Foreign Service Officer Test (FSOT) Practice Exam 2025 – All-in-One Prep Guide for Exam Success!

Question: 1 / 400

What term describes the situation where businesses produce goods tailored specifically to customer demands?

Mass production

Customization

The term that describes the situation where businesses produce goods tailored specifically to customer demands is customization. When companies engage in customization, they adjust their products or services to meet the unique preferences and requirements of individual customers. This approach allows for a higher degree of personalization, which can enhance customer satisfaction and loyalty.

In contrast, mass production refers to the manufacturing of large quantities of standardized products, which does not involve tailoring to individual preferences. Standardization focuses on producing uniform products to maximize efficiency and lower costs, essentially the opposite of customization. Assembling involves putting together various components to create a finished product, but it does not necessarily imply tailoring to individual customer demands. Hence, customization accurately captures the essence of producing goods specifically for customer needs.

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Standardization

Assembling

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