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Marketing
Q:
The most successful advertisements directed at business customers tend to focus on:
a. the physical product.
b. product attributes.
c. product benefits.
d. indirect appeals to action.
e. the price of the advertised product.
Q:
Automatic Data Processing (ADP) was born through an innovation that created a new business niche-a foolproof outside service to help small businesses meet their weekly payrolls. First, position this service on a product-service continuum for which the basic underlying variable is tangibility. Second, describe how ADP's marketing strategy would be different from an office equipment manufacturer that called on the same small businesses.
Q:
Factors that favor keeping products or services at home instead of relocating to rapidly developing economies include:
a. Protection of intellectual property is critical.
b. High sensitivity to production location.
c. Very high technology content.
d. All of the above.
e. (a) and (c) only.
Q:
When a business marketer demonstrates special skills in managing relationships with key customers or by developing innovative strategies with alliance partners, they are trying to create:
a. a collaborative advantage.
b. an equal advantage.
c. an arm's length transaction.
d. a transactional exchange.
e. None of the above.
Q:
In formulating advertising messages, the business marketer should:
a. emphasize product and technical specifications.
b. identify general buying criteria of importance to a range of buying center members.
c. use color and illustrations sparingly.
d. both (a) and (b)
e. none of the above
Q:
A large hospital in Chicago recently purchased four top-of-the-line, high-speed copiers from Xerox. The purchasing department carefully scrutinized the quality, price, warranties, and service features of several vendors before choosing Xerox. In the words of Jim Parker, the director of purchasing at the hospital, "it was the quality that gave Xerox the edge." Describe the role of service quality in this buyer-seller relationship. What factors may have been involved in shaping Jim Parker's perception of service quality?
Q:
Factors that favor relocation of products or services to rapidly developing economies include:
a. High labor content.
b. Low growth potential
c. Standardized manufacturing or service-delivery processes.
d. All of the above.
e. (a) and (c) only.
Q:
Business marketers track customer loyalty and retention because:
a. the cost of new customers is often far less than long-standing customers.
b. all satisfied customers will remain loyal.
c. the firm can identify opportunities for expanding the relationship.
d. the cost of serving established customers usually increases.
Q:
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.
Q:
__________________________ is the manufacturer's capacity to integrate the product and service elements of the offering early in the development process to tap the full potential for revenue generation and/or cost reduction.
Q:
The decision to outsource business operations to rapidly developing economies is affected by which of the following sets of factors?
a. Economic.
b. Competitive.
c. Environmental.
d. All of the above.
e. (a) and (b) only.
Q:
Using the continuum of working relationships, the industry bandwidth refers to:
a. the range of relationship strategies (from transactional to collaborative) that are pursued by competing firms.
b. the number of competitors in the particular industry.
c. always-a-share customers.
d. the lost-for-good customer.
e. the number of organizations in a straight rebuy situation.
Q:
____ provides the guidelines for company and advertising agency personnel on how the product is to be "positioned" in the marketplace.
a. The creative strategy statement
b. The objective-task concept
c. Product position
d. Controlled circulation
e. Advertising objectives
Q:
____________________combine products and services into innovative value propositions for customers .
Q:
Companies can use capabilities advantages to:
a. improve research and development.
b. address unmet customer needs.
c. further standardize products in the home country.
d. All of the above.
e. (a) and (b) only.
Q:
Value can be defined as the _____ benefits received by a customer firm in exchange for the price paid for a product offering.
a. economic
b. technical
c. social
d. all of the above
e. (a) and (b) only
Q:
Advertising objectives are typically stated in terms of:
a. sales goals.
b. profit goals.
c. cost constraints.
d. communication goals.
e. market share goals.
Q:
Treating customers as individuals exemplifies the____________________dimension of service quality.
Q:
The hidden costs in operating in rapidly developing economies include which of the following?
a. One-time setup costs.
b. Risk management costs.
c. Exit costs.
d. All of the above.
e. (a) and (b) only.
Q:
The open exchange of information is a characteristic of ____ relationships.
a. close
b. distant
c. transactional
d. all of the above
e. (b) and (c) only.
Q:
In designing advertising strategy, the business marketer should first:
a. determine the size of the advertising budget.
b. select appropriate media sources.
c. determine advertising objectives.
d. develop a series of responsive messages.
e. forecast sales.
Q:
Service____________________means that services cannot be stored or stockpiled; if they are not provided at the time they are available, the lost revenue cannot be recaptured.
Q:
A firm that includes rapidly developing economies (RDEs) in their global cost structures can realize savings of _____ in the landed costs of their products.
a. 0 to 20 percent
b. 20 to 40 percent
c. 40 to 60 percent
d. 60 to 80 percent
Q:
_____ 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
Q:
Social media:
a. are more effective than traditional media at reaching hard-to-reach propects.
b. are typically less expensive that print media.
c. facilitate targeted, personalized contact across the customer experience landscape.
d. enhance the impact of trade promtions.
e. all of the above
Q:
The first step in understanding a customer's experience is to develop a ____________________map.
Q:
Firms that quickly and intelligently seize global opportunities can secure which of the following forms of competitive advantage?
a. Cost advantage.
b. Market access advantage.
c. Capabilities advantage.
d. All of the above.
e. (a) and (b) only.
Q:
The belief by a partner that an ongoing relationship is so important that it deserves maximum effort to maintain it is referred to as:
a. trust.
b. solidarity.
c. relationship commitment.
d. a strategic alliance.
e. interfirm cooperation.
Q:
Important social media to be considered by B2B marketers would be focused on:
a. discussion forums
b. blogs.
c. social networks.
d. wiki
e. all of the above
Q:
Instances where the customer has direct contact with either the product or service itself or with representatives of it by a third party, such as a channel partner are known as____________________.
Q:
Rather than modifying the firm's product offerings from country to country, ____ strategy requires a patient, long-term campaign to enter every significant foreign market while maintaining and leveraging the company's unique strategic position.
a. a global
b. an exporting
c. a joint venture
d. a licensing
Q:
Business marketing relationships vary in terms of their closeness or degree of collaboration. Transactions that are almost, if not entirely, void of a close, collaborative relationship:
a. do not involve the exchange of money.
b. involve long-term, contractual commitments.
c. are one-time exchanges of value between two parties with no prior or subsequent interaction.
d. intend to move each partner toward the attainment of some long-term strategic goal.
e. none of the above
Q:
How do conditions differ in hypercompetitive environments as opposed to traditional markets? How can business marketers create and/or use hypercompetitive rivalries to their advantage and how can they predict the reactions of their competitors to their pricing actions?
Q:
Customer____________________represents teh internal and subjective response a business customer has to any direct or indirect contact with a company.
Q:
In high-risk markets, firms can reduce their equity exposure by adopting low commitment modes such as:
a. licensing.
b. contract manufacturing.
c. joint ventures with a majority share.
d. all of the above.
e. (a) and (b) only.
Q:
Rather than adopting the approach of "one design fits all," the astute marketer matches the strategy to the product and market conditions that surround a particular relationship. Which of the following statements is(are) true?
a. It is unwise for marketers to make specialized investments in transactional relationships.
b. For transactional customers, the salesperson should center primary attention on the purchasing staff.
c. Transactional customers display less loyalty to a particular supplier and can easily switch part or all of their purchases from one vendor to another.
d. all of the above
e. (a) and (c) only
Q:
If an aggressive competitor cuts prices, what action can a strategist take to minimize the damage and respond in the most cost-effective way? Under what conditions should a strategist merely ignore an aggressive price move by a competitor?
Q:
Research indicates that manufacturers typically earn a very high percentage of gross profits from the aftermarket, though it accounts for a very much smaller percent of revenue
Q:
Research suggest that over _____ % of joint ventures are disbanded or fall short of expectations.
a. 10
b. 20
c. 30
d. 40
e. 50
Q:
For transactional customers, the business marketer should:
a. see that operational linkages are designed into the relationship to keep product and service offerings aligned with customer needs.
b. directly assist the customer with planning and strategy issues.
c. focus primary attention on the purchasing staff.
d. all of the above
e. none of the above
Q:
When challenged by an aggressive competitor, the immediate thought that comes to mind for many managers is to fight back and match the price cut. However, because price wars can be quite costly, experts suggest that a more systematic process should be followed. Describe the factors that a strategist should consider before matching a price cut by a rival.
Q:
Demand for services is rarely steady or predictable enough to avoid service perishability.
Q:
Successful global companies achieve unified action by:
a. establishing a strategies that are independent across countries.
b. developing accounting systems that are country specific.
c. encouraging personal relationships and the transfer of learning among subsidiary managers across locations.
d. all of the above.
Q:
For collaborative customers, the business marketer should:
a. invest resources to build operational linkages and information-sharing mechanisms for the relationship.
b. directly assist customers with planning and strategy development.
c. work with a wide array of managers on strategy and coordination issues.
d. all of the above
e. (a) and (b) only
Q:
A large consumer goods company recently entered the business market with a new product with broad industrial application. They are in the process of determining the appropriate price for the product. Discuss the role of costs in determining price and indicate some of the key cost considerations that must be evaluated in setting price.
Q:
Process delegation services (PDS) represent those services where a manufacturer performs specific processes on behalf of the customer.
Q:
The home base for a business is the location where:
a. strategy is set.
b. core product and process technology is created and maintained.
c. a critical mass of sophisticated production and service activities reside.
d. all of the above.
e. (a) and (c) only.
Q:
Which of the following statements about collaborative relationships is(are) true?
a. Customers prefer a collaborative relationship when there is a competitive supply environment featuring many alternatives.
b. Collaborative relationships are less likely to involve operational linkages between the buying and selling firms.
c. Buyers prefer collaborative relationships when the purchase decision is not complex.
d. all of the above
e. none of the above
Q:
A firm developed a new component part (i.e., a timing mechanism) that can be effectively used in dishwashers, automobiles, toys and medical equipment. Describe the process that the firm might follow in measuring the elasticity of demand for the new product. Is it likely to vary by application?
Q:
Service quality encompasses the procedures, policies, and processes a firm uses to resolve customer service problems promptly and effectively.
Q:
An advantages of joint ventures is:
a. they include the only path of entry into many foreign markets.
b. they open up market opportunities that neither partner to the venture could purse alone.
c. they transfer knowledge to the partner.
d. all of the above.
e. (a) and (b) only.
Q:
Which of the following statements about transactional relationships is(are) true?
a. Customers emphasize a transactional orientation when the purchase is viewed as less important to the organization.
b. Customers prefer a transactional relationship when the market is dynamic (for example, rapidly-changing technology.
c. Transactional relationships are more likely to involve operational linkages.
d. all of the above
e. none of the above
Q:
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.
Q:
Reliability, responsiveness, and empathy are all dimensions of service quality.
Q:
Potential partners for a global alliance are evaluated based on:
a. resources.
b. relationships.
c. culture.
d. all of the above.
e. (a) and (b) only.
Q:
Which of the following statements about buyer-seller relationships is(are) true?
a. Customers prefer a transactional orientation when there are few alternative offerings from suppliers.
b. Customers emphasize a collaborative orientation when the purchase decision is not complex.
c. Collaborative relationships are more likely to involve operational linkages and high levels of information exchange.
d. All of the above
e. None of the above
Q:
A small high-technology firm in Arizona recently developed a new component part that offers superior advantages over competing products. The component is used in high-speed production systems and, due to its durable composition, has a useful life of 12 months versus 3 months for competing products. By reducing downtime and frequent changeovers, the product will offer users a significant improvement in production efficiency. Of course, the exact savings will vary by market segment. The two executives, who launched the firm, are divided over the course that should be followed in pricing the componentone favors a high price for a quick payback while the other opts for a lower price and a more deliberate approach. Outline the critical issues that should be examined in setting the price.
Q:
In order to effectively use a solutions perspective, business marketers need to define their unique capabilities and determine how to use them to help customers reduce costs, increase responsiveness, or improve quality.
Q:
As an entry strategy, licensing requires:
a. capital investment.
b. marketing strength in foreign markets.
c. a company to have less control over a licensee than over its own exporting or manufacturing abroad.
d. all of the above.
e. (b) and (c) only.
Q:
Collaborative relationships:
a. are emphasized by buying firms when the purchase is deemed important to the organization.
b. are emphasized by buyers when the complexity is high.
c. are more likely to involve operational linkages.
d. all of the above
e. (a) and (b) only
Q:
____________________drivers add incremental value by facilitating revenue or margin expansion while____________________drivers create value by providing economic savings.
Q:
A solution-centered approach starts with the product and leads to a solution that satisfies customers.
Q:
Which of the following modes of international market entry provides for greater potential returns and a greater degree of control over operations?
a. licensing
b. wholly-owned subsidiaries
c. contract manufacturing
d. exporting
e. franchising
Q:
Transactional relationships:
a. are characterized by high levels of information exchange.
b. are emphasized by buyers when the purchase is viewed as less important to the organization's objectives.
c. are more likely to involve operational linkages.
d. all of the above
e. (a) and (c) only
Q:
The first component in the Price-Setting Decision Process is____________________.
Q:
Business-to-business service firms are more likely to emphasize transactional strategies as opposed to relationship strategies.
Q:
In entering high-risk country-markets, firms can reduce their risk exposure by adopting low-commitment modes of entry such as:
a. licensing.
b. wholly-owned subsidiaries.
c. contract manufacturing.
d. all of the above
e. (a) and (c) only
Q:
Buying firms prefer a more collaborative relationship when:
a. the purchase is deemed strategically important to the buying organization.
b. the market is dynamic.
c. there are few alternatives.
d. all of the above
e. (a) and (c) only
Q:
____________________costs include financing, storage, inspection, taxes, insurance, and other internal handling costs.
Q:
The actual performance by the service provider is of little relevance compared to the customer's perception of the service.
Q:
The choice of a particular international market entry mode depends on a range of factors including the size of the market and its growth potential. Markets of limited size surrounded by trade barriers may be supplied most cost effectively via:
a. licensing or contract manufacturing.
b. a local production and marketing subsidiary.
c. exporting.
d. selective distribution.
e. none of the above
Q:
Buying firms prefer a transactional relationship when:
a. the complexity of the purchase is high.
b. there is a competitive supply market featuring many alternatives.
c. the supply market is stable.
d. all of the above
e. (b) and (c) only
Q:
Two types of benefits can contribute to customer value in business markets: ____________________ benefits which are the basic requirements the business marketer must meet to be included in the customer's consideration set and ____________________ benefits which are those attributes typically not required, that assist the customer in selecting a supplier from among a qualified set of potential suppliers.
Q:
For services, capacity is a substitute for inventory.
Q:
Concerning international strategy, a firm that concentrates manufacturing and support activities in one country but gives local marketing subsidiaries significant latitude in each region of the world is following which type of international strategy?
a. a country-centered strategy
b. an export-based strategy
c. a purest global strategy
d. a segmented international strategy
e. a coordinated international strategy
Q:
_____ reflect(s) the degree to which the systems, procedures, and routines of the buying and selling firms have been connected to facilitate operations.
a. Relationship connectors
b. Information exchange
c. Cooperative norms
d. Operational linkages
e. Legal bonds
Q:
The Robinson-Patman Act holds that it is unlawful to____________________in price between different purchasers of commodities of like grade and quality.
Q:
The concept of tangibility helps the manager to focus clearly on the firm'stotal market offering.
Q:
The type of international strategy that concentrates as many activities as possible in one country, serves the world market from the home base, and closely coordinates those activities that must be performed near the buyer (for example, service) is referred to as:
a. a country-centered strategy.
b. an export-based strategy.
c. a purest global strategy.
d. a segmented international strategy.
e. a coordinated international strategy.
Q:
There is a gravitational pull that moves buyers toward the transactional side of the exchange spectrum because:
a. competitors are continually working to attract the best customers away.
b. customer requirements and expectations keep changing.
c. customers can freely explore new options in real time on the Internet.
d. all of the above
e. (a) and (b) only