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Chapter 02
Building Partnering Relationships
True / False Questions
1.(p.30)Although each of the eras of the evolution of personal selling is associated with a particular time period, all of the various roles for salespeople still exist.
TRUE
Difficulty: Medium
2.(p.30)Value is measured the same way for both buyers and sellers.
FALSE
Difficulty: Medium
3.(p.30)For consumers, value equals selling costs minus the selling price and effort.
FALSE
Difficulty: Medium
4.(p.32)The sum of the purchases a customer makes over their entire life is equimarginal value of a customer.
FALSE
Difficulty: Medium
5.(p.33)The market exchange is the highest level of long-term relationship that a buyer and seller can commit to.
FALSE
Difficulty: Medium
6.(p.34)Customer satisfaction occurs when the buyer's expectations are met and needs fulfilled.
TRUE
Difficulty: Easy
7.(p.35)Relational partnerships are created explicitly for the purpose of uncovering and exploiting joint opportunities.
FALSE
Difficulty: Medium
8.(p.33)The typical goal for market exchange selling is to maximize lifetime customer relationships.
FALSE
Difficulty: Medium
9.(p.44)Boundary-spanning employees are only needed in the early stages of the development of the buyer-seller relationship.
FALSE
Difficulty: Medium
10.(p.46)Supplier relationship management uses existing vendor relationships to cultivate new vendor relationship.
FALSE
Difficulty: Medium
11.(p.48)Lead users face and resolve problems after the rest of the marketplace has addressed these needs.
FALSE
Difficulty: Easy
Multiple Choice Questions
12.(p.30)A(n) ______profit is the selling price minus cost of goods sold and selling costs.
A.economic
B.seller's
C.production
D.buyer's
E.partnering
Difficulty: Easy
13.(p.30)A(n) ______profit is the selling price minus cost of the product and time and effort needed to purchase it.
A.economic
B.seller's
C.production
D.buyer's
E.partnering
Difficulty: Easy
14.(p.30)Another name for a buyer's profit is:
A.value
B.barter
C.CRM
D.a market exchange
E.trust
Difficulty: Easy
15.(p.30)The Internet often increases buyer's profit through
A.economic competence
B.strategic supply chain management
C.production efficiency
D.reduced costs of shopping
E.ecological partnering
Difficulty: Medium
16.(p.31)Gerry's company brought in the top performing salespeople and studied their sales presentations. Using the information gathered, the company developed a(n) ______for all salespeople to use without deviation.
A.customized variable presentation
B.automatic rebuy promotion
C.canned sales pitch
D.exploratory sales pitch
E.win-win presentation
Difficulty: Medium
17.(p.31)During which stage in the evolution of personal selling was the role of the salesperson to serve as provider?
A.marketing
B.sales
C.production
D.growth
E.partnering
Difficulty: Easy
18.(p.31)During the production era, the primary activity for salespeople was to:
A.persuade people to purchase products
B.match available offerings to buyer's needs
C.promote long-term relationships with customers
D.take orders and deliver goods
E.prospect for potential buyers
Difficulty: Easy
19.(p.31)During the _____ era of the evolution of personal selling, the role of salespeople was to aggressively convince buyers to buy products.
A.marketing
B.sales
C.production
D.maturity
E.partnering
Difficulty: Easy
20.(p.31)The aggressive, arm-twisting, customers'-wants-don't-matter style of selling that created some of today's negative images of the selling profession is most closely associated with which era of the evolution of personal selling?
A.marketing
B.sales
C.production
D.decline
E.partnering
Difficulty: Medium
21.(p.31)Bonnie's Doughnut Factory produces a variety of breakfast sweets like those frequently sold at convenience stores. Drivers from Bonnie's sell the snacks on established routes all over the tri-state area. Since the company professes to have a relationship marketing philosophy with its customers, we should expect which employees to be oriented toward providing customer satisfaction?
A.the route drivers (sales force)
B.the route drivers plus the advertising department
C.everyone who works at Bonnie's
D.the marketing department
E.all employees who come in direct contact with customers
Difficulty: Medium
22.(p.31)During the _____ era of the evolution of personal selling, salespeople took on the role of problem solver and became responsible for identifying the customers' needs and demonstrating how their products would satisfy those needs.
A.marketing
B.sales
C.production
D.growth
E.partnering
Difficulty: Easy
23.(p.31)In the _____ era of the evolution of personal selling, salespeople are value creators who work with their customers and their company to develop outcomes that enhance the profits of both firms.
A.marketing
B.sales
C.production
D.growth
E.partnering
Difficulty: Easy
24.(p.31)The primary objective of the partnering-oriented salesperson is to:
A.create a market-exchange relationship
B.develop long-term relationships with customers
C.close the sale quickly
D.act ethically when dealing with international customers
E.satisfy the short-term needs of the supplier
Difficulty: Easy
25.(p.31)Which of the following statements about the partnering stage of the evolution of personal selling is true?
A.In this stage, salespeople do not expect the customer to be as committed to the relationship as they are.
B.The role of salespeople at this evolutionary stage is to serve as order takers.
C.The objective of the salesperson during at this evolutionary stage is to develop a long-term relationship with customers.
D.Salespeople can expect considerable discussion about short-term problems in a company that has reached the partnering stage of its evolution.
E.All of the above statements about salespeople in the partnering stage are true.
Difficulty: Medium
26.(p.32)Each of the two major soft drink companies know approximately 40 percent of consumers always buy their company's products, without consideration of alternatives or price. Consumers who purchase their product out of habit are ______loyal.
A.attitudinally
B.behaviorally
C.customarily
D.dependably
E.strategically
Difficulty: Medium
27.(p.32)For many years thousands of loyal fans followed the Grateful Dead around the country, rarely missing a concert. These fans, known as "Dead Heads" were ______loyal.
A.attitudinally
B.behaviorally
C.customarily
D.dependably
E.strategically
Difficulty: Medium
28.(p.32)Universities constantly send information, promotions and solicitations to their graduates, even recent graduates who are unlikely to make major donations to the school. Universities know if they can create loyalty, the ______or sum of graduates' purchases and donations over their entire life can be considerable.
A.average return on investment
B.behavioral loyalty return
C.customer selling value
D.donor gratitude endowment
E.lifetime customer value
Difficulty: Medium
29.(p.33)Which of the following transactions can occur without the buyer and seller having a relationship?
A.Beverly purchases a pair of sandals from a retail sales clerk
B.Leon buys a vacuum cleaner from a door-to-door salesperson
C.Art acquires a new Volvo from a car dealership
D.Ursula hires a weekly diaper service
E.No sale can take place without some buyer-seller relationship being established
Difficulty: Easy
30.(p.33)In which type of salesperson-customer relationship will the time horizon be the shortest?
A.market exchange
B.functional relationship
C.straight rebuy exchange
D.partnering relationship
E.modified rebuy exchange
Difficulty: Easy
31.(p.33)The nature of the relationship between the salesperson and his or her customer in a strategic partnership can be described as:
A.competitive
B.bargaining
C.short-term
D.conflict
E.coordination
Difficulty: Easy
32.(p.34)Which of the following statements about functional relationships is true?
A.The sole benefit of functional relationships is short-term profit.
B.Functional relationships are a type of partnering relationship.
C.The relationship between the buyer and the salesperson in a functional relationship is described as cooperative.
D.The typical time horizon in a functional relationship is short term.
E.All of the above statements about functional relationships are true.
Difficulty: Easy
33.(p.34)As Azi traveled across the state of Tennessee, he stopped and bought gas, a soda and a bag of corn chips at a small convenience store that he will probably never visit again. Azi engaged in a:
A.market exchange
B.functional relationship
C.straight rebuy exchange
D.partnering relationship
E.modified rebuy exchange
Difficulty: Easy
34.(p.34)The two types of market exchanges are:
A.functional and strategic relationships
B.tactical and behavioral market exchanges
C.solo market exchanges and functional relationships
D.tactical market exchanges and profit relationships
E.one-sided relationships and bipartisan market exchanges
Difficulty: Easy
35.(p.34)Which of the following is the BEST example of a solo market exchange?
A.Jimmy buys a new suit from a tailor who visits his offices quarterly
B.Mariah purchases a bag of corn chips from the convenience store nearest to her home
C.After the flood damaged his home in Des Moines, Jon hired a waste management company to haul away the rotten carpeting in front of his house
D.Sunil purchases a service contract from a cleaning company, which will clean his home one day a week
E.On his way home from calling on a new prospect who was unwilling to buy, Fred stopped to talk to his insurance agent about additional life insurance
Difficulty: Easy
36.(p.34)For the customer, _____ is the critical issue in a market exchange.
A.price
B.product novelty
C.profit
D.promotion
E.distribution
Difficulty: Medium
37.(p.34)_____ are long-term market exchanges in which the buyer purchases out of habit or routine.
A.Strategic partnerships
B.Tactical relationships
C.Relational partnerships
D.Functional relationships
E.Routine partnerships
Difficulty: Easy
38.(p.34)Without ______, behavioral loyalty cannot develop.
A.strategic likeability
B.tactical training
C.relational dissolution
D.customer satisfaction
E.Routine purchasing
Difficulty: Easy
39.(p.34)Corina almost always shops at Gas-N-Go. She finds it to be easy to access from the highway, likes the people and receives special discounts as a frequent customer. Corina is less likely to shop around for her next purchase because Gas-N-Go has reduced the hassle, thereby:
A.reducing the gas station's profit margin
B.maximizing Corina's solo exchange profit
C.increasing Corina's buyer's profit
D.replacing a functional relationship with a boundary-spanning customer satisfaction investment
E.producing an exploratory relationship
Difficulty: Easy
40.(p.34)Franco raises fish as a hobby. For the last nine years he has gone to Fins-to-You, a local pet store that specializes in tropical fish and aquarium supplies for all of his needs--from fish food to aquarium heaters to replacement fish. Which of the following terms best describes the relationship Franco has with Fins-to-You?
A.strategic partnership
B.tactical relationship
C.relational partnership
D.functional relationship
E.routine partnership
Difficulty: Medium
41.(p.34)Every third Wednesday in the month, LuEllen's Barbecue Shack orders four pick-up truckloads of hickory for slow-cooking the meat. She always orders from Samson Wood Products Company because they deliver on time and she likes the quality of the wood. Since both parties act like close friends rather than business acquaintances, this exemplifies a(n):
A.functional relationship
B.relational partnership
C.utilitarian relationship
D.hierarchical relationship
E.buyer-seller alliance
Difficulty: Medium
42.(p.34)Which of the following statements about functional relationships is true?
A.Buyers and sellers are both concerned about the welfare of the other party.
B.Price is of low concern for both buyer and seller in a functional relationship.
C.Functional relationships are examples of win-win partnerships.
D.Functional relationships continue as long as the customer is satisfied.
E.In a functional relationship, both the buyer and the seller have a long-term commitment to the relationship.
Difficulty: Medium
43.(p.34)Research indicates that as long as a buyer is ______, switching is unlikely.
A.striving to make more money
B.satisfied with the supplier's performance
C.unable to exert pressure on suppliers to reduce price
D.finds the supplier likable
E.all of the above
Difficulty: Easy
44.(p.35)The two types of partnerships between buyer and seller are called:
A.functional and mutual
B.tactical and strategic
C.cognitive and affective
D.relational and strategic
E.tactical and functional
Difficulty: Easy
45.(p.35)Hugh is a salesperson who primarily stocks the DVDs and compact disks at convenience stores. His primary role in the functional relationships he has set up with store buyers is to:
A.sell on the basis of product quality
B.sell as much as he can to each buyer
C.ignore the price element of the marketing mix as a selling point
D.ignore his competition
E.make sure the buyer has no reason to go and look for a new supplier
Difficulty: Easy
46.(p.35)For which of the following transactions would a functional relationship between the buyer and seller be LEAST appropriate?
A.An apartment complex owner's procurement of 80 gallons of paint for the once every three year repainting of all buildings in the complex
B.A dentist's purchase of dentures, plates, and other mouth apparatus from a dental lab where they are made
C.A commuter's purchase of a daily newspaper to read on his ride to work
D.A job foreman's purchase of lubricating oil for an assembly line
E.An interior decorator's purchase of a cellular phone
Difficulty: Medium
47.(p.35)A _____ partnership will occur when buyer and seller have close personal relationships that allow them to communicate effectively with each other.
A.hierarchical
B.functional
C.mutual
D.transactional
E.relational
Difficulty: Easy
48.(p.35)Caitlin Gold has sold business textbooks for seventeen years. She makes it a point to try to create a personal relationship with her customers. When a committee of professors selected a new marketing book, her book was one of the three finalists. Because the committee chairperson considered herself a close friend of Gold, she convinced the committee to select Gold's text over the other options. The committee chairperson trusted Gold to provide a good text at a fair price. This is an example of a:
A.relational partnership
B.functional partnership
C.transactional relationship
D.transformational partnership
E.strategic partnership
Difficulty: Medium
49.(p.36)_____ are the long-term business relationships in which the partners make significant investments to improve the profitability of both parties in the relationship.
A.Strategic partnerships
B.Win-lose partnerships
C.Functional relationships
D.Hierarchical partnerships
E.Buyer-seller alliances
Difficulty: Easy
50.(p.36)A few years ago, the salesperson for a glass bottle manufacturer suggested to the H.J. Heinz Company that it needed to redesign its catsup bottle to improve yields on the bottle-filling line and to make the bottle lighter. Because Heinz's purchasing agent and the salesperson for the glass bottle manufacturer were engaged in ____, Heinz readily implemented the salesperson's suggestions and saw increased savings.
A.reciprocal partnership
B.buyer-seller alliance
C.strategic partnership
D.win-lose partnership
E.hierarchical relationship
Difficulty: Medium
51.(p.36)Strategic partnerships are created to:
A.get lower prices
B.make more immediate sales
C.create a negotiation platform
D.uncover and exploit joint opportunities
E.persuade both parties that each will get "the bigger piece of the pie"
Difficulty: Medium
52.(p.36)Which of the following statements about the relationships between buyers and sellers is true?
A.There are long-time, win-win horizons in functional relationships.
B.There is a high level of coordination in strategic partnerships.
C.The potential benefits of a transactional relationship are high.
D.Concern for the other party is highest in relational marketing.
E.Trust is lowest in a strategic partnership.
Difficulty: Hard
53.(p.36)Philips Electronics is the only supplier of Toyota auto headlamps. Because of their ____, Toyota was able to develop further its just-in-time inventory management system and Philips was able to institute a total quality management approach to its production and acquire more business from other Japanese car manufacturers.
A.reciprocal partnership
B.buyer-seller alliance
C.strategic partnership
D.tactical partnership
E.hierarchical relationship
Difficulty: Medium
54.(p.36)Zeller's, a 205-store Canadian discount store, owes much of its success to its ability to develop _____ with its vendors. It has developed cross-functional teams with experts from the retailer and from its vendors. These teams work together to develop information systems to improve relationships between the vendor and Zeller's and to develop promotions tailored to help both the vendor and the retailer sell more.
A.relational partnerships
B.buyer-seller alliances
C.strategic partnerships
D.win-lose partnerships
E.hierarchical relationships
Difficulty: Easy
55.(p.36)Which of the following statements about strategic partnerships is true?
A.Strategic partnerships are not found anywhere outside the U.S.
B.Strategic partnerships are created for the purpose of uncovering and exploiting joint opportunities.
C.Strategic partnerships typically have a shorter time horizon than functional relationships.
D.Strategic partnerships have lower levels of risk than functional relationships.
E.The strategic partnership can best be described as competitive.
Difficulty: Medium
56.(p.36)Strategic partnerships do not necessarily mean ______for either buyer or seller.
A.mutual customers exploration
B.discretionary spending
C.exclusivity
D.functional literacy
E.lead user confirmation
Difficulty: Medium
57.(p.37)Which of the following serves as a foundation for a successful, long-term relationship?
A.mutual trust
B.organizational support
C.shared goals
D.open communication
E.all of the above
Difficulty: Easy
58.(p.37)Which of the following serves as a foundation for a successful, long-term relationship?
A.autocratic leadership
B.a profit-orientation
C.a simple, easy-to-sell, commodity-type product
D.shared goals
E.all of the above
Difficulty: Medium
59.(p.37)The key to the development of successful, long-term customer relationships is:
A.the existence of trust between the two parties
B.the availability of resources
C.an innovative idea
D.similarity of mission statements
E.similarity of organizational structures
Difficulty: Medium
60.(p.37)Corning's Erwin, New York plant produces ceramic parts. Since entering a strategic partnership with a cardboard box manufacturer, it has saved about $10 million, and the box manufacturer has tripled its sales. According to the text, one of the reasons a long-term relationship like this would survive for so long is the:
A.existence of trust between the two parties
B.availability of resources
C.an innovative idea
D.similarity of mission statements created by the two companies
E.similarity of organizational structure used by the companies