D) Serve as the intermediary between customers and top management
E) Respond to customer service demands from the board of directors
Answer: A
Diff: 3
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
135) Which of these is a key reason why differentiation is difficult to maintain in today's markets?
A) In most product categories, see little functional differences.
B) Most advanced economies are "brand saturated," leaving consumers overwhelmed with choices.
C) Companies can copy one another's advantages and strategies with increasing speed.
D) Recent changes in trademark and patents laws make it virtually impossible to protect product innovations.
E) With cost containment a priority, most firms focus on copycat design.
Answer: C
Diff: 2
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
136) Which of these is the best response the challenge of achieving meaningful differentiation in today's markets?
A) Focus on low prices above every other component in the market mix
B) Focus on great customer service regardless of the cost
C) Outsource customer service to maintain focus on product innovation
D) Build capability in strategic innovation and imagination
E) Copy the practices of so-called benchmark firms in any given industry
Answer: D
Diff: 3
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
137) Which of these did Amazon's Jeff Bezos identify as a key advantage of the company's customer-driven focus?
A) The ability to shed unprofitable customers quickly
B) The ability to react to competitors quickly
C) The ability to be proactive, such as increasing customer value before being forced to by competitive pressures
D) The freedom to ignore competitive tactics
E) The ability to shift investment away from areas where the company is already a leader
Answer: C
Diff: 3
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
138) Why were coffeehouse chains such as Starbucks able to take market share away from Nestlé?
A) Nestlé was late in seeing the consumer-preference trend toward coffeehouses.
B) Nestlé had so much invested in retail-store sales that it couldn't afford to shift strategically.
C) Nestlé was locked into exclusive distribution agreements that prohibited expansion into coffeehouses.
D) Starbucks operated in stealth mode until it was already an industry powerhouse.
E) Nestlé figured premium coffee was a fad that wouldn't last.
Answer: A
Diff: 2
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Reflective thinking
139) Why would an aircraft manufacturer such as Boeing care about trends in consumer spending patterns, given that it doesn't sell to consumers?
A) Monitoring consumer spending tells the company how well it is doing in financial markets.
B) Travelers could switch to Airbus planes if Boeing doesn't stay on top of consumer trends.
C) Consumer preferences have a lot to do with the interior design of aircraft.
D) Ignoring consumer demands leave the company vulnerable to class-action lawsuits.
E) Monitoring how consumers are spending their leisure time can help the company predict travel patterns and thus future demand for aircraft.
Answer: E
Diff: 3
LO: 1.5: Explain how to build a customer-centric organization.
AACSB: Analytical thinking
140) Which of these is NOT a characteristic of a company with a low degree of customer-centricity?
A) Mass market focused
B) Product driven
C) Process oriented
D) Market driven
E) Price driven
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.