The Apple iPhone is rated by Consumer Reports as being one of the best smartphones in the industry. Define customer value. In what ways do you think the Apple iPhone provides value for its customers?
What will be an ideal response?
Customer value is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price. Many successful firms have chosen to deliver outstanding customer value with one of three value strategies: best price, best product, or best service. Apple uses the best product and best service strategies for its iPhone 5S, which Consumer Reports rates as one of the best smartphones on the market. Smartphones users may cite the iPhone's display, ease of use of its multitouch user interface, voice quality, messaging, camera, video game capability, durability, battery life, etc., as key product-related benefits that contribute to its customer value.
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Cosco, the world's largest children's products company, recently developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed. It sold for $49. Cosco rushed the chair into production before it was properly safety-tested. When some children were injured using this chair, Cosco denied culpability. The firm said that only a few consumers had trouble with the chair and these probably didn't assemble them correctly. Most consumers were very satisfied with the chair and had no problems. Cosco's actions exemplify which of the following philosophies?
A. socialism B. communism C. existentialism D. moral idealism E. utilitarianism
Compute the safety stock required to achieve a 98% service level
A bakery uses an average of 60 ounces of organic orange juice daily. Demand is normally distributed with a standard deviation of 15 ounces. The bakery places orders every seven days. The lead time for delivery of the juice is three days.
Which of the following accurately describes an organic organization?
A. a flexible organization that fosters fast decision making and high employee motivation B. a flexible organization that fosters slow decision making and high employee motivation C. an inflexible organization that fosters fast decision making and high employee motivation D. an inflexible organization that fosters slow decision making and high employee motivation
Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit$48Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$11Direct labor$5Variable manufacturing overhead$5Fixed manufacturing overhead per year$110,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$71,000 Units in beginning inventory 0Units produced during the year 11,000Units sold during the year 8,000Units in ending inventory 3,000 The net operating income (loss) under variable costing is closest to:
A. $184,000 B. $33,000 C. $3,000 D. $216,000