Question 1

A high quality, well-designed product will always be successful in the market.

Accepted Answer

While a high quality, well-designed product is important, its success in the market also depends on other factors such as pricing, marketing, competition, and external factors such as economic conditions and trends.

Question 2

Successful innovation gives an organization something unique about its products that can strengthen its competitive advantage.

Accepted Answer

Successful innovation leads to the development of unique and novel products that can distinguish an organization from its competitors and enhance its competitive advantage. Therefore, the statement is true.

Question 3

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

Accepted Answer

Total quality management philosophy defines quality as meeting or exceeding customer expectations and involves the participation of all employees, not just managers in quality control or engineering.

Question 4

Soliciting information and suggestions about improvements from employees is one of the steps in implementing a successful TQM program.

Accepted Answer

Soliciting information and suggestions from employees is a crucial step in the Total Quality Management (TQM) approach as it helps to identify areas that require improvement, enhances employee involvement, and fosters a culture of continuous improvement.

Question 5

Innovation refers to producing goods and services that have attributes-such as design, styling, performance, and reliability-that customers perceive as being superior to those found in competing products.

Accepted Answer

Quality means producing goods and services that have attributes-such as design, styling, performance, and reliability-that customers perceive as being superior to those found in competing products.Innovation adds value to products and allows the organization to further differentiate itself from rivals and attract customers who are often willing to pay a premium price for unique products.

Question 6

Market function is the engineering and scientific research activities involved in innovating new or improved products that add value to a product.

Accepted Answer

Market function is focused on identifying customer needs, determining pricing strategies, and promoting and distributing products, while research and development is typically responsible for engineering and scientific innovation of new or improved products.

Question 7

A value chain is a chain of functional activities that transforms inputs into finished goods or services customers value.

Accepted Answer

A value chain is a series of activities that businesses perform to create and deliver a valuable product or service to their customers. These activities include everything from sourcing materials and manufacturing products to marketing and selling them. The goal is to optimize every step of the process to create the most value for the customer while minimizing costs and maximizing profits for the business.

Question 8

Good value chain management requires that marketing managers focus on defining their company's business in terms of the customer needs it is satisfying and not by the type of products it makes.

Accepted Answer

Good value chain management focuses on delivering customer value, therefore marketing managers should define their company's business in terms of the customer needs it satisfies instead of simply by the type of products it offers. This ensures that the company's products or services are designed and delivered according to the needs and preferences of the target customers, leading to customer satisfaction and loyalty, and ultimately, business success.

Question 9

High quality products are characterized by low prices.

Accepted Answer

High quality products usually require more expensive materials and production methods, which typically results in higher prices. However, that does not mean that every expensive product is high quality or that every low-priced product is low quality. It is important to consider other factors, such as brand reputation, customer reviews, and product features when determining the quality of a product.

Question 10

A newsletter publisher in a small town accepts subscription requests and handles queries only through the town's mail services. The publishing unit keeps track of its customers by entering or modifying customer information in a book. This publisher is using a customer relationship management technique.

Accepted Answer

The publisher is not using a customer relationship management technique as they are manually keeping track of customers in a book and only accepting subscription requests and handling queries through mail services. A proper customer relationship management technique would involve the use of technology and automation to manage customer interactions and data.

Question 11

Total quality management is a technique that focuses on improving the quality of an organization's products and services.

Accepted Answer

Total quality management (TQM) is a management approach that seeks to optimize the quality of products and services offered by an organization by involving all employees in continuous improvement efforts.

Question 12

The fewer the inputs required to produce a given output, the lower is the efficiency and the higher the cost of outputs.

Accepted Answer

The statement is actually the opposite of the truth. The fewer inputs required to produce a given output, the higher is the efficiency and the lower the cost of outputs.

Question 13

A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry.

Accepted Answer

Customizing every product to the unique demands of individual customers requires significant time, resources, and labor costs. Mass production, where standard products are made in large quantities, is usually more cost-effective.

Question 14

Total quality management requires the cooperation of managers of certain functions of an organization.

Accepted Answer

TQM requires the cooperation of managers in every function of an organization and across functions.

Question 15

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers less desired product attributes for the same price.

Accepted Answer

Managers try to develop functional strategies that allow the organization's value chain to deliver to customers more desired product attributes for the same price. Providing less desired attributes would not add value for customers and would not be a successful strategy.

Question 16

Quality is a concept that can be applied to manufacturing but not to service organizations.

Accepted Answer

Quality is a concept that can be applied to both manufacturing and service organizations. In fact, quality is important in all aspects of any organization, including the product or service, customer service, and overall customer satisfaction.

Question 17

Customer relationship management is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Accepted Answer

Customer relationship management (CRM) is a strategy that uses technology and data analysis to foster strong relationships between a company and its customers. The goal of CRM is to improve customer retention and loyalty, increase sales and revenue, and gain a better understanding of customers' needs and preferences. By deploying CRM software and databases, businesses can track and analyze customer interactions and leverage this information to offer personalized experiences and targeted marketing campaigns.

Question 18

The materials management function controls the movement of physical materials from the procurement of inputs through production and to distribution and delivery to the customer.

Accepted Answer

The statement is correct. The materials management function is responsible for managing the movement of physical materials across the supply chain from procurement to distribution to ensure that materials are available at the right time, in the right quantity, and at the right cost.

Question 19

Each functional activity along the value chain adds value to a product when it raises costs and decreases the price a company can charge for it.

Accepted Answer

Each functional activity along the value chain adds value to a product when it lowers costs or increases the price a company can charge for it.

Question 20

Higher product quality can increase efficiency and thereby lower operating costs.

Accepted Answer

Higher product quality often leads to fewer product defects or mistakes, which in turn can reduce the need for rework, repairs, or replacements. This can increase efficiency and lower operating costs by reducing waste, improving productivity, and enhancing customer satisfaction.

Quiz 9: Value Chain Management: Functional Strategies for Competitive Advantage