With _______, supplier managers simply set their price in relation to what the
competitors’ prices are. The price may be set exactly the same as the predominant
competitors, signaling commodity, or it may be slightly higher or lower because of
perceived minor reputation, quality, or service differences.
a. cost-plus pricing
b. competition-based pricing
c. value-based pricing
d. skimming pricing
A _______ balances supply and demand for a given offering.
a. service recovery system
b. market-clearing price
c. commitment
d. coordination
Firms have numerous capabilities, not all of which they perform well. According to the
text, _______ are those the firm surpasses its competitors in performing.
a. core competencies
b. distinctive capabilities
c. strategic positioning
d. strategies
_______ describes the cognitive, affective, and behavioral stages that a customer goes
through during the purchasing process.
a. Integrated marketing communications (IMC)
b. Response hierarchy models
c. Market database
d. Prospecting plan
_______ is a concept of marketing communications planning that recognizes the added
value of a comprehensive plan. It evaluates the strategic role of a variety of
communications disciplines and combines these disciplines to provide clarity,
consistency, and maximum communications impact through the seamless integration of
discrete messages.
a. Integrated marketing communications (IMC)
b. Response hierarchy models
c. Market database
d. Prospecting plan
A business-to-business (B2B) _______ is an electronic forum where multiple buyers
and sellers can make bids or accept offers for a variety of products and services. Buyers
and sellers can accept any price offered at any time and either party can withdraw or
revise a bid.
a. community
b. catalog
c. electronic auction
d. exchange
_______ is that the supplier firm strives to retain the working relationship as long as it
enables both supplier and customer to each achieve their respective strategic objectives.
a. Customer selection
b. Ordering selection
c. Growth
d. Continuity
To deliver superior value to targeted market segments and customer firms is a goal of
_________________________.
a. importance ratings
b. customer value management
c. value assessment methods
d. competitor intelligence systems
Firms construct _______ for each market segmentthe bare minimum of products and
services that all segment members uniformly value.
a. naked solutions
b. residual variation
c. mass customization
d. options
Deals, terms, conditions, and allowances are economic programs of a(n) _______.
a. brand
b. minimally augmented product
c. core product
d. augmented product
Cooperative relationships with customer firms require all of the following EXCEPT:
a. integrative negotiation
b. target costing
c. target pricing
d. standardization
_______ means providing customers with reliable products or services at competitive
prices and delivered with minimal difficulty or inconvenience.
a. Product leadership
b. Customer intimacy
c. Operational excellence
d. Strategy
The key objective in managing individual development projects, _______, is the time
between the first instant someone could have started working on a development
program and the instant the final product was available to the customer.
a. development speed
b. product cost
c. product performance
d. development program expense
________ reflects the buyer’s inability to predict how many alternate suppliers will be
available and what quality of goods and services will be forthcoming when a need
arises.
a. transaction uncertainty
b. buying uncertainty
c. market uncertainty
d. need uncertainty
_______ are those done in conjunction with one or more outside firms.
a. Alliances and partnership projects
b. Derivative projects
c. Breakthrough projects
d. Platform projects
The process of generating knowledge about the marketplace that individuals in the firm
use to inform and guide their decision making is _______.
a. product development management
b. supply chain development
c. customer relationship management
d. market sensing
The _______ adds to the core product the least amount or number of services,
programs, or systems that customers consider absolutely essential for doing business
with any supplier.
a. brand
b. minimally augmented product
c. augmented product
d. potential product
The process of studying how to exploit a firm’s resources to achieve short-term and
long-term marketplace success, deciding upon a course of action, and flexibly updating
it as learning occurs during implementation is _______.
a. understanding firms as customers
b. crafting market strategy
c. customer relationship management
d. market sensing
Cheryl has been the business market manager for Nearly New Cleaning Service since
its inception in 1981. She has strong relationships with her supply vendors and requires
little new information each time she purchases, unless her company’s beginning a new
service. She only needs the price and whether or not it’s available. This is:
a. a modified rebuy
b. a straight rebuy
c. a continuous rebuy
d. a new task purchasing situation
_______ generate new core products and processes that are fundamentally different
from previous generations.
a. Aggregate project plans
b. Derivative projects
c. Breakthrough projects
d. Platform projects
The goal of _______ captures the total expenditures required to deliver the intended
total customer experience to targeted segments and customers. Perhaps the principal
reason that supplier firms turn to indirect channels is the desire to dramatically reduce
distribution costs.
a. market access
b. value-added
c. cost-to-serve
d. total customer experience
_______ provide(s) a means of gaining an equitable return on the value delivered and
of enhancing a supplier firm’s present and future profitability.
a. Business market management
b. Business market
c. Business marketing
d. Customer value in business markets
_______ captures the perceived continuity or growth in the relationship between two
firms. It entails a desire to develop a stable relationship, a willingness to make
short-term sacrifices to maintain the relationship, and a confidence in the stability of the
relationship.
a. Bridging
b. Trust
c. Commitment
d. Guarantee
The goal of _____ refers to the extent to which business channels enable a supplier firm
to reach, develop, and serve targeted segments and customer firms. Ideally, supplier
firms seek channels that provide coverage and exposure to as many profitable
customers as possible.
a. market access
b. value-added
c. cost-to-serve
d. total customer experience
________ elaborates the benefits of combining and sharing complementary
competences and capabilities across firms. The offering is a partnership and not just
products and services.
a. Adaptive selling
b. Transactional selling
c. Consultative selling
d. Enterprise selling
To _______, managers draw on the practices of more collaborative industries and add
new programs and systems that collaborative accounts will value to the standard
offering, or as options. Significantly, the supplier may not offer a number of these new
programs and systems to transactional customers, even as options.
a. flare out by unbundling
b. flare out with augmentation
c. harvest
d. risk share
When managers realize the fate of their organization is inextricably linked to other
companies, their firms migrate to a ________:
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
The difference between value and price is the_______
a. customer incentive to purchase
b. fundamental value equation
c. estimate of value changes
d. concept of value in the business markets
_______, is the overall level of disagreement in the working partnership determined by
the frequency, intensity, and duration of disagreements.
a. Conflict
b. Law of perpetual change
c. Opportunism
d. Alignment
Cooper has proposed a next-generation product development process that is different
from stage-gate models of the realization process because of ________. that is, it
features conditional Go decisions (rather than absolute ones), which are dependent on
the situation.
a. fluidity
b. fuzzy gates
c. focused
d. flexible
Johnny of the Taxi Co., runs a tight business, demands high standards of his drivers and
keeps his cabs in excellent working condition. However, he cannot predict when one of
his 38 cabs will break down or get a flat tire and how much it will cost the company ”
not to mention the irate customer. Johnny has ________.
a. transaction uncertainty
b. buying uncertainty
c. market uncertainty
d. need uncertainty
At Trainke Automotive Supply, Inc., when a part breaks down in the warehouse, the
floor worker reports it to the supervisor who reports the break to the warehouse
manager, who then selects a vendor to come and repair the equipment, often based on
the supervisor’s recommendations of what vendor has responded the quickest and done
the best work in the past. The supervisor and manager both rely on floor workers to
keep vigilant watch over the equipment they work with daily. This is an example of:
a. team member roles
b. role differentiation
c. buying situations
d. value management system