Chapter 4: True/False Flashcards Preview

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Flashcards in Chapter 4: True/False Deck (14):
1

Competitive advantage denotes a firm's ability to achieve market and financial superiority over its competitors.

True

2

Over time, order qualifiers eventually become order winners

False

3

Experience attributes are those that a customer can determine prior to purchasing the goods and/or services

False

4

Credence attributes are any aspects of a good or service that the customer must believe in, but cannot personally evaluate even after purchase and consumption

True

5

Customers seek and rely more on information from personal sources than from non-personal sources when evaluating services prior to purchase

True

6

Customers perceive lower risks when buying services than when buying goods

False

7

Improvements in quality lead to lower costs

True

8

A strategy of quality improvement usually leads to increased market share, but at a cost in terms of reduced short-run profitability

True

9

Businesses offering premium quality goods usually have large market shares and were early entrants into their markets

True

10

Time reductions in processes reduce costs, but increase the opportunity for mistakes and errors

False

11

Flexibility allows companies to sell profitably at lower volumes

True

12

Mass customization is being able to make whatever goods and services the customer wants as long as the volume demanded is sizeable

False

13

Which markets to pursue and how best to compete in those markets are part of a large organization's corporate strategy

False

14

Operations design choices are the decisions management must make as to what product and service features should be offered in combination

False