Buyer Behavior 1St Test

Front 1

What is Marketing?

Back 1

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create EXCHANGES that satisfy individual and organizational objectives

Front 2

Agility

Back 2

the ability of an organization to respond quickly to demands or opportunities.

Front 3

craft production

Back 3

one person (or perhaps a small crew) would be responsible for making the product from start to finish.

Front 4

customized output

Back 4

products or services designed to meet the specifications of a customer

Front 5

division of labor

Back 5

an operation, such as assembling an automobile, is broken up into a series of small tasks and one of those tasks is assigned to a worker who repeats it on each individual product.

Front 6

e-business

Back 6

involves the use of the Internet to transact business, sometimes with customers, sometimes with suppliers.

Front 7

interchangeable parts

Back 7

standardized parts, so that any part in a batch of identical parts would fit any individual product coming down the assembly line.

Front 8

lead time

Back 8

length of time needed to fill an order or to receive an order from a supplier.

Front 9

lean production

Back 9

a production system which emphasizes quality, flexibility, time reduction and teamwork. It has led to a flattening of the organizational structure with fewer levels of management.

Front 10

mass production

Back 10

production large volumes of standardized goods are produced by low-skilled or semi-skilled workers using highly specialized, and often costly, equipment.

Front 11

model

Back 11

a model is a simplified version of a real object or system.

Front 12

Mathematical models

Back 12

represent real systems or processes by means of numbers, formulas, and symbols.

Front 13

operations management

Back 13

responsible for systems that create goods or provide services. Includes both design and operation of production systems.

Front 14

outsourcing

Back 14

obtaining a product or service from outside the organization

Front 15

Pareto Principle

Back 15

Principle a relatively small percentage of items or factors are very important in achieving an objective or solving a problem

Front 16

production

Back 16

the creation of goods or services.

Front 17

Physical models

Back 17

resemble their real life counterparts

Front 18

Schematic models

Back 18

are diagrams, pictures, blueprints, etc. which represent a real object, process, or electrical circuit.

Front 19

six sigma

Back 19

A process for reducing costs, improving quality, and increasing customer satisfaction

Front 20

standardized output

Back 20

products or services designed to appeal to a broad set of customers

Front 21

supply chain

Back 21

a supply chain is the sequence of organizations that are involved in delivering a product or service

Front 22

system

Back 22

a set of interrelated parts that must work together.

Front 23

technology

Back 23

The application of scientific discoveries to the development and improvement of goods and services

Front 24

transformation process

Back 24

conversion of inputs into outputs.

Front 25

manufacturing

Back 25

production of a tangible output such as a toaster, a stereo.

Front 26

service

Back 26

implies an act rather than a tangible output (e.g. wash a car).

Front 27

valued-added

Back 27

the amount by which the price or value of an output is increased due to the addition of material, labor, or other resource

Front 28

competition

Back 28

the efforts of two or more parties to secure the business of another party by offering the most favorable terms.

Front 29

competitiveness

Back 29

how successful one party is in offering favorable terms and securing the business. More favorable terms may involve a lower price, higher quality, a faster delivery time, and other aspects of the product.

Front 30

distinctive competencies

Back 30

the special attributes or abilities that give an organization a competitive edge.

Front 31

environmental scanning

Back 31

considering events and trends that present threats or opportunities for a company.

Front 32

goals

Back 32

provide more details and describe the scope of the mission.

Front 33

hierarchy of decisions

Back 33

strategic decisions (broad scope) establish the framework for tactical decisions (moderate scope) which in turn establish the framework for operating decisions (narrow scope).

Front 34

mission

Back 34

the basis for an organization; its reason or purpose.

Front 35

mission statement

Back 35

a clear statement of purpose that serves as a guide for strategy and decision-making.

Front 36

order qualifiers

Back 36

characteristics that customers perceive as minimum standards of acceptability for products or services to be considered as a potential purchase.

Front 37

order winners

Back 37

characteristics of an organization's goods or services that cause them to be perceived as better than the competition's goods or services.

Front 38

operations strategy

Back 38

the management of processes, methods, resources, quality, costs, lead time, and scheduling in order to produce a product or a service.

Front 39

productivity

Back 39

a measure of the effective use of resources, usually expressed as the ratio of output to input.

Front 40

quality-based strategy

Back 40

a strategy that focuses on quality in all phases of an organization.

Front 41

strategy

Back 41

a general plan for achieving a goal.

Front 42

tactic

Back 42

a method or action intended to accomplish a strategy.

Front 43

time-based strategy

Back 43

a strategy that focuses on reducing the amount of time needed to accomplish tasks.

Front 44

applied research

Back 44

research that is directed towards achieving commercial applications.

Front 45

basic research

Back 45

research that is directed at the growth of scientific knowledge, without any near-term expectations of commercial applications.

Front 46

computer aided design

Back 46

product design using computer graphics.

Front 47

concurrent engineering

Back 47

bringing engineering and manufacturing personnel together early in the design phase.

Front 48

delayed differentiation

Back 48

partially producing the product or service and completing it when the customer's preferences or specifications are known.

Front 49

design for assembly

Back 49

reducing the number of parts in an assembly as simplifying the assembly methods that will be employed in its manufacture.

Front 50

design for disassembly

Back 50

making it easier to take apart used products by using fewer parts and snap-fits where possible.

Front 51

design for manufacturing (manufacturability)

Back 51

designing products with manufacturing capabilities in mind, so as to make them easy to produce, and to make it easy to avoid mistakes.

Front 52

design for operations

Back 52

taking into account the capabilities of the organization to deliver a particular product or service.

Front 53

design for recycling

Back 53

designing products to allow for disassembly in order to recover components and materials for reuse.

Front 54

Development

Back 54

converts the results of applied research into useful commercial applications.

Front 55

end item

Back 55

a product sold or delivered to the ultimate user.

Front 56

failure

Back 56

a product, part, or system does not perform as intended.

Front 57

life cycle

Back 57

the incubation, growth, maturity, saturation and decline of a product or service.

Front 58

Manufacturability

Back 58

the ease of fabrication and/or assembly.

Front 59

mass customization

Back 59

producing standardized goods or services, but incorporating some degree of customization into the final product or service.

Front 60

modular design

Back 60

a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged.

Front 61

normal operating conditions

Back 61

the set of conditions under which an item's reliability is specified.

Front 62

product design

Back 62

all activities connected with bringing a new product to market. See the nine elements of product design on p. in your textbook.

Front 63

product liability

Back 63

a manufacturer is liable for any injuries or damages caused by a product which is faulty due to poor workmanship, defective parts, or poor design.

Front 64

quality function deployment (QFD)

Back 64

integrating the "voice of the customer" into product and service design.

Front 65

recycling

Back 65

recovering parts or material for future use.

Front 66

reliability

Back 66

the ability of a product or system to perform its intended function under a prescribed set of conditions.

Front 67

remanufacturing

Back 67

refurbishing used products for resale.

Front 68

research and development (R&D)

Back 68

organized efforts to increase scientific knowledge or to improve the product or to develop new products.

Front 69

reverse engineering

Back 69

dismantling another firm's product to learn about its special features.

Front 70

robust design

Back 70

design that results in products or services that can perform over a broad range of operating conditions.

Front 71

service

Back 71

something that is done to or for a customer.

Front 72

service blueprint

Back 72

a method used in service design to describe and analyze a process.

Front 73

service bundle

Back 73

the combination of goods and services provided to a customer.

Front 74

service delivery system

Back 74

the facilities, processes and skills needed to provide a service.

Front 75

service package

Back 75

the physical resources needed to perform the service, the accompanying goods, and the explicit and implicit services included.

Front 76

standardization

Back 76

the absence of variety in a product, process, or service. The extent to which all of the products are similar to each other, or the extent to which every customer receives the same service.

Front 77

Uniform Commercial Code

Back 77

requires that every product be usable for its intended purposes.

Front 78

availability

Back 78

the fraction of time that a piece of equipment is expected to be available for operation.

Front 79

bathtub curve

Back 79

a description of the changing failure rate of a product over its lifetime

Front 80

decline

Back 80

the fifth or final stage of the product life cycle, when the demand for the product has just about phased out and it is the time to find new products to produce and market.

Front 81

exponential functions

Back 81

mathematical functions that incorporate the constant e, the base of natural logarithms.

Front 82

independent events

Back 82

events whose occurrence or nonoccurrence do not influence each other.

Front 83

infant mortality

Back 83

the first stage of the product life cycle in use, characterized by high but declining failure rate.

Front 84

mean time between failures (MTBF)

Back 84

the average length of time between failures of a product or component.

Front 85

redundancy

Back 85

if a specific component fails, a substitute component is available to take over the specified function.

Front 86

reliability

Back 86

the probability that a product, or component, or system will perform its intended function under a prescribed set of conditions.

Front 87

breakeven point

Back 87

the output level at which total cost = total revenue.

Front 88

capacity

Back 88

the upper limit or ceiling on the load that an operating system can handle.

Front 89

capacity alternatives

Back 89

capacity alternatives

Front 90

capacity cushion

Back 90

an amount of capacity in excess of expected demand when there is some uncertainly about demand.

Front 91

cash flow

Back 91

the difference between cash received from sales and other sources and cash paid out for labor, material, overhead and taxes.

Front 92

cost-volume analysis

Back 92

focuses on relationships between cost, revenue, and volume of output.

Front 93

cyclical factors

Back 93

factors that affect the rate of output, based on the business cycle.

Front 94

design capacity

Back 94

the maximum rate of output achievable under ideal conditions.

Front 95

economies of scale

Back 95

if the output rate is less than the optimal level, increasing the output results in decreasing average unit costs.

Front 96

effective capacity

Back 96

an achievable rate of output that is usually less than the design capacity because of operational difficulties.

Front 97

efficiency

Back 97

the ratio of actual output to effective capacity, expressed as a percentage.

Front 98

external factors

Back 98

circumstances that affect the plant capacity and the rate of output, which are either externally imposed, such as health and safety regulations, or else negotiated, such as by union work rules.

Front 99

facilities factors

Back 99

characteristics of the design or location of the plant that affect the capacity of the plant.

Front 100

financial analysis

Back 100

planning for receipt and payout of funds and maintaining cash flow, taking into account the present value of funds to be received or paid out in the future.

Front 101

fixed cost

Back 101

those expenses which do not increase (or decrease) when the volume of output increases (or decreases).

Front 102

human factors

Back 102

the training, skill and experience of the employees.

Front 103

make or buy decision

Back 103

whether to produce a product (or provide a service) within the company or to buy it from another organization.

Front 104

operational factors

Back 104

scheduling problems, bottlenecks, equipment failures, or breakdowns in communication between different sections of the plant that affect performance and output.

Front 105

outsourcing

Back 105

obtaining a good or service from an external provider.

Front 106

present value

Back 106

the sum, in current value, of all future cash flows of an investment proposal.

Front 107

process factors

Back 107

quantity capabilities or quality characteristics of the product that affect performance and output.

Front 108

product/service factors

Back 108

factors that affect the rate of output, based on the degree of specialization in the product or service, or in the design of the production system.

Front 109

utilization

Back 109

the ratio of actual output to design capacity, expressed as a percentage.

Front 110

variable cost

Back 110

the total of per-unit material, labor and operational cost, assumed to be constant per unit of product in a linear breakeven model.

Front 111

alternative

Back 111

one of the choices available to the decision maker.

Front 112

bounded rationality

Back 112

limitations on decision-making caused by costs, human abilities, time, technology, and availability of information.

Front 113

certainty

Back 113

the event that will occur is known beforehand.

Front 114

decision tree

Back 114

a schematic representation of the available alternatives and their possible consequences.

Front 115

expected monetary value (EMV) criterion

Back 115

the best expected value among the alternatives.

Front 116

expected value

Back 116

for an alternative, obtained by multiplying each payoff by the column probability and summing the products; the mean.

Front 117

expected value of perfect information (EVPI)

Back 117

the expected payoff assuming certainty minus the optimal payoff under risk; also the least expected value of the regret.

Front 118

Laplace criterion

Back 118

assign equal probabilities to all events, and choose the alternative with the highest expected value.

Front 119

maximax criterion

Back 119

an optimistic approach to decision making under uncertainty; select the alternative with the best single payoff.

Front 120

maximin criterion

Back 120

a pessimistic view of the possible outcomes of the decision process under uncertainty; select the alternative with the best of the worst payoffs.

Front 121

minimax regret criterion

Back 121

a cautious approach to decision making under uncertainty; the absolute value of the difference between the payoff associated with an alternative-event pair (A, E) and the highest payoff for any decision in the E column of the matrix.

Front 122

opportunity loss

Back 122

the difference between a given payoff and the best payoff for a state of nature.

Front 123

payoff

Back 123

for every alternative/state of nature combination, the associated profit, cost, etc.

Front 124

payoff table

Back 124

a two-way layout, the rows representing the decision-maker's alternatives and the columns nature's events; an entry in a cell of the matrix is the payoff associated with the corresponding event and alternative.

Front 125

probability distribution

Back 125

a set of nonnegative numbers called probabilities, each probability represents the chance that its corresponding event will occur; the sum of the probabilities for all events is 1.00.

Front 126

risk

Back 126

there is a known probability distribution for the events.

Front 127

Sensitivity analysis

Back 127

determining the range of probability for which an alternative has the best expected payoff.

Front 128

state of nature

Back 128

an event that could occur, that would not be under the control of the decision maker.

Front 129

suboptimization

Back 129

the result of different departments each attempting to reach a solution that is optimal for that department, but not necessarily optimal for the entire firm.

Front 130

uncertainty

Back 130

the possible events that could occur are known, but the probability distribution is unknown.