The process of understanding customer requirements and preferences, anticipating how
they will change, and then responsively constructing solutions to fulfill those
requirements and preferences in a way that customers are willing to pay for is _______.
a. product development management
b. supply chain development
c. customer relationship management
d. business management
‘Services are consumed as they are produced’ describes the _______ characteristic of
services.
a. intangibility
b. inseparability of production and consumption
c. perishability
d. heterogeneity
The idea of ________ is the capability to offer individually specified products or
services on a large scale.
a. naked solutions
b. residual variation
c. mass customization
d. options
To _______ a lead or inquiry, the supplier (or contracted third parties) contacts the
potential customer via direct mail, fax, e-mail, or telephone and asks a series of
preliminary questions to confirm that the firm has significant sales and profit
opportunity
a. qualify
b. yield
c. mine
d. prospect
The fundamental value equation is _______.
a. (Pricef ” Valuef) > (Pricea-Valuea)
b. (Valuef – Pricef) > (Pricea-Valuea)
c. (Valuef – Pricef) > (Valuea – Pricea)
d. (Valuef – Pricef) < (Pricea-Valuea)
‘Because of their greater dependence on the provider, services have the potential for
high variance in their performance’ describes the _______ characteristic of services.
a. intangibility
b. inseparability of production and consumption
c. perishability
d. heterogeneity
Through a _______, one firm promises through a legally binding contract or warranty
to absorb the risk and costs associated with unfulfilled promises made to a partner firm.
a. bridging
b. trust
c. commitment
d. guarantee
With the value assessment method _______ supplier personnel (or their consultants)
conduct interviews and often gather data at customer firm(s) to provide a
comprehensive listing of benefit and cost elements associated with usage of the
supplier’s market offering compared with the incumbent or next-best-alternative
offering.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
The _______ provides inexpensive, convenient, self-service exchange relationships
with minimal value-added service, often through Internet Web sites or other direct
marketing media.
a. efficient, low-cost transactional experience
b. high-touch, consultative experience
c. flexible, multi-access-point experience
d. one-stop shopping experience
The process of learning how companies rely on a network of suppliers to add value to
their offerings, integrate purchasing activities with those functional areas and outside
firms, and make purchase decisions is _______.
a. understanding firms as customers
b. supply chain development
c. customer relationship management
d. market sensing
________ refers to ‘self-interest seeking with guile.
a. Law of legitimate cross-purposes
b. Law of perpetual change
c. Opportunism
d. Alignment
The exclusive distribution intensity strategy is where a supplier authorizes many
resellers per trade area.
The _______ furnishes extensive consultation and advice, customization of offerings,
frequent face-to-face encounters with supplier personnel, and a complete range of
value-added services.
a. efficient, low-cost transactional experience
b. high-touch, consultative experience
c. flexible, multi-access-point experience
d. one-stop shopping experience
Rather than occupying a single point on the working relationship continuum, each
marketplace is better characterized as a range of customer relationships that are more
collaborative or more transactional in nature relative to that marketplace’s norm. This
range is the ________.
a. transactional relationships range
b. collaborative relationships range
c. managing customer relationships range
d. industry bandwidth of working relationships.
A _______ express in words and simple mathematical operators (e.g., +, ) precisely
how to assess the differences in functionality and performance between the studied
offerings for a value element and how those differences are converted into worth in
monetary terms.
a. points of parity
b. points of difference
c. value word equations
d. points of contentions
________ refers to all those members of an organization who become involved in the
buying process for a particular product or service.
a. Team members
b. Business market managers
c. Suppliers
d. Buying team
A _______ entails the resources, procedures, and authority that empower and enable
front-line personnel to resolve customer problems or compensate customers for
unexpected lapses in service.
a. service recovery system
b. trust
c. commitment
d. guarantee
We can capture the essence of the concepts in our definition of value in a _______
a. customer value in business markets
b. fundamental value equation
c. estimate of value
d. estimate of value changes
The four major tenets of supply management orientation include all the following
EXCEPT:
a. focus on end-users
b. craft a sourcing strategy
c. sustain highly collaborative relationships with select suppliers
d. avoid risk wherever possible
When comparing one product offering to the next-best-alternative, value elements
where there are apparent differences are termed _______.
a. points of parity
b. points of difference
c. value word equations
d. points of contention
The value assessment method, _______, involves scientists or engineers within the
supplier’s own firm conducting laboratory tests on a product to provide an estimate of
its value. Application of this method depends on detailed knowledge of the customer’s
usage system.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
As a consultant, the salesperson asks a series of focused SPIN questions during calls.
Through these questions, the rep helps the customer manager uncover _______
requirements, which are precise specifications of products and augmenting services that
resolve the customer’s problems.
a. implied
b. explicit
c. situation
d. problem
Companies that subscribe to the ________ evaluate suppliers largely in terms of
realized price, quality and availability.
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
‘Services cannot be saved or stored for later use’ describes the _______ characteristic of
services.
a. intangibility
b. inseparability of production and consumption
c. perishability
d. heterogeneity
The process that incorporates acquisition of all physical and informational inputs, as
well as the efficiency and effectiveness with which they are transformed into customer
solutions is _______.
a. product development management
b. supply chain development
c. customer relationship management
d. business management
The _______ enables customers to purchase a wide-variety of complementary products
and services from a single source.
a. efficient, low-cost transactional experience
b. high-touch, consultative experience
c. flexible, multi-access-point experience
d. one-stop shopping experience
_______ means performing different activities from rivals’ or performing similar
activities in different ways.
a. Crafting market strategy
b. Operational effectiveness
c. Strategic positioning
d. Strategy
By _______ is the customer firm’s and supplier firm’s synchronization of activities,
resources, and capabilities to accomplish a collective set of tasks.
a. service recovery system
b. trust
c. commitment
d. coordination
The mission of the ________ is collectively to analyze and focus a value stream so that
it does everything involved in supplying a good or service in a way that provides
maximum value to the customer.
a. buying center
b. lean enterprise
c. buying group
d. supply manager
A _______ by a team that assesses a market offering’s attributes in terms of their
functionality or performance, calculates the total costs associated with providing this
specific functionality or performance, and attempts to identify lower-cost alternatives.
a. customer incentive to purchase
b. customer value management
c. value analysis
d. concept of value in the business markets
Identify the nine business market processes in the text.
Briefly explain the four types of field sales forces Shapiro identified which are
discussed in the text.
If Zeus marketing managers use the projected cost-plus price, what will be the
value-in-use per year of the Zeus Precision 2000 relative to the GLM 7Z84? (Note: To
simplify calculations for this exam, please disregard the “time value of money”.)
During class and in the textbook, we defined the Fundamental Value Equation as:
Vf– Pf> Va– Pa.
Explain the equation and discuss its implications for business marketing strategy.
Explain why and how the sales person may use adaptive selling.
Explain the need to examine and adjust the balance of the gives&gets in channel partner
relationships.
Explain briefly the Wheelwright and Clark general realization process model discussed
in the text,
What are six influence strategies for gaining and using power that scholars have
identified?
Peter Kraljic’s Purchasing Portfolio Matrix
Explain overall customer satisfaction according to the American Customer Satisfaction
Index including the three measures.
Identify and describe the ‘AAA Triangle’ where the three A’s stand for three distinct
types of global strategy.
Explain derivative projects.