MBA6140 Q1 (MoreStuff)
N1: A Note on Value Disciplines
N2: Value Props
N3: Story of Joe
A1: Putting the Service-Profit Chain to Work
C1: RC Willey R
1.
T0: According to the Introduction to the Marketer's Toolkit, what is true of the production orientation?Pxii i.
It is a product-push orientation [People buy products were inexpensive and readily available, so there was no need to think about their needs and wants] ii.
It is exemplified by Henry Ford's Model T strategy and George Eastman's Kodak camera strategy iii.
Both of the Above iv.
None of the above
Production Orientation
Product
Dev.
Marketing
Finance
Production
HR
Customers
Market Orientation
Product
Dev.
Production Marketing
Finance
Customers
HR
2.
T1: According to the Marketer's Toolkit, what is strategy?P4,3 i.
It is a planning process focuses predominantly on capital budgeting. ii.
It is a planning process that focuses directly on increasing shareholder wealth. iii.
It is a plan that aims to give an enterprise a competitive advantage over rivals. [Plan for controlling and utilizing resources to promote and secure interests.] iv.
None of the above
3.
T1: According to the Marketer's Toolkit, a marketing strategy for a product should address P7 i.
the product's competitive advantage ii.
the needs it fulfills better than competing products iii.
the target market iv.
positioning [How the product is positioned to appeal to the market.] v.
All of the above [Also include branding]
4.
T2: According to the Marketer's Toolkit, what should a marketing plan do?P20-21 i.
It should lay out how the marketing strategy is to be implemented. ii.
It should state how new products, if any, will be launched and how older products will be supported. iii.
It should specify the timing of promotional activities. iv.
It should address pricing and distribution. v.
All of the above vi.
None of the above
5.
T5: In The Marketer's Toolkit, dynamic markets are characterized by P67 i.
several different kinds of products or services that serve similar needs or perform similar functions

ii.
a set of competitors whose products and marketing strategies are nearly identical iii.
high barriers to entry iv.
market concentration v.
All of the above
[Numerous products and services addressing a similar need, a diversity of competitors, few insurmountable barriers to entry, market fragmentation]
6.
T5: According to The Marketer's Toolkit, a competitor is P69 i.
any business that aims to serve the same customer needs as your enterprise ii.
any company that offers a substitute for your product is a competitor. iii.
All of the above iv.
None of the above
[Other players offering products similar to yours, companies that make substitutes for your products, the ease with which customers comparison-shop and switch suppliers, your own suppliers ability to raise their prices or reduce the quantity of their offerings.]
7.
N1: According to "Customer Intimacy and Other Value Disciplines," GE's Direct Connect system altered the customary relationship between manufacturers and appliance retailers by P1-2 i.
encouraging dealers (e.g., via financial incentives) to load up heavily on GE inventory so that they would be committed to GE and would have little room for competing brands ii.
allowing dealers to minimize physical inventory iii.
routing GE appliances manufactured in Asia directly to dealers without first taking physical possession iv.
adding more wholesalers into the value chain
8.
N1: Advantages of GE's Direct Connect system include P2 i.
significant savings in distribution and marketing costs ii.
product movement information that more accurately reflects actual sales to customers iii.
All of the above iv.
None of the above
9.
N1: In "Customer Intimacy and Other Value Disciplines," responding quickly to almost any need, from customizing a product to fulfilling a special request, is identified with P2 i.
customer intimacy ii.
product leadership iii.
operational excellence iv.
value engineering
10.
N1: In "Customer Intimacy and Other Value Disciplines," companies that endeavor to be industry leaders in pricing and convenience are said to pursue P1 i.
customer intimacy ii.
product leadership iii.
operational excellence iv.
value engineering
11.
N1: In "Customer Intimacy and Other Value Disciplines," executives are advised to P3

i.
reject initiatives that are inconsistent with the company's value discipline ii.
switch value disciplines opportunistically, usually two or three times within a five-year period iii.
try different value disciplines, the way that Sears did, with the intent of finding one that works iv.
try to master all three value disciplines simultaneously
12.
N2: What does "Customer Value Propositions in Business Markets" have to say?P1 i.
Most value propositions make claims of savings and benefits to the customer without backing them up. ii.
Some managers shortsightedly view the customer value proposition as a form of spin their marketing departments develop for advertising and promotional copy. iii.
Properly constructed value proposition force companies to rigorously focus on what their offerings are really worth to their customers. iv.
All of the above
13.
N2: According to "Customer Value Propositions in Business Markets," what is true of "all benefits" value propositions?P1 i.
They consist of listings of all the benefits executives believe that their offering might deliver to target customers; the more, the better. ii.
They are most difficult to construct because executives must think deeply about all the benefits customers might derive. iii.
All of the above iv.
None of the above
[They consist of listings of all the benefits executives believe that their offering might deliver to target customers. They are not difficult to construct. You should also make sure your benefits are not the same as some other companies because it wouldn’t distinguish you well.]
14.
N2: According to "Customer Value Propositions in Business Markets," which type of value proposition is preferred? (Best answer) P2 i.
One that tells customers why we want customers to buy from us. ii.
One that says why we think customers should buy from us. iii.
One that tells customers in terms of benefits they value why our offering is better than competing offerings. iv.
One that dares customers to try a competing product.
15.
N2: According to "Customer Value Propositions in Business Markets," which type of value proposition should be the "gold standard"?P2 i.
all benefits ii.
focused benefits iii.
favorable points of difference iv.
resonating focus
16.
N2: According to "Customer Value Propositions in Business Markets," what has become almost a generic supplier value proposition?P3 i.
Buy American!

ii.
You can't afford not to buy the best. iii.
We can save you money. iv.
None of the above.
17.
N2: According to "Customer Value Propositions in Business Markets," a leading supplier of specialty resins developed a new type of high-performance resin that would enable its customers to comply with stricter environmental standards. The price was higher, but performance did not suffer. What did this supplier discover about the initial value proposition, which emphasized compliance with forthcoming environmental regulations? i.
Customers found the value proposition unconvincing and said they would not move to the new higher-priced resin until regulation mandated it. ii.
Emphasizing faster drying time surely would have been more effective than emphasizing regulations not yet in force. iii.
Both of the above iv.
None of the above; customers responded enthusiastically to the value proposition that emphasized compliance with future regulations and did not mind having to pay a higher price for the product.
18.
N3: Regarding "The Story of Joe," what is true of Joe? i.
Joe responded very effectively to the incentives he was given. ii.
The incentives Joe was given sacrificed the long term for short term gains. iii.
All of the above. iv.
None of the above
19.
A1: According to "Putting the Service-Profit Chain to Work," the Service-Profit Chain model assert that a relationship exists between P1, 3 i.
profitability and customer loyalty ii.
profitability and employee satisfaction iii.
employee satisfaction and employee productivity iv.
All of the above v.
None of the above
[profitability, customer loyalty, and employee satisfaction, loyalty, and productivity.]
20.
A1: According to "Putting the Service-Profit Chain to Work," which, if any, of the following measures of losses that stem from employee turnover is NOT a traditional measure?P4 i.
cost of recruiting and hiring ii.
lost productivity iii.
cost of training iv.
All of the above are traditional measures
21.
A1: According to "Putting the Service-Profit Chain to Work," employees seem to experience the most difficulty in identifying their customers when those customers are P(2)5-6 i.
members of a minority race or ethic group ii.
first-time buyers iii.
internal iv.
short

22.
A1: Herb Kelleher, the former CEO of Southwest Airlines, maintains that executives should focus sharply on measurable success factors and not be distracted by factors that aren't measurable. P2 i.
True ii.
False
[He believes that "anyone who looks at things solely in terms of factors that can easily be quantified is missing the heart of husiness, which is people."]
23.
A1: What has Taco Bell discovered? i.
As a determinant of restaurant profitability, the manager's job satisfaction is slightly more important than the job satisfaction of other restaurant employees. ii.
Outlets with the lowest employee turnover rates enjoyed double the sales and much higher profits than the 20% with the highest employee turnover. iii.
The fast food industry appears to be one of the few industries in which employee satisfaction is not highly correlated with customer satisfaction. iv.
In the fast food industry, the cost of maintaining employee satisfaction is so high that employee satisfaction and profitability are correlated inversely. v.
All of the above
[Taco Bell has discovered that the 20% of the stores with the lowest turnover rates enjoy double the sales and
55% higher profits than the 20% of stores with the highest employee turnover rates.]
24.
C1: What is true of R.C. Willey?P2 i.
The company's founder initially focused on selling ice cream makers door to door. ii.
The company's founder was reluctant to open a store. iii.
The first R.C. Willy store was considered enormous at the time. iv.
All of the above.
25.
C1: What is true of R.C. Willey?P2, 12 i.
Warren Buffett insisted on opening a store in Boise. ii.
Granite Furniture opened its first store long before R.C. Willey began selling furniture. iii.
The case suggests that R.C. Willey's credit operations have contributed little to the company's success. iv.
All of the above.