Upon meeting with a General Electric buyer, a salesperson learned that the G.E.
purchasing function is unhappy with the supplier’s performance and is openly
considering new options. This provides an illustration of:
a. a new task buying situation.
b. a straight rebuy.
c. a modified rebuy.
d. extended problem solving.
e. value analysis.
Which of the following are tasks that are performed by channels of distribution?
a. Arranging financing.
b. Storage.
c. Transportation.
d. All of the above.
e. Only b and c.
Park Rapids Electronics divides their market on the basis of NAICS category, end
market served, and type of buying situation. They have also developed a special
strategy for large centralized buyers. They are emphasizing:
a. macro bases of segmentation.
b. micro bases of segmentation.
c. a blend of macro and micro bases of segmentation.
d. psychographic and economic bases of segmentation.
e. none of the above
The degree of tangible-intangible dominance of an industrial offering refers to the:
a. simultaneous production and consumption of the service.
b. variability in the quality of the service.
c. perishability of the offering.
d. non-ownership of the service purchased.
e. relative importance accorded, by the buyer, to tangible versus intangible elements.
A firm that includes rapidly developing economies (RDEs) in their global cost
structures can realize savings of _____ in the landed costs of their products.
a. 0 to 20 percent
b. 20 to 40 percent
c. 40 to 60 percent
d. 60 to 80 percent
In contrasting induced strategic behavior with autonomous strategic behavior, which of
the following statements is incorrect?
a. Induced behavior corresponds to deliberate strategies while autonomous behavior
gives rise to emergent strategies.
b. Autonomous behavior stems from the organization’s existing concept of strategy
while induced behavior will eventually be integrated into the firm’s concept of strategy.
c. The two types of behavior cannot be meaningfully separated and discussed.
d. While autonomous behavior will initially rely on an informal network of support,
induced behavior will draw support from formal organizational channels.
e. (a) and (b)
The important elements of perception include:
a. attention.
b. interpretation.
c. benefits.
d. Only (a) and (b).
e. Only (b) and (c).
Which of the following statements about transactional relationships is(are) true?
a. Customers emphasize a transactional orientation when the purchase is viewed as less
important to the organization.
b. Customers prefer a transactional relationship when the market is dynamic (for
example, rapidly-changing technology.
c. Transactional relationships are more likely to involve operational linkages.
d. all of the above
e. none of the above
Factors that favor relocation of products or services to rapidly developing economies
include:
a. High labor content.
b. Low growth potential
c. Standardized manufacturing or service-delivery processes.
d. All of the above.
e. (a) and (c) only.
A diverse array of organizations make up the business market. These organizations can
be broadly classified as:
a. commercial enterprises, governmental organizations, and institutions.
b. commercial enterprises, users, and governmental units.
c. commercial enterprises, users, and original equipment manufacturers.
d. producers and resellers of industrial products or services.
e. upstream suppliers, users, and governmental units.
Research has shown that which of the following are important implementation skills for
marketing managers?
a. Organizing.
b. Allocating.
c. Monitoring.
d. All of the above.
e. Only (a) and (b).
The hidden costs in operating in rapidly developing economies include which of the
following?
a. One-time setup costs.
b. Risk management costs.
c. Exit costs.
d. All of the above.
e. (a) and (b) only.
The need to employ more than one type of industrial channel of distribution arises as a
result of:
a. different target markets sought by the firm.
b. a geographically concentrated market.
c. different marketing tasks associated with different products produced by the firm.
d. both (a) and (c)
e. all of the above
When using strategy maps, shareholder value can be created via:
a. long-term revenues.
b. short-term productivity.
c. product differentiation.
d. All of the above.
e. Only (a) and (b).
When a business marketer demonstrates special skills in managing relationships with
key customers or by developing innovative strategies with alliance partners, they are
trying to create:
a. a collaborative advantage.
b. an equal advantage.
c. an arm’s length transaction.
d. a transactional exchange.
e. None of the above.
Techniques for differentiating products and services include which of the following?
a. Superior service or technical assistance.
b. Superior quality.
c. Lowest price among competitors.
d. All of the above.
e. Only a and b.
Markets for products and services, local to international, bought by businesses,
government bodies, and institutions for consumption, for use or for resale are:
a. consumer markets.
b. business markets.
c. global markets.
d. target markets.
Developing a marketing program that reaches the ultimate consumer directly for a
product that incorporates your product, such as DuPont advertising to consumers to
increase the sales of carpeting which incorporates their product is known as:
a. demand elasticity.
b. stimulating demand.
c. fluctuating demand.
d. price sensitivity.
As a controllable element in the logistics system, _____ ensures that products are
available for inventory in the correct assortment and quantity.
a. production planning
b. plant and warehouse location
c. customer service
d. inventory control
e. logistics communication
Chandler Machine Tool has been successful in segmenting their market using the
following bases: (1) NAICS category and (2) key purchasing criteria emphasized by
particular groups of buyers within each NAICS industry. They are using:
a. macro bases of segmentation.
b. micro bases of segmentation.
c. a blend of macro and micro bases of segmentation.
d. psychographic and economic bases of segmentation.
e. none of the above
An advertising evaluation program would include an assessment of:
a. target markets.
b. media and messages.
c. overall results.
d. buying motives.
e. all of the above
Individuals affecting the purchasing decision by supplying information for the
evaluation of alternatives or by setting buying specifications is performing the role of:
a. a gatekeeper.
b. a user.
c. an influencer.
d. a decider.
e. a buyer.
The skills required to identify, initiate, develop, and maintain profitable customer
relationships describes:
a. customer management relationship capabilities.
b. market-sensing capabilities.
c. derived demand.
d. supply chain management.
e. the extended enterprise.
Firms that quickly and intelligently seize global opportunities can secure which of the
following forms of competitive advantage?
a. Cost advantage.
b. Market access advantage.
c. Capabilities advantage.
d. All of the above.
e. (a) and (b) only.
The primary objective of the organizational selling center include:
a. acquisition and processing of pertinent marketing-related information.
b. execution of selling strategies.
c. designing the channel structure.
d. all of the above.
e. (a) and (b) only.
Which of the following are questions that must be addressed when determining
responses to a competitor’s threat?
a. If you respond, is the competitor willing and able to lower their price again?
b. Is our position in other markets at risk if the competitor gains market share?
c. Is there a response that would cost you more than the preventable sales loss?
d. All of the above.
e. Only (a) and (b).
The customer benefit concept refers to:
a. a detailed listing of which services will be provided.
b. guidelines for the delivery of the service product.
c. the core benefit that the customer will derive from the service.
d. the general benefits the service company will provide to the customer.
e. none of the above
Customer benefits from a relationship with a supplier include which of the following?
a. Core benefits.
b. Add-on benefits.
c. Gross margin benefits.
d. All of the above.
e. Only a and b.
Expertise coordination is the process of
a. integrating the functions of finance and operations with sales
b. working with top management to help engage the top level managers in the sales
process
c. diagnosing customer requirements and assembling an ad hoc team of internal experts
who possess the skills to deliver a superior customer solution.
d. evaluating competitive offers and developing plausible approaches for surpassing
those offers in the mind of prospective customers
e. All of the above
Service quality benefits should be linked to::
a. customer satisfaction.
b. customer retention.
c. profitability.
d. market share.
e. all of the above.
Creators of successful product portfolios emphasize planning rather than
experimentation or improvisation.
Firms that adopt supply chain management generally find that costs increase but are
more than offset by higher profit margins and revenue growth.
Markets of limited size surrounded by trade barriers may be supplied most cost
effectively by using the exporting mode of entry.
____________________ consist of unwritten and largely nonverbalized sets of
congruent expectations and assumptions held by the parties to the alliance about each
other’s prerogatives and obligations.
What are the characteristics of lead user firms? What are the characteristics of lead user
projects and how can the lead user method be used to develop new products?
Answer:
n/a
Warehousing is usually the largest single logistical expense.
Although certain mechanical aspects help create awareness and interest in the
advertisement, its ultimate success will depend on how well the message is targeted to
the benefits sought by the buying influential.
Warehousing costs fit into an activity-based cost system but advertising costs do not.
What is the total-cost approach to developing a logistical system? Explain what
variables should be considered when designing and administering a logistical system
aimed at utilizing the total-cost approach.
Answer:
n/a
The most common form of sales organization found in the industrial market is the
market-centered organization.
Since all of the organizations or member firms that comprise the business marketing
channel are interested in achieving important profit goals, why does conflict often
emerge in the channel and what steps can the business marketing manager take to
control it?
Answer:
n/a
The two forms of customer benefits are core and add-on.
Personal computers and light factory equipment such as portable drills provide
examples of industrial goods that would be classified as accessory equipment.
Johnson Technology, a highly successful producer of specialized equipment for the
paper industry is contemplating entry into a new industry segment. Beth Walker, the
firm’s marketing vice-president, has always felt that Johnson Technology could serve
the equipment needs of food processors like General Foods. The same basic technology
underlies the equipment in both sectors and Beth feels that Johnson Technology has a
meaningful edge over all competitors.
Describe the company, competitive, and market factors that the firm should consider
before committing resources to this new industry segment.
Answer:
n/a
The two primary sources of cost advantages driving firm to implement operations in
rapidly developing economies are lower operating costs and lower capital investment
requirements.
The ____________________ method combines and averages top executives’ estimates
of future sales and is popular because it is easy to apply and understand.
The four groups of forces that have an impact on organizational buying behavior are
environmental, organizational, strategic, and individual.
Marketing control is a process whereby management generates information on
performance, such as efficient allocation of marketing effort.