Topic 4 Review Question

1. Explain the contemporary concepts of customer and supplier.

Contemporary Concepts of customer and supplier are extended relationship

between buyers and sellers based on confidence, credibility, and mutual benefit.
The buyer, on its part, provides long-term contracts and assurance of only a small
number of competing suppliers. In reciprocation, the seller implements
customer's suggestions and commits to continuous improvement in quality of
product and delivery. A customer, whether internal or external depends on
suppliers to provide work and produce quality products.

2. How does the contemporary view of customers and suppliers differ from
the more traditional view?

The contemporary view differs from the traditional view as suppliers and
customers have more interaction with the company during the entire process of
producing a product. The facilitating of communications has opened many doors
to improve working relationships and increase quality customer service.

3. Explain the role of the customer in a total quality setting.

In a total quality setting, customers and suppliers exist inside and outside the
organization. Any employee whose work precedes that of another employee is a
supplier for that employee. Correspondingly, any employee whose work follows
that of another employee and it dependent on it in some way is a customer. In
this relationship, employee A is a supplier for employee B, and employee B is a
customer of employee A. this concept if dependency is critical in the supplier-
customer relationship. A customer, whether internal or external depends on
suppliers to provide work and produce quality products.

4. What is a reliable customer?

A : Reliable customers are the most important customers. These

customers are repeated customer.

5. What role does customer satisfaction play in the development of reliable

customers?

To retain customers over the long, organizations must turn them into
partners and proactively seek their input rather than waiting for and
reacting to feedback provided after a problem has occurred.
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6. How is customer satisfaction ensured?

Customer satisfaction is ensured by producing high quality products. It must be

renewed with every new purchase. This cannot be accomplished if quality, even
though it is high, is static. Satisfaction implies continual improvement. Continual
improvement is the only way to keep customers satisfied and loyal.

7. Briefly describe what is meant by an organization that has customer

focus.

A business that has a Customer focus is one which takes the time and trouble to
understand and address Customer needs.

8. How does an organization go about establishing a customer focus?

To retain customers over the long term, organizations must turn them into
partners and proactively seek their input rather waiting for and reacting to
feedback provided after a problem has occurred.

9. Explain the six-step strategy for identifying customer needs.

1. Speculate About Results : The purpose of this step is to help representatives

of the organization determine if they are in touch with customer needs.
2. Develop an Information Gathering Plan : Decide what types of information are
needed and who will be asked to provide it.
3. Gather Information : After the methodology has been appropriately refined,
gather information in a timely manner.
4. Analyze the Results : Results should be analyzed carefully and objectively.
5. Check the Validity of Conclusions : Adjust your conclusions as needed based
on this external and internal feedback.
6. Take Action : Make sure that changes are made to the extent possible, in the
same order of priority as that dictated by customer needs.

10. Describe how organizations should go about communicating with their

customers.

1. Quality initiative-quality circle, self managed teams, cross V

department teams, and improvement teams.
2.Teamwork.
3. Training that promotes communication and improve

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 Communication skills.
4. Social relationship-discussion with a cup of coffee.

11. Explain briefly the concept of QFD and how it relates to customer
satisfaction.

A : Quality function deployment (QFD) is a mechanism for putting into operation

the concept of building in quality. It makes customer feedback a normal part of
the product development process, thereby improving customer satisfaction.

12. Explain why it is important to measure customer retention.

A : This is because customer retention is a more accurate indicator customer

loyalty than is customer satisfaction.

13. Explain why just meeting customer specifications might not produce
customer satisfaction.

The issue is not whether the association’s items or administrations do fulfill

clients; it is whether they are sufficiently fulfilled to be held. Fulfilled clients will
some of the time deformity regardless of their fulfillment, if for no other
explanation than interest around a contender or the ever exhibit bait of
assortment. Offers associations some assistance with going past simply fulfilling
clients to holding them over the long haul.

14. Describe the customer loyalty model.

Customer satisfaction, customer value and customer loyalty are all indicators of
an animal we'll call "being customer focused." Customer satisfaction, value and
loyalty all indicate just how customer focused an organization truly is. Customer
satisfaction, value and loyalty are closely related. All three concepts work
together and are supported by good empirical evidence. A four-phase customer
loyalty model, explains the major relationships leading to customer loyalty. The
model begins with the customers' perceptions of an organization's performance.
These lead to the formation of global perceptions about the organization,
which then lead to loyalty behavior. Loyalty behavior leads to financial outcomes.

15. Explain the concept of customers as innovation partners and how to

implement the concept.

Including clients in the configuration, prototyping, and testing stages pf item

advancement is no more considered an inventive procedure. The best
organizations in the worldwide enclosure apply this methodology as per normal
procedure. Today's clients request items that are altered to suit their individual
needs. Actualizing the advancement association way to deal with item

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improvement is: build up a toolbox for clients that is anything but difficult to
utilize, expand the adaptability of your generation forms, painstakingly select the
main clients to utilize your toolbox, consistently enhance your toolbox and do as
such rapidly to fulfill your best clients, and adjust your business practices to suit
the advancement association