When a Company Follows a Customer-Centric Philosophy with a High

question 50

Multiple Choice

When a company follows a customer-centric philosophy with a high degree of customer orientation, it is likely to ________.

• A) keep everyone up-to-date on the progress of relevant legislation
• B) generate an understanding of the marketplace and disseminate that knowledge to everyone in the firm
• C) produce products solely for the loyal customers from higher socio-economic status
• D) place customers at the top of the organizational chart
• E) align system capability externally so that the organization can respond with competitively similar goods and services

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Definitions:

Market

A group of buyers and sellers of a particular good or service.

Diminishing

A principle often referring to diminishing returns, where additional inputs result in progressively smaller increases in output.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding all other inputs constant.

Production Function

An economic model that describes the relationship between the inputs a firm uses and the output it creates.