Deck 13: Building Partnering Relationships

Question 1

A salesperson must determine which relationship type is appropriate for optimizing a customer's lifetime value.

Answer 1

True

Question 2

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 2

True

Question 3

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

Answer 3

False

Question 4

Relationships have to necessarily move from solo exchange to functional relationship to relational partnership to strategic partnership.

Question 5

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

Question 6

The expansion stage in a relationship involves promises by both buyer and seller to work together for a single transaction.

Question 7

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 8

Strategic partnerships between companies create a win-win situation,but the companies are committed to each other and flexibility can be reduced.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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 14

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 15

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

Question 16

Customers are the primary revenue source for companies.

Question 17

Functional relationships are long-term market exchanges characterized by behavioral loyalty.

Question 18

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

Question 19

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

Question 20

Companies prefer buyers who are both attitudinally and behaviorally loyal.

Question 21

Length of experience is a strong substitute for proving dependability with action.

Question 22

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 23

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

Question 24

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 with a cleaning company.
E) Fred purchases an apartment from his friend who owns a construction company.

Question 25

In which of the following scenarios is a transaction occurring without the buyer and the 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 these

Question 26

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

Question 27

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

Question 28

Buyers perceive salespeople as sales oriented when sellers stress benefits and solutions to problems over features.

Question 29

Bubbly Splash is a major beverage outlet in Seattle.The management takes special care in resolving customers' grievances as it knows that approximately 40 percent of its consumers have been buying its beverages without considering alternative drinks for the last ten years.Identify the loyalty shown by its customers.

A) Vendor loyalty
B) Behavioral loyalty
C) Partial loyalty
D) Attitudinal loyalty
E) Inertia loyalty

Question 30

Identify the relationship type in which the time horizon factor involved is short term.

A) Solo market transaction
B) Functional relationship
C) Relationship partnership
D) Strategic partnership
E) Modified rebuy exchange

Question 31

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 32

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

Question 33

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

Question 34

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 future sales.
D) Customer lifetime value is a statement explaining how a 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 35

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

Question 36

In a strategic partnership,compared with a relational partnership,less direct communication ties are present between the buying organization and the selling organization.

Question 37

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

Question 38

The use of 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.
D) leads to low behavioral loyalty.
E) reflects the lowest degree of relationship marketing efforts.

Question 39

Why do both the buyer and the seller in a solo exchange pursue their own self-interests?

A) Because the parties in the transaction do not plan on doing business together again
B) Because both believe the other party would not take advantage of them if given the opportunity
C) Because less hassle means more value to the buyer
D) Because both the buyer and the seller have a high level of dependence on each other
E) Because the buyer is confident that,over the long run,he or she will get a fair share of the profit

Question 40

Members of successful partnerships actively work to create win-lose relationships by making commitments to the relationship.

Question 41

Which of the following is a true statement about strategic partnerships?

A) Both the buyers and the sellers in strategic partnerships are primarily interested in pursuing their own self-interests.
B) Members of strategic partnerships make significant investments for the sake of the relationships.
C) Strategic partnerships offer buyers and sellers a lot of flexibility.
D) Increased short-term profits are a benefit of strategic partnerships.
E) Members of strategic partnerships have a low level of dependence on each other.

Question 42

Identify a true statement about functional relationships.

A) Members of functional relationships make significant investments for the sake of the relationships.
B) Buyers and sellers are locked into a continuing relationship,and buyers cannot switch from one supplier to another.
C) The nature of the relationship between a buyer and a seller is described as cooperative.
D) The typical time horizon is short term because previous purchases do not exert a significant impact on the next purchase.
E) They are created for the purpose of uncovering and exploiting joint opportunities.

Question 43

Pyro Electronics was the only supplier of Torin Auto,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 44

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) A strategic partnership
B) A tactical relationship
C) A relational partnership
D) A functional relationship
E) A solo market exchange

Question 45

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 relationship do these two firms have?

A) A strategic partnership
B) A functional relationship
C) A solo market transaction
D) A relational partnership
E) A competitive relationship

Question 46

_____ are long-term market exchanges characterized by behavioral loyalty;the buyer purchases the same product out of habit or routine over time.

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

Question 47

On the third Wednesday of every month,LuEllen's Barbecue Shack orders four pickup 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.Moreover,she has a high level of trust in them.The buyer-seller relationship between LuEllen and Samson Wood Products Company is an example of a:

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

Question 48

Henry is a salesperson for Verre House Inc. ,a manufacturer of glass bottles.Based on a market survey,he suggested that his customer H.J.Ketchup Company redesign its ketchup bottle.This change would help improve bottle-filling efficiency and make the bottle lighter.H.J.Ketchup Company readily implemented Henry's suggestion,and it enjoyed an increase in its savings.This change also helped Verre House Inc.minimize its material wastage.Identify the relationship between Henry and H.J.Ketchup Company.

A) An internal partnership
B) A solo market transaction
C) A strategic partnership
D) A functional partnership
E) A relational partnership

Question 49

Caitlin is a highly motivated sales executive for a company that sells business textbooks.She always strives to create personal relationships with the professors of colleges and universities.When a committee of professors at Bridgeton University was constituted to select a new marketing book,her book was selected.Her amiable relationship with the committee chairman paved the way for this selection.The committee chairman trusts Caitlin and believes that she will meet his expectations.Identify the type of relationship between Caitlin and the committee chairman in this scenario.

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

Question 50

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

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

Question 51

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

A) Strategic partnerships
B) Win-lose partnerships
C) Functional relationships
D) Personal selling partnerships
E) Solo exchange alliances

Question 52

_____ 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 53

For which of the following transactions would a functional relationship between the buyer and the 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 way to work
D) A foreman's purchase of lubricating oil for an assembly line
E) An interior decorator's purchase of a cell phone

Question 54

Without _____,behavioral loyalty cannot develop.

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

Question 55

Zeller Hub,a Canadian discount store,has developed a supplier portal software from the inputs given by the experts in its retailing division and its supplier Welknit Knitting Co.This information system will share inventory and stock lists of both the companies on a daily basis.It will,thus,aid the continuing relationship between the companies and increase the profitability of both the parties by controlling excess stock and inventories.Identify the relationship between Zeller Hub and Welknit Knitting Co.

A) A relational partnership
B) An internal partnership
C) A strategic partnership
D) A solo market transaction
E) A functional relationship

Question 56

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 customers are satisfied.
E) In functional relationships,both buyers and sellers have a high degree of concern for the other party.

Question 57

Identify the nature of relationship between the buyer and the seller in a strategic partnership.

A) Competition
B) Conflict
C) Accommodation
D) Bargaining
E) Coordination

Question 58

Identify a true statement about strategic partnerships.

A) Both the buyers and the sellers in strategic partnerships pursue their own self-interests.
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 risks than functional relationships.
E) In this partnership,buyers and sellers are not locked into a continuing relationship;thus,buyers can switch from one supplier to another to make the best possible deal.

Question 59

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 by:

A) reducing its 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 60

Which of the following is an advantage of market exchanges?

A) They are created for the purpose of uncovering and exploiting joint opportunities.
B) Buyers and sellers need not share sensitive information.
C) Buyers and sellers are beneficially locked into a continuing relationship.
D) They offer buyers and sellers a lot of flexibility.
E) Low levels of trust and commitment are needed to manage these types of relationships.

Question 61

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 62

In the _____ stage of the relationship development process,the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only supplier of uniforms for 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 63

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 64

Which of the following gives both members of a relationship a strong incentive to pool their strengths and abilities?

A) Autocratic leadership
B) Profit orientation
C) Competence
D) Shared goals
E) Open communication

Question 65

Carla crosses the organizational limits and interacts with customers or vendors.Carla's responsibilities include dealing with vendors and finances.Which type of employee is Carla?

A) Trade salesperson
B) Boundary-spanning employee
C) Customer relationship manager
D) Missionary salesperson
E) Inside salesperson

Question 66

Zero Zone Inc.manufactures and sells display refrigeration and freezer units to supermarkets.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 every day.It was more than the normal rate,and 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 illustrated in this example?

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

Question 67

Betty,the operations manager at Unilinks Products Co. ,is facing a lot of issues in coordinating the manufacturing operations in the company because of inventory shortage.She wants to incorporate a system that will help her identify various sources of supply.In order to streamline operations,she plans to use _____,which uses technology and statistics to improve efficiency.

A) lifetime customer value
B) customer relationship management
C) supplier relationship management
D) supply chain management
E) material requirements planning

Question 68

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 these.

Question 69

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 sustain a strategic partnership when the expected benefits are not realized.
C) Common goals give both members of a 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 these

Question 70

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 these

Question 71

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 each other.
E) perform all of these.

Question 72

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 73

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

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

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.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 75

Andy,a salesperson for Fashion Seal Uniforms,tells the owner of a retirement home about the importance of caregivers having clean and attractive uniforms that will withstand countless hot water washes.Andy displays 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 units but with no commitment to extend the relationship.Which of the following stages of the relationship development process does this scenario exemplify?

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

Question 76

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 77

The stage of dissolution in the relationship development process:

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

Question 78

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.Which factor necessary for mutual trust to develop does this illustrate?

A) Dependability
B) Sales orientation
C) Likability
D) Spontaneity
E) Profitability

Question 79

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 80

Caesar salad dressing 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 that develops 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.Food Tech will be called a(n)_____ as it resolved this issue ahead of the rest of the marketplace.

A) end user
B) champion
C) lead user
D) gatekeeper
E) driver