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Marketing
Q:
Which of the following represent clues or techniques for identifying powerful buying center members?
a. Isolating the personal stakeholders.
b. Following the information flows.
c. Identifying the experts.
d. All of the above.
e. None of the above.
Q:
The____________________coupled with the balanced scorecard provides a valuable framework by describing the strategy, detailing objectives for the processes that create value and the organizational assets needed to support them.
Q:
The buyer's price sensitivity increases to the degree that:
a. buyers can switch from one supplier to another without incurring additional costs.
b. organizational buyers can easily shop around and assess the relative performance and price of alternatives.
c. the product represents one for which it is difficult to make price comparisons.
d. all of the above.
e. (a) and (b) only.
Q:
"Delivering on promises" relates to which of the following dimensions of service quality?
a. empathy
b. responsiveness
c. assurance
d. reliability
e. all of the above
Q:
The extent to which the business concept is common to competitors on dimensions shared by the customer is a factor than can determine the potential profit of a business concept.
Q:
Which of the following statements about buying centers is true?
a. The composition can change from one buying situation to another.
b. Different individuals are important to the process at different times.
c. Buying centers vary from firm to firm.
d. All of the above are true.
e. Only (a) and (c) are true.
Q:
The second step of the strategy process is defining the customer____________________for target customer segments, in effort to generate revenue from existing customers.
Q:
Since higher costs are incurred in providing higher levels of performance on one or more of the attributes, the strategists should assess the:
a. relative importance of the attributes to different market segments.
b. strength of the firm's offering on each of the importance attributes vis-a-vis competitors.
c. costs associated with the experience effect.
d. (a) and (b) only.
e. (b) and (c) only.
Q:
In evaluating the quality of a service, which of the following dimensions is most important to customers?
a. empathy
b. responsiveness
c. assurance
d. reliability
e. all of the above
Q:
For a strategy to succeed, individuals in a company must understand and share a common definition of a firm's existing business concept.
Q:
A _____ consists of individuals who participate in the purchasing decision and share the goals and risks arising from the decision.
a. buying center
b. target market
c. sales force
d. strategic task force
Q:
In the balanced scorecard, the____________________perspective describes the business processes that have the greatest effect on the chosen strategy, such as customer relationship management, innovation management or supply-chain management.
Q:
Examples of pricing objectives include:
a. channel relationships.
b. achieving a market-share goal.
c. achieving a target return on investment.
d. all of the above.
e. (b) and (c) only.
Q:
In evaluating service quality, customers focus on:
a. empathy.
b. responsiveness.
c. assurance.
d. reliability.
e. all of the above
Q:
Conflicts frequently emerge during the strategy formulation process because various functional units operate under unique reward systems and reflect unique orientations.
Q:
For a salesperson trying to determine the impact of group forces on the organizational buying process, which of the following questions are appropriate?
a. Which organizational members take part in the buying process?
b. What is each member's relative influence in the decision?
c. What criteria are important to each member in evaluating prospective suppliers?
d. All of the above questions are appropriate.
e. Only (a) and (b) are appropriate.
Q:
The strategy map provides a framework for highlighting the interdisciplinary role of marketing strategy and for exploring key implementation requirements.
Q:
Pertinent considerations for pricing industrial products or services include:
a. competition.
b. demand determinants.
c. cost determinants.
d. all of the above.
e. (b) and (c) only.
Q:
When the business service marketer attempts to facilitate the customer's evaluation process, this is in response to:
a. the nonstandardized nature of services.
b. the simultaneous consumption and production of services.
c. perceived determinant attributes.
d. the difficulty in evaluating service quality.
e. an emphasis on equipment/facilities service attributes.
Q:
Strategic plans emerge out of a bargaining process among functional areas.
Q:
Individuals affecting the purchasing decision by supplying information for the evaluation of alternatives or by setting buying specifications is performing the role of:
a. a gatekeeper.
b. a user.
c. an influencer.
d. a decider.
e. a buyer.
Q:
Important implementation skills for marketers include interacting, allocating, and monitoring.
Q:
The successful implementation of value-based strategies requires close coordination between the _____ and _____ units in the firm.
a. product
b. sales
c. service
d. all of the above.
e. (b) and (c) only
Q:
Buyers of business services often experience difficulty in evaluating service quality. Since it is difficult to evaluate quality,
a. buyers tend to experience more perceived risk.
b. buyers rely on different prepurchase information sources to reduce risk.
c. symbology plays a more important role in the evaluation process.
d. all of the above
e. (a) and (b) only
Q:
All participants in the business marketing planning process are evaluated on the bases of sales, profits, and market share.
Q:
Individuals actually making the buying decision, whether or not they have the formal authority to do so, are performing the role of:
a. a user.
b. a gatekeeper.
c. an influencer.
d. a decider.
e. a buyer.
Q:
Relating sales revenues and marketing costs to market segments improves decision making.
Q:
In hypercompetitive environments,
a. leading-edge firms are reluctant to lower prices because they enjoy attractive margins.
b. successful firms sustain quality but drive to the next lower price point to enjoy a burst of volume and an expansion of market share.
c. successful firms are reluctant to disrupt the equilibrium of the market.
d. successful firms look for the first opportunity to raise prices.
e. both (a) and (c).
Q:
The interaction of the individual service provider with the customer may be the key element in the firm's entire marketing strategy. This is an explicit recognition of which characteristic unique to business services?
a. simultaneous production and consumption
b. lack of ownership
c. nonstandardized output
d. inability to stockpile
e. the dominance of intangible elements
Q:
The composition or functional area representation of the strategy center evolves during the marketing strategy development process, varies from firm to firm, and varies from one strategy situation to another.
Q:
Which of the following are ambitious strategic priorities being pursued by many chief procurement officers?
a. Becoming business partners, not just buyers.
b. Developing fewer and deeper relationships with strategic suppliers.
c. Emphasizing more than just price, including a focus on business outcomes, total cost of ownership, and the development of long-term value creation.
d. All of the above.
e. Only (a) and (c).
Q:
In annual plan control, the objectives specified in the annual plan become the performance standards that are compared to actual results.
Q:
Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:
a. product differentiation.
b. a skimming approach to pricing.
c. a penetration approach to pricing.
d. a bid price policy.
e. a life cycle costing pricing policy.
Q:
Concerning the nonstandardized nature of most industrial services, which of the following statements is incorrect?
a. The more labor-intensive the service, the less uniform will be the output.
b. As the extent to which equipment is utilized to produce the service increases, variability will increase.
c. As automation of the service decreases, uniformity of the output will also decrease.
d. It is important to develop systems to minimize human error.
e. It is often difficult for the user to judge service quality before the service is provided.
Q:
The composition of the marketing strategy center is neatly prescribed on the organizational chart.
Q:
A significant increase in the price of gasoline that leads to a decrease in the purchases of new automobiles is an example of the impact of which environmental force?
a. economic factors.
b. political and legal factors.
c. technological factors.
d. all of the above.
e. (a) and (c) only.
Q:
Middle management typically has the primary responsibility for efficiency and effectiveness control.
Q:
Which of the following statements concerning target costing is(are) accurate?
a. Japanese managers who pioneered the approach view target costing as a profit-management tool.
b. The approach is designed to reach market segments comprised of buyers who consistently select the lowest-priced alternative.
c. Target costing tends to move product developers toward products that include only the bare essentials.
d. All of the above.
e. None of the above.
Q:
In the production and sale of industrial services, productive capacity is often a substitute for inventory. In other words, capacity will reflect the level of demand which the service provider can meet. This is primarily in response to which service characteristic?
a. perishability
b. lack of ownership
c. nonstandardized output
d. simultaneous production and consumption
e. the extent to which tangible elements dominate intangible elements
Q:
All business marketing decisions are affected, directly or indirectly, by other functional areas.
Q:
In a modified rebuy situation, the "out" supplier should do which of the following?
a. Try to move decisions makers into straight rebuy.
b. Hold the buying organization in modified rebuy status long enough to consider new alternatives.
c. Both (a) and (b).
d. Neither (a) nor (b).
Q:
For customers with a transactional focus, business marketers should discontinue the use of expensive customer databases and set revenue targets and profit goals.
Q:
Before preparing a bid for any potential contract, the industrial firm should first:
a. estimate the profitability of the potential contract.
b. assess the probability of winning the contract.
c. carefully define their objectives.
d. conduct a preliminary analysis of their expected costs in performing the potential contract.
e. evaluate the strength of potential competing bidders.
Q:
When the marketer emphasizes reductions in staff, overhead, and capital as potential benefits to the purchaser, this relates to the service characteristic of:
a. variability.
b. perishability.
c. simultaneous production and consumption.
d. intangibility.
e. lack of ownership.
Q:
Functional strategy centers on how a firm will compete in a given industry and will position itself against its competitors.
Q:
In a modified rebuy situation, the "in" supplier should do which of the following?
a. Make every effort to understand and satisfy the procurement need.
b. Try to move decision makers into straight rebuy.
c. Both (a) and (b).
d. Neither (a) nor (b).
Q:
The strategy map, when coupled with the measures and targets from the balanced scorecard, provides a valuable framework for the strategist.
Q:
The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as:
a. closed bidding.
b. open bidding.
c. contractual bidding.
d. institutional bidding.
Q:
Service variability is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic.
a. buyer-seller interaction requiring that the service be done "right"
b. planning capacity on the basis of peak demand
c. emphasizing strict quality control standards
d. using pricing and promotion to even out demand peaks and valleys
e. None of the above applies specifically to service variability.
Q:
A _____ enables an organization to describe and illustrate its objectives, initiatives, targets, the measures used to assess performance, and the linkages that are the foundation for strategic direction.
a. value network
b. marketing strategy center
c. strategy map
d. strategic alignment
e. positioning map
Q:
Those buying decisions that involve a large set of choice alternatives and pose little uncertainty, and involve buyers actively searching for information, applying sophisticated analysis techniques, and careful consideration of long-term needs are called:
a. simple modified rebuy.
b. complex modified rebuy.
c. casual purchases.
d. routine low priority purchases.
e. specialty purchases.
Q:
Strategy maps can be used to align internal processes to support different marketing strategies.
Q:
During the innovative firm's monopoly period, a _____ is optimal if there is a relatively high repeat purchase rate for nondurable goods or if a durable good's demand is characterized by diffusion.
a. life cycle costing pricing policy
b. skimming policy
c. penetration policy
d. time segmentation policy
e. bid price policy
Q:
The degree of tangible-intangible dominance of an industrial offering refers to the:
a. simultaneous production and consumption of the service.
b. variability in the quality of the service.
c. perishability of the offering.
d. non-ownership of the service purchased.
e. relative importance accorded, by the buyer, to tangible versus intangible elements.
Q:
The three principal drivers of organizational learning and growth include:
a. human capital.
b. information capital.
c. organizational capital.
d. All of the above.
e. Only b and c.
Q:
Buying decisions that are somewhat important to the firm and involve a moderate amount of analysis are:
a. casual purchases.
b. routine low priority purchases.
c. straight rebuy purchases.
d. extensive problem-solving purchases.
Q:
In regard to profitability control, a segment can be a channel structure.
Q:
During the innovative firm's monopoly period, a _____ is optimal if the demand curve is stable over time (no diffusion) and production costs decline with accumulated volume.
a. life cycle costing pricing policy
b. skimming policy
c. penetration policy
d. time segmentation policy
e. bid price policy
Q:
Simultaneous production and consumption is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic.
a. planning capacity on the basis of peak demand
b. buyer-seller interaction requires that the service be done "right"
c. focusing promotion on the advantages of non-ownership
d. using pricing and promotion to even out demand peaks and valleys
e. developing systems that minimize deviations and human error
Q:
Internal business processes support which elements of a company's strategy?
a. They create and deliver the value proposition for customers.
b. They create and support interfirm supply chain teams.
c. Both a and b.
d. Neither a or b.
Q:
As the risk associated with an organizational purchase decision increases:
a. buying center participants will be motivated to invest greater effort throughout the purchase process.
b. product quality becomes more important than price.
c. after-sale service becomes more important than price.
d. all of the above.
e. (a) and (b) only.
Q:
The efficiency of a marketing operation can be assessed via expense-to-sales ratios.
Q:
A penetration policy is appropriate when there is:
a. a strong threat of imminent competition.
b. inelastic demand.
c. an opportunity for a substantial reduction in production costs as volume expands.
d. all of the above
e. (a) and (c) only
Q:
Many business offerings are composed of a combination of product and service elements. From the following, choose the correct ordering, from tangible dominant to intangible dominant, of the items listed.
a. industrial grease, executive management seminars, convention hotel
b. executive management seminars, industrial grease, convention hotel
c. convention hotel, industrial grease, executive management seminars
d. convention hotel, executive management seminars, industrial grease
e. industrial grease, convention hotel, executive management seminars
Q:
Which of the following are used in the Customer Perspective of the Balanced Scorecard to measure core customer outcome measures?
a. Market share.
b. Customer acquisition.
c. Customer retention.
d. All of the above.
e. Only b and c.
Q:
The formation of organizational preferences and ultimately the organization's buying choice is determined by the _____ of the members of the buying center.
a. interaction structure
b. operating resources
c. relevant set
d. primary set
e. none of the above.
Q:
Marketing control is a process whereby management generates information on performance, such as efficient allocation of marketing effort.
Q:
The policy of using a skimming pricing approach when a product is introduced, followed by penetration pricing as the product matures, is referred to by Joel Dean as:
a. product differentiation.
b. market segmentation.
c. time segmentation.
d. price administration.
e. life cycle pricing.
Q:
From the following list, identify the item that is least likely to be considered a pure service.
a. market research
b. security and protection services
c. after-sales equipment repair and maintenance
d. insurance
e. consulting
Q:
Which of the following are forms of differentiation that can be used by business marketers when developing a value proposition?
a. Lowest total cost.
b. Complete customer solutions.
c. Product innovation.
d. All of the above.
e. Only a and c.
Q:
When organizational buyers modify a salesperson's message to make it more consistent with their predispositions toward the company, this provides an illustration of:
a. selective exposure.
b. selective attention.
c. selective perception.
d. selective retention.
e. selective memory.
Q:
The Balanced Scorecard measures performance from a learning and growth perspective.
Q:
Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business user but the firm plans to reduce the price later and capture a share of the consumer market. This policy of beginning with a high price and then moving to a lower price is referred to as:
a. product differentiation.
b. market segmentation.
c. price administration.
d. time segmentation.
e. life cycle pricing.
Q:
What are the differences between a sustaining and disruptive innovation? Explain the differences in creating new-growth businesses represented by sustaining innovations, low-end disruptions, and new market disruptions.
Q:
The balanced scorecard uses which of the following perspectives to measure firm performance?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning and growth.
e. All of the above.
Q:
The evaluative criteria that engineers apply to a purchasing decision may be quite different from those used by purchasing managers because engineers:
a. are exposed to different journals or publications.
b. possess different professional goals and values.
c. have a different educational background.
d. attend different conferences.
e. all of the above.
Q:
Good implementers struggle and wrestle with their markets and businesses until they can simply and powerfully express the "back of the envelope ratios necessary to run the business, regardless of formal control system inadequacies."
Q:
The degree of latitude that an industrial firm has in setting prices above those offered by competitors is dependent upon:
a. the firm's objectives.
b. the cost of producing the product.
c. the level of differentiation that the product enjoys in the perceptions of organizational buyers.
d. the size of the firm's promotional budget.
e. both (a) and (b)
Q:
What are the characteristics of lead user firms? What are the characteristics of lead user projects and how can the lead user method be used to develop new products?
Q:
The _____ provides managers with a comprehensive system for converting a company's vision and strategy into a tightly connected set of performance measures.
a. value network
b. balanced scorecard
c. customer interface
d. financial audit
e. core business strategy