Book Ch 12: Customer Value

Question 1

What is the definition of customer value?

Answer 1

The way the customer perceives the entire company’s offering

Question 2

What are five dimensions of customer perception?

Answer 2

1. Conformance to requirements
2. Product selections
3. Price and brand
4. Value-added service
5. Relationship and experiences

Question 3

What is the market mediation and physical function of supply chain?

Answer 3

Market mediation: Ability to offer what the customer wants and needs

Physical function: Converting raw material into goods and shipping them through the chain

Question 4

What are three business trends for contribution of product variety to customer value?

Answer 4

1. Specializing in offering one type of product
2. Mega stores that allow one-stop shopping for larger variety of products
3. Mega-stores that specialize in one product area

Question 5

What are three ways to control inventory problem from large variety of configurations?

Answer 5

1. Build to order model (Dell)
2. Larger inventories at major distribution centers
3. Fixed set of options that cover most customer reqiurments

Question 6

What are 3 reasons companies are adding more services around their products?

Answer 6

1. The commoditization of products
2. The need to get closer to the customer
3. The increase in information technology capabilities

Question 7

What are the eight steps to delivering a total customer experience?

Answer 7

1. Create compelling brand personality
2. Deliver a seamless experience across channels
3. Care about customers
4. Measure what matters
5. Hone operational excellence
6. Value customers time
7. Place customer’s information requirements and need at core
8. Design to morph

Question 8

What are three ways to measure customer value?

Answer 8

1. Service level
2. Customer satisfaction
3. Supply chain performance measures

Question 9

What is service level?

Answer 9

The ability to satisfy a customer’s delivery date or demand

Question 10

What is customer satisfaction?

Answer 10

1. Used to provide feedback for necessary improvements

2. Supports in creating customer loyalty