18 Questions
What became apparent in the 1970s that was vital to long-term success?
Supplier quality
What is the definition of Total Cost of Ownership?
The sum of all costs associated with acquiring, using, and retiring a good or service
Which approach focuses on quantifying the total cost of ownership?
Process approach
Who is considered the primary customer in a business process?
The individual or group directly receiving the output of the process
What role do secondary customers play in a business process?
They receive process output but are not the reason for the process's existence
What was a key reason for the success of imports in the earlier years?
Superior quality
What is the primary objective of identifying and meeting internal customer’s requirements?
To ensure customer satisfaction
How does a satisfied customer differ from a loyal customer based on their purchasing behavior?
Loyal customers buy primarily from the company
According to Phil Crosby, what does quality cost?
The absence of quality increases total costs
How does customer segmentation benefit marketing efforts?
It divides the customer base into similar groups for targeted marketing
What is the relationship between profits and defection rate according to the text?
Profits increase as defection rate decreases
What distinguishes a dissatisfied customer from a loyal customer?
Loyal customers exclusively buy from the company
Which type of customer is affected if the process output is incorrect or late, even though they do not receive the output directly?
Indirect Customer
In the context of a wholesale grocery distributor, who would be considered an external customer?
Computer manufacturers
What term is used to describe the final users of a product or service?
Consumer/End user
Which customer type receives the end product or service but might not be the actual user of it?
External Customer
When a product is delivered to a distributor, representative, or retailer who sells it to the end consumer, which customer type is involved in this process?
Consumer/End user
In a scenario where a packed order is late in arriving at the shipping dock, which customer type would be affected by this delay?
Wholesale grocery distributor's delivery function
Learn about indirect customers, who are within organizational boundaries but do not receive process output directly. Explore how they are affected by incorrect or late process outputs, and how the output passes through other steps before reaching them.
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