Answer: D
Diff: 2
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
141) Which of these is NOT a characteristic of a company with a high degree of customer-centricity?
A) Hierarchical organization
B) Market driven
C) Outcome oriented
D) Value driven
E) Teamwork
Answer: A
Diff: 2
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
142) What effect could an obsession about protecting market share have on a company's long-term prospects?
A) Consumers would tire of its "me focus."
B) It would invite stronger attacks from competitors intent on stealing customers.
C) It could blind itself to major trends in the market.
D) It would more or less automatically position itself for sustained profitability.
E) It would enjoy increased sales as less-determined competitors eventually give up.
Answer: C
Diff: 3
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
143) One of the requirements for transforming into a true market-driven company is organizing around ________.
A) sales
B) customer segments
C) products
D) functions
E) brands
Answer: B
Diff: 1
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
144) Which of the following is true of building a creative marketing organization?
A) It is enough if firms are customer-oriented.
B) Companies must be alert to trends and be ready to capitalize on them.
C) Firms should focus more on efficiency rather than innovation.
D) Companies should attempt to minimize risks as much as possible.
E) Firms should focus on protecting their existing markets and physical resources.
Answer: B
Diff: 2
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
145) Marketing has sole ownership of customer interaction.
Answer: FALSE
Diff: 1
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
146) Transforming into a true market-driven company involves organizing around products.
Answer: FALSE
Diff: 1
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
147) Identify three significant factors that underscore the importance of building a customer-centric organization in today's business environment.
Answer: Three significant factors that underscore the importance of building a customer-centric organization are the proliferation of products, services, and brands; increased consumer knowledge about market offerings; and consumers' ability to influence public opinion about companies and their offerings.
Diff: 1
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
148) How do managers who believe the customer is the company's only true "profit center" consider the traditional organization chart?
Answer: Such mangers view the traditional pyramid organization charter, with the president at the top, management in the middle, and frontline people and customers at the bottom, to be obsolete. Instead, many favor a circular visualization in which customers are the highest priority.
Diff: 3
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
149) How has the rise of digital technologies shaped customer expectations regarding a company's responsiveness?
Answer: With the rise of digital technologies, increasingly informed consumers expect companies to do more than connect with, satisfy, and even delight them. They expect companies to listen and respond to them.
Diff: 2
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
150) Many companies are beginning to realize that they are not really market and customer driven but rather are product and sales driven. In the attempt to transform themselves into true market-driven companies, many firms must change. Describe and explain what changes are necessary.
Answer: To be truly market-driven, companies need to develop a company-wide passion for customers, organize around customer segments instead of around products, and develop a deep understanding of customers through qualitative and quantitative research. Additionally, the organization must be creative; the firm must build capability in strategic innovation and imagination. This capability comes from assembling tools, processes, skills, and measures that let the firm generate more and better new ideas than its competitors.