Q&A Hero

Q: Which of the following is NOT an assumption of the economic order quantity model shown below? Q* = A) Demand is known, constant, and independent. B) Lead time is known and constant. C) Quantity discounts are not possible. D) Production and use can occur simultaneously. E) The only variable costs are setup cost and holding (or carrying) cost.

Q: Mandy is shopping for a new car. She is visiting a privately owned lot in her hometown and describes to Jane, the salesperson, that she wants a four-door sedan with high fuel economy and a leather interior. Jane then shows her three cars that she thinks may fit Mandys preferences. What stage of the decision making process is Mandy in and what should Jane understand about Mandys search to complete the sale?

Q: The two most basic inventory questions answered by the typical inventory model are: A) timing of orders and cost of orders. B) order quantity and cost of orders. C) timing of orders and order quantity. D) order quantity and service level. E) ordering cost and carrying cost.

Q: Which consumer option for dealing with product or service dissatisfaction is the only one that is desirable to a business? a. complaint on social media b. warn friends about product c. take no action d. privately seek redress from business

Q: In the quantity discount model, the cost of acquiring goods (product cost) is not a factor in determining lot size.

Q: How can technology improve customer relationships?

Q: In the quantity discount model, it is possible to have a cost-minimizing solution where annual ordering costs do not equal annual carrying costs.

Q: When Sarah decided to make an offer on a house, this action illustrated she is in the _____ stage of the consumer decision making process. a. information search and evaluation b. need recognition c. post-purchase evaluation d. purchase decision

Q: Identify and explain the importance of five indicators of extraordinary customer service.

Q: The reorder point is the inventory level at which action is taken to replenish the stocked item.

Q: In the production order quantity (POQ) model, inventory does not arrive in a single moment but flows in at a steady rate, resulting in a larger production/order quantity than in an otherwise identical EOQ problem.

Q: A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs. The winery is utilizing which sociological influence? a. culture b. opinion leaders c. reference groups d. social class

Q: Briefly describe each stage of the customer decision making process.

Q: In the simple EOQ model, if the carrying cost were to double, the EOQ would also double.

Q: At the economic order quantity, holding costs are equal to product costs.

Q: Mary, an independent sales representative, is hindered in her ability to be in contact with clients because of dropped calls on her cell phone. Her decision to purchase a cellular booster for her phone reflects Mary has just proceeded through the _____ stage of consumer decision making. a. purchase evaluation b. evaluative categorization c. need recognition d. cognitive dissonance

Q: Alyan is a country rock band that has a new CD and is gaining a fan base. The band wants to connect with their fans, increase CD sales and have more shows. What are tools they could use to drive more people to their website?

Q: In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately.

Q: The EOQ model is best suited for items whose demand is dependent on other products.

Q: The dress looked so cute in the store window, but after she brought it home, Victoria began having second thoughts about her purchase. Victoria is experiencing: a. post-purchase dissonance. b. post-purchase satisfaction. c. cognitive dissonance. d. post-decisional distress.

Q: If setup costs are reduced by substantial reductions in setup time, the production order quantity is also reduced.

Q: Compare CRM marketing efforts between current customers and new customers.

Q: Identify the typical cost components that constitute ordering costs in inventory systems.

Q: CRM software programs a. are designed to help companies gather all customer contact information into multiple data management programs. b. are often implemented into sales departments first since this area of a company typically generates the greatest amount of customer contact. c. will require limited support resources for the proper implementation into the company. d. has a finite set of user-friendly tools to assist implementation resulting in more small businesses adopting the programs.

Q: Identify five outcomes of customer satisfaction.

Q: Bob never purchases bottled water when he is thirsty even if it is available. This behavior indicates that bottled water a. does not meet Bobs evaluative criteria. b. increases Bobs cognitive dissonance. c. is not included in Bobs evoked set. d. decreases Bobs perceptual categorization.

Q: Identify the typical components that constitute inventory holding or carrying costs.

Q: The total profit expected from all future sales to a customer

Q: Several inventory models assume "independent demand." Explain what that term means and why the assumption is important.

Q: ​The individual processes that give meaning to the stimuli confronting consumers are a. a motivation. b. a perception. c. an attitude. d. a cognition.

Q: Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones? A) housing costs B) material handling costs C) labor cost D) investment costs E) pilferage, scrap, and obsolescence

Q: The starting point for all behavior

Q: Which of the following is an element of inventory holding costs? A) housing costs B) material handling costs C) investment costs D) pilferage, scrap, and obsolescence E) All of the above are elements of inventory holding costs.

Q: Attending a prayer breakfast is most likely an attempt to satisfy which category of need? a. physiological b. psychological c. spiritual d. social

Q: Insurance and taxes on inventory are part of the costs known as setup or ordering costs.

Q: The demand for automobiles would be considered as independent demand.

Q: An enduring opinion based on a combination of knowledge, feelings, and behavioral tendencies

Q: Perform an ABC analysis on the following set of products. Item Annual Demand Unit Cost A211 1200 $9 B390 100 $90 C003 4500 $6 D100 400 $150 E707 35 $2000 F660 250 $120 G473 1000 $90 H921 100 $75

Q: Julies preference for the a certain style of barbeque developed in her state is the result of which sociological influence? a. culture b. opinion leaders c. reference groups d. social class

Q: Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain. SKU Annual Demand Unit Cost R11 250 $250 S22 75 $90 T33 20 $60 U44 150 $150 V55 100 $75

Q: A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on specific customer groups

Q: Linda is considering several colleges at which to finish her culinary degree. She is in the _____ stage of the consumer decision making process. a. information search and evaluation b. need recognition c. post-purchase evaluation d. purchase decision

Q: The process of grouping things that are perceived as being similar

Q: Identify three techniques to control service inventories.

Q: Diane is a loyal, long term customer at Burkes Furniture Store. It would be expected that she would a. be willing to pay more for Burkes Furnitures products. b. have higher order-processing costs since she purchases so much. c. potentially spend less as she purchases more products over time. d. All of the above.

Q: Define shrinkage. Identify three or more examples of shrinkage.

Q: An approach that recognizes that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future

Q: What is cycle counting?

Q: Jeff has concluded that his company selling professional football merchandise needs to increase its line of shirts. He is in the ____ stage of the consumer decision making process. a. information search and evaluation b. need recognition c. post-purchase evaluation d. purchase decision

Q: Describe ABC inventory analysis in one sentence. Identify three policies that may be based upon the results of an ABC analysis.

Q: Divisions within a society having different levels of social prestige

Q: ________ is a continuing reconciliation of inventory with inventory records.

Q: Erin often shops at a retail store where her friends shop because of her desire to be affiliated with the group. The friends are exerting ______ power over Erin. a. expert b. group c. referent d. expert

Q: ________ is a method for dividing on-hand inventory into three classifications based on annual dollar volume.

Q: A group member who plays a key communication role

Q: Among the advantages of cycle counting is that it: A) makes the annual physical inventory more acceptable to management. B) does not require the detailed records necessary when annual physical inventory is used. C) does not require highly trained people. D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory. E) does not need to be performed for less expensive items.

Q: Billy admires firemen. He wants to dress like them, wear a firemans hat, and pretend to put out fires. For Billy, firemen are: a. a referral group. b. a reference group. c. a perceptual group. d. an associate group.

Q: Behavioral patterns and values that characterize a group of consumers in a target market

Q: Which of the following statements regarding control of service inventories is TRUE? A) Service inventory is a fictional concept, because services are intangible. B) Service inventory needs no safety stock, because there's no such thing as a service stockout. C) Effective control of all goods leaving the facility is one applicable technique. D) Service inventory has carrying costs but no setup costs. E) Good personnel selection, training, and discipline are easy.

Q: Attitudes have an indirect impact on consumer behavior. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

Q: Cycle counting: A) is a process by which inventory records are verified once a year. B) eliminates annual inventory adjustments. C) provides a measure of inventory turnover. D) assumes that all inventory records must be verified with the same frequency. E) assumes that the most frequently used items must be counted more frequently.

Q: Goal-oriented forces that organize and give direction to the tension caused by unsatisfied needs

Q: ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? A) item quality B) unit price C) the number of units on hand D) annual demand E) annual dollar volume

Q: A consumer's recognition of a problem can be characterized as routine if the problem evolves over time. a. True b. False

Q: ABC analysis is based upon the principle that: A) all items in inventory must be monitored very closely. B) there are usually a few critical items, and many items that are less critical. C) an item is critical if its usage is high. D) more time should be spent on class "C" items because there are many more of them. E) as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items.

Q: A small group that an individual allows to influence his or her behavior

Q: All EXCEPT which of the following statements about ABC analysis are true? A) In ABC analysis, inventory may be categorized by measures other than dollar volume. B) ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume. C) ABC analysis is an application of the Pareto principle. D) ABC analysis suggests that all items require the same high degree of control. E) ABC analysis suggests that there are the critical few and the trivial many inventory items.

Q: Which of the following statements about ABC analysis is FALSE? A) ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. B) In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have. C) In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. D) ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. E) Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis.

Q: A transactional relationship is an association between a business and a customer that begins or ends with a purchase or a business exchange. a. True b. False

Q: An association between a business and a customer that begins (or ends) with a purchase or a business deal Match the term with its definition. a. Attitude b. Culture c. Customer experience management d. Customer Lifetime Value e. Customer relationship management f. Motivations g. Needs h. Opinion leader i. Perception j. Perceptual categorization k. Reference group l. Social classes

Q: Retail inventory that is unaccounted for between receipt and time of sale is known as shrinkage.

Q: In cycle counting, the frequency of item counting and stock verification usually varies from item to item depending upon the item's classification.

Q: Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction. a. True b. False

Q: One advantage of cycle counting is that it maintains accurate inventory records.

Q: The psychological tension or anxiety that occurs when a customer has second thoughts immediately following a purchase

Q: In general, opinion leaders are considered to be knowledgeable, visible, and exposed in mass media. a. True b. False

Q: Cycle counting is an inventory control technique exclusively used for cyclical items.

Q: A group of brands that a consumer is both aware of and willing to conisder as a solution to a purchase need

Q: ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings.

Q: Every group to which an individual belongs is a reference group for that consumer. a. True b. False