfaction.

Question 7

In a customer-centric company, customer relations is the responsibility of

Accepted Answer

In a customer-centric company, every employee must take responsibility for ensuring that the customer has a positive experience. This means that not only the customer service department, but all departments - including marketing, sales, and the call centre - must work together to enhance the customer experience. Therefore, the best choice is E - all employees.

Question 8

The CEO of "Brand X," which manufactures a new high-performance long-distance running shoe, instructs the marketing and sales departments to sell its product to as many customers as possible. This company is

Accepted Answer

The CEO's instruction to sell the product to as many customers as possible shows the company is primarily focused on the product and generating sales, rather than on understanding and meeting the specific needs of its customers (A) or solely focusing on technology (C), marketing communications (D), or its existing customer portfolio (E).

Question 9

In a customer-focused business, senior management is committed to

Accepted Answer

In a customer-focused business, senior management is committed to making all decisions based around the customer. Customer needs and preferences are given the highest priority, and all strategies and actions are aimed at satisfying and retaining them. Marketing research, research and development, and public relations are all important aspects, but they serve the ultimate goal of customer satisfaction. The product portfolio is also important, but it should be aligned with customer preferences and market demand. Therefore, choice B is the best answer as it emphasizes the importance of putting the customer at the center of all business activities.

Question 10

GE Healthcare tried to differentiate a commodity product by offering consulting services; however, it failed to recognize that when different parts of the company do not focus on the customer,

Accepted Answer

When different parts of a company do not focus on the customer, they may not have the same goals which can lead to ineffective communication and collaboration. This can ultimately lead to a lack of synergy in the company's efforts to differentiate their product or service. In the case of GE Healthcare, their efforts to differentiate their commodity product with consulting services may have been hindered by different departments not having the same goal or focus on the customer.

Question 11

The Healthy Tasty Company lost a customer for life because the marketing function failed to

Accepted Answer

The question implies that the Healthy Tasty Company lost a customer because of a failure in the marketing function. Option C suggests that a lack of training for all company employees to focus on the customer could be the reason for the failure, which could have led to poor customer service and ultimately the loss of a customer for life. The other options, such as testing the product with focus groups, allocating sufficient funds for advertising, or including other media in the product launch, could improve the chances of success, but they may not necessarily address the issue of poor customer service. Option B is unlikely to be the sole reason for losing a customer for life.

Question 12

The opposite of customer centric is

Accepted Answer

Being product centric means that the focus is on the features and capabilities of the product, rather than on the needs and desires of the customer. This is the opposite of customer centric, where the focus is on understanding and meeting the needs and expectations of the customer.

Question 13

Marketers that devote at least 50% of their time to advanced, customer-centric marketing processes and capabilities will achieve marketing return on investment (ROI) that is at least ____ greater than that of their peers, who lack such emphasis.

Accepted Answer

According to a survey by Adobe and Econsultancy, marketers that devote at least 50% of their time to advanced, customer-centric marketing processes and capabilities achieve a marketing ROI that is at least 30% greater than that of their peers who lack such emphasis.

Question 14

Subway became known as the fast-food restaurant that offered healthy choices for customers who wanted to maintain a healthy lifestyle or lose weight. Subway's product positioning is typical of a company that is

Accepted Answer

Subway became known for offering healthy choices, which indicates a focus on meeting customer needs rather than solely focusing on products, nutritional research, competition, or sales execution.

Question 15

A customer-centric approach

Accepted Answer

A customer-centric approach is focused on building relationships with customers and meeting their needs, rather than just selling products to anyone who will buy. It prioritizes the customer's needs and preferences and aims to create long-term relationships with them.

Question 16

The organizational focus of a product-centric company is

Accepted Answer

A product-centric company focuses on developing and improving its products, which is an internal focus.

Question 17

A business orientation that is focused on the number of transactions and signed contracts, regardless of whether the deals were made with new or existing customers, is characteristic of a

Accepted Answer

A product-centric company is focused on increasing sales of their products without necessarily considering whether the transactions are made with new or existing customers. Their goal is to push as much product as possible, rather than building long-term relationships with customers.

Question 18

Product profit centres, product managers, and product sales teams are typical functions in the organizational structure of a

Accepted Answer

Product profit centres, product managers, and product sales teams are all indicative of a company that is product-centric, meaning that the primary focus of the organization is on creating and selling products. This is in contrast to customer-centric companies, which tend to prioritize the needs and wants of the customer above all else. Research and development companies may have product managers and sales teams, but profit centres are less likely to be a part of their organizational structure. Marketing and sales consulting firms may also have product managers and sales teams as part of their service offerings, but profit centres would be less relevant in this context.

Question 19

McDonald's constantly tries new ventures, such as its upscale sandwich stores in New York and the United Kingdom, Pret A Manger. It is not afraid to take risks based on

Accepted Answer

McDonald's takes risks based on customer trends, as it aims to adapt to changing consumer preferences and demands by trying new ventures like upscale sandwich stores.

Question 20

With a product-centric approach,

Accepted Answer

A product-centric approach emphasizes developing new accounts and increasing market share, focusing on the product itself rather than customer needs or relationships.

Quiz 38: Building a Customer-Focused Business