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MKTG-351 > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

What are some important characteristics of quality?

A
  • Quality is uniquely positioned to accelerate organizational growth through better execution and alignment
  • Quality provides the voice of the customer (VOC) critical to developing innovative products and services
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2
Q

What are the 6 different quality perspectives and what do they mean?

A
  • Transcendent Perspective: excellence
  • Product Perspective: quantities of product attributes
  • User Perspective: fitness for intended use
  • Value Perspective: quality vs. price
  • Manufacturing Perspective: conformance to specifications
  • Customer Perspective: meeting or exceeding customer expectations
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3
Q

What are consumers?

A

Ultimate/Final buyers of goods and services

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4
Q

What are external customers?

A

Business-to-business: Companies within a “chain of customers”

Intermediaries between the producer and the consumer

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5
Q

What are internal customers?

A

Anyone who receives goods or services from someone else within an organization

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6
Q

What are some contemporary influences on quality?

A

-Global Responsibility
-Consumer Awareness/Sophistication
-Globalization (Outsourcing)
-Increasing Rate of Change
-Workforce of the Future
-Aging Population
-Twenty-first Century Quality
-Innovation and Creativity

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7
Q

What does quality in marketing pertain to?

A

Marketing and sales personnel are responsible for determining the needs and expectations of consumers.

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8
Q

What does quality in product design pertain to?

A

Product design and engineering functions develop technical specifications for products and production processes to meet the requirements determined by the marketing function.

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9
Q

What does quality in purchasing pertain to?

A

A purchasing agent should not simply be responsible for low-cost procurement, but should maintain a clear focus on the quality of purchased goods and materials.

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10
Q

What does quality in production planning and scheduling pertain to?

A

Poor quality often results from time pressures caused by insufficient planning and scheduling.

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11
Q

What does quality in manufacturing and assembly pertain to?

A

Both technology and people are essential to high-quality manufacturing.

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12
Q

What does manufacturing process design pertain to?

A

Manufacturing processes must be capable of producing output that meets specifications consistently.

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13
Q

What does quality in finished goods inspection and testing pertain to?

A

The purposes of final product inspection are to judge the quality of manufacturing, to discover and help to resolve production problems that may arise, and to ensure that no defective items reach the customer.

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14
Q

What does quality in installation and service pertain to?

A

Service after the sale is one of the most important factors in establishing customer perception of quality and customer loyalty.

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15
Q

What is a service?

A

Service is defined as “any primary or complementary activity that does not directly produce a physical product - that is, the non-goods part of the transaction between buyer (customer) and seller (provider).”

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16
Q

What are the components of service quality?

A

People
“If we take care of our people, they will take care of our customers.”
Technology
Computers and information technology
E-commerce

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17
Q

What is a competitive advantage?

A

A firm’s competitive advantage is its ability to achieve market superiority;

  • Is driven by customer wants and needs
  • Makes significant contribution to business success
  • Matches organization’s unique resources with opportunities
  • Is durable and lasting
  • Provides basis for further improvement
  • Provides direction and motivation
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18
Q

What personal values affect quality?

A

Personal initiative has a positive impact on business success.

  • Quality-focused individuals often exceed customer expectations.
  • Quality begins with personal attitudes
  • Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
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19
Q

What does quality internalized mean?

A

Unless quality is internalized at the personal level, it will never become rooted in the culture of an organization.

Thus, quality must begin at a personal level (and that means you!).

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20
Q

What is the Deming Philosophy?

A

Focuses on continual improvements in product and service quality…
-by reducing uncertainty and variability in design, manufacturing, and service processes,
-driven by the leadership of top management.

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21
Q

What are steps in Deming’s chain reaction?

A

) Improve quality
2) costs decrease because of less rework, fewer mistakes, fewer delays and sangs, and better use for time and materials
3) Productivity improves
4) Capture the market with better quality and lower price
5) stay in business
6) provide jobs and more jobs

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22
Q

What are Deming’s 14 points?

A

1) Create and publish a company mission statement and commit to it.
2) Learn the new philosophy.
3) Understand the purpose of inspection.
4) End business practices driven by price alone.
5) Constantly improve system of production and service.
6) Institute training.
7) Teach and institute leadership.
8) Drive out fear and create trust.
9) Optimize team and individual efforts.
10) Eliminate exhortations for work force.
11) Eliminate numerical quotas and Manage-By- Objectives. Focus on improvement.
12) Remove barriers that rob people of pride of workmanship.
13) Encourage education and self-improvement.
14) Take action to accomplish the transformation

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23
Q

What are the four aspects of Deming’s System of Profound Knowledge?

A

1) Appreciation for a System
2)Understanding Variation
3) Theory of Knowledge
4) Psychology

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24
Q

What does Deming mean by “appreciation for a system”

A

Defined: “a set of functions or activities within an organization that work together for the aim of the organization”
- Most organizational processes are cross-functional
- Parts of a system must work together
- Every system must have a purpose
- Management must optimize the system as a whole

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25
Q

What does Deming mean by “understanding variation”?

A

Many sources of uncontrollable variation exist in any process
- Excessive variation results in product failures, unhappy customers, and unnecessary costs
- Statistical Tools/Methods: Used to identify and quantify variation
— Help understand
—Lead to improvements

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26
Q

What does Deming mean by “The Theory of Knowledge?”

A

Knowledge is not possible without theory
- Experience alone does not establish a theory, it only describes
—It can not be tested or validated
- Theory shows cause-and-effect relationships that can be used for prediction

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27
Q

What does Deming mean by “Psychology”?

A

People are motivated intrinsically and extrinsically
- Intrinsic motivation is the most powerful
- Fear is demotivating
- Managers should develop pride and joy in work

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28
Q

What has been the impact of Deming’s System of Profound Knowledge?

A
  • People who do not understand systems
    —See symptoms, but not the root of problems
  • People who do not understand variation
    —Do not see trends and can not forecast the future
    -People who do not understand psychology
    —Do not know how to motivate people
  • People who do not understand the TOK
    —Do not know how to plan, learn, and improve
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29
Q

What is Juran’s philosophy on quality?

A

Suggests Quality be viewed from both external and internal perspectives:
- Product performance that results in customer satisfaction;
- Freedom from product deficiencies, which avoids customer dissatisfaction.
- Proposed a simple definition of quality
- He coined the phrase “Fitness for Intended Use.”
Closest to the ‘User Perspective’

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30
Q

What is Juran’s quality trilogy?

A

Quality Planning
—The process of preparing to meet quality goals
- Quality Control
—The process of meeting quality goals during operations
- Quality Improvement
—The process of breaking through to unprecedented levels of performance

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31
Q

What are the steps in Juran’s BREAKTHROUGH sequence

A

Proof of the Need - Managers speak $
Project Identification - Project by project
Organize for Breakthrough - Teams!
Diagnostic Journey - Finding root cause
Remedial Journey - Finding a fix
Holding the Gains - Keeping the fix

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32
Q

Why is quality free?

A

“… It’s not a gift, but it is free. What costs money are the unquality things – all the actions that involve not doing jobs right the first time.”

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33
Q

What are Crosby’s Absolutes in quality management?

A

Quality means ‘conformance to requirements’
- There is no such thing as a Quality problem
Problems are functional in nature
- ‘Do it right the first time’
- ‘Cost of quality’ is the only useful measurement
- ‘Zero defects’ is the only performance standard
There is no optimum level of defects

34
Q

What are the three steps to quality according to Feigenbaum?

A

Three Steps to Quality
1) Quality Leadership
—A strong focus on planning
2) Modern Quality Technology
—Involving the entire work force (people)
3) Organizational Commitment
— Supported by continuous training and motivation

35
Q

What is Kaoru Ishikawa known for?

A
  • Instrumental in developing Japanese quality strategy
  • Influenced participative approaches involving all workers
  • Advocated the use of simple visual tools and statistical techniques
  • Known for ‘Fishbone Diagram’ - 5M-E Approach
36
Q

What is Total Quality?

A

Principles - foundation of the philosophy

Practices - activities/approaches by which principles are implemented

Techniques - tools and approaches to make practices effective

37
Q

What are core quality management principles?

A

Customer focus
- Teamwork
- Continuous improvement

38
Q

What are the ISO 9000:2000 Quality Management Principles?

A
  • Customer Focus
  • Leadership
  • Involvement of People
  • Process Approach
  • System Approach to Management
  • Continual Improvement
  • Factual Approach to Decision Making
  • Mutually Beneficial Supplier Relationships
39
Q

Elaborate on customer focus practices

A

Researching and understanding customer needs and expectations.
- Ensuring that the objectives of the organization are linked to customer needs and expectations.
- Communicating customer needs and expectations throughout the organization.
- Measuring customer satisfaction and acting on the results.
- Systematically managing customer relationships.
- Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).

40
Q

Elaborate on leadership practices

A

Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole.
- Establishing a clear vision of the organization’s future.
- Setting challenging goals and targets.
- Creating and sustaining shared values, fairness and ethical role models at all levels of the organization.
- Establishing trust and eliminating fear.
- Providing people with the required resources, training and freedom to act with responsibility and accountability.
- Inspiring, encouraging, and recognizing people’s contributions.

41
Q

Elaborate on the involvement of people practices

A

People understanding the importance of their contribution and role in the organization.
- People identifying constraints to their performance.
- People accepting ownership of problems and their responsibility for solving them.
- People evaluating their performance against their personal goals and objectives.
- People actively seeking opportunities to enhance their competence, knowledge, and experience.
- People freely sharing knowledge and experience.
- People openly discussing problems and issues.

42
Q

Elaborate on process approach practices

A
  • Systematically defining the activities necessary to obtain a desired result.
  • Establishing clear responsibility and accountability for managing key activities.
  • Analyzing and measuring of the capability of key activities.
  • Identifying the interfaces of key activities within and between the functions of the organization.
  • Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization.
  • Evaluating risks, consequences, and impacts of activities on customers, suppliers, and other interested parties.
43
Q

Elaborate on system approach management practices

A

Structuring a system to achieve the organization’s objectives in the most effective and efficient way.
- Understanding the interdependencies between the processes of the system.
- Structured approaches that harmonize and integrate processes.
- Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers.
- Understanding organizational capabilities and establishing resource constraints prior to action.
- Targeting and defining how specific activities within a system should operate.
Continually improving the system through measurement and evaluation.

44
Q

Elaborate on continual improvement standards

A

Employing a consistent organization-wide approach to continual improvement of the organization’s performance.
- Providing people with training in the methods and tools of continual improvement.
- Making continual improvement of products, processes, and systems an objective for every individual in the organization.
- Establishing goals to guide, and measures to track, continual improvement.
- Recognizing and acknowledging improvements.

45
Q

Elaborate on factual approach to decision making practices

A

Ensuring that data and information are sufficiently accurate and reliable.
- Making data accessible to those who need it.
- Analyzing data and information using valid methods.
- Making decisions and taking action based on factual analysis, balanced with experience and intuition.

46
Q

Elaborate on mutually beneficial supplier relationships

A

Establishing relationships that balance short-term gains with long-term considerations.
- Pooling of expertise and resources with partners.
- Identifying and selecting key suppliers.
- Clear and open communication.
- Sharing information and future plans.
- Establishing joint development and improvement activities.
- Inspiring, encouraging, and recognizing improvements and achievements by suppliers.

47
Q

What are some TQ techniques?

A
  • Statistical methods
    -Visual aids for problem solving
    —Flowcharts
  • Techniques specific to quality assurance activities
  • Basic statistics
  • Control charts
  • Measurement systems analysis
  • Reliability models, and so on
48
Q

What does statistical thinking mean?

A

All work occurs in a system of interconnected processes
- Variation exists in all processes
- Understanding and reducing variation are the keys to success

49
Q

What are some problems created by variation?

A

Variation increases unpredictability.
- Variation reduces capacity utilization.
- Variation contributes to a “bullwhip” effect.
- Variation makes it difficult to find root causes.
- Variation makes it difficult to detect potential problems early.

50
Q

What is uncontrollable variation?

A

Common Causes are a natural part of a process

51
Q

What is a special variation?

A

Assignable Causes of variation can be recognized and controlled.

52
Q

What happens when you can’t tell the difference between uncontrollable variation

A

Failure to understand these differences can increase variation in a system!!!

53
Q

What are two fundamental management mistakes?

A

Treating as a special cause any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to common causes

Attributing to common causes any fault, complaint, mistake, breakdown, accident or shortage when it actually is due to a special cause

54
Q

What is a quality management system?

A

a mechanism for managing and continuously improving core processes to “achieve maximum customer satisfaction at the lowest overall cost to the organization.”

55
Q

What are the objectives to a quality management system?

A

Objectives
- Higher product conformity and less variation.
- Fewer defects, waste, rework, and human error.
- Improved productivity, efficiency, and effectiveness.

56
Q

What is a quality manual?

A

A permanent reference for implementing and maintaining the system.
-Typical records
–Inspection reports
–Test data
–Audit reports
–Calibration data

57
Q

What are the objectives of the ISO 9000:2000?

A
  1. Achieve, maintain, and seek to continuously improve product quality (including services) in relationship to requirements.
  2. Improve the quality of operations to continually meet customers’ and stakeholders’ stated and implied needs.
  3. Provide confidence to internal management and other employees that quality requirements are being fulfilled and that improvement is taking place.
  4. Provide confidence to customers and other stakeholders that quality requirements are being achieved in the delivered product.
  5. Provide confidence that quality system requirements are fulfilled.
58
Q

What does building an effective QMS system mean?

A

System should be integrated with enterprise systems
- System should focus on actionable decision making, seeking the root causes of problems, and improving processes and systems.
- System should drive the principles of quality management throughout the organization
- Accomplished by fostering effective practices to implement the principles

59
Q

What does it mean to satisfy customers?

A

To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty

1) Meeting specifications, reducing defects and errors, and resolving complaints.
2) Designing new products that truly delight the customer
3) Responding rapidly to changing consumer and market demands
4) Developing new ways of enhancing customer relationships.

60
Q

What is customer satisfaction?

A

…“the result of delivering a product or service that meets customer requirements.”
- Customer satisfaction drives profitability
- Typical company gets 65 percent of its business from existing customers
- It costs five times more to find a new customer than to keep an existing one
- Businesses with a 98 percent customer retention rate are twice as profitable as those at 94 percent.

61
Q

What is customer engagement?

A

.. customers’ investment in or commitment to a brand and product offerings
Characteristics:
- Customer retention and loyalty,
- Customers’ willingness to make an effort to do business with the organization, and
- Customers’ willingness to actively advocate for and recommend the brand and product offerings.

62
Q

What are consumers?

A

those people who ultimately purchase and use a company’s products

63
Q

What are internal customers?

A

the recipient of another’s output (which could be a product, service or information)

64
Q

What are external customers?

A

those who fall between the organization and the consumer, but are not part of the organization

65
Q

What is the supplier model?

A

The natural customer-supplier linkages among individuals, departments, and functions build up the “chain of customers” throughout an organization that connect every individual and function to the external customers and consumers, thus characterizing the organization’s value chain

66
Q

What are the five type of customer segmentations?

A
  • Demographics
  • Geography
  • Volumes
  • “Vital few” and “useful many”
  • Profit potential
67
Q

What is the Net Present Value of the Customer

A

The total profits discounted over time
Revenues associated with a customer minus expenses needed to serve a customer
NPVC is often used to segment customers by profit potential.

68
Q

What are the key dimensions of product quality and what do they mean?

A

Performance - primary operating characteristics
Features - “bells and whistles”
Reliability - probability of operating for specific time and conditions of use
Conformance - degree to which characteristics match standards
Durability - amount of use before deterioration or replacement
Serviceability - speed, courtesy, and competence of repair
Aesthetics - look, feel, sound, taste, smell

69
Q

What are the key dimensions of service quality?

A

Reliability - ability to provide what was promised
Assurance - knowledge and courtesy of employees and ability to convey trust
Tangibles - physical facilities and appearance of personnel
Empathy - degree of caring and individual attention
Responsiveness - willingness to help customers and provide prompt service

70
Q

What is the Kano Model?

A

A theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano, which classifies customer preferences into THREE categories

Dissatisfiers (“must haves”)
Expected requirements that cause dissatisfaction if not present

Satisfiers (“wants”)
Expressed requirements

Exciters/delighters (“never thought of “) Unexpected features

71
Q

What is the voice of the customer?

A

Customer requirements, as expressed in the customer’s own terms
- Organizations use a variety of methods, or “listening posts,” to collect information about customer needs and expectations, their importance, and customer satisfaction with the company’s performance on these measures.

72
Q

What are customer listening posts?

A
  • Comment cards and formal surveys
  • Focus groups
  • Direct customer contact
  • Field intelligence
  • Complaints
  • Internet and social media monitoring
73
Q

What is an affinity diagram?

A

Analyzing Voice of the Customer Data

Technique used to organize large volumes of information (ideas and facts) efficiently and identifying natural patterns or grouping in the information.

74
Q

What is the gap model

A

) What are the customers’ needs and expectations (expected quality)
2) Identification of customer needs
3) Translation into product/service specifications (design quality)
4) Output (actual quality)
5) customer perceptions (perceived quality)

Perceived quality is a comparison of actual quality to expected quality.

75
Q

What steps need to be taken to build a customer-focused organization?

A
  1. Making sincere commitments to customers
  2. Ensuring quality customer contact
  3. Selecting and developing customer contact employees
  4. Managing complaints and service recovery
76
Q

When are moments of truth?

A

Customer satisfaction or dissatisfaction takes place during moments of truth—every interaction between a customer and the organization

77
Q

What are customer contact requirements?

A

.measurable performance levels or expectations that define the quality of customer contact with an organization.
Technical requirements
Response time
Answering the telephone within two rings
Shipping orders the same day
Behavioral requirements
Using a customer’s name whenever possible (introductions)
Saying ‘hello’ or ‘good-bye’ (i.e. Starbucks…)

78
Q

What are some complaint resolutions?

A
  • Acknowledge that a customer had a problem
    —“We’re sorry you had a problem”
    -Express empathy for the inconvenience that the customer encountered
    —Willingly accepting the complaint
    -“Thanks for letting us know about it”
  • Describe corrective action concisely and clearly
    —“Here’s what we’re going to do about it”
  • Appeal to the customer for continued loyalty
    —“We’d appreciate you giving us another chance”
79
Q

What are customer-supplier relationships?

A

Long-term relationships characterized by teamwork and mutual confidence

80
Q

What are the customer-focused technology and analytics?

A

Most major companies use advanced analytics to “mine” and understand customer data

  • Grocery and retail stores use loyalty cards to capture and analyze detailed data about customer purchase behavior.
  • Customer relationship management (CRM) software.
  • Designed to help organizations increase customer loyalty, target their most profitable customers, and streamline customer communication processes.
81
Q
A

MKTG-351 (3 decks)

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