Deck 13: Building Partnering Relationships

Question 1

A strategic partnership can lead to a win-win situation but requires a high degree of commitment and results in lower flexibility for both parties.

Answer 1

True

Question 2

In the commitment phase of relationship development,investments are made,especially in the form of sharing proprietary information,plans,goals,and the like.

Answer 2

True

Question 3

When dissolution occurs in the latter stages of a relationship between two firms,the loss of investments made in the relationship can be significant and have an impact throughout both organizations.

Answer 3

True

Question 4

Salespeople must try to develop a strategic partnership with every new account they work with.

Question 5

In the context of professional selling,relationship marketing refers to creating the type of relationship that best suits the needs of the selling firm.

Question 6

The buyer and the seller in a functional relationship typically pursue their own self-interests because chances of them doing business together are low.

Question 7

Using a consultative customer-oriented sales approach leads to lower firm profitability and loss of customer base.

Question 8

Companies prefer buyers who are both attitudinally and behaviorally loyal.

Question 9

When someone purchases the same product out of habit,that pattern is known as attitudinal loyalty.

Question 10

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

Question 11

It is advisable to build strategic partnerships with large accounts exclusively because of the operation of economies of scale.

Question 12

Customers are the primary revenue source for companies.

Question 13

The use of supplier management systems to discover current suppliers with whom partnership may be possible occurs in the commitment stage of the relationship development process.

Question 14

Buying out of habit can reduce shopping costs and increase profit when past experience can indicate future satisfaction.

Question 15

Rajesh always purchases cell phones manufactured by Telekom Inc.Thus,for Telekom,Rajesh has a very low customer lifetime value.

Question 16

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

Question 17

Customer lifetime value is the combined total of all future sales.

Question 18

The expansion stage of the relationship development process involves efforts by both parties to investigate the benefits of a long-term relationship.

Question 19

The sole determinant of customer lifetime value is a customer's purchases.

Question 20

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

Question 21

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 office every quarter.
B) Mariah purchases a box of cookies from a store while on vacation.
C) Tommy buys the same brand of toothpaste because he likes the way it tastes.
D) Sunil signs a service contract from a cleaning company.
E) Fred purchases an apartment from his friend who owns a construction company.

Question 22

Which of the following statements is true of customer lifetime value?

A) Salespeople lay more emphasis on a single sale, rather than the combined value of future sales.
B) Customer lifetime value is only measured for transactions involving a solo exchange.
C) There is no way to estimate the sum of the future sales.
D) The customer lifetime value is a statement explaining how the salesperson's products will effectively solve the buyer's business issue.
E) Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars.

Question 23

Shared goals help sustain the partnership when the expected benefit flows are not realized.

Question 24

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

A) price
B) inventory
C) profit
D) promotion
E) distribution

Question 25

In which of the following scenarios is a transaction occurring 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) None of the above occurs without a buyer-seller relationship.

Question 26

Mutual investments are tangible investments in a relationship by both parties.

Question 27

A critical element in fostering good relationships is giving boundary-spanning employees the necessary support.

Question 28

The two types of market exchanges are:

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

Question 29

In which of the following types of salesperson-customer relationships will the time horizon be the shortest?

A) Solo market transaction
B) Functional relationship
C) New task buy
D) Partnering relationship
E) Modified rebuy exchange

Question 30

Open and honest communication is a key building block for developing successful relationships.

Question 31

In a strategic partnership,most communication between the buyer and the selling organization goes through the salesperson.

Question 32

Likability can be influenced with personal communications such as birthday cards,handwritten notes,and so forth.

Question 33

Product demonstrations,plant tours,and other special types of presentations are some ways to illustrate dependability.

Question 34

Knowledge of the customer,the product,the industry,and the competition are all necessary to the success of a salesperson.

Question 35

Using a consultative customer-oriented sales approach:

A) focuses on solo exchanges as the primary type of business transaction.
B) improves customer retention and firm profitability.
C) fails to improve relationship marketing efforts in business selling commodities.
D) leads to low behavioral loyalty.
E) reflects the lowest degree of relationship marketing efforts.

Question 36

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

A) partially
B) attitudinally
C) behaviorally
D) selectively
E) strategically

Question 37

The management at Splash,a major beverage company,knows that approximately 40 percent of its consumers always buy Splash products without considering alternative drinks or the prices of their products.For Splash,such consumers can be characterized as _____ loyal.

A) selectively
B) behaviorally
C) partially
D) relatively
E) strategically

Question 38

Although likability is not as important as other dimensions,salespeople should still attempt to find a common ground or interest with all buyers.

Question 39

As Azi traveled across the state of Tennessee,he stopped and bought gas,a bottle of soda,and a bag of corn chips at a small store that he will probably never visit again.What type of transaction did Azi engage in when he made these purchases?

A) Solo exchange
B) Functional relationship
C) Straight rebuy exchange
D) Partnering relationship
E) Modified rebuy exchange

Question 40

Training is vital in helping salespeople identify ways to make it easier for customers to do business with them.

Question 41

Without _____,behavioral loyalty cannot develop.

A) strategic likability
B) tactical training
C) relational dissolution
D) customer satisfaction
E) solo exchange transactions

Question 42

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

A) Both the buyer and the seller in a strategic partnership are primarily interested to pursue their own self-interests.
B) Members of strategic partnerships make significant investments for the sake of the relationship.
C) Market exchanges offer buyers and sellers very little flexibility but require a high level of investment.
D) Concern for the other party is highest in a solo market exchange.
E) Trust is lowest in a strategic partnership.

Question 43

Corning's Ceramics is a company that produces ceramic parts.Since the company reached an agreement with a cardboard box manufacturer,it has saved about $10 million in packaging costs.Additionally,the box manufacturer has also enjoyed a three-fold rise in sales.Which of the following types of relationships do these two firms have?

A) Strategic partnership
B) Functional relationship
C) Solo market transaction
D) Relational partnership
E) Competitive relationship

Question 44

_____ are long-term market exchanges in which buyers purchase out of habit or routine.

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

Question 45

Pyro Electronics is the only supplier of Torin auto headlamps and both companies wanted to do more business together.Pyro Electronics worked on its total quality management system and acquired more business,while Torin developed a just-in-time inventory management system to deliver goods timely to Pyro Electronics.Pyro Electronics and Torin have developed a _____.

A) relational partnership
B) market exchange alliance
C) strategic partnership
D) functional relationship
E) hierarchical relationship

Question 46

Which of the following statements about functional relationships is true?

A) Buyers and sellers are both primarily concerned about the welfare of the other party.
B) Price is of little concern for both buyers and sellers in functional relationships.
C) Functional relationships are examples of win-win partnerships.
D) Functional relationships continue as long as the customer is satisfied.
E) In functional relationships, both buyers and sellers have a high degree of concern for the other party.

Question 47

The two types of partnerships between buyers and sellers are called _____.

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

Question 48

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 annual repainting of all buildings in the complex
B) A dentist's purchase of dentures, plates, and other 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 foreman's purchase of lubricating oil for an assembly line
E) An interior decorator's purchase of a cellular phone

Question 49

_____ 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) Personal selling partnerships
E) Solo exchange alliances

Question 50

Which of the following statements about strategic partnerships is true?

A) Strategic partnerships are not found anywhere outside the United States.
B) Members of strategic partnerships have a high level of dependence on and trust in each other.
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

Zeller's,a Canadian discount store,has developed cross-functional teams with experts from its retailing division and its vendors.These teams work together to develop information systems to improve relationships between the vendors and Zeller's employees.Zeller and its vendors have developed a _____.

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

Question 52

On the third Wednesday of every month,LuEllen's Barbecue Shack orders four pick-up truckloads of hickory for slow-cooking meat.LuEllen always orders the hickory from Samson Wood Products Company because they deliver on time and she likes the quality of the wood.Moreover,she has a high level of trust in them.The buyer-seller relationship between LuEllen and Elaine is an example of a:

A) functional relationship.
B) relational partnership.
C) utilitarian relationship.
D) strategic relationship.
E) solo exchange.

Question 53

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 relationships.
C) The relationship between a buyer and a salesperson in a functional relationship is described as cooperative.
D) The typical time horizon in a functional relationship is short term because previous purchases do not exert a significant impact on the next purchase.
E) All of the above.

Question 54

A salesperson for the glass bottle manufacturers for H.J.Ketchup Company suggested that the company needed to redesign its ketchup bottle.This would improve yields on the bottle-filling line and make the bottle lighter.H.J.Ketchup Company readily implemented the salesperson's suggestions and the company enjoyed increased savings.Such a major change in the business happened because the two companies were engaged in a _____.

A) market exchange transaction
B) solo exchange partnership
C) strategic partnership
D) functional partnership
E) hierarchical relationship

Question 55

_____ are created for the purpose of uncovering and exploiting joint opportunities.

A) Tactical relationships
B) Functional relationships
C) Solo market transactions
D) Strategic partnerships
E) Relational partnerships

Question 56

Franco breeds a wide variety of fish.For the last nine years he has been going to Fins-to-You,a local pet store that specializes in tropical fish and aquarium supplies,for all of his needs.He buys everything from fish food to aquarium heaters to replacement fish from this store.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) Solo market exchange

Question 57

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

A) hierarchical
B) functional
C) solo exchange
D) transactional
E) relational

Question 58

Which of the following is a feature of the relationship between a salesperson and a customer in a strategic partnership?

A) Competition
B) Conflict
C) Short-term orientation
D) Low risk
E) Coordination

Question 59

Caitlin Gold has sold business textbooks for two decades.When on the field,she makes it a point to try to create a personal relationship with her customers.When a committee of professors was constituted to select 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 60

Corina almost always shops at Gas-N-Go.She finds the store easily accessible from the highway,likes the service,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) reducing Corina's attitudinal loyalty.
D) reinforcing a functional relationship.
E) producing a partnering relationship.

Question 61

Which of the following is NOT one of the factors that constitutes trust?

A) Dependability
B) Honesty
C) Likability
D) Spontaneity
E) Competence

Question 62

When salespeople and buyers trust each other,they:

A) share ideas more willingly.
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) perform all of the above functions.

Question 63

Jenkins is a new sales rep for Aber Technology.His company has developed a series of sophisticated programs in conjunction with another company.However,when he tries to implement these programs in a project he is handling,he learns that these assets cannot be easily transferred.Which of the following types of assets is Jenkins trying to use?

A) In-kind services
B) Market exchanges
C) Functional resources
D) Mutual investments
E) Win-win trusts

Question 64

Which of the following serves as a foundation for a successful strategic partnership?

A) Autocratic leadership
B) Profit orientation
C) Short-term orientation
D) Common goals
E) All of the above

Question 65

Which of the following statements is true of common goals?

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

Question 66

Which of the following stages of the relationship development process may NOT occur in a strategic partnership?

A) Awareness
B) Exploration
C) Commitment
D) Dissolution
E) Expansion

Question 67

Zero Zone,Inc.manufactures and sells display refrigeration and freezer units to supermarkets.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.Such interactions illustrate the salespeople's _____.

A) discipline
B) resilience
C) likeability
D) flexibility
E) competence

Question 68

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 employees.Andy,the salesperson for Fashion Seal,has agreed to make some modifications in the uniforms to suit the needs of the retirement center personnel.Both parties view this as a long-term relationship built on mutual trust.

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

Question 69

The stage of dissolution in the relationship development process:

A) occurs for all strategic partnerships.
B) occurs only during the middle phase of the relationship.
C) causes most damage when it occurs in the latter stages of the relationship.
D) results in greater exploration and commitment by both parties.
E) results only in the case of market exchanges.

Question 70

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

A) Only the organizational structure of the seller needs to change for a successful partnering relationship to be implemented.
B) The organizational structure and management provide the necessary support for the salespeople and buyers in a partnering relationship.
C) Local offices are not affected by partnerships created at headquarters.
D) It is only the sales force of a firm that is required to have an orientation to building partnerships.
E) Boundary-spanning employees are employees who limit their operations to their duties within the organization, rather than working with clients and vendors.

Question 71

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

Question 72

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 73

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

A) Dependability
B) Honesty
C) Likability
D) Customer orientation
E) Competence

Question 74

Zero Zone,Inc.manufactures and sells display refrigeration and freezer units to supermarkets.When a supermarket manager called Nathan,one of Zero Zone's salespeople,to inform him that his Zero Zone rear load refrigeration display unit needed to be defrosted about three times more than was normal,Nathan responded immediately.He cancelled his other appointments and drove to the supermarket.Nathan worked for two hours installing a new oversized coil to fix the problem.Which of the following factors needed for the development of mutual trust is typically illustrated in this example?

A) Morality
B) Honesty
C) Marketability
D) Customer orientation
E) Likability

Question 75

Zero Zone,Inc.manufactures and sells display refrigeration and freezer units to supermarkets.The manufacturer is successful because it is able to keep the promises it makes.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) Likability
D) Spontaneity
E) Profitability

Question 76

Carla's responsibilities include dealing with customers,vendors,and finance.Carla is a:

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

Question 77

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 78

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 79

Andy,a salesperson for Fashion Seal Uniforms,is telling the owner of a retirement home about the importance of caregivers having clean and attractive uniforms that will withstand countless hot water washes.Andy 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 home tells Andy that she is planning to open one new center every six months for the next three years and will need a lot of uniforms.Then the owner agrees to buy six but with no commitment to extend the relationship.Which of the following stages of the relationship development process does this exemplify?

A) Negotiation
B) Exploration
C) Commitment
D) Attraction
E) Expansion

Question 80

Caesar salad dressing when made correctly contains raw eggs,but fear of salmonella poisoning has forced many restaurants to use an inferior tasting bottled dressing in their Caesar salads.Davidson from Food Tech,a company developing preservatives and food additives,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 Food Techn developed the process and will share it with poultry farmers,the company would be classified as a:

A) competitive partner.
B) deep seller.
C) lead user.
D) spotter.
E) driver.