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Marketing
Q:
Business marketers should base their pricing decisions primarily on cost and competitive considerations.
Q:
Benefits of solution-centered marketing strategy include:
a. new avenues for growth.
b. sustained differentiation and customer loyalty.
c. Both a and b.
d. Neither a or b.
Q:
A ____________________ is a tool used for visualizing a firm's strategy as a chain of cause-and-effect relationships among strategic objectives.
Q:
Influencers control information to be reviewed by other members of the buying center.
Q:
Organizational buyers tend to associate high price with high quality.
Q:
Which of the following is NOT true of the solutions-centered approach instead of a product-centered approach?
a. Win by creating and delivering superior customer solutions.
b. Value is created by the firm.
c. Relationship with customer is interaction-based.
d. Quality focus on customer-firm interactions.
e. All of the above are true.
Q:
The____________________determines how the firm chooses to compete.
Q:
For "risky" purchase decisions, the buying center will become larger and will be comprised of members with higher levels of organizational status and authority.
Q:
_____ involves a formal invitation to potential suppliers to submit written, sealed bids.
a. Closed bidding
b. Open bidding
c. On-line bidding
d. E-commerce
e. Comparative bidding
Q:
When Xerox offers a Total Satisfaction Guarantee that allows customers to return copiers for any reason, this is an example of:
a. word of mouth.
b. developing tangible clues.
c. service bundling.
d. none of the above.
Q:
Customer interface, core strategy, strategic resources and the value network constitute the ____________________or model.
Q:
The higher the level of perceived risk in a buying situation, the lower the probability that the organizational buying decision will be made by a group.
Q:
Which of the following are questions that must be addressed when determining responses to a competitor's threat?
a. If you respond, is the competitor willing and able to lower their price again?
b. Is our position in other markets at risk if the competitor gains market share?
c. Is there a response that would cost you more than the preventable sales loss?
d. All of the above.
e. Only (a) and (b).
Q:
If a firm provides maintenance and repair services to its installed base of products at a customer location, then:
a. the service attributes can be evaluated before purchase.
b. the core service demand is inelastic.
c. product usage data can be systematically gathered and used to tailor service offerings that advance customers' goals.
d. all of the above.
e. (a) and (b) only.
Q:
Responsibility charting is an approach that can classify ____________________roles and highlight the multifunctional nature of business marketing decision making.
Q:
Well-known companies, recognized as credible sources, tend to be favored by organizational buyers facing high-risk decisions.
Q:
Marketing control is a process business marketers can use to generate information on marketing performance. For each of the levels of marketing control, describe the purpose of the control, identify who is primarily responsible for that control in the organization, and provide examples of tools that can be used.
Q:
Which of the following are reasons why followers into a market often find lower costs than the pioneer firm?
a. The use of more current production technologies.
b. Experience of suppliers leads to cost reductions.
c. Learning from the pioneer's mistakes.
d. All of the above.
e. Only (b) and (c).
Q:
Service quality benefits should be linked to::
a. customer satisfaction.
b. customer retention.
c. profitability.
d. market share.
e. all of the above.
Q:
Subcultures exist when one subunit shares different values, beliefs, and goals than another subunit, resulting in different____________________.
Q:
Those individuals who have an important personal stake in the decision will exert more influence than other members of the buying center.
Q:
Using any selling firm, product, and market of your choice, please illustrate how a strategy map that utilizes the balanced scorecard measures can be used to build an effective and efficient marketing strategy plan.
Q:
Which of the following are useful to business marketers trying to gauge competitive responses to pricing?
a. Examining the cost structure and strategy of direct competitors.
b. Examination of annual reports and other public records.
c. Identifying which markets competitors deem as important.
d. All of the above.
e. Only (a) and (c).
Q:
Recent research shows that business-to-business service firms are more likely to emphasize:
a. relationship strategies as opposed to transactional strategies.
b. arms-length strategies.
c. the total buyer-seller process
d. all of the above.
e. (a) and (c) only.
Q:
The three principal drivers of organizational learning and growth are human capital, information capital, and financial capital.
Q:
Purchasing managers assume a dominant role in repetitive buying situations.
Q:
Illustrate how a business marketing manager might use a responsibility chart to pinpoint the roles that diverse functional specialists must perform in the implementation of marketing strategy.
Q:
Examples of typical add-on benefits include:
a. joint working relationships.
b. commitment.
c. supplier flexibility.
d. All of the above.
e. Only (a) and (b).
Q:
When a manager is in charge of intangible and heterogeneous services, he/she should develop marketing strategies that:
a. emphasize word-of-mouth communication.
b. provide tangible evidence.
c. employ value pricing.
d. all of the above.
e. (b) and (c) only.
Q:
Core customer outcome measures used to monitor performance include market share, customer retention, and customer profitability.
Q:
Members of the buying center are generally in agreement concerning the criteria that should be used in evaluating the merits of alternative suppliers.
Q:
Many marketing plans fail because they are poorly implemented. Explain the special implementation challenges that emerge for managers operating in the business marketing environment.
Q:
_____ are those attributes that are not typically required but that can ultimately lead to a supplier being selected by a customer over other qualified suppliers.
a. Core benefits
b. Add-on benefits
c. Supplier personality traits
d. Customer values
e. Elasticities of demand
Q:
Which of the following statements regarding the perishability of services is incorrect?
a. Capacity is a substitute for inventory.
b. The demand for services is often predictable and consistent.
c. If capacity is set for peak demand, a service inventory must exist to supply the highest level of demand.
d. all of the above.
e. (a) and (c) only.
Q:
Core competencies are the more tangible requirements for advantage that enable a firm to exercise its capabilities.
Q:
A purchasing manager could assume the roles of buyer, gatekeeper, and influencer in the buying center.
Q:
A firm that sells sophisticated equipment to paper manufacturers (for example, Mead Corporation) learned that the same technology may have important potential in the lucrative food-processing industry. Potential customers here would include firms such as General Foods and Sarah Lee. Suggest several critical issues that this firm should address before embarking on this new strategy course.
Q:
_____ represents a business customer's overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made.
a. Core benefits
b. Add-on benefits
c. Customer value
d. Relationship commitment
e. Total cost analysis
Q:
The concept of tangibility helps the manager to:
a. focus clearly on the firm's total market offering.
b. recognize that a change in one of the elements of the marketing offering may completely change the offering in the view of the customer.
c. determine how a service will marketed.
d. all of the above.
e. (a) and (b) only.
Q:
The core strategy determines how the firm chooses to compete.
Q:
Technical and engineering personnel tend to be more important to the organizational buying process where the rate of technological change is great.
Q:
Motorola plans to introduce an advanced personal communicator to the business market. They feel that the system is ideally suited for managers. While a broad marketing strategy has been sketched out, it is now time to put together the specific details of the marketing plan from start-to-finish. The planned introduction is six months away. Provide a comprehensive list of the key decisions the firm should make in the areas of pricing, channels, advertising, sales force training, segmentation, and related areas. Next, describe the specific types of information that might be gathered to facilitate each decision. Finally, once the product is introduced, what performance areas should be monitored to determine if strategy adjustments are required for the new product?
Q:
_____ features a design-to-cost philosophy that begins by examining market conditions.
a. Target costing
b. ABC costing
c. Value-based segmentation
d. Total cost costing
e. Penetration pricing
Q:
Services are:
a. deeds.
b. processes.
c. performances.
d. all of the above.
e. (b) and (c) only.
Q:
The four major components of the business model or concept are customer interface, core competencies, strategic resources, and the value network.
Q:
The information requirements of organizational buyers are highest in modified rebuy situations.
Q:
With the balanced scorecard, executives can now measure how their business units create value for current and future customers and how they must enhance internal capabilities and the investment in people, systems, and procedures necessary to improve future performance. Describe the four perspectives of organizational performance that are considered in the balanced scorecard approach.
Q:
A skimming strategy is appropriate when:
a. there is high price elasticity of demand.
b. strong threat of imminent competition.
c. the firm has a distinctly new product in a monopoly period.
d. All of the above.
e. Only (b) and (c).
Q:
Research on new service success suggests that:
a. the determinants of success for new services closely resemble those found for successful new products.
b. a well managed service development process is crucial.
c. successful projects provide clear customer benefits.
d. all of the above.
e. (b) and (c) only.
Q:
Lowest total cost and product innovation are two forms of differentiation that can be uses by business marketers when developing a value proposition.
Q:
Many small or incremental decisions are made during the procurement process that ultimately translate into the final selection of a supplier.
Q:
Dell Computer entered into a strategic alliance with Lexmark, a producer of printers and ink cartridges, to provide a more direct challenge to Hewlett-Packard (H-P)the market leader in printer and cartridge sales. Clearly, this will take time and a well conceived strategy by Dell because H-P has about 50 percent market share in printer sales and a huge installed base of printer customers around the world. For this strategic initiative in the printer business, describe how Dell might use a strategy map to illustrate objectives, targets, and strategies as well as measures it might use to assess its performance in this new business.
Q:
_____ refers to the rate of percentage change in quantity demanded attributable to change in price.
a. Cost/benefit analysis
b. Customer demand
c. Price elasticity of demand
d. Perceived value
e. Competitive edge
Q:
Which of the following capabilities are particularly critical to the successful launch of hybrid service offerings:
a. Design-to-service capability.
b. an assessment of the impact of demand elasticity on price changes.
c. Production capacity evaluation.
d. Customer engagement in the design process.
e. the marketing of two or more services in a "package" for a special price.
Q:
The four perspectives used in the balanced scorecard to measure performance are financial, customer, internal business processes, and learning and growth.
Q:
The decision to purchase a fork-lift truck may be a new task buying situation in one organization and a modified or straight rebuy in another.
Q:
____________________cost systems reveal the links between performing particular activities and the demands those activities make on the organization's resources.
Q:
_____ costs include financing, storage, and inspection costs.
a. Acquisition
b. Possession
c. Usage
d. None of the above
Q:
In the marketing of business services, items such as uniforms, logos, guarantees, written contracts, and color schemes are examples of:
a. determinant attributes.
b. the service concept.
c. the actual service offer.
d. physical evidence of the actual service.
e. the system used to create and deliver the service.
Q:
Responsibility charting is an approach that can classify decision-making roles and highlight the multifunctional nature of business marketing decision making.
Q:
The Total Cost of Ownership
a. Includes all costs associated with the product and its delivery
b. Is used by buyers to determine what they should spend on an item
c. Considers the full range of costs associated with the purchase and use of a product or service over its complete life cycle
d. Is an accounting concept that buyer's use to compare the value of competing offerings
e. None of the above.
Q:
Expense-to-sales ratios are analyses of the____________________of marketing operations to determine whether the firm is overspending or underspending.
Q:
If competitors are likely to continue to pursue price cutting, the best strategy for the defender is to:
a. allow the competitor to win where it is least damaging to profitability.
b. create barriers that make it more difficult for competitors to reach less price-sensitive customer segments.
c. center reactive price cuts on a particular geographic region.
d. all of the above.
e. (a) and (b) only.
Q:
The ____ defines the general benefits the service company will provide in terms of the bundle of goods and services sold to the customer.
a. customer-benefit concept
b. service offer
c. cross-selling concept
d. mixed bundling concept
e. service concept
Q:
The two most common forces that divide participants during the strategy formulation process are turf issues and different thought-worlds.
Q:
Which of the following statements are true of reverse auctions?
a. They are most appropriate for commodity-type items.
b. They involve one buyer who invites bids from several pre-qualified suppliers.
c. Both a and b are true.
d. Neither a or b is true.
Q:
Efficiency and effectiveness control is the primary responsibility of____________________management.
Q:
General plant overhead is an example of _____ costs.
a. direct traceable
b. indirect traceable
c. general
d. attributable
Q:
In conceptualizing the service product, the service offer refers specifically to the:
a. actual creation and delivery of the service product.
b. detailed service elements that will make up the total services package.
c. general benefits the service company will provide to the customer.
d. benefits sought by customers.
e. overall process of assessing and responding to customer needs.
Q:
In the hierarchy of strategies, the three major levels of strategy are corporate, business-level, and functional.
Q:
As the risk associated with an organizational purchase decision increases, which of the following occur?
a. The buying center becomes smaller.
b. The information search is a active and a wide variety of information sources are consulted.
c. Buying center participants invest greater effort.
d. All of the above occur.
e. Only (b) and (c) occur.
Q:
Strategic____________________focuses on assessing whether the strategy is being implemented as planned and whether it produces the intended results.
Q:
Which of the following statements regarding competitive threats is incorrect?
a. Matching a price cut will be an ineffective strategy if the competitor simply reestablished the differential by a further price reduction.
b. A single response is rarely enough to stop price moves by competitors that are struggling to establish a market position.
c. If a price response is required, the strategist should focus the firm's competitive retaliation on those actions that are most cost-effective for the firm.
d. All of the above.
Q:
The customer benefit concept refers to:
a. a detailed listing of which services will be provided.
b. guidelines for the delivery of the service product.
c. the core benefit that the customer will derive from the service.
d. the general benefits the service company will provide to the customer.
e. none of the above
Q:
The business mission defines where the firm competes.
Q:
Selective _____ is the tendency to accept communication messages consistent with existing attitudes and beliefs.
a. exposure
b. attention
c. perception
d. retention
e. memory
Q:
The portion of the total purchases in a product and service category that a customer makes from the firm is known as ____________________.
Q:
_____ are those that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship.
a. Indirect traceable costs
b. Attributable costs
c. General costs
d. none of the above.
Q:
Development of the marketing mix is contingent upon the customer segment to be served. How do customer service segments differ from product market segments?
a. Service segments are often narrower than product segments.
b. Service segmentation focuses on what business buyers need versus on what they expect.
c. Service segments are often wider than product segments.
d. The demand patterns of each service segment are very similar.
e. none of the above
Q:
Suppliers and coalitions are part of a firm's value network.