Deck 13: Building Partnering Relationships

Question 1

Customer lifetime value is measured the same way for both buyers and sellers.

Answer 1

False

Question 2

In "In Tough Times, Can We Afford Partnerships" one commentator states, "What works when times are tough will work when times are good-and the reverse is always true."

Answer 2

False

Question 3

A study found that the average company loses 20-50 percent of its customer base each year. This is an example of how salespeople create lifetime customer value.

Answer 3

False

Question 4

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

Question 5

Using a consultative customer-oriented sales approach has been shown to improve:

A)macroeconomic equilibrium.
B)customer retention and firm profitability.
C)production efficiency and source complementary synergy.
D)buyer's resistance to post-purchase ambiguity.
E)partnering exploration and functional likability.

Question 6

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

Question 7

Using a consultative customer-oriented sales approach has been shown to improve both customer retention and firm profitability.

Question 8

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 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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)customer lifetime value

Question 15

The total potential revenue derived from a customer over an extended period of time is called:

A)economic profit maximization.
B)mutual sales investment.
C)supplier relationship management.
D)customer lifetime value.
E)partnering value delivery.

Question 16

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 17

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

Question 18

In "In Tough Times, Can We Afford Partnerships" advises salespeople to:

A)go, and stay in front of your customers.
B)be essential.
C)use this time to innovate.
D)resist the urge to sell on price alone.
E)all of the above

Question 19

In the opening profile Kevin Clonch from Total Quality Logistics (TQL) knows transportation issues make customers nervous because so many things can go wrong.

Question 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

Hugh is a salesperson who primarily stocks the DVDs 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 28

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 29

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 satisfies Corina thereby:

A)reducing the gas station's profit margin.
B)maximizing Corina's solo exchange profit.
C)increasing Corina's buyer's profit.
D)reinforcing a functional relationship.
E)producing an exploratory relationship.

Question 30

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 31

Without ____________, behavioral loyalty cannot develop.

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

Question 32

_____ 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 33

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

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

Question 34

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 35

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 36

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 37

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 38

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 39

_____ 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 40

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 41

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 42

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 43

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 44

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 45

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 46

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 47

J.B. Hunt Transportation sells its delivery service across the United States. The trucking firm is using IBM-designed on-board computers in its trucks so its drivers can send and receive messages, and store information about their loads, including estimated time of arrival. The system also allows the home office to monitor driving speed and engine information. J.B. Hunt is using technology to:

A)increase its efficiency.
B)increase its economies of scale.
C)decrease its need for credible commitment.
D)decrease its mutual dependency.
E)do all of the above

Question 48

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

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

Question 49

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 50

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 51

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 52

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 53

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 54

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 55

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)common goals
E)all of the above

Question 56

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 57

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 58

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 59

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

Question 60

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 61

What are the characteristics of relational partnerships?

Question 62

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 63

How is organizational support important to selling?

Question 64

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 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

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 67

Discuss the following statement: "Partnering-oriented salespeople are value creators."

Question 68

List the five foundations of a successful, long-term relationship between a customer and a salesperson.

Question 69

What different types of relationships can exist between buyers and sellers?

Question 70

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 71

How is a market exchange relationship a win-lose relationship?

Question 72

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 73

Create an example to explain the concept of customer lifetime value.

Question 74

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 75

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 76

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 77

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 78

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 79

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 80

In the opening profile about Total Quality Logistics how did the company's originator want to make his company stand out from the competition.