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Chapter 13 Building Partnering Relationships Answer Key
True / False Questions
1.
Customers are the primary revenue source for companies.
2.
Customer lifetime value is the combined total of all future sales.
3.
Using a consultative customer-oriented sales approach leads to lower firm profitability and
loss of customer base.
4.
In the context of professional selling, relationship marketing refers to creating the type of
relationship that best suits the needs of the selling firm.
5.
When someone purchases the same product out of habit over time, that pattern is known
as attitudinal loyalty.
6.
Functional relationships are long-term market exchanges characterized by behavioral
loyalty.
7.
Rajesh always purchases cell phones manufactured by Telekom Inc. Thus, for Telekom,
Rajesh has a very low customer lifetime value.
8.
Companies prefer buyers who are both attitudinally and behaviorally loyal.
9.
The sole determinant of customer lifetime value is a customer's purchases.
10.
The buyer and the seller in a functional relationship typically pursue their own self-
interests because chances of them doing business together are low.
11.
Customer satisfaction occurs when a buyer's expectations are met and needs fulfilled.
12.
Relational partnerships are created explicitly for the purpose of uncovering and exploiting
joint opportunities.
13.
Strategic partnerships between companies create a win-win situation, but the companies
are committed to each other and flexibility can be reduced.
14.
A salesperson must determine which relationship type is appropriate for optimizing a
customer's lifetime value.
15.
It is advisable to build strategic partnerships with large accounts exclusively because of
greater economies of scale.
16.
Relationships have to necessarily move from solo exchange to functional relationship to
relational partnership to strategic partnership.
17.
The use of supplier management systems to discover current suppliers with whom
partnership may be possible occurs in the commitment stage of the relationship
development process.
18.
The expansion stage of the relationship development process involves efforts by both
parties to investigate the benefits of a long-term relationship.
19.
The expansion stage in a relationship involves promises by both buyer and seller to work
together for a single transaction.
20.
When dissolution occurs in the latter stages of a relationship between two firms, the loss
of investments made in the relationship can be significant and have an impact throughout
both organizations.
21.
Length of experience is a strong substitute for proving dependability with action.
22.
Knowledge of the customer, the product, the industry, and the competition are all
necessary to the success of a salesperson.
23.
Although likability is not as important as other dimensions, salespeople should still
attempt to find a common ground or interest with all buyers.
24.
Buyers perceive salespeople as sales oriented when sellers stress benefits and solutions
to problems over features.
25.
Open and honest communication is a key building block for developing successful
relationships.
26.
In a strategic partnership, compared with a relational partnership, less direct
communication ties are present between the buying organization and the selling
organization.
27.
Shared goals help sustain a partnership when the expected benefit flows are not realized.
28.
Members of successful partnerships actively work to create win-lose relationships by
making commitments to the relationship.
29.
A critical element in fostering good relationships is giving boundary-spanning employees
the necessary support.
30.
Training is vital in helping salespeople identify ways to make it easier for customers to do
business with them.
Multiple Choice Questions
31.
Which of the following statements is true of customer lifetime value?
32.
The use of a consultative customer-oriented sales approach:
33.
Bubbly Splash is a major beverage outlet in Seattle. The management takes special care
in resolving customers' grievances as it knows that approximately 40 percent of its
consumers have been buying its beverages without considering alternative drinks for the
last ten years. Identify the loyalty shown by its customers.
34.
For many years, thousands of loyal fans followed the metal band Grateful Dead around the
country, rarely missing a concert. These fans, known as "Dead Heads," were _____ loyal
toward the band.
35.
In which of the following scenarios is a transaction occurring without the buyer and the
seller having a relationship?
36.
As Azi traveled across the state of Tennessee, he stopped and bought gas, a bottle of
soda, and a bag of corn chips at a small store that he will probably never visit again. What
type of transaction did Azi engage in when he made these purchases?
37.
The two types of market exchanges are:
38.
Which of the following is the best example of a solo market exchange?
39.
Why do both the buyer and the seller in a solo exchange pursue their own self-interests?
40.
Identify the relationship type in which the time horizon factor involved is short term.
41.
Identify the nature of relationship between the buyer and the seller in a strategic
partnership.
42.
Identify a true statement about functional relationships.
43.
_____ are long-term market exchanges characterized by behavioral loyalty; the buyer
purchases the same product out of habit or routine over time.
44.
Without _____, behavioral loyalty cannot develop.
45.
Corina almost always shops at Gas-N-Go. She finds the store easily accessible from the
highway, likes the service, and receives special discounts as a frequent customer. Corina
is less likely to shop around for her next purchase because Gas-N-Go satisfies Corina by:
46.
Franco breeds a wide variety of fish. For the last nine years, he has been going to Fins-to-
You, a local pet store that specializes in tropical fish and aquarium supplies, for all of his
needs. He buys everything from fish food to aquarium heaters to replacement fish from
this store. Which of the following terms best describes the relationship Franco has with
Fins-to-You?
47.
Which of the following statements about functional relationships is true?
48.
For which of the following transactions would a functional relationship between the buyer
and the seller be LEAST appropriate?
49.
On the third Wednesday of every month, LuEllen's Barbecue Shack orders four pickup
truckloads of hickory for slow-cooking meat. LuEllen always orders the hickory from
Samson Wood Products Company because they deliver on time and she likes the quality.
Moreover, she has a high level of trust in them. The buyer-seller relationship between
LuEllen and Samson Wood Products Company is an example of a:
50.
Which of the following is an advantage of market exchanges?
51.
A _____ partnership occurs when the buyer and the seller have a close personal
relationship that allows them to communicate effectively with each other.
52.
Caitlin is a highly motivated sales executive for a company that sells business textbooks.
She always strives to create personal relationships with the professors of colleges and
universities. When a committee of professors at Bridgeton University was constituted to
select a new marketing book, her book was selected. Her amiable relationship with the
committee chairman paved the way for this selection. The committee chairman trusts
Caitlin and believes that she will meet his expectations. Identify the type of relationship
between Caitlin and the committee chairman in this scenario.
53.
_____ are the long-term business relationships in which the partners make significant
investments to improve the profitability of both parties.
54.
Henry is a salesperson for Verre House Inc., a manufacturer of glass bottles. Based on a
market survey, he suggested that his customer H. J. Ketchup Company redesign its
ketchup bottle. This change would help improve bottle-filling efficiency and make the
bottle lighter. H. J. Ketchup Company readily implemented Henry's suggestion, and it
enjoyed an increase in its savings. This change also helped Verre House Inc. minimize its
material wastage. Identify the relationship between Henry and H. J. Ketchup Company.
55.
_____ are created for the purpose of uncovering and exploiting joint opportunities.
56.
Which of the following is a true statement about strategic partnerships?
57.
Pyro Electronics was the only supplier of Torin Auto, and both companies wanted to do
more business together. Pyro Electronics worked on its total quality management system
and acquired more business, while Torin developed a just-in-time inventory management
system to deliver goods timely to Pyro Electronics. Pyro Electronics and Torin have
developed a _____.
