Chapter 02 Building Partnering Relationships
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Chapter 02
Building Partnering Relationships
True / False Questions
1.(p.30)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.TRUE
Difficulty: Medium
2.(p.30)Value is measured the same way for both buyers and
sellers.FALSE
Difficulty: Medium
3.(p.30)For consumers, value equals selling costs minus the
selling price and effort.FALSE
Difficulty: Medium
4.(p.32)The sum of the purchases a customer makes over their
entire life is equimarginal value of a customer.FALSE
Difficulty: Medium
5.(p.33)The market exchange is the highest level of long-term
relationship that a buyer and seller can commit to.FALSE
Difficulty: Medium
6.(p.34)Customer satisfaction occurs when the buyer's
expectations are met and needs fulfilled.TRUE
Difficulty: Easy
7.(p.35)Relational partnerships are created explicitly for the
purpose of uncovering and exploiting joint opportunities.FALSE
Difficulty: Medium
8.(p.33)The typical goal for market exchange selling is to
maximize lifetime customer relationships.FALSE
Difficulty: Medium
9.(p.44)Boundary-spanning employees are only needed in the early
stages of the development of the buyer-seller
relationship.FALSE
Difficulty: Medium
10.(p.46)Supplier relationship management uses existing vendor
relationships to cultivate new vendor relationship.FALSE
Difficulty: Medium
11.(p.48)Lead users face and resolve problems after the rest of
the marketplace has addressed these needs.FALSE
Difficulty: Easy
Multiple Choice Questions
12.(p.30)A(n) ___________ profit is the selling price minus cost
of goods sold and selling
costs.A.economicB.seller'sC.productionD.buyer'sE.partnering
Difficulty: Easy
13.(p.30)A(n) ___________ profit is the selling price minus cost
of the product and time and effort needed to purchase
it.A.economicB.seller'sC.productionD.buyer'sE.partnering
Difficulty: Easy
14.(p.30)Another name for a buyer's profit
is:A.valueB.barterC.CRMD.a market exchangeE.trust
Difficulty: Easy
15.(p.30)The Internet often increases buyer's profit
throughA.economic competenceB.strategic supply chain
managementC.production efficiencyD.reduced costs of
shoppingE.ecological partnering
Difficulty: Medium
16.(p.31)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
presentationB.automatic rebuy promotionC.canned sales
pitchD.exploratory sales pitchE.win-win presentation
Difficulty: Medium
17.(p.31)During which stage in the evolution of personal selling
was the role of the salesperson to serve as
provider?A.marketingB.salesC.productionD.growthE.partnering
Difficulty: Easy
18.(p.31)During the production era, the primary activity for
salespeople was to:A.persuade people to purchase productsB.match
available offerings to buyer's needsC.promote long-term
relationships with customersD.take orders and deliver
goodsE.prospect for potential buyers
Difficulty: Easy
19.(p.31)During the _____ era of the evolution of personal
selling, the role of salespeople was to aggressively convince
buyers to buy
products.A.marketingB.salesC.productionD.maturityE.partnering
Difficulty: Easy
20.(p.31)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.marketingB.salesC.productionD.declineE.partnering
Difficulty: Medium
21.(p.31)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 departmentC.everyone who works at
Bonnie'sD.the marketing departmentE.all employees who come in
direct contact with customers
Difficulty: Medium
22.(p.31)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.marketingB.salesC.productionD.growthE.partnering
Difficulty: Easy
23.(p.31)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.marketingB.salesC.productionD.growthE.partnering
Difficulty: Easy
24.(p.31)The primary objective of the partnering-oriented
salesperson is to:A.create a market-exchange relationshipB.develop
long-term relationships with customersC.close the sale quicklyD.act
ethically when dealing with international customersE.satisfy the
short-term needs of the supplier
Difficulty: Easy
25.(p.31)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.
Difficulty: Medium
26.(p.32)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.attitudinallyB.behaviorallyC.customarilyD.dependablyE.strategically
Difficulty: Medium
27.(p.32)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.attitudinallyB.behaviorallyC.customarilyD.dependablyE.strategically
Difficulty: Medium
28.(p.32)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 investmentB.behavioral loyalty
returnC.customer selling valueD.donor gratitude endowmentE.lifetime
customer value
Difficulty: Medium
29.(p.33)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 clerkB.Leon buys a vacuum
cleaner from a door-to-door salespersonC.Art acquires a new Volvo
from a car dealershipD.Ursula hires a weekly diaper serviceE.No
sale can take place without some buyer-seller relationship being
established
Difficulty: Easy
30.(p.33)In which type of salesperson-customer relationship will
the time horizon be the shortest?A.market exchangeB.functional
relationshipC.straight rebuy exchangeD.partnering
relationshipE.modified rebuy exchange
Difficulty: Easy
31.(p.33)The nature of the relationship between the salesperson
and his or her customer in a strategic partnership can be described
as:A.competitiveB.bargainingC.short-termD.conflictE.coordination
Difficulty: Easy
32.(p.34)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.
Difficulty: Easy
33.(p.34)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 exchangeB.functional relationshipC.straight
rebuy exchangeD.partnering relationshipE.modified rebuy
exchange
Difficulty: Easy
34.(p.34)The two types of market exchanges are:A.functional and
strategic relationshipsB.tactical and behavioral market
exchangesC.solo market exchanges and functional
relationshipsD.tactical market exchanges and profit
relationshipsE.one-sided relationships and bipartisan market
exchanges
Difficulty: Easy
35.(p.34)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 quarterlyB.Mariah purchases a bag of corn chips from
the convenience store nearest to her homeC.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 houseD.Sunil
purchases a service contract from a cleaning company, which will
clean his home one day a weekE.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
Difficulty: Easy
36.(p.34)For the customer, _____ is the critical issue in a
market exchange.A.priceB.product
noveltyC.profitD.promotionE.distribution
Difficulty: Medium
37.(p.34)_____ are long-term market exchanges in which the buyer
purchases out of habit or routine.A.Strategic
partnershipsB.Tactical relationshipsC.Relational
partnershipsD.Functional relationshipsE.Routine partnerships
Difficulty: Easy
38.(p.34)Without _____________, behavioral loyalty cannot
develop.A.strategic likeabilityB.tactical trainingC.relational
dissolutionD.customer satisfactionE.Routine purchasing
Difficulty: Easy
39.(p.34)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
marginB.maximizing Corina's solo exchange profitC.increasing
Corina's buyer's profitD.replacing a functional relationship with a
boundary-spanning customer satisfaction investmentE.producing an
exploratory relationship
Difficulty: Easy
40.(p.34)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 partnershipB.tactical
relationshipC.relational partnershipD.functional
relationshipE.routine partnership
Difficulty: Medium
41.(p.34)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
relationshipB.relational partnershipC.utilitarian
relationshipD.hierarchical relationshipE.buyer-seller alliance
Difficulty: Medium
42.(p.34)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.
Difficulty: Medium
43.(p.34)Research indicates that as long as a buyer is
___________________, switching is unlikely.A.striving to make more
moneyB.satisfied with the supplier's performanceC.unable to exert
pressure on suppliers to reduce priceD.finds the supplier
likableE.all of the above
Difficulty: Easy
44.(p.35)The two types of partnerships between buyer and seller
are called:A.functional and mutualB.tactical and
strategicC.cognitive and affectiveD.relational and
strategicE.tactical and functional
Difficulty: Easy
45.(p.35)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 qualityB.sell as much as he can
to each buyerC.ignore the price element of the marketing mix as a
selling pointD.ignore his competitionE.make sure the buyer has no
reason to go and look for a new supplier
Difficulty: Easy
46.(p.35)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 complexB.A dentist's purchase of dentures, plates,
and other mouth apparatus from a dental lab where they are madeC.A
commuter's purchase of a daily newspaper to read on his ride to
workD.A job foreman's purchase of lubricating oil for an assembly
lineE.An interior decorator's purchase of a cellular phone
Difficulty: Medium
47.(p.35)A _____ partnership will occur when buyer and seller
have close personal relationships that allow them to communicate
effectively with each
other.A.hierarchicalB.functionalC.mutualD.transactionalE.relational
Difficulty: Easy
48.(p.35)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 partnershipB.functional partnershipC.transactional
relationshipD.transformational partnershipE.strategic
partnership
Difficulty: Medium
49.(p.36)_____ 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
partnershipsB.Win-lose partnershipsC.Functional
relationshipsD.Hierarchical partnershipsE.Buyer-seller
alliances
Difficulty: Easy
50.(p.36)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
partnershipB.buyer-seller allianceC.strategic partnershipD.win-lose
partnershipE.hierarchical relationship
Difficulty: Medium
51.(p.36)Strategic partnerships are created to:A.get lower
pricesB.make more immediate salesC.create a negotiation
platformD.uncover and exploit joint opportunitiesE.persuade both
parties that each will get "the bigger piece of the pie"
Difficulty: Medium
52.(p.36)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.
Difficulty: Hard
53.(p.36)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 partnershipB.buyer-seller
allianceC.strategic partnershipD.tactical partnershipE.hierarchical
relationship
Difficulty: Medium
54.(p.36)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
partnershipsB.buyer-seller alliancesC.strategic
partnershipsD.win-lose partnershipsE.hierarchical relationships
Difficulty: Easy
55.(p.36)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.
Difficulty: Medium
56.(p.36)Strategic partnerships do not necessarily mean
__________________ for either buyer or seller.A.mutual customers
explorationB.discretionary spendingC.exclusivityD.functional
literacyE.lead user confirmation
Difficulty: Medium
57.(p.37)Which of the following serves as a foundation for a
successful, long-term relationship?A.mutual trustB.organizational
supportC.shared goalsD.open communicationE.all of the above
Difficulty: Easy
58.(p.37)Which of the following serves as a foundation for a
successful, long-term relationship?A.autocratic leadershipB.a
profit-orientationC.a simple, easy-to-sell, commodity-type
productD.shared goalsE.all of the above
Difficulty: Medium
59.(p.37)The key to the development of successful, long-term
customer relationships is:A.the existence of trust between the two
partiesB.the availability of resourcesC.an innovative
ideaD.similarity of mission statementsE.similarity of
organizational structures
Difficulty: Medium
60.(p.37)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
partiesB.availability of resourcesC.an innovative ideaD.similarity
of mission statements created by the two companiesE.similarity of
organizational structure used by the companies
Difficulty: Medium
61.(p.38)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 dependabilityB.the ability to supply quality products on
one-day's noticeC.concern for each otherD.inventory management
expertiseE.all of the above
Difficulty: Medium
62.(p.38)When salespeople and buyers trust each other,
they:A.are more likely to monitor each other's daily
activitiesB.find more opportunities available to take advantage of
each otherC.communicate more efficiently with each otherD.seldom
achieve mutually beneficial outcomesE.do not engage in risky
behavior
Difficulty: Hard
63.(p.38)When salespeople and buyers trust each other,
they:A.are more willing to share ideasB.communicate more
efficientlyC.assume that each party will be honest with the other
oneD.assume there is no need to constantly monitor the activities
of the otherE.are described by all of the above
Difficulty: Easy
64.(p.38)Trust in a buyer-seller relationship develops from a
combination of five factors. Which of the following is NOT one of
those
factors?A.dependabilityB.honestyC.likeabilityD.obstinacyE.competence
Difficulty: Easy
65.(p.39)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.dependabilityB.sales
orientationC.likeabilityD.flexibilityE.competence
Difficulty: Easy
66.(p.40)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.dependabilityB.honestyC.likeabilityD.flexibilityE.competence
Difficulty: Easy
67.(p.40)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.dependabilityB.honestyC.likeabilityD.a customer
orientationE.competence
Difficulty: Easy
68.(p.41)Which of the factors used to develop mutual trust
between a buyer and a seller is LEAST
important?A.dependabilityB.honestyC.likeabilityD.a customer
orientationE.competence
Difficulty: Easy
69.(p.41)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.dependabilityB.honestyC.likeabilityD.a customer
orientationE.competence
Difficulty: Easy
70.(p.43)Common goals:A.are important for the establishment of a
strategic partnershipB.help to sustain a strategic partnership when
the expected benefits are not realizedC.give both members of the
strategic partnership a strong incentive to pool their
resourcesD.allow partners in a strategic relationship to focus on
opportunities rather than arguing about how profits are divided
between themE.are accurately described by all of the above
Difficulty: Medium
71.(p.43)Common goals:A.are important for all market
exchangesB.inevitably cause a strategic partnership to terminate
when expected benefits are not realizedC.give both members of the
strategic partnership a strong incentive to pool their
resourcesD.often cause partners in a strategic relationship to
argue about how resources are used and profits are divided upE.are
accurately described by all of the above
Difficulty: Medium
72.(p.44)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.
Difficulty: Medium
73.(p.43)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 servicesB.market exchangesC.functional
resourcesD.mutual investmentsE.win-win trusts
Difficulty: Medium
74.(p.44)Carla's responsibilities include customers, vendors,
and finance. Carla is a(n):A.strategic sales repB.boundary-spanning
employeeC.customer relationship managerD.solo exchange
monitorE.behavioral loyalty specialist
Difficulty: Medium
75.(p.46)Which of the following is NOT a phase of relationship
development for a seller and a
buyer?A.awarenessB.explorationC.commitmentD.attractionE.expansion
Difficulty: Easy
76.(p.46)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.awarenessB.explorationC.commitmentD.attractionE.expansion
Difficulty: Easy
77.(p.46)Bobbi is creating a ________________ system to identify
opportunities for cost reduction, greater efficiency, and other
mutual benefits with her vendors.A.lifetime customer
valueB.customer relationship managementC.supplier relationship
managementD.corporate relational marketingE.vertical vendor
analysis
Difficulty: Medium
78.(p.46)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.awarenessB.explorationC.commitmentD.attractionE.expansion
Difficulty: Easy
79.(p.46)The only stage of the relationship development process
that may not occur in every relationship is the _____
phase.A.awarenessB.explorationC.commitmentD.dissolutionE.expansion
Difficulty: Easy
80.(p.48)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 partnerB.marketing niche companyC.lead
userD.power marketerE.market guru
Difficulty: Medium
81.(p.49)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 efficiencyB.increase its
economies of scaleC.decrease its need for credible
commitmentD.decrease its mutual dependencyE.do all of the above
Difficulty: Easy
Essay Questions
82.(p.30)What is the difference between buyer's value and
seller's value?
Buyer's value is the benefit received minus the selling price
and the costs or hassles of buying. Seller's value is the selling
price minus the cost of goods sold and selling costs.
Difficulty: Medium
83.(p.34)What different types of relationships can exist between
buyers and sellers?
The four types of relationships between buyers and sellers are
solo market transactions, functional relationships, relational
partnership, and strategic partnership.
Difficulty: Medium
84.(p.35)What are the characteristics of relational
partnerships?
Relational partnerships are characterized by long-term time
horizon, medium concern for the other party, high trust between
buyers and sellers, relatively low investment in the partnership
relationship, high risk in the relationship, and potentially high
benefits in the relationship.
Difficulty: Medium
85.(p.35)Discuss the following statement: "Partnering-oriented
salespeople are value creators."
Partnering-oriented salespeople work with their customers and
their companies to develop solutions that enhance the profits of
both. These salespeople develop an understanding of their
customers' needs and convince the customer that their firm can
satisfy this need. Then the salespeople go back to their company
and arrange for their company to create a product tailored to the
customers' needs.
Difficulty: Easy
86.(p.33)How is a market exchange relationship a win-lose
relationship?
In a market exchange, both parties are negotiating over how to
"split up the pie" -- who is going to make the most on the
transaction. One party gets a bigger piece of the pie at the
expense of the other party.
Difficulty: Medium
87.(p.38)List the five foundations of a successful, long-term
relationship between a customer and a salesperson.
The foundations of successful, long-term relationships are (1)
mutual trust, (2) open communication, (3) common goals, (4) a
commitment to mutual gain, and (5) organizational support.
Difficulty: Easy
88.(p.44)How is organizational support important to selling?
Organizational support is critical to developing and maintaining
partnership relationships. All employees must "buy in" to the
commitments made to the customer. Organizational support can
involve changes in the structure, culture, training, and reward
systems used in the organization.
Difficulty: Medium
89.(p.44)Why is maturity critical for a successful partnering
relationship?
Maturity is critical for salespeople because they need to
realize that they will not make a sale every time they approach a
prospect. Setbacks and rejections will occur. It takes maturity to
not focus on the negative experiences.
Difficulty: Easy
Short Answer Questions
90.(p.30)What evolutionary stage of personal selling has existed
since 1990?
partnering
Difficulty: Easy
91.(p.32)What are the two types of customer loyalty?
behavioral and attitudinal loyalty
Difficulty: Medium
92.(p.32)What is the term used to describe a consumer's total
purchase over their life?
lifetime customer value
Difficulty: Medium
93.(p.34)What type of selling relationship exists when the time
horizon is short-term, the level of trust is low, and the nature of
the relationship is bargaining?
solo market transaction
Difficulty: Easy
94.(p.35)What are the two types of partnerships between buyer
and seller?
relational and strategic
Difficulty: Easy
95.(p.38)What is the primary goal of long-term relationship
selling?
building trust
Difficulty: Easy
96.(p.43)What is required of each partner in a strategic
partnership?
Significant investments to improve the profitability of both
parties.
Difficulty: Medium
97.(p.44)In many parts of the world, what is required before a
strategic partnership can be established?
personal relationships
Difficulty: Easy
98.(p.44)What are boundary spanning employees?
salespeople and purchasing agents with the necessary support to
meet customer needs.
Difficulty: Easy
99.(p.43)What have strategic partners committed to when both
parties spend money to improve each other's products and
services?
mutual investment
Difficulty: Medium
100.(p.40)How does a salesperson demonstrate competence to a
customer?
by using accurate product and company information
Difficulty: Medium
101.(p.46)What is the first phase in the development of a
partnering relationship between buyer and seller?
awareness
Difficulty: Easy
102.(p.48)At which stage of the customer relationship building
process will the buyer and seller pledge either implicitly or
explicitly to continue the relationship for a period of time?
commitment
Difficulty: Easy
103.(p.47)What is a company creating when it uses technology and
statistics to identify supplier relationships and opportunities for
greater efficiency?
supplier relationship management system
Difficulty: Medium
104.(p.48)When will the dissolution phase most likely occur in a
partnering relationship?
There is no specific time. Dissolution can occur at any point in
the relationship.
Difficulty: Hard
105.(p.50)What are companies which face and resolve needs months
or years ahead of the rest of the marketplace called?
lead users
Difficulty: Hard
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