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Q:
Explain positioning and the three main components of the positioning statement.
Q:
Explain the three tests discussed in the text that can be applied to identify core competencies.
Q:
Explain business strategy as an overarching strategy.
Q:
Implementation considerations should inform and guide the generation of market strategy. It is in answering the question, "How will we do it?" that the business develops action plans, designs sales and marketing programs, takes stock of its implementation skills, and prepares for learning and adapting
Q:
Organizing skills reflect how adroit a manager is in connecting relationships and managing group dynamics, whereas interacting skills refer to one-on-one interaction adeptness.
Q:
Monitoring skills refer to a manager's expertise in budgeting time, people, and money.
Q:
Allocation skills refer to a manager's expertise in budgeting time, people, and money.
Q:
Managers in business markets know that there is no benefit from adapting the concepts and practices of their counterparts in consumer markets to the business-to-business setting.
Q:
Examples of _______ programs are a new offering introduction, participation in an industry trade show, or increasing the supplier's share of customer's business in a targeted segment.
a. strategy
b. positioning
c. resonating focus
d. marketing and sales
Q:
The value proposition _______ consists of one or two points-of-difference (and, perhaps, a point-of-parity) whose improvement will deliver the greatest value to the customer for the foreseeable future.
a. all benefits
b. favorable points of difference
c. resonating focus
d. operational excellence
Q:
_______ refers to selecting particular market segments and customer firms that the supplier firm will focus its resources on serving. That is not to say that the firm will not sell to other market segments or customer firms, but instead, targeting specifies which segments and customer firms are of particular interest.
a. Targeting
b. Positioning
c. Operational excellence
d. Strategy
Q:
_______ 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
Q:
_______ means segmenting and targeting markets precisely and then tailoring offerings to match exactly the demands of those niches.
a. Product leadership
b. Customer intimacy
c. Operational excellence
d. Strategy
Q:
_______ means offering customers leading-edge products and services that consistently enhance the customer's use or application of the product, thereby making rivals' goods obsolete.
a. Product leadership
b. Customer intimacy
c. Operational excellence
d. Strategy
Q:
_______ is a means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm's products, revealing the explicit ordering of brand elements.
a. brand equity
b. branding strategy
c. brand hierarchy
d. brand loyalty
Q:
_______ for a firm identifies which brand elements a firm chooses to apply across the various products it sells." In business markets, the most significant aspect of branding strategy is deciding on the brand hierarchy to pursue.
a. brand equity
b. branding strategy
c. brand hierarchy
d. brand loyalty
Q:
_______ captures the value of a brand and refers to how customers regard a brand relative to offerings of other competing suppliers (or an offering of an unnamed supplier), based on those customers' knowledge from experience with and learning about the brand.
a. brand equity
b. branding strategy
c. brand hierarchy
d. brand loyalty
Q:
According to the text _______ means performing differentactivities from rivals' or performing similar activities in different ways.
a. core competencies
b. distinctive capabilities
c. strategic positioning
d. business strategy
Q:
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
Q:
_______ (is)are resource(s) that are complementary building blocks of a value-generating strategy that provides competitive advantage.
a. Core competencies
b. Capabilities
c. Strategic positioning
d. Strategy
Q:
_______ means performing different activities from rivals' or performing similar activities in different ways.
a. Crafting market strategy
b. Operational effectiveness
c. Strategic positioning
d. Strategy
Q:
_______ means performing different activities from rivals' or performing similar activities in different ways.
a. Crafting market strategy
b. Operational effectiveness
c. Strategic positioning
d. Strategy
Q:
_______ means performing similar activities better than rivals perform them.
a. Crafting market strategy
b. Operational effectiveness
c. Strategic positioning
d. Strategy
Q:
_______ is the process of studying how to exploit a business's resources to achieve short-term and longterm marketplace success, deciding on a course of action to pursue, and flexibly updating it as learning occurs during implementation.
a. Crafting market strategy
b. Operational effectiveness
c. Strategic positioning
d. Strategy
Q:
Congratulations! You"ve just been promoted to business market manager at your firm. You would like to adopt the BuyGrid Framework as a more orderly process for acquiring goods. Your boss would like to know more about the framework. Explain the BuyGrid Framework to her.
Q:
Describe the two levels of value management: strategic and tactical.
Q:
Peter Kraljic's Purchasing Portfolio Matrix
Q:
Discuss and give two examples of developments in buying.
Q:
As a steel supplier preparing to bid business on a major aviation corporation, how will the purchasing orientation of the buyer affect your bid? Include the three common purchasing orientations in your response.
Q:
Transaction uncertainty is inversely related to the customer's confidence that suppliers have easy-to-use procedures for doing business, processing orders accurately, and providing reliable and timely deliveries.
Q:
In a new task buying situation, the customer firm has had experience securing the product or service, but managers need to reevaluate alternatives
Q:
At the strategic level of value management, all executives learn to "manage by value." At the tactical level, all personnel focus on the "management of value."
Q:
Procurement managers classify products and services that fail to meet company requirements as underspecified and those that provide far more features than necessary as overspecified.
Q:
The total cost of ownership (TCO) is defined as the sum of purchase price minus all expenses incurred during the productive lifetime of a product or service minus its salvage or resale price.
Q:
Using the tools of value assessment, ________ conducts the most thorough and demanding evaluations of suppliers.
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
Q:
Extended purchase price added to the nonperformance costs, all divided by extended purchase price, equals:
a. total cost of ownership (TCO)
b. early supplier involvement (ESI)
c. supplier performance index (SPI)
d. value in use (VIU)
Q:
As firms migrate to a ________, they create performance measures that focus on total cost of ownership.
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
Q:
Companies that subscribe to the ________ evaluate suppliers largely in terms of realized price, quality and availability.
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
Q:
________ 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
Q:
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
Q:
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
Q:
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
Q:
________ refers to all those members of an organization who become involved in the buying process for a particular product or service.
a. Team members
b. Business market managers
c. Suppliers
d. Buying team
Q:
A consortium led by the French Association of Value Analysis and the Association of German Engineers explored, developed and articulated the value management approach for the European Union. The consortium first urges firms to:
a. focus on business processes
b. adopt a supply management orientation approach
c. adopt a customer-value philosophy and set of action guidelines
d. incorporate a procurement orientation into all aspects of buying
Q:
The mission of the ________ is collectively to analyze and focus a value stream so that it does everything involved in supplying a good or service in a way that provides maximum value to the customer.
a. buying center
b. lean enterprise
c. buying group
d. supply manager
Q:
The four major tenets of supply management orientation include all the following EXCEPT:
a. focus on end-users
b. craft a sourcing strategy
c. sustain highly collaborative relationships with select suppliers
d. avoid risk wherever possible
Q:
Cooperative relationships with customer firms require all of the following EXCEPT:
a. integrative negotiation
b. target costing
c. target pricing
d. standardization
Q:
________ focuses on reducing total cost of ownership, not simply price, and is another way to cooperate.
a. Integrative negotiation
b. Target costing
c. Target pricing
d. Standardization
Q:
________ is based upon the assumption that resources can be expanded to benefit both parties. The process entails identifying shared interests and goals and freely exchanging information.
a. standardization
b. procurement
c. integrative negotiation
d. involvement consulting
Q:
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
Q:
A firm that is oriented toward procurement seeks to increase its productivity through all the following EXCEPT:
a. maximizing power over their suppliers
b. improving quality
c. reducing total cost of ownership
d. cooperating with suppliers
Q:
________ entails broadening the domain and span of influence of purchasing, pursuing quality improvements and cost reductions.
a. Supply management orientation
b. Procurement orientation
c. Value orientation
d. Buying orientation
Q:
Ken, a buyer for Miller Construction, is willing to sacrifice fewer product variations, fewer delivery locations and less technical support from his supplier in exchange for reduced prices. This is an example of:
a. multisourcing
b. target pricing
c. procurement orientation
d. defeaturing or cooperative pricing
Q:
An organization with a ________ maintains arm's-length relationships with vendors and is primarily focused on reducing the total spending.
a. supply management orientation
b. procurement orientation
c. value orientation
d. buying orientation
Q:
What are the Net Promoter Score and the three clusters of customers?
Q:
Explain the relationship between Jones and Sasser's ultimate measure of 'customer loyalty' and the 'supplier's share of customer's business'.
Q:
Explain overall customer satisfaction according to the American Customer Satisfaction Index including the three measures.
Q:
Explain customer value management and the two basic goals of customer value management.
Q:
Business market managers would like to know which market segments will have the largest growth in total market demand over some time horizon of interest, such as the next year, three years, or five years. Barnett describes the four basic steps needed in any forecast of total market demand. What are the four steps?
Q:
The Net Promoter Score (NPS) is derived from the answers to a willingness-to-recommend question.
Q:
Customer feedback provides the supplier with a chance to remedy problems that occur and to retain a customer's business. It does NOT give the supplier an early warning of changing customer requirements and preferences.
Q:
Value assessment is the work process of obtaining the exact worth in qualitative benefits of some past market offering.
Q:
To gain a more detailed understanding of how customer requirements and preferences vary, business market managers use more progressive bases of segmentation, such as application, customer capabilities and business priorities, usage situation, and customer profitability.
Q:
The substantive facets of market sensing include defining the market, monitoring competition, assessing customer value, and gaining customer feedback.
Q:
Two shortcomings of customer satisfaction measurement programs " they do not survey noncustomers and they don't provide a market assessment for supplier firms " can be remedied by a customer _______.
a. loyalty survey
b. delight test
c. point of difference analysis
d. customer value analysis
Q:
To exceed rather than simply meet customer requirements and preferences is to create customer_______.
a. loyalty
b. delight
c. disinterest
d. value analysis
Q:
The measure of customer ______ is share of purchases in the category.
a. loyalty
b. delight
c. disinterest
d. value analysis
Q:
When comparing one product offering to the next-best-alternative the supplier may invite the customers to participate in the customer value research. The supplier's team members relate the list of value elements and which elements they regard as points of parity and points of difference. _______ are value elements about which the customer disagrees with the team's evaluations.
a. points of parity
b. points of difference
c. value word equations
d. points of contentions
Q:
A _______ express in words and simple mathematical operators (e.g., +, ) precisely how to assess the differences in functionality and performance between the studied offerings for a value element and how those differences are converted into worth in monetary terms.
a. points of parity
b. points of difference
c. value word equations
d. points of contentions
Q:
When comparing one product offering to the next-best-alternative, value elements where there are apparent differences are termed _______.
a. points of parity
b. points of difference
c. value word equations
d. points of contention
Q:
When comparing one product offering to the next-best-alternative, value elements where there are no apparent differences between the two offerings are termed _______.
a. points of parity
b. points of difference
c. value word equations
d. points of contention
Q:
_______ are data-driven estimates of what a present or prospective market offering is worth in monetary terms to targeted customers relative to the next-best alternative offering for those customers.
a. customer value models
b. competitive intelligence models
c. market segmentation models
d. best practices models
Q:
Get an equitable return on the value delivered is a goal of _______.
a. importance ratings
b. customer value management
c. value assessment methods
d. competitor intelligence systems
Q:
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
Q:
In a field research survey, participants are given a description of a market offering, typically the present industry standard, that serves as a(n) benchmarkoffering. They then are asked how much more their firm would be willing to pay for selected additions (or increases) in attributes or features to this offering.
a. benchmark
b. internal engineering assessment
c. focus group value
d. compositional
Q:
The value assessment method _______ is a qualitative approach to gaining a better understanding of the perceptions and reactions of participants. In doing so, the research analyst also generates estimates of value. The participants typically are knowledgeable individuals within customer firms that are targets for the studied market offering, although a supplier firm also may be interested in the reactions of industry consultants or pundits.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
Q:
The value assessment method, _____, enables a supplier firm to fill critical gaps in its knowledge of the customer firm's usage system as it relates to the supplier's market offering. Note that a critical assumption of this method is that the customer has an accurate perception of the effects of the studied changes upon its usage system.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
Q:
With the value assessment method _______ supplier personnel (or their consultants) conduct interviews and often gather data at customer firm(s) to provide a comprehensive listing of benefit and cost elements associated with usage of the supplier's market offering compared with the incumbent or next-best-alternative offering.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
Q:
The value assessment method, _______, involves scientists or engineers within the supplier's own firm conducting laboratory tests on a product to provide an estimate of its value. Application of this method depends on detailed knowledge of the customer's usage system.
a. internal engineering assessment
b. field value-in-use assessment
c. indirect survey questions
d. focus group value assessment
Q:
_______ is the work process of obtaining an estimate of the worth in monetary terms of some present or proposed market offering or elements of it.
a. Value assessment
b. Benchmarking
c. Monitoring competition
d. Sales forecasting