60 Questions
According to the text, what is one way to define 'competitive advantage'?
Companies that deliver more customer value than their competitors
According to the text, which of the following is NOT a constituent element of the customer value ratio?
Convenience
According to the text, what is the role of customer service in the transfer of goods and services between buyer and seller?
To provide time and place utility
According to the text, what is the impact of out-of-stock cost penalty on manufacturers and retailers?
They incur additional costs
Which quadrant in the matrix represents products that are frequently demanded and more profitable?
Quadrant 2
According to the 80/20 rule, what percentage of customers buying 20% of the products contributes to 80% of the total profit?
60%
What is the elapsed time from customer order to delivery called?
Order cycle time
What is the error rate on invoices, delivery notes, and other customer communications called?
Documentation quality
According to the text, what is the formula to calculate the actual perfect order achievement?
$90% × 80% × 70% = 50.4%
According to the text, what is the appropriate level and mix of service based on?
Customer type
According to the text, what does the steeply rising curve depict?
The relationship between the level of service and the cost
According to the text, what is the service level achieved by setting the stock level two standard deviations greater than the mean?
Approximately 98%
Which of the following is a key factor in creating a market-driven supply chain?
Designing from the 'customer backwards'
What is the concept of 'power by the hour' in the context of Rolls-Royce's business model?
The guarantee of performance for customers
What is the lifetime value of a customer calculated as?
Average transaction value × Yearly frequency of purchase × Customer 'life expectancy'
What is the main focus of most organizations' marketing efforts?
Increasing market share
Which of the following factors has contributed to the growing importance of customer service as a competitive weapon?
Both the increase in customer expectations and the transition towards 'commodity' type markets
What is customer value defined as?
The perceived benefits that flow from a purchase or a relationship
Which costs are included in the 'total cost of ownership'?
Both all costs that will arise as a result of the purchase decisions and inventory carrying costs, maintenance costs, running costs, disposal costs, etc.
What does Figure 2.1 illustrate about the total costs of ownership?
The immediate purchase price is the only aspect of cost that is visible
Which of the following is the first step in identifying the key components of customer service?
Identify the key sources of influence upon the purchase decision
What is one way to determine the importance a customer attaches to each element of customer service?
Using a form of rating scale to assign weights to each component
What is the purpose of supply chain management and logistics?
To provide customers with the level and quality of service they require
What is the measure of service defined as in the context of supply chain management and logistics?
The percentage of occasions on which the customer's requirements are met in full
Which of the following is a key area of concern in the text?
Claims procedure
What does 'order completeness' refer to?
The proportion of orders that are delivered complete
What does 'technical support' refer to?
The support provided to customers after the sale
What does 'order status information' refer to?
The ability to inform customers about the status of their order
What is the trend in claims according to the text?
Not mentioned
How quickly do we deal with complaints and claims according to the text?
Not mentioned
True or false: Logistics management can impact both the numerator and the denominator of the customer value ratio.
True
True or false: Caterpillar has developed a world-class reputation for customer support, including 48-hour availability of parts.
True
True or false: The role of customer service is to provide 'time and place utility' in the transfer of goods and services between buyer and seller.
True
True or false: A high priority must be placed on delivering superior customer service to become a preferred supplier in any industry.
True
True or false: Marketing is the management of the 'Four Ps' - product, price, promotion, and place?
True
True or false: Customer value is the difference between the perceived benefits and the total costs incurred?
True
True or false: The growing importance of customer service is primarily driven by the transition towards 'commodity' type markets?
True
True or false: The 'iceberg' effect of total costs of ownership suggests that the immediate purchase price is the only aspect of cost that is visible?
False
True or false: The core product is the basic product as it leaves the factory?
True
True or false: Customer service and logistics are the only activities that add value to a product?
False
True or false: The concept of 'servitisation' focuses on converting a service into a product?
False
True or false: Rolls-Royce's 'power by the hour' arrangement guarantees the performance of their engines?
True
True or false: The actual perfect order achievement can be calculated by multiplying the percentages of on-time, full, and error-free performance.
True
True or false: The appropriate level and mix of customer service will vary by customer type.
True
True or false: The probability of a given value occurring can be easily calculated if the mean and standard deviation are known.
True
True or false: Safety stock is required only when demand exceeds the average.
True
True or false: Measures of productivity always reflect the things the customer values.
False
True or false: The first step in identifying the key components of customer service is to understand the service needs of customers through detailed research.
True
True or false: Cluster analysis is a computer-based method used to match respondents across as many dimensions as possible.
True
True or false: The measure of service in supply chain management and logistics is defined as the percentage of occasions on which the customer's requirements are met in full.
True
Claims procedure is the main cause of service failures.
True
The trend in claims is increasing.
False
Complaints and claims are dealt with quickly.
True
Service recovery procedures are in place.
True
Order completeness refers to delivering complete orders with no back orders or part shipments.
True
Technical support is provided to customers after the sale.
True
True or false: Quadrant 1 in the matrix represents products that have high volume and low profit contribution.
True
True or false: Quadrant 2 in the matrix represents products that are frequently demanded and less profitable.
False
True or false: Quadrant 3 in the matrix represents products that should be regularly appraised for deletion from the range.
True
True or false: Quadrant 4 in the matrix represents products that are highly profitable and sell at a relatively slow rate.
True
Quiz: Understanding Matrix Analysis for Cost Reduction in Product Management Test your knowledge on matrix analysis for cost reduction in product management with this quiz. Learn how to identify high-volume products with low profit contribution and prioritize cost reduction strategies to optimize product and logistics costs.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
