Question 1

One common trap that many senior managers fall into is to think of customer focus as a philosophy or strategic priority.

Accepted Answer

The answer of One common trap that many senior managers...

Question 2

Customer focus is redefining how success is measured in an organization.

Accepted Answer

Customer focus emphasizes the importance of meeting customers' needs and expectations, ultimately leading to increased customer satisfaction and loyalty, which can be the key indicator of success for an organization. Therefore, success is no longer solely measured by financial profits or internal performance metrics, but rather by the level of customer satisfaction and loyalty achieved.

Question 3

GE Healthcare's consulting services value proposition failed because it was designed through the lens of its own products, rather than with a focus on the customer.

Accepted Answer

According to the case study, GE Healthcare's consulting services value proposition failed because it "was designed through the lens of its own products, rather than with a focus on the customer."

Question 4

The fact that the customer gets the same fast, friendly, clean, and accurate service at any McDonald's, regardless of location, demonstrates that everyone within the organization is focused on the customer.

Accepted Answer

This statement implies that McDonald's has a strong emphasis on customer service and consistency across locations. The fact that customers can expect the same experience at every location suggests that everyone within the organization is working towards this goal, ultimately demonstrating a focus on the customer.

Question 5

By building a customer-focused business, Arbol Industries saw a steep increase in customer satisfaction, which had a positive impact on its financial position.

Accepted Answer

Building a customer-focused business typically leads to increased customer satisfaction, which can have a positive impact on a company's financial performance.

Question 6

Organizations using a customer-centric approach focus on new account development and market share growth.

Accepted Answer

A customer-centric approach prioritizes understanding and meeting the current needs and desires of an organization's existing customers, rather than primarily focusing on acquiring new accounts and expanding market share.

Question 7

Product-centric organizations look at the number of new products, profitability per product, and market share by product/brand as their performance metrics..

Accepted Answer

Product-centric organizations prioritize their products, and therefore determine their performance metrics based on factors such as the number of new products, profitability per product, and market share by product/brand.

Question 8

In a product-centric approach, the positioning strategy highlights product features and benefits.

Accepted Answer

In a product-centric approach, the focus is primarily on the product and its features and benefits, therefore, the positioning strategy highlights these elements.

Question 9

McDonald's is so focused on the customer that, at its Hamburger University outside Chicago, managers and franchisees are taught minute details such as the correct arm motion to use when salting fries.

Accepted Answer

The statement is true, as McDonald's places a strong emphasis on providing high-quality, consistent customer service and experience. The attention to detail taught at Hamburger University reflects this focus.

Question 10

It is the customer who determines what a business is, what it produces, and whether it will prosper.

Accepted Answer

This statement emphasizes the importance of customer satisfaction and the impact it has on a business's success. Customers ultimately decide what products or services they want to purchase and a business must adapt to meet those needs in order to thrive.

Question 11

The organizational structure of a customer-centric company includes customer segment centres, customer relationship managers, and customer segment sales teams.

Accepted Answer

A customer-centric company is structured around its customers. The organizational structure includes customer segment centres that focus on specific customer segments, customer relationship managers who build and maintain relationships with individual customers, and customer segment sales teams that are dedicated to selling to specific customer segments. Therefore, the given statement is true.

Question 12

Customer focus is diametrically opposite to product focus.

Accepted Answer

Customer focus is about prioritizing the needs and wants of customers, whereas product focus is about prioritizing the design and features of a product. These two approaches are often seen as contradicting each other, as customer focus requires a willingness to adapt and change based on customer feedback, while product focus often relies on a predetermined set of features and specifications.

Question 13

At Arbol Industries organizational, not functional, objectives became the glue that bound all of the company's functions together.

Accepted Answer

The statement indicates that the company's organizational objectives served as a cohesive force uniting all functions, rather than each function having a distinct set of objectives.

Question 14

The business orientation of a product-centric company is relationship oriented.

Accepted Answer

The business orientation of a product-centric company is centered around its products and their features, rather than developing strong relationships with customers. Such companies tend to focus on creating and improving products to meet customer needs and preferences, but may not prioritize customer service or building long-term relationships with customers.

Question 15

One of the key building blocks in building a customer-focused business is the use of revised financial metrics.

Accepted Answer

By using revised financial metrics, a company can track and measure its success in meeting customer needs and expectations. These metrics can include customer acquisition cost, customer lifetime value, and customer retention rate, among others. By focusing on these metrics, a company can better understand its customers and make necessary adjustments to meet their needs and preferences.

Question 16

Once a business is successfully established as customer focused, it can go with the flow--past successes guarantee future successes.

Accepted Answer

While past successes can be indicative of future success, it is not guaranteed. A business must continue to focus on its customers and adapt to changing market conditions to maintain its success.

Question 17

Product-centric companies manage a portfolio of customers, while customer-centric companies manage a portfolio of products.

Accepted Answer

Product-centric companies focus on developing and selling products, while customer-centric companies focus on understanding and meeting the needs of their customers by developing and offering a portfolio of products and services that meet those needs. Therefore, customer-centric companies manage a portfolio of customers and cater to their unique needs and preferences.

Question 18

One reason that many companies are not customer focused is that the concept of customer focus is hard to understand.

Accepted Answer

Customer focus involves consistently putting the needs and desires of customers at the forefront of business decisions and strategies. This can be a challenging concept for some companies to fully grasp and implement.

Question 19

When different parts of the company do not focus on the customer, they do not have the same goals.

Accepted Answer

When different parts of the company do not prioritize the customer, they may have conflicting goals and priorities, leading to a lack of coherence and potentially negatively impacting the customer experience.

Question 20

A customer-focused philosophy is essentially the same as a product-centric philosophy.

Accepted Answer

A customer-focused philosophy puts the customer's needs and wants first, whereas a product-centric philosophy puts the focus on the product itself rather than the customer. Therefore, these two philosophies are not the same.

Quiz 38: Building a Customer-Focused Business