Deck 2: Building Partnering Relationships

Question 1

Customer satisfaction occurs when the buyer's expectations are met and needs fulfilled.

Answer 1

True

Question 2

The market exchange is the highest level of long-term relationship that a buyer and seller can commit to.

Answer 2

False

Question 3

Supplier relationship management uses existing vendor relationships to cultivate new vendor relationship.

Answer 3

False

Question 4

A(n) ___________ profit is the selling price minus cost of goods sold and selling costs.

A) economic
B) seller's
C) production
D) buyer's
E) partnering

Question 5

Gerry's company brought in the top performing salespeople and studied their sales presentations. Using the information gathered, the company developed a(n) _____________ for all salespeople to use without deviation.

A) customized variable presentation
B) automatic rebuy promotion
C) canned sales pitch
D) exploratory sales pitch
E) win-win presentation

Question 6

During which stage in the evolution of personal selling was the role of the salesperson to serve as provider?

A) marketing
B) sales
C) production
D) growth
E) partnering

Question 7

Boundary-spanning employees are only needed in the early stages of the development of the buyer-seller relationship.

Question 8

During the production era, the primary activity for salespeople was to:

A) persuade people to purchase products
B) match available offerings to buyer's needs
C) promote long-term relationships with customers
D) take orders and deliver goods
E) prospect for potential buyers

Question 9

Relational partnerships are created explicitly for the purpose of uncovering and exploiting joint opportunities.

Question 10

A(n) ___________ profit is the selling price minus cost of the product and time and effort needed to purchase it.

A) economic
B) seller's
C) production
D) buyer's
E) partnering

Question 11

The typical goal for market exchange selling is to maximize lifetime customer relationships.

Question 12

For consumers, value equals selling costs minus the selling price and effort.

Question 13

The aggressive, arm-twisting, customers'-wants-don't-matter style of selling that created some of today's negative images of the selling profession is most closely associated with which era of the evolution of personal selling?

A) marketing
B) sales
C) production
D) decline
E) partnering

Question 14

The Internet often increases buyer's profit through

A) economic competence
B) strategic supply chain management
C) production efficiency
D) reduced costs of shopping
E) ecological partnering

Question 15

Another name for a buyer's profit is:

A) value
B) barter
C) CRM
D) a market exchange
E) trust

Question 16

Although each of the eras of the evolution of personal selling is associated with a particular time period, all of the various roles for salespeople still exist.

Question 17

The sum of the purchases a customer makes over their entire life is equimarginal value of a customer.

Question 18

During the _____ era of the evolution of personal selling, the role of salespeople was to aggressively convince buyers to buy products.

A) marketing
B) sales
C) production
D) maturity
E) partnering

Question 19

Value is measured the same way for both buyers and sellers.

Question 20

Lead users face and resolve problems after the rest of the marketplace has addressed these needs.

Question 21

In the _____ era of the evolution of personal selling, salespeople are value creators who work with their customers and their company to develop outcomes that enhance the profits of both firms.

A) marketing
B) sales
C) production
D) growth
E) partnering

Question 22

Universities constantly send information, promotions and solicitations to their graduates, even recent graduates who are unlikely to make major donations to the school. Universities know if they can create loyalty, the _______________________ or sum of graduates' purchases and donations over their entire life can be considerable.

A) average return on investment
B) behavioral loyalty return
C) customer selling value
D) donor gratitude endowment
E) lifetime customer value

Question 23

As Azi traveled across the state of Tennessee, he stopped and bought gas, a soda and a bag of corn chips at a small convenience store that he will probably never visit again. Azi engaged in a:

A) market exchange
B) functional relationship
C) straight rebuy exchange
D) partnering relationship
E) modified rebuy exchange

Question 24

Bonnie's Doughnut Factory produces a variety of breakfast sweets like those frequently sold at convenience stores. Drivers from Bonnie's sell the snacks on established routes all over the tri-state area. Since the company professes to have a relationship marketing philosophy with its customers, we should expect which employees to be oriented toward providing customer satisfaction?

A) the route drivers (sales force)
B) the route drivers plus the advertising department
C) everyone who works at Bonnie's
D) the marketing department
E) all employees who come in direct contact with customers

Question 25

Which of the following statements about the partnering stage of the evolution of personal selling is true?

A) In this stage, salespeople do not expect the customer to be as committed to the relationship as they are.
B) The role of salespeople at this evolutionary stage is to serve as order takers.
C) The objective of the salesperson during at this evolutionary stage is to develop a long-term relationship with customers.
D) Salespeople can expect considerable discussion about short-term problems in a company that has reached the partnering stage of its evolution.
E) All of the above statements about salespeople in the partnering stage are true.

Question 26

Corina almost always shops at Gas-N-Go. She finds it to be easy to access from the highway, likes the people and receives special discounts as a frequent customer. Corina is less likely to shop around for her next purchase because Gas-N-Go has reduced the hassle, thereby:

A) reducing the gas station's profit margin
B) maximizing Corina's solo exchange profit
C) increasing Corina's buyer's profit
D) replacing a functional relationship with a boundary-spanning customer satisfaction investment
E) producing an exploratory relationship

Question 27

For many years thousands of loyal fans followed the Grateful Dead around the country, rarely missing a concert. These fans, known as "Dead Heads" were ___________ loyal.

A) attitudinally
B) behaviorally
C) customarily
D) dependably
E) strategically

Question 28

For the customer, _____ is the critical issue in a market exchange.

A) price
B) product novelty
C) profit
D) promotion
E) distribution

Question 29

Without _____________, behavioral loyalty cannot develop.

A) strategic likeability
B) tactical training
C) relational dissolution
D) customer satisfaction
E) Routine purchasing

Question 30

_____ are long-term market exchanges in which the buyer purchases out of habit or routine.

A) Strategic partnerships
B) Tactical relationships
C) Relational partnerships
D) Functional relationships
E) Routine partnerships

Question 31

Franco raises fish as a hobby. For the last nine years he has gone to Fins-to-You, a local pet store that specializes in tropical fish and aquarium supplies for all of his needs--from fish food to aquarium heaters to replacement fish. Which of the following terms best describes the relationship Franco has with Fins-to-You?

A) strategic partnership
B) tactical relationship
C) relational partnership
D) functional relationship
E) routine partnership

Question 32

In which type of salesperson-customer relationship will the time horizon be the shortest?

A) market exchange
B) functional relationship
C) straight rebuy exchange
D) partnering relationship
E) modified rebuy exchange

Question 33

During the _____ era of the evolution of personal selling, salespeople took on the role of problem solver and became responsible for identifying the customers' needs and demonstrating how their products would satisfy those needs.

A) marketing
B) sales
C) production
D) growth
E) partnering

Question 34

Which of the following transactions can occur without the buyer and seller having a relationship?

A) Beverly purchases a pair of sandals from a retail sales clerk
B) Leon buys a vacuum cleaner from a door-to-door salesperson
C) Art acquires a new Volvo from a car dealership
D) Ursula hires a weekly diaper service
E) No sale can take place without some buyer-seller relationship being established

Question 35

The two types of market exchanges are:

A) functional and strategic relationships
B) tactical and behavioral market exchanges
C) solo market exchanges and functional relationships
D) tactical market exchanges and profit relationships
E) one-sided relationships and bipartisan market exchanges

Question 36

Which of the following is the BEST example of a solo market exchange?

A) Jimmy buys a new suit from a tailor who visits his offices quarterly
B) Mariah purchases a bag of corn chips from the convenience store nearest to her home
C) After the flood damaged his home in Des Moines, Jon hired a waste management company to haul away the rotten carpeting in front of his house
D) Sunil purchases a service contract from a cleaning company, which will clean his home one day a week
E) On his way home from calling on a new prospect who was unwilling to buy, Fred stopped to talk to his insurance agent about additional life insurance

Question 37

The nature of the relationship between the salesperson and his or her customer in a strategic partnership can be described as:

A) competitive
B) bargaining
C) short-term
D) conflict
E) coordination

Question 38

The primary objective of the partnering-oriented salesperson is to:

A) create a market-exchange relationship
B) develop long-term relationships with customers
C) close the sale quickly
D) act ethically when dealing with international customers
E) satisfy the short-term needs of the supplier

Question 39

Each of the two major soft drink companies know approximately 40 percent of consumers always buy their company's products, without consideration of alternatives or price. Consumers who purchase their product out of habit are ___________ loyal.

A) attitudinally
B) behaviorally
C) customarily
D) dependably
E) strategically

Question 40

Which of the following statements about functional relationships is true?

A) The sole benefit of functional relationships is short-term profit.
B) Functional relationships are a type of partnering relationship.
C) The relationship between the buyer and the salesperson in a functional relationship is described as cooperative.
D) The typical time horizon in a functional relationship is short term.
E) All of the above statements about functional relationships are true.

Question 41

Zeller's, a 205-store Canadian discount store, owes much of its success to its ability to develop _____ with its vendors. It has developed cross-functional teams with experts from the retailer and from its vendors. These teams work together to develop information systems to improve relationships between the vendor and Zeller's and to develop promotions tailored to help both the vendor and the retailer sell more.

A) relational partnerships
B) buyer-seller alliances
C) strategic partnerships
D) win-lose partnerships
E) hierarchical relationships

Question 42

The two types of partnerships between buyer and seller are called:

A) functional and mutual
B) tactical and strategic
C) cognitive and affective
D) relational and strategic
E) tactical and functional

Question 43

A _____ partnership will occur when buyer and seller have close personal relationships that allow them to communicate effectively with each other.

A) hierarchical
B) functional
C) mutual
D) transactional
E) relational

Question 44

Every third Wednesday in the month, LuEllen's Barbecue Shack orders four pick-up truckloads of hickory for slow-cooking the meat. She always orders from Samson Wood Products Company because they deliver on time and she likes the quality of the wood. Since both parties act like close friends rather than business acquaintances, this exemplifies a(n):

A) functional relationship
B) relational partnership
C) utilitarian relationship
D) hierarchical relationship
E) buyer-seller alliance

Question 45

Strategic partnerships do not necessarily mean __________________ for either buyer or seller.

A) mutual customers exploration
B) discretionary spending
C) exclusivity
D) functional literacy
E) lead user confirmation

Question 46

Which of the following serves as a foundation for a successful, long-term relationship?

A) autocratic leadership
B) a profit-orientation
C) a simple, easy-to-sell, commodity-type product
D) shared goals
E) all of the above

Question 47

For which of the following transactions would a functional relationship between the buyer and seller be LEAST appropriate?

A) An apartment complex owner's procurement of 80 gallons of paint for the once every three year repainting of all buildings in the complex
B) A dentist's purchase of dentures, plates, and other mouth apparatus from a dental lab where they are made
C) A commuter's purchase of a daily newspaper to read on his ride to work
D) A job foreman's purchase of lubricating oil for an assembly line
E) An interior decorator's purchase of a cellular phone

Question 48

A few years ago, the salesperson for a glass bottle manufacturer suggested to the H.J. Heinz Company that it needed to redesign its catsup bottle to improve yields on the bottle-filling line and to make the bottle lighter. Because Heinz's purchasing agent and the salesperson for the glass bottle manufacturer were engaged in ____, Heinz readily implemented the salesperson's suggestions and saw increased savings.

A) reciprocal partnership
B) buyer-seller alliance
C) strategic partnership
D) win-lose partnership
E) hierarchical relationship

Question 49

Hugh is a salesperson who primarily stocks the DVDs and compact disks at convenience stores. His primary role in the functional relationships he has set up with store buyers is to:

A) sell on the basis of product quality
B) sell as much as he can to each buyer
C) ignore the price element of the marketing mix as a selling point
D) ignore his competition
E) make sure the buyer has no reason to go and look for a new supplier

Question 50

Which of the following statements about strategic partnerships is true?

A) Strategic partnerships are not found anywhere outside the U.S.
B) Strategic partnerships are created for the purpose of uncovering and exploiting joint opportunities.
C) Strategic partnerships typically have a shorter time horizon than functional relationships.
D) Strategic partnerships have lower levels of risk than functional relationships.
E) The strategic partnership can best be described as competitive.

Question 51

Which of the following serves as a foundation for a successful, long-term relationship?

A) mutual trust
B) organizational support
C) shared goals
D) open communication
E) all of the above

Question 52

Which of the following statements about functional relationships is true?

A) Buyers and sellers are both concerned about the welfare of the other party.
B) Price is of low concern for both buyer and seller in a functional relationship.
C) Functional relationships are examples of win-win partnerships.
D) Functional relationships continue as long as the customer is satisfied.
E) In a functional relationship, both the buyer and the seller have a long-term commitment to the relationship.

Question 53

Caitlin Gold has sold business textbooks for seventeen years. She makes it a point to try to create a personal relationship with her customers. When a committee of professors selected a new marketing book, her book was one of the three finalists. Because the committee chairperson considered herself a close friend of Gold, she convinced the committee to select Gold's text over the other options. The committee chairperson trusted Gold to provide a good text at a fair price. This is an example of a:

A) relational partnership
B) functional partnership
C) transactional relationship
D) transformational partnership
E) strategic partnership

Question 54

Corning's Erwin, New York plant produces ceramic parts. Since entering a strategic partnership with a cardboard box manufacturer, it has saved about $10 million, and the box manufacturer has tripled its sales. According to the text, one of the reasons a long-term relationship like this would survive for so long is the:

A) existence of trust between the two parties
B) availability of resources
C) an innovative idea
D) similarity of mission statements created by the two companies
E) similarity of organizational structure used by the companies

Question 55

Research indicates that as long as a buyer is ___________________, switching is unlikely.

A) striving to make more money
B) satisfied with the supplier's performance
C) unable to exert pressure on suppliers to reduce price
D) finds the supplier likable
E) all of the above

Question 56

Strategic partnerships are created to:

A) get lower prices
B) make more immediate sales
C) create a negotiation platform
D) uncover and exploit joint opportunities
E) persuade both parties that each will get "the bigger piece of the pie"

Question 57

The key to the development of successful, long-term customer relationships is:

A) the existence of trust between the two parties
B) the availability of resources
C) an innovative idea
D) similarity of mission statements
E) similarity of organizational structures

Question 58

Philips Electronics is the only supplier of Toyota auto headlamps. Because of their ____, Toyota was able to develop further its just-in-time inventory management system and Philips was able to institute a total quality management approach to its production and acquire more business from other Japanese car manufacturers.

A) reciprocal partnership
B) buyer-seller alliance
C) strategic partnership
D) tactical partnership
E) hierarchical relationship

Question 59

_____ are the long-term business relationships in which the partners make significant investments to improve the profitability of both parties in the relationship.

A) Strategic partnerships
B) Win-lose partnerships
C) Functional relationships
D) Hierarchical partnerships
E) Buyer-seller alliances

Question 60

Which of the following statements about the relationships between buyers and sellers is true?

A) There are long-time, win-win horizons in functional relationships.
B) There is a high level of coordination in strategic partnerships.
C) The potential benefits of a transactional relationship are high.
D) Concern for the other party is highest in relational marketing.
E) Trust is lowest in a strategic partnership.

Question 61

Common goals:

A) are important for all market exchanges
B) inevitably cause a strategic partnership to terminate when expected benefits are not realized
C) give both members of the strategic partnership a strong incentive to pool their resources
D) often cause partners in a strategic relationship to argue about how resources are used and profits are divided up
E) are accurately described by all of the above

Question 62

Jenkins is a new sales rep for Aber technology. His company has developed a series of sophisticated programs in conjunction with another company. He learns these _____________ are specific to the relationship with the other company and cannot be easily transferred to another project he would like to work on.

A) in-kind services
B) market exchanges
C) functional resources
D) mutual investments
E) win-win trusts

Question 63

Caesar salad dressing made correctly contains raw eggs, but fear of salmonella poisoning forced many restaurants to use an inferior tasting bottled dressing on their Caesar salads. Davidson has developed a process for pasteurizing eggs on a large-scale basis. The pasteurization of eggs is a complicated process that took years to perfect. Because Davidson developed the process and will share it with poultry farmers, the company would be classified as a:

A) competitive partner
B) marketing niche company
C) lead user
D) power marketer
E) market guru

Question 64

Which of the factors used to develop mutual trust between a buyer and a seller is LEAST important?

A) dependability
B) honesty
C) likeability
D) a customer orientation
E) competence

Question 65

Zero Zone, Inc. manufactures and sells display refrigeration and freezer units to supermarkets. When the supermarket manager called one of Zero Zone's salespeople and told him that his Zero Zone rear load refrigeration display unit needed to be defrosted about three times more than was normal, the salesperson immediately cancelled his dinner plans and drove to the market. There the salesperson worked for two hours installing a new oversized coil to fix the problem. This example illustrates which factor needed for the development of mutual trust?

A) dependability
B) honesty
C) likeability
D) a customer orientation
E) competence

Question 66

When salespeople and buyers trust each other, they:

A) are more likely to monitor each other's daily activities
B) find more opportunities available to take advantage of each other
C) communicate more efficiently with each other
D) seldom achieve mutually beneficial outcomes
E) do not engage in risky behavior

Question 67

The salesperson for Fashion Seal Uniforms is telling the owner of fifteen retirement homes how important it is that caregivers have clean and attractive uniforms that will withstand countless hot water washes. The salesperson has brought several styles of uniforms that have been washed hundreds of times to show how well his company's uniforms are made. The owner of the retirement homes tells the salesperson that she is planning on opening one new center every six months for the next ten years and will need a lot of uniforms. Then the owner agrees to buy six, but with no commitment to extend the relationship. This is an example of which stage of the relationship development process?

A) awareness
B) exploration
C) commitment
D) attraction
E) expansion

Question 68

Trust in a buyer-seller relationship develops from a combination of five factors. Which of the following is NOT one of those factors?

A) dependability
B) honesty
C) likeability
D) obstinacy
E) competence

Question 69

The only stage of the relationship development process that may not occur in every relationship is the _____ phase.

A) awareness
B) exploration
C) commitment
D) dissolution
E) expansion

Question 70

Carla's responsibilities include customers, vendors, and finance. Carla is a(n):

A) strategic sales rep
B) boundary-spanning employee
C) customer relationship manager
D) solo exchange monitor
E) behavioral loyalty specialist

Question 71

Common goals:

A) are important for the establishment of a strategic partnership
B) help to sustain a strategic partnership when the expected benefits are not realized
C) give both members of the strategic partnership a strong incentive to pool their resources
D) allow partners in a strategic relationship to focus on opportunities rather than arguing about how profits are divided between them
E) are accurately described by all of the above

Question 72

In the ______ stage of the relationship development process, the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only uniforms worn by her more than 300 employees. The salesperson for Fashion Seal has agreed to make some modifications in the uniforms to suit the needs of the retirement center personnel. Both participants view this as a long-term relationship built on mutual trust.

A) awareness
B) exploration
C) commitment
D) attraction
E) expansion

Question 73

Zero Zone, Inc. manufactures and sells display refrigeration and freezer units to supermarkets. When its salespeople use federal government research information and trade data to explain to customers why 3-inch thick CFC-free urethane insulation is important for keeping products fresh, the salesperson is demonstrating which factor used to develop mutual trust?

A) dependability
B) honesty
C) likeability
D) flexibility
E) competence

Question 74

Bobbi is creating a ________________ system to identify opportunities for cost reduction, greater efficiency, and other mutual benefits with her vendors.

A) lifetime customer value
B) customer relationship management
C) supplier relationship management
D) corporate relational marketing
E) vertical vendor analysis

Question 75

The salesperson for Spectrum Pool Products sent the buyer for a chain of store that was one of his biggest customers a newspaper clipping of the buyer's son showing the boy after he hit a grand slam in a Little League game and a congratulatory card. Which of the following factors involved in developing trust would be most affected by this gesture?

A) dependability
B) honesty
C) likeability
D) a customer orientation
E) competence

Question 76

Which of the following statements about the effects of a successful buyer-seller relationship on organizational structures and cultures is true?

A) Only the organizational structure of the seller needs to change for a successful partnering relationship to be implemented.
B) It is difficult to create and maintain organizational culture that will facilitate the implementation of a partnering relationship.
C) Organizational cultures are unaffected by partnering relationships.
D) Organizational structures are unaffected by partnering relationships.
E) Only the organizational structure of the buyer needs to change for a successful partnering relationship to be implemented.

Question 77

Zero Zone, Inc. manufactures and sells display refrigeration and freezer units to supermarkets. The manufacturer is successful because it is able to make promises like its all-steel construction with 3-inch thick CFC-free urethane insulation is the thickest in the industry and keep them. All customers know that Zero Zone's salespeople and its products live up to all the promises made. This is an illustration of which factor necessary for mutual trust to develop?

A) dependability
B) sales orientation
C) likeability
D) flexibility
E) competence

Question 78

Baxter Healthcare is a leading supplier of hospital products. It has entered into a strategic partnership with many of the hospitals it serves. Baxter supplies them with one-day delivery service of quality products and inventory management assistance. In return, the hospitals give Baxter all of their business. The foundation of their relationships is trust, which is based on:

A) a perceived dependability
B) the ability to supply quality products on one-day's notice
C) concern for each other
D) inventory management expertise
E) all of the above

Question 79

When salespeople and buyers trust each other, they:

A) are more willing to share ideas
B) communicate more efficiently
C) assume that each party will be honest with the other one
D) assume there is no need to constantly monitor the activities of the other
E) are described by all of the above

Question 80

Which of the following is NOT a phase of relationship development for a seller and a buyer?

A) awareness
B) exploration
C) commitment
D) attraction
E) expansion