Quiz 309

Management expert Peter Drucker said that,"If we want to know what a business is, we need to start with its ____________"?

• Purpose

• Customers

• Products

• Founders

When considering customer perceived value (benefits minus cost), which of the following is NOT one of the types of costs to the customer?

• Time cost

• Replacement cost

• Energy cost

• Psychic cost

Say's Law, which encapsulates the concept of product orientation, can be summarised as:

• Supply creates its own demand

• If you build it, they will come

• The customer can have any color, as long as it's black

• The customer is at the centre of the business process

This question relates to the resource: Knowledge @ Wharton (2018)
According to Peter Fader and Sarah Toms, why is it more important to look at a company's relationship with their customers as opposed to how many customers they have?

• A good relationship with each customer is more likely to lead to repeat purchases. It is more profitable to have less repeat customers than more one-off customers

• A good relationship with each customer is more likely to lead to increased customer satisfaction

• Customer relationships are more important than profit

• Good customer relationships increase the number of new customers you can attract

This question relates to the resource: Mier (2017)
Customer loyalty is the key to long-run profitability. Blockbuster depended on 15% of its revenue from customers paying late fees. Blockbuster's dependency on this revenue from the their 'most profitable' customers impacted the company's:

• Ability to pay rent for their shopfronts

• Willingness to adapt to its customers needs and wants

• Long-term business model

• Commitment to putting their customers first

This question relates to the resource: Intercom (2019)
Leela Srinivasan, the CMO of Survey Monkey says an underappreciated benefit of a customer-centric businesses is :

• Attracting good talent

• Higher employee retention

• Lower customer related expenses

• Low turnover of staff in executive positions

This question relates to the resource: PWC US (2015)
Rik Reppe says to become a truly customer-centric company :

• Businesses must understand their competitors customer strategy

• Businesses have to conduct rigorous market research

• Businesses must go out and interact with their customers on a daily basis

• Businesses have to commit to weaving the customer experience into every aspect of their organisation

This question relates to the resource: CMO (2017)
Stanley Johnson, the creative director of MYOB spoke about creating a Minimum Viable Product (MVP) before creating your Minimum Marketable Product (MMP) for market. Why did he recommend this?

• Creating an MVP before an MMP means you are customer focused before you make your product.

• Creating an MVP before an MMP means you are more likely to receive capital from investors

• Creating an MVP before an MMP means you are less likely to accrue unnecessary expenses

• Creating an MVP before an MMP means you will not waste money on customers who are not interested in your product

This question relates to the resource: Greater Talent Network Speakers Bureau (2013)
According to Seth Godin, the only way a business will be able to grow is by delivering

• Tailored messages to people who want to receive them

• Value to its customers

• Anticipated, personal and relevant messages to people who want to receive them

• Tried and tested messages to people who are indifferent about receiving them

For this unit, what is the guiding principle?

• The customer is always right

• Customers don't know everything. As a business owner, you are allowed to tell them when they are not right

• You must find customers for your products

• A customer will not buy something if they don't like your brand