Which of the following tools is most appropriate for the firm to use to improve customer service?

A firm supplies products and services to a wide variety of industries with varying requirements for responsiveness and reliability. Many customers across these industries are not satisfied with the firm’s ability to meet the lead time and on time delivery requirements.

Which of the following tools is most appropriate for the firm to use to improve customer service?

A. Customer service ratio metrics

B. Market segmentation

C. Customer relationship management (CRM)

D. Supply Chain Operations Reference (SCOR®)

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Answer: B

Explanation:

Context: The firm supplies to various industries with different requirements, and customers are dissatisfied with lead times and delivery reliability.

Options Breakdown:

A. Customer service ratio metrics: Useful for measuring performance but not directly improving it.

B. Market segmentation: Dividing the market into distinct groups with common needs to tailor services accordingly.

C. Customer relationship management (CRM): Manages interactions with customers but does not directly address segmentation.

D. Supply Chain Operations Reference (SCOR®): Provides a framework for evaluating and improving supply chain performance but not specifically focused on market segmentation.

Correct Answer Justification: Market segmentation allows the firm to better understand and cater to the specific needs of different customer groups, improving responsiveness and reliability tailored to each segment.

Reference: Marketing and supply chain management literature

Best practices in market segmentation for supply chain optimization