As products mature and customers gain experience with them, there appears to be a
routine narrowing of perceived differences among offerings in customers’ minds and a
corresponding unwillingness to pay anything different for them. In other words, the
offerings over time tend to become undifferentiated in the minds of customers, with
price becoming the sole basis for deciding among them. This is the definition of a
_______.
a. commodity
b. minimally augmented product
c. core product
d. potential product
The measure of customer ______ is share of purchases in the category.
a. loyalty
b. delight
c. disinterest
d. value analysis
To exceed rather than simply meet customer requirements and preferences is to create
customer_______.
a. loyalty
b. delight
c. disinterest
d. value analysis
The bare minimum of products and services that all segment members uniformly value
are wrapped in _______ that some, but not all, segment members value and are offered
separately for those segment members that do value them.
a. naked solutions
b. residual variation
c. mass customization
d. options
Parker Hannifin Corporation supports resellers with _______ such as furnishing contact
information on prospects to distributors and proposing strategies for cultivating new
business from existing and potential accounts. These strategies include
recommendations on how to customize offerings for local customers and cross-sell the
full line of PH products.
a. training and coaching
b. sales and marketing programs
c. operational and technical support
d. pricing support
_______ is that the supplier firm works to increase its profitable share of the customer’s
business and to become an irreplaceable partner.
a. Customer selection
b. Ordering selection
c. Growth
d. Continuity
The _______ cover a wide range of pre-sale, point-of-sale, and post-sale services that
are commonly offered as “for-fee options.” As these customer requirements tend to be
more tangible than preferences, managers assess their worth using the tools of customer
value management.
a. total customer experience (TCE)
b. business channel management
c. immediacy of fulfillment
d. value-added services
Recognizing the variation in selling situations, sales professionals practice _______ in
which they modify the sales approach, alter their communication style, modify message
content, and change their call strategy.
a. adaptive selling
b. transactional selling
c. consultative selling
d. enterprise selling
Examples of _______ programs are a new offering introduction, participation in an
industry trade show, or increasing the supplier’s share of customer’s business in a
targeted segment.
a. strategy
b. positioning
c. resonating focus
d. marketing and sales
The firm’s _______ refers to gains in design and process knowledge and know-how and
is paramount for organizational enhancement and renewal to occur.
a. technology strategy
b. market strategy
c. learning
d. project strategy
As firms migrate to a ________, they create performance measures that focus on total
cost of ownership.
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
________ is the process in which a third party is brought in to help resolve a dispute by
either refocusing discussion on key issues or suggesting viable solutions.
a. Cooperation
b. Mediation
c. Commitment
d. Coordination
________ pays attention to individual accounts, is tactical in nature, and focuses on
short-term resource utilization.
a. Customer selection
b. Order selection
c. Target selection
d. Market selection
A _______ contains names of key contacts, their direct mail and e-mail addresses,
corporate locations, and Web-site information, plus limited descriptive information on
each competitor in the defined market.
a. customer relationship management (CRM) system
b. customer database
c. market database
d. prospecting plan
_______ are names of possible clients that business market managers generate from
computer databases.
a. Leads
b. Inquiries
c. Prospects
d. Prospecting
_______ means segmenting and targeting markets precisely and then tailoring offerings
to match exactly the demands of those niches.
a. Product leadership
b. Customer intimacy
c. Operational excellence
d. Strategy
In _______, price should be set in relation to a market offering’s value.
a. cost-plus pricing
b. competition-based pricing
c. value-based pricing
d. skimming pricing
_______ is the establishment of multiple levels of communications between firms,
across functions, management levels, and business strands.
a. Bridging
b. Trust
c. Commitment
d. Guarantee
The value assessment method _______ is a qualitative approach to gaining a better
understanding of the perceptions and reactions of participants. In doing so, the research
analyst also generates estimates of value. The participants typically are knowledgeable
individuals within customer firms that are targets for the studied market offering,
although a supplier firm also may be interested in the reactions of industry consultants
or pundits.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
A(n) ________ refers to the extent to which there is mutual recognition and
understanding that the success of each firm depends on the other firm, with each firm
consequently taking actions so as to provide a coordinated effort focused on jointly
satisfying the requirements of the customer marketplace.
a. reseller partnership
b. sustaining reseller partnership
c. alignment
d. mutual self-interests
The key objective in managing individual development projects, _______, is the total
cost of the product to the supplier, including all costs it incurs in marketing, sales, and
support services (which are part of the purchase price customers pay).
a. development speed
b. product cost
c. product performance
d. development program expense
_______ is when a new offering takes a portion of its sales from an existing offering of
the firm.
a. Cannibalization
b. Newness map
c. Newness of project
d. Newness of market
_______ is the work process of obtaining an estimate of the worth in monetary terms of
some present or proposed market offering or elements of it.
a. Value assessment
b. Benchmarking
c. Monitoring competition
d. Sales forecasting
_______ is NOT a guiding principle of business market management.
a. Regard value as the cornerstone
b. Focus on business market processes
c. Business channel management
d. Stress doing business across borders
Two shortcomings of customer satisfaction measurement programs ” they do not survey
noncustomers and they don’t provide a market assessment for supplier firms ” can be
remedied by a customer _______.
a. loyalty survey
b. delight test
c. point of difference analysis
d. customer value analysis
_____ is NOT a diagnostic component of Porter’s framework for competitor analysis.
a. Market sensing
b. Future goals
c. Current strategy
d. Capabilities
_______ is the formal and informal sharing of meaningful and timely information
between firms.
a. Customer selection
b. Ordering selection
c. Communication
d. Continuity
_______ is a set of activities that takes one or more kinds of input and creates an output
that is of value to the customer.
a. Business market management
b. Business process
c. Shareholder value
d. Customer value in business markets
In the case of indirect channels, coverage entails a choice of a _______: exclusive,
where a supplier authorizes one reseller per trade area; selective, where it authorizes a
limited number of resellers per trade area; or intensive, where it essentially authorizes
all resellers that want to carry its line.
a. exposure
b. coverage
c. distribution intensity strategy
d. total customer experience
_______ is the process of studying how to exploit a business’s resources to achieve
short-term and longterm marketplace success, deciding on a course of action to pursue,
and flexibly updating it as learning occurs during implementation.
a. Crafting market strategy
b. Operational effectiveness
c. Strategic positioning
d. Strategy
_______ represent the natural starting point for the core product part of flexible market
offerings. They are the naked solution for the product component for the target market
segments and customers.
a. Aggregate project plans
b. Derivative projects
c. Breakthrough projects
d. Platform projects
To _______, business market managers either eliminate certain standard elements from
the market offering entirely or transform them into options.
a. flare out by unbundling
b. flare out with augmentation
c. harvest
d. risk share
The ___________ reflects the fact that evolving marketplaces may dramatically and
unexpectedly alter the goals and resources of channel partners.
a. law of legitimate cross-purposes
b. law of perpetual change
c. opportunism
d. alignment