Deck 17: TB Boone 3Ce final

Question 1

Which of the following is NOT a characteristic of relationship marketing?

A) long-term orientation
B) emphasis on retaining customers
C) low-to-moderate customer contact
D) high degree of customer commitment

Answer 1

C

Question 2

What type of marketing involves the development, growth, and maintenance of cost-effective, high-value interactions with individual customers, suppliers, and other partners over time?

A) relationship
B) transaction-based
C) internal
D) community

Answer 2

A

Question 3

What type of interaction is usually created by a second-level relationship marketing program?

A) social
B) financial
C) structural
D) motivational

Answer 3

A

Question 4

At the second level of the development of a buyer-seller relationship, what is the interaction focused on?

A) price and other financial incentives
B) personalizing the relationship by reaching out to the customer with social interaction
C) transforming structurally into an interdependent partnership
D) analyzing data from the initial purchase to determine the chance of a repeat sale

Question 5

How does relationship marketing view customers?

A) as short-term buyers that provide quick profits
B) as part of a one-time buyer-seller relationship
C) as equal partners in a buyer-seller transaction
D) as potential employees

Question 6

What is the first step in measuring customer satisfaction?

A) finding out what customers need, want, and expect
B) hiring a first-rate market research firm
C) developing new products and placing them in the market
D) mining the Web for blogs and discussion groups to obtain customer feedback

Question 7

Which of the following is an example of a first-level relationship marketing program?

A) a fan club for a famous entertainer
B) an alumni association
C) a club for owners of a particular model of car
D) a two-for-one deal on airline tickets

Question 8

Which of the following marketing exchanges remains largely transaction based?

A) leasing a car
B) hiring an accountant
C) visiting a doctor
D) purchasing real estate

Question 9

Which level is NOT part of the relationship marketing continuum?

A) focus on price
B) focus on social interaction
C) focus on customer integration
D) focus on interdependent partnership

Question 10

Which of the following is an example of a typical third-level relationship marketing program?

A) a newspaper ad trying to stimulate sales of health foods
B) a frequent-user or frequent-flyer program
C) an extensive training program for retailers of a manufacturer's goods
D) a giveaway of tickets to a trade show

Question 11

What type of marketing is described as managerial actions that enable all members of an organization to understand, accept, and fulfill their respective roles in implementing marketing strategy?

A) organizational marketing
B) employee marketing
C) strategic marketing
D) internal marketing

Question 12

Which of the following is a proactive method a firm might use to assess customer satisfaction?

A) visiting, calling, or mailing written surveys to clients
B) soliciting complaints from dissatisfied customers
C) using mystery shoppers to evaluate the quality of service provided
D) monitoring Web discussion groups

Question 13

What kind of commitment is necessary in relationship marketing?

A) a reduction in the use of technology in favour of one-on-one communication
B) an emphasis on new customers
C) a company-wide initiative
D) conflict between buyers and the company

Question 14

What does an internal marketing program attempt to create?"

A) satisfied employees
B) employees who view each other as competitors
C) firms that share resources with business partners
D) significant annual revenue for a company

Question 15

Which of the following is NOT a characteristic of the third level of relationship marketing?

A) structural primary bond
B) medium to high degree of customization
C) true buyer and seller partnership
D) low potential for sustained competitive advantage

Question 16

Cannondale Bicycles has an owner's group called "The Chain Club." Members receive e-mails listing cycling-related tips, as well as access to a special website.What level of relationship marketing is this an example of?

A) first
B) second
C) third
D) fourth

Question 17

Which of the following is a characteristic of relationship marketing?

A) the short-term goal of creating an immediate sale
B) orientation toward added value through superior customer service
C) making purchases based on promotions and other inducements
D) limited communication between buyer and seller

Question 18

What do third-level relationship marketing programs usually aim to create?

A) social interaction
B) financial interaction
C) structural changes
D) traditional ties

Question 19

What is an organizational culture steeped in customer focus more likely to be?

A) old-fashioned and traditional
B) subjected to high turnover because of disgruntled employees
C) targeting the profitability of new customers rather than trying to maintain present ones
D) relationship oriented rather than transaction based

Question 20

What is a potential drawback of a company focusing on price?

A) It makes advertising and promotional expenses worthless.
B) It doesn't provide the firm with a competitive advantage.
C) It cuts into profits.
D) It will not motivate customers to enter into a buying relationship.

Question 21

Which of the following would be the most desired effect in the development of a buyer-seller relationship between two companies?

A) increase in inventories
B) more favourable financing terms
C) less competition
D) lower barriers to market entry

Question 22

What is often the cause of failure with customer relationship management (CRM)?

A) inability to organize the organization's people and processes
B) a lack of interest from customers and potential customers
C) business processes that are changed to support a customer focus
D) competitors deciding to offer their own CRM system

Question 23

What type of marketing program enables satisfied customers to get the word out about products to other consumers?

A) grassroots
B) viral
C) frequency
D) customer-based

Question 24

What marketing effort is sponsored by an organization that solicits responses from individuals who share common interests and activities?

A) frequency marketing
B) affinity marketing
C) internal marketing
D) database marketing

Question 25

In the business-to-business market, how do firms develop affiliations to assist each other in achieving common goals?

A) by contracting to share the market between themselves
B) by making every effort to keep out new competitors
C) by forming partnerships
D) by creating temporary agreements

Question 26

What needs do seller partnerships in the business-to-business market reflect?

A) a firm's purchase of goods from a number of providers
B) a long-term exchange of products
C) two divisions of the same firm begin to sell to each other
D) a lack of buyer-seller interaction

Question 27

Which of the following is one of the major forces driving the movement toward relationship marketing?

A) the realization that retaining customers is far more profitable than losing them
B) the need to reduce expenditures on marketing
C) increased pressure from consumer lobby groups
D) new customer prospects are more important than existing customers

Question 28

Who assists marketers by providing software when it is needed to capture, manipulate, and analyze consumer data?

A) application service providers
B) consumer data providers
C) database managers
D) Internet service providers

Question 29

Why do customers prefer to have continuing relationships with businesses or suppliers?

A) Humans like to repeat processes.
B) Businesses and suppliers always provide consistent high quality.
C) By reducing the number of choices, the decision-making process is made easier.
D) There are a limited number of suppliers in most industries.

Question 30

Best Buy Rewards Program tracks customer sales and periodically issues coupons to customers based on prior purchases.What kind of marketing is this program classified as?

A) affinity
B) database
C) user segmentation
D) frequency

Question 31

What do customer relationship management programs require to be successful?

A) a focus on the technological process
B) implementation at the grassroots level
C) investment in training
D) expectations set at the highest possible level

Question 32

Which of the following implies the highest form of buyer-seller interactions?

A) customer relationship management
B) transaction-based marketing
C) relationship marketing
D) internal marketing

Question 33

What is the term for the process of trying to rejuvenate lost relationships with customers?

A) repositioning
B) customer winbacks
C) frequency marketing
D) grassroots marketing

Question 34

What makes customer relationship management possible?

A) the loyalty of consumers to businesses that manufacture their favourite products
B) the adoption of the marketing concept by a majority of businesses worldwide
C) the technological advances that result in strategic integration
D) the increasing demands made by the legal system on business operators

Question 35

What is customer relationship management?

A) the process of maintaining good relationships between all wholesalers and/or retailers in the distribution channel
B) a process used to retain customers when purchases are based on low price or convenience
C) a system for handling late deliveries and damaged product returns
D) the process of re-orienting a business to a concentrated focus on satisfying customers

Question 36

Which of the following is an example of affinity marketing?

A) University of Manitoba's branded credit card
B) Hallmark's Gold Crown card
C) Blockbuster Rewards video card
D) Air Canada's Aeroplan program

Question 37

What do databases have the capacity to do when used properly?

A) calculate the amount of a customer's next purchase
B) force customers or targeted customer groups to buy more
C) reduce customer retention and referral rates
D) identify a firm's most profitable customers

Question 38

What type of marketing is the information-based approach that collects and analyses data for specific information about markets and consumers?

A) frequency
B) affinity
C) database
D) customer service

Question 39

The manufacturer of a new line of snowboards sends out a team of young, hotshot snowboarders to a popular ski resort to use the boards and talk up the brand with people they encounter on the slopes.What type of marketing is this an example of?

A) relationship marketing
B) internal marketing
C) viral marketing
D) buzz marketing

Question 40

What is the first priority in the decision to form a partnership?

A) to locate companies that can add value to the relationship
B) to locate companies that would otherwise compete, in order to eliminate them
C) to locate companies that have weak management in order to pirate resources from them
D) to locate companies that will avoid potential monopolistic situations

Question 41

How does Proctor & Gamble pay special attention to the needs of national retailers, such as Walmart and Canadian Tire?

A) through national account selling
B) through business-to-business databases
C) through electronic data interchanges
D) through vendor-managed inventory

Question 42

Since the Industrial Revolution, most manufacturers have focused on making products and then promoting them to customers in hopes of selling enough to cover costs and earn a profit.

Question 43

How does electronic data interchange (EDI) compare with the traditional system of business-to-business communication?

A) EDI has a smaller capacity to gather marketing information.
B) EDI improves its users' efficiency and competitiveness.
C) EDI produces a substantial amount of paper and waste.
D) EDI is currently inefficient until the system can be updated.

Question 44

What is one of the most important measures for evaluating customer relationship programs?

A) weekly cost of program administration
B) average amount of each transaction the program generates
C) lifetime value of a customer
D) yearly income the program provides

Question 45

Which of the following is one of the advantages of national account selling?

A) the buyer's ability to demonstrate its depth of commitment to the seller
B) a strengthened buyer-seller relationship through collaboration
C) demonstrated loyalty to a specific buyer through its favoured status
D) increased costs, but increased profits as well

Question 46

Why are strategic alliances formed?

A) to satisfy corporate officers
B) to avoid problems related to antitrust legislation
C) to create a competitive advantage
D) to present a united front to labour unions

Question 47

A biotechnology company and a university have formed a partnership to develop a new class of cancer-fighting drugs.What type of partnership is this?

A) buyer
B) seller
C) internal
D) lateral

Question 48

How can a firm improve the speed and efficiency of its supply-chain operations?

A) by cultivating its upstream relationships and putting pressure on its downstream ones
B) by sacrificing the needs of upstream members of the chain in favour of those downstream
C) by keeping communication with suppliers to a minimum to avoid company leaks
D) by coordinating its operations with those of other members of the chain

Question 49

Whirlpool and Sears are working together on a collaborative effort involving forecasting, planning, and replenishment of merchandise in the store.What are the two companies utilizing?

A) co-marketing
B) collaborative planning, forecasting, and replenishment
C) supply-chain management
D) vendor-managed inventory

Question 50

What is involved in the joint venture option for structuring a strategic alliance?

A) rarely the formation of a new business unit
B) less formality than a cooperative relationship
C) a combined, new-product development team
D) the partners taking ownership positions

Question 51

When partners in a strategic alliance form a new business unit to implement their plans, what have they created?

A) a joint venture
B) a collusion organization
C) a development team
D) a merged organization

Question 52

What do lifetime-value-of-a-customer and payback calculations recognize?

A) that customers will always be there, regardless of the industry or product
B) that customer complaints have little relevance to how people actually behave
C) that long-term customers are usually more valuable than new ones
D) that customer satisfaction is not the determinant of how loyal the customer will be

Question 53

Which of the following best describes long-term customers?

A) They are less valuable to a company than short-term customers.
B) They are more difficult to deal with than short-term customers.
C) They are expensive investments because the upkeep is costly.
D) They are more valuable assets than new ones.

Question 54

What system is in place when a seller determines how much product a buyer needs and then automatically ships new goods to that buyer?

A) customer relationship management
B) vendor-managed inventory
C) national account selling
D) business-to-business alliance

Question 55

Columbia is a sporting goods store and Jeep is an automobile.What is the Columbia edition of the Jeep Liberty an example of?

A) co-branding
B) co-marketing
C) lateral partnership
D) internal partnership

Question 56

Transaction-based marketing depends on the development of social ties between buyers and sellers.

Question 57

How does a cooperative relationship formed between businesses compare to a joint venture?

A) It typically involves forming a new business unit.
B) It may involve partners taking ownership positions.
C) It is usually less formal than a joint venture.
D) It would not be typified by a joint, new-product development team.

Question 58

Which of the following is an important competitive advantage that results from effective supply-chain management?

A) variable costs
B) lower level of costly innovation
C) autonomy and independence among the chain's members
D) improved conflict resolution within the chain

Question 59

What is the ultimate expression of relationship marketing in the business-to-business sector?

A) a cartel
B) a strategic alliance
C) a monopolistic competition
D) an oligopoly

Question 60

What benefit does a retailer gain from the use of electronic data interchange (EDI) as a quick-response merchandising tool?

A) It allows the retailer to order and store increased quantities of inventory so a shortfall doesn't occur.
B) The system can forecast new consumer trends.
C) It reduces the time merchandise is held in inventory, which translates into cost savings.
D) The retailer does not have to feel tied to a particular supplier.

Question 61

Social interaction with the customer is the second step on the relationship marketing continuum.It can be formal or informal and occur at any level with an organization.

Question 62

Creating long-term relationships with customers leads to improved products and better sales, but it comes at a high price for the company and, ultimately, the consumer.

Question 63

The factor that moves most companies from relationship marketing to transaction-based marketing is the realization that getting new customers is more profitable than serving old ones.

Question 64

Transaction-based marketing recognizes and builds on the concept that providing added value to customer transactions through superior customer service improves customer retention and referrals.

Question 65

It costs millions in advertising to lure new customers to cosmetic counters.A cosmetics company CEO recognized that women prefer to be loyal to their cosmetic brands and, in doing so, would need products that take a woman through her lifetime, changing as her skin changes.By following this philosophy, the company began practising one of the main tenets of relationship marketing.

Question 66

Successful internal marketing efforts create satisfied employees who spread positive word-of-mouth messages to relatives, friends, and acquaintances.

Question 67

The ultimate transaction-based relationship is between a customer and a vending machine.

Question 68

Companies that excel at satisfying customers provide their employees with the necessary tools to address customer requests and problems in a timely manner.

Question 69

The relationship marketing continuum is the natural process of finding a customer, servicing the customer, and replacing lost customers.

Question 70

First-level relationship marketing programs typically rely on pricing and other financial incentives to motivate the customer into a buying relationship with a vendor.

Question 71

Internal marketing is equally as important as external marketing because studies show that 40 percent of all consumer product sales come from employees and their extended families.

Question 72

In relationship marketing, the focus is on enticing a buyer to make an immediate purchase based on factors such as low price, convenience, or packaging.

Question 73

One basic element of relationship marketing involves putting customers at the centre of a company's efforts.Companies are then required to gather information about customers, analyze the data, and monitor customer satisfaction.

Question 74

The gift shop at Vancouver International Airport services tourists from countries all over the world.Although sales personnel are courteous, the relationship with customers is primarily transaction based.

Question 75

A long-term relationship between a buyer and a seller is often based entirely on low prices and other financial incentives.

Question 76

Pricing may lure a customer, but will not retain the customer in the long run because competitors can always duplicate pricing and discounts.

Question 77

The human resources director at Lowe Locks, Inc.has decided to restructure the evaluation process.She recommends that a percentage of feedback come from input provided by suppliers and distributors of their products.This restructuring process indicates that the focus of Lowe Locks is on transaction-based marketing.

Question 78

In third-level relationship marketing, buyer-seller relationships are transformed structurally into business partnerships.

Question 79

Relationship marketing views the buyer/seller relationship as equal partners, thus motivating customers to enter into a long-term cycle of repeat purchases, customer satisfaction, and profitability.

Question 80

One of the underlying concepts of internal marketing is that employees can affect the overall value the firm can provide, even if they have no direct contact with the organization's external customers.