Page 171 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes cognitive decisions and that the selection of a whisky, a facial cream or a pair of jeans are
all non-cognitive. One might also argue that all decisions made by humans are non-
cognitive.
However, trade-off techniques that employ direct questions (self-explicated and hybrid) all
assume that the behaviour being modelled is cognitive, because at least some of the product
features are being rated in a way that requires both awareness and honesty from the respondent.
The respondent must be aware of the degree to which a product feature affects his or her
purchase decision and also be willing to admit to that degree of affect.
Additionally, any data collection methods that rely on verbal or written descriptions of product
features all assume that the behaviour being modelled is cognitive, because the process of
understanding a verbal or written description is itself a cognitive behaviour.
Non-cognitive trade-off models should be based on an indirect trade-off technique (conjoint or
discrete choice) and data collection that relies on experience rather than language to communicate
the product choices. For example, if you are modelling the pant selection process, show
respondents a variety of pants that they can see and touch. A consumer may respond to the
phrase “light blue pants” very differently than he or she would to a particular pair of light blue
pants.

Self Assessment

Fill in the blanks:
11. ....................... does not merely denote the usefulness of a product to satisfy the customer
needs but also involves the product from a manufacturing facility to the user.
12. Logistic Management includes the design and administration of systems to control the
flow of material, work-in-progress and ........................ inventory to support business unit
strategy.
13. Logistical ................................ is a relative assessment of a firm’s ability to provide
competitively superior customer service at the least possible cost.
14. A firm’s ............................. performance can be measured in terms of how flexible it is in
accommodating unusual and unexpected request of customer.

15. ....................... information flow increases both operating cost and decreases customer
satisfaction.

7.7 Summary

Logistics is that part of supply chain process that manages the flow of goods, information
and other resources, including energy and people, between the point of origin and the
point of consumption in order to meet the requirements of consumer.

It improves customer satisfaction directly through rapid response and minimum variance
and indirectly through minimum inventory, consolidated movement, improvement in
quality and life cycle support.

It creates value by giving the desired level of value at the least possible cost.
The objective of an inventory control system is to ensure the constant availability of
products.

Transportation Costs will be fixed costs as well as variable costs. Both these costs must be
reviewed frequently and efforts must be made to bring these down.

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