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Production and Operations Management Questions and Answers | Production and Operations Management Multiple Choice Questions and Answers

(1) The 20-80 rule states __________________
[A] The top 80 percent of customers generate 20 percent of the company's profits
[B] The bottom 80 percent of customers generate 80 percent of the company's profits while the bottom 20 percent of customers generate 20 percent of the profits
[C] The top 20 percent of customers generate 80 percent of the company's profits
[D] The bottom 20 percent of customers generate 80 percent of the company's profits
Answer: The top 20 percent of customers generate 80 percent of the company's profits
(2) One problem that can deter a firm from effectively using CRM is __________________
[A] Having the resources to manage and train employees effectively
[B] Not all customers want a relationship with the company
[C] The expense of building and maintaining a customer database
[D] All of the above
Answer: All of the above
(3) Which of the following is true about ISO 14000 certification?
[A] It is a prerequisite for ISO 9000 certification
[B] It indicates a higher level of adherence to standards than ISO 9000
[C] It is only sought by companies exporting their goods
[D] It deals with environmental management
Answer: It deals with environmental management
(4) __________________ is when a company works continuously with its large customers to help improve their'performance.
[A] Basic marketing
[B] Reactive marketing
[C] Proactive marketing
[D] Partnership marketing
Answer: Partnership marketing
(5) __________________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
[A] Customer cost
[B] Value delivery system
[C] Value proposition
[D] Customer perceived value
Answer: Customer perceived value
(6) Total Quality Management emphasizes
[A] The responsibility of the Quality Control staff to identify and solve all quality-related problems
[B] A commitment to quality that goes beyond internal company issues to suppliers and customers
[C] A system where strong managers are the only decision makers
[D] A process where mostly statisticians get involved
Answer: A commitment to quality that goes beyond internal company issues to suppliers and customers
(7) Frequency programs (FP's) are designed to provide rewards to __________________
[A] Customers who need to be encouraged to buy more frequently
[B] Customers who buy frequently and in substantial amounts
[C] Customers who buy frequently but in small amounts
[D] Customers who buy infrequently in large amounts
Answer: Customers who buy frequently and in substantial amounts
(8) All of the following costs are likely to decrease as a result of better quality except
[A] Customer dissatisfaction costs
[B] Inspection costs
[C] Warranty and service costs
[D] Maintenance costs
Answer: Maintenance costs
(9) __________________ is a company's ability to perform in one or more ways that competitors cannot or will not match.
[A] Customer advantage
[B] Customer relationship advantage
[C] Customer lifetime value
[D] Competitive advantage
Answer: Competitive advantage
(10) "Quality is defined by the customer" is
[A] An unrealistic definition of quality
[B] A user-based definition of quality
[C] A manufacturing-based definition of quality
[D] A product-based definition of quality
Answer: A user-based definition of quality