A firm supplies a single line of products to consumers using retail stores and on-line...

Context: The firm uses common pricing and response times across different sales channels and seeks to improve profitability.

Options Breakdown:

A. Customer segmentation: Allows the firm to tailor pricing and service levels to different customer groups based on their specific needs and value, enhancing profitability.

B. Customer-facing ordering systems: Improve the ordering process but do not directly impact pricing or profitability.

C. Customer relationship management (CRM): Helps manage customer interactions but does not directly address segmentation for pricing.

D. Supply Chain Operations Reference (SCOR®): Provides a framework for improving supply chain processes but is not directly focused on customer segmentation.

Correct Answer Justification: By employing customer segmentation, the firm can differentiate pricing and service levels to better match customer value and demand patterns, thereby improving profitability.

References:

Marketing and supply chain management literature

Best practices in customer segmentation for profitability enhancement