In regard to logistical service, the business marketer should:
a. provide the same level of logistical service to all customers.
b. adjust the level of logistical service for different segments based on requirements of
the product type.
c. adjust the level of logistical service for different segments based on requirements of
the customer.
d. all of the above.
e. (b) and (c) only.
Executive judgement methods produce accurate forecasts when:
a. forecasts are made infrequently.
b. the environment is volatile
c. the linkage between decision, action, and feedback is short.
d. all of the above.
e. (a) and (b) only.
A key account represents a customer who:
a. purchases an insignificant volume as a percentage of a seller’s total sales.
b. buys for an organization with geographically concentrated units.
c. involves several organizational members in the purchasing process.
d. (a) and (b) only.
e. (b) and (c) only.
Before preparing a bid for any potential contract, the industrial firm should first:
a. estimate the profitability of the potential contract.
b. assess the probability of winning the contract.
c. carefully define their objectives.
d. conduct a preliminary analysis of their expected costs in performing the potential
contract.
e. evaluate the strength of potential competing bidders.
_____ exists when one party has confidence in a partner’s reliability and integrity.
a. Trust
b. Solidarity
c. Relationship commitment
d. A strategic alliance
e. Interfirm cooperation
The move toward a product family perspective requires:
a. a long-term view of technology strategy.
b. an isolated R&D function that free to create.
c. a multiple-year commitment of resources.
d. (a) and (b) only.
e. (a) and (c) only.
When Armco Steel realizes a drop in the demand for steel as a result of a decline in
ultimate consumer demand for automobiles, this illustrates the concept of:
a. derived demand.
b. connector demand.
c. linked demand.
d. reflection demand.
e. evoked demand.
Which of the following factors should be considered when planning an effective trade
show communications strategy?
a. The focus of the marketing efforts.
b. The appropriate show mix.
c. The functions performed by the trade show in the total marketing communications
program.
d. All of the above.
e. Only (a) and (c).
The use of slower modes of transportation within the logistical network results in:
a. lower variable costs for product movement.
b. higher customer service levels.
c. higher investments in inventory.
d. all of the above
e. (a) and (c) only
_____ involves a formal invitation to potential suppliers to submit written, sealed bids.
a. Closed bidding
b. Open bidding
c. On-line bidding
d. E-commerce
e. Comparative bidding
In a modified rebuy situation, the “out” supplier should do which of the following?
a. Try to move decisions makers into straight rebuy.
b. Hold the buying organization in modified rebuy status long enough to consider new
alternatives.
c. Both (a) and (b).
d. Neither (a) nor (b).
Concerning pricing and the competitive environment, which of the following statements
is(are) accurate?
a. Competition establishes an upper limit on price.
b. Late entrants to the market often enjoy potential cost advantages over the pioneering
firm.
c. Competitors will be more sensitive toward price reductions that threaten market
segments that they deem important.
d. all of the above
e. (a) and (b) only
The Objective-Task method addresses the major problem of the rule-of-thumb methods
by applying funds to accomplish a specific goal:
a. so that advertising is a determinant of those results.
b. so that advertising is a consequence of those results.
c. because the manager does not have to have some knowledge or instinct for the proper
relationship between expenditure level and communication response.
d. none of the above.
Because organizational buyers perceive products as bundles of attributes, the product
strategist should examine the attributes that assume a central role in buying decisions.
Attributes that are both important and differentiating are called:
a. primary attributes.
b. star attributes.
c. determinant attributes.
d. quality attributes.
e. dominant attributes.
A useful method for determining the size of the business or industrial advertising
budget is:
a. the objective-task method.
b. the percentage of sales approach.
c. the competitive parity approach.
d. the affordable approach.
e. the trend line approach.
The channel strategy that involves the utilization of one or more middlemen is referred
to as:
a. indirect distribution.
b. direct distribution.
c. selective distribution.
d. exclusive distribution.
e. restrictive distribution.
Which of the following statements is (are) true about the Internet’s impact on marketing
communications?
a. Changed from a one-way to a two-way process.
b. Customization of advertising messages.
c. Improved customer service.
d. All of the above.
e. Only (a) and (b).
When Xerox offers a Total Satisfaction Guarantee that allows customers to return
copiers for any reason, this is an example of:
a. word of mouth.
b. developing tangible clues.
c. service bundling.
d. none of the above.
Recent research shows that business-to-business service firms are more likely to
emphasize:
a. relationship strategies as opposed to transactional strategies.
b. arms-length strategies.
c. the total buyer-seller process
d. all of the above.
e. (a) and (c) only.
Which of the following statements is false regarding supply chain management?
a. SCM seeks to create an overlap among participants in the supply chain.
b. Traditional supply chains openly share information across the supply chain.
c. Non-integrated approaches to managing product and information flows are expensive
and time consuming.
d. Aligning both internal and external processes is the ultimate goal of SCM.
A feature-enhanced or cost-reduced Canon fax machine provides an example of which
type of development project?
a. platform project
b. breakthrough project
c. research and development project
d. derivative project
e. none of the above
A common motor in all Black & Decker hand tools provides an example of which type
of commercial development project?
a. platform project
b. breakthrough project
c. research and development project
d. derivative project
e. none of the above
The advantages of third-party warehouses are that they allow the business marketing
firm to:
a. increase or decrease warehouse space in a given market.
b. replace the distributor channel when the sales function can be performed by a direct
sales force or by manufacturers’ representatives.
c. reduce expenditures on company-owned warehouses.
d. all of the above
e. (a) and (c) only
Motivation to perform is thought to be related strongly to:
a. the value the salesperson places on rewards.
b. the individual’s perceptions of the types and amounts of rewards that will accrue from
various degrees of job performance.
c. the extent to which a salesperson can see him/herself as a member of the target
market.
d. (a) and (b) only.
e. (a) and (c) only.
Business market segmentation at the _____ level requires a higher level of market
knowledge and, therefore, a greater investment in research.
a. geographic
b. macro
c. micro
d. demographic
e. aggregate
For a new-market strategy innovation strategy to work, which of the following
requirements need to be met?
a. The company must be able to create a business model to make profits at a discount
price.
b. Present customers need to go to an inconvenient location to use the product or
service.
c. Both a and b.
d. Neither a or b.
Internal business processes support which elements of a company’s strategy?
a. They create and deliver the value proposition for customers.
b. They create and support interfirm supply chain teams.
c. Both a and b.
d. Neither a or b.
Factors that contribute to the use of more than one distribution channel for the same
product include:
a. various market segments are served.
b. the needs and buying processes employed by prospective customers varies.
c. conflict between competing channels is relatively rare.
d. all of the above
e. both (a) and (b)
A firm that can respond to a customer’s unique requirements for packaging and order
size in a cost-effective manner is addressing which of the following supply chain goals?
a. time compression
b. waste reduction
c. unit cost reduction
d. flexible response
e. inventory reduction
Concerning the eight-stage model of the organizational buying process, research
suggests that:
a. the process may be reoriented at any point by a redefinition of the basic problem.
b. the process may be discontinued by a change in the external environment.
c. certain stages may be completed concurrently.
d. many small or incremental decisions are made during the procurement process that
ultimately translate into the final selection of a supplier.
e. all of the above
Waste reduction, time compression, and flexibility are all goals of supply chain
management.
The organization of the sales force can be affected by the length of a product line and
the nature of buying behavior in each market segment.
Additional insights into international strategy can be gained by examining two
dimensions of competition in the global
market:____________________and____________________.
Motorola plans to introduce an advanced personal communicator to the business
market. They feel that the system is ideally suited for managers. While a broad
marketing strategy has been sketched out, it is now time to put together the specific
details of the marketing plan from start-to-finish. The planned introduction is six
months away. Provide a comprehensive list of the key decisions the firm should make
in the areas of pricing, channels, advertising, sales force training, segmentation, and
related areas. Next, describe the specific types of information that might be gathered to
facilitate each decision. Finally, once the product is introduced, what performance areas
should be monitored to determine if strategy adjustments are required for the new
product?
Answer:
n/a
Key account customers purchase in very large volume and the focus of exchange
extends beyond a core product as the seller augments the offering
through____________________ services and support.
Buyers seek a close relationship for strategic purchases and employ a more distant
arms-length approach in procuring non- strategic items.
All participants in the business marketing planning process are evaluated on the bases
of sales, profits, and market share.
The five primary areas for evaluating advertising are profits generated, markets,
motives, messages, and results.
Customers who are not particularly price or service sensitive and who made purchases
in a routine fashion of products that are not central to their operation are best known
as____________________buyers.
There are four categories of forces that influence organizational buying behavior. Please
identify and briefly describe the four categories of forces. Assume that you are a
salesperson in any industry you choose, provide one specific example in each category
of how these forces affect organizational buying behavior in the industry you have
chosen.
Answer:
n/a
Two competitors with similar products may ask differing prices because their total
offerings are perceived as being unique by buyers. In the eyes of the organizational
buyer, one firm may provide more value than another. Demonstrate how this might
occur and outline the corresponding marketing strategy implications.
Answer:
n/a
The first step in understanding a customer’s experience is to develop a
____________________map.
Brand ____________________refers to the customer’s ability to recall or recognize a
brand under different conditions.
Core competencies are the more tangible requirements for advantage that enable a firm
to exercise its capabilities.
A penetration pricing policy is optimal if there is a relatively low repurchase rate for
durable goods.
All customers hold similar amounts of growth potential.
Brand ____________________is described as the ways in which the brand attempts to
meet customers’ more abstract psychological or social needs.
In order to use macrolevel bases of segmentation, the business marketer must move
beyond secondary sources of information by soliciting input from the sales force or by
conducting a special market segmentation study.