Question 1

A widespread shift to mass customization has not occurred because firms found that
A) production costs were still high.
B) the Internet offered a low-cost way to get a lot of orders.
C) mass production is always better.
D) economies of scale provides a better alternative.
E) technology introduces a new set of problems.

Accepted Answer

The widespread shift to mass customization has not occurred, mainly because many firms that experimented with it found that production costs were still high even if the Internet offered a low-cost way to get a lot of orders.

Question 2

Starbucks ran a full-page ad in THE WALL STREET JOURNAL proclaiming that its baristas can make more than 87,000 possible combinations of an espresso coffee drink.This is an example of:
A) Combined target market approach.
B) Mass customization.
C) Task transfer.
D) Diversification strategy.
E) Single target market approach.

Accepted Answer

A wide variety of companies are looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers.

Question 3

Production flexibility should help a supplier support its business customers with:
A) just-in-time delivery
B) EDI.
C) rapid response replenishment of inventories.
D) computerized reorder capabilities.
E) Any of these.

Accepted Answer

Production flexibility can give a firm a competitive advantage in meeting a target market's needs better or faster. Without flexible operations, it can be difficult to provide business customers with just-in-time delivery or rapid response to orders placed by EDI or some other type of e-commerce reorder system.

Question 4

____ involves tailoring the principles of mass production to meet the unique needs of individual customers.
A) Personal selling
B) Mass customization
C) Traditional manufacturing
D) Standardization
E) Outsourcing

Accepted Answer

A wide variety of companies are now looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers. With the mass-customization approach, a firm may still focus on certain market segments within a broad product-market. However, in serving individuals within those target segments it tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Question 5

Overseas production:
A) generally makes distribution more complicated.
B) may be very economical.
C) sometimes brings concerns about nationalism to the forefront.
D) can apply to services as well as physical goods.
E) All of these.

Accepted Answer

The trend toward outsourcing to where labor costs are low is resulting in the loss of thousands of manufacturing jobs in the United States. It's also sparking economic growth in some of the less-developed areas of the world and changing the balance of trade among nations.

Question 6

With the mass customization approach,a firm
A) tailors the principles of mass production to meet the unique needs of individual customers in its target market.
B) tries to justify high prices by customizing its offering for everyone in a mass market.
C) gives up segmenting to go after the mass market.
D) All of these.
E) None of these.

Accepted Answer

A wide variety of companies are now looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers. With the mass-customization approach, a firm may still focus on certain market segments within a broad product-market. However, in serving individuals within those target segments it tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Question 7

Which of the following statements about mass customization is True?
A) There has been a widespread shift to mass customization by thousands of companies.
B) The biggest successes in mass customization have all been in consumer markets as opposed to business markets.
C) If a company is to succeed with a mass customization strategy, it must be able to find a low-cost way to produce the products.
D) All of these.
E) None of these.

Accepted Answer

The widespread shift to mass customization has not occurred, mainly because many firms that experimented with it found that production costs were still high even if the Internet offered a low-cost way to get a lot of orders.

Question 8

Service firms are finding ways to reduce the cost of some of their production work with _____,using telecommunications to move service operations to places where there are pools of skilled workers.
A) skill transfer
B) task transfer
C) knowledge transfer
D) turnkey projects
E) mobile environments

Accepted Answer

Service firms are finding ways to reduce the cost of some of their production work with task transfer-using telecommunications to move service operations to places where there are pools of skilled workers.

Question 9

At Dell's Web site,a student can order a laptop computer with the exact memory capability and software that she wants,and have it shipped to her dorm room within 48 hours.This is an example of:
A) Combined target market approach.
B) Task transfer.
C) Mass customization.
D) Diversification strategy.
E) Single target market approach.

Accepted Answer

A wide variety of companies are looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers.

Question 10

Which of the following is a part of the functional account category of a factory?
A) Salaries
B) Supplies
C) Raw materials
D) Advertising
E) Maintenance

Accepted Answer

In the factory, functional accounts show the purpose for which expenditures are made. Factory functional accounts include milling, grinding, maintenance, and so on.

Question 11

At the Comfort Inn Web site,a customer can create an account with his preferences for a smoking or non-smoking room,the type of pillows he likes,early or late check-in and check-out,and his room location.The hotel keeps track of this information and uses it whenever this customer reserves a room in the future.This is an example of:
A) Combined target market approach.
B) Diversification.
C) Task transfer.
D) Mass customization.
E) Single target market approach.

Accepted Answer

A wide variety of companies are looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers.

Question 12

Marketing cost analysis:
A) just uses the same "natural" accounting categories commonly used for financial analysis.
B) allocates costs to products or customers to focus on the purpose for which marketing money is spent.
C) is not very accurate, since it is almost impossible to link marketing costs to specific sales.
D) is done more frequently than analysis of manufacturing costs.
E) None of these is true.

Accepted Answer

Marketing managers often need to assign costs to specific products or customers to be able to understand the profitability of different possible strategies.

Question 13

Which of the following statements about mass customization is true?
A) Anderson's windows, which an architect can order in just about any combination of size, 3 Hardware, and style, is a good example of mass customization for business markets.
B) Mass customization avoids the need for working capital.
C) Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets.
D) The mass-customization approach applies only to services, and they often must be custom produced anyway.
E) Mass customization reduces production costs but it's less likely to meet a customer's needs.

Accepted Answer

Some of the biggest successes in mass customization have been in business markets. For example, Andersen gives builders and architects software that they use to design custom windows by combining different types of glass, different sizes of frames, and a variety of 3 Hardware styles that Andersen already manufactures.

Question 14

A major purpose of marketing cost analysis is to:
A) determine which costs are fixed and which are variable.
B) avoid the pitfalls of the full-cost approach to allocating costs.
C) divide costs into natural accounts.
D) show the marketing manager where costs occur in relation to serving particular customers.
E) avoid the pitfalls of the contribution-margin approach to allocating costs.

Accepted Answer

Marketing managers and accountants can work together to allocate costs to products or customers. In recent years, accountants have devoted more attention to this problem and given it the name "activity-based accounting.

Question 15

Which of the following statements about mass customization is true?
A) Mass customization means that a firm is targeting the mass market but that it tries to customize the design of a product so it is different from what a competitor offers.
B) Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets.
C) The mass-customization approach applies only to services, and they often must be custom produced anyway.
D) ChemStation's industrial detergents, which a business customer can order to fit any special cleaning need, is a good example of mass customization.
E) None of these is true.

Accepted Answer

Some of the biggest successes in mass customization have been in business markets. Sales reps for ChemStation, a firm that produces industrial detergents, work closely with customers to understand their special cleaning needs-a car wash wants something very different from a metal-working plant. Then scientists at ChemStation develop just the right product, with the correct amount of foam, grease cutting, grit, and the like.

Question 16

When an American accounting firm sends some of its tax work to India to take advantage of lower wages,this is called _____.
A) skill transfer
B) task transfer
C) knowledge transfer
D) tax movement
E) source relaying

Accepted Answer

Service firms are finding ways to reduce the cost of some of their production work with task transfer-using telecommunications to move service operations to places where there are pools of skilled workers.

Question 17

Firms that use mass customization
A) may target either business customers or final consumers.
B) may be able to take advantage of the Internet for orders.
C) may be able to give their customers more or better choices.
D) are likely to have higher costs than do firms who produce more standardized products, but may earn better profit margins.
E) All of these

Accepted Answer

A wide variety of companies are now looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers. With the mass-customization approach, a firm may still focus on certain market segments within a broad product-market. However, in serving individuals within those target segments it tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Question 18

In serving individuals within target segments,_____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.
A) mass marketing
B) standardization
C) traditional manufacturing
D) outsourcing
E) mass customization

Accepted Answer

A wide variety of companies are now looking for innovative ways to serve smaller segments of customers by using mass customization-tailoring the principles of mass production to meet the unique needs of individual customers. With the mass-customization approach, a firm may still focus on certain market segments within a broad product-market. However, in serving individuals within those target segments it tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Question 19

Regarding marketing cost analysis:
A) there is only one right way to allocate functional costs.
B) traditional accounting analysis doesn't analyze the purpose of marketing costs.
C) marketing costs usually should be allocated to general overhead.
D) functional accounts and natural accounts usually have the same names.
E) All of these are true.

Accepted Answer

Accounting data that help managers track where costs and profit are coming from is an important aid for strategy decisions. Unfortunately, summary accounting statements that are prepared for tax purposes and for outside investors often aren't helpful for managers who need to make decisions about marketing strategy.

Question 20

ConnectSys is a California-based manufacturer of computer networking equipment for home and small business users.When people call the company's toll-free customer support telephone number,they are connected to a customer service representative in India.ConnectSys uses this arrangement because the wages for customer service representatives are lower in India than in the United States.This is an example of:
A) A virtual corporation.
B) Exporting telecommunications.
C) An indirect distribution channel.
D) A task transfer service.
E) None of these.

Accepted Answer

Service firms are finding ways to reduce the cost of some of their production work with task transfer-using telecommunications to move service operations to places where there are pools of skilled workers.

Quiz 4: Managing Marketings Link With Other Functional Areas

A widespread shift to mass customization has not occurred because firms found that

Starbucks ran a full-page ad in THE WALL STREET JOURNAL proclaiming that its baristas can make more than 87,000 possible combinations of an espresso coffee drink.This is an example of:

Production flexibility should help a supplier support its business customers with:

____ involves tailoring the principles of mass production to meet the unique needs of individual customers.

Overseas production:

With the mass customization approach,a firm

Which of the following statements about mass customization is True?

Service firms are finding ways to reduce the cost of some of their production work with _____,using telecommunications to move service operations to places where there are pools of skilled workers.

At Dell's Web site,a student can order a laptop computer with the exact memory capability and software that she wants,and have it shipped to her dorm room within 48 hours.This is an example of:

Which of the following is a part of the functional account category of a factory?

Marketing cost analysis:

Which of the following statements about mass customization is true?

A major purpose of marketing cost analysis is to:

Which of the following statements about mass customization is true?

When an American accounting firm sends some of its tax work to India to take advantage of lower wages,this is called _____.

Firms that use mass customization

In serving individuals within target segments,_____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Regarding marketing cost analysis: