Chapter 1

Question 1

Business analytics

Answer 1

is a process of transforming data into actions through analysis and insights in the context of organizational decision making and problem solving.

Question 2

Economic sustainability

Answer 2

is an organization’s commitment to address current business needs and economic vitality, and to have the agility and strategic management to prepare successfully for future business, markets, and operating environments.

Question 3

Social sustainability

Answer 3

is an organization’s commitment to maintain healthy communities and a society that improves the quality of life.

Question 4

Environmental sustainability

Answer 4

is an organization’s commitment to the longterm quality of our environment.

Question 5

Sustainability

Answer 5

refers to an organization’s ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations.

Question 6

Inventory

Answer 6

refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand.

Question 7

Distribution centers (DCs)

Answer 7

are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to

Question 8

process

Answer 8

is a sequence of activities that is intended to create a certain result

Question 9

supply chain

Answer 9

is the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes.

Question 10

value chain

Answer 10

is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.

Question 11

variant

Answer 11

is a CBP feature that departs from the standard CBP and is normally location or firm specific.

Question 12

Peripheral goods or services

Answer 12

are those that are not essential to the primary good or service, but enhance it.

Question 13

primary good or service

Answer 13

is the “core” offering that attracts customers and responds to their basic needs.

Question 14

customer benefit package (CBP)

Answer 14

is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences.

Question 15

Value

Answer 15

is the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.

Question 16

Service Management

Answer 16

integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters.

Question 17

Moments of Truth

Answer 17

any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression.

Question 18

Service Encounter

Answer 18

is an interaction between the customer and the service provider.

Question 19

Service

Answer 19

is any primary or complementary activity that does not directly produce a physical product.

Question 20

Nondurable Good

Answer 20

is one that is no longer useful once it’s used, or lasts for less than three years.

Question 21

Durable Good

Answer 21

is one that does not quickly wear out and typically lasts at least three years.

Question 22

Good

Answer 22

is a physical product that you can see, touch, or possibly consume.

Question 23

Operations Management

Answer 23

is the science and art of ensuring that goods and services are created and delivered successfully to customers.