Deck 5: Partnerships,alliances,and Customer Relationships

Question 1

A major reason why information technology professionals are dissatisfied with the outsourcing is

A)inadequate conflict resolution mechanisms.
B)competing goals.
C)the likelihood of losing customers.
D)poor customer service or vendor responsiveness.
E)all are major reasons.

Answer 1

D

Question 2

Which of the following business functions is least likely to be outsourced?

A)manufacturing
B)information technology management.
C)product development and testing.
D)finance and accounting.
E)all are likely candidates for outsourcing.

Answer 2

E

Question 3

Firms may choose to collaborate with competitors in order to

A)determine reasonable allocation of funds for R&D spending.
B)define industry standards for new technologies.
C)gain competitive intelligence.
D)ensure early adoption of new technologies.
E)increase complexity of the project.

Answer 3

B

Question 4

Open innovation is

A)a form of outsourcing.
B)a way of tapping into partners' expertise to develop the next breakthrough innovation.
C)a type of horizontal partnership.
D)also known as a product development alliance.
E)primarily concerned with process innovations.

Question 5

Process technology alliances are most important at the __________________ stage of the product life cycle,

A)emergence
B)early growth
C)late growth
D)maturity
E)decline

Question 6

At the heart of customer equity management is

A)a system for assessing profitability at the customer or market segment level.
B)utilization of penetration pricing.
C)coordination between marketing and engineering.
D)interfirm learning.
E)the belief that all customers or potential customers are equally valuable or are worthy of efforts to retain them.

Question 7

Customer equity is:

A)a high tech firm's most valuable resource.
B)primarily determined by the cost to acquire new customers.
C)almost impossible to calculate.
D)most appropriately calculated at the market segment level.
E)the net present value of the cash flows associated with a particular customer or segment.

Question 8

Effective strategic alliances have been shown to exhibit the following characteristics except

A)asymmetrical dependence.
B)interdependence.
C)clear governance structure.
D)relationship commitment.
E)None of the above

Question 9

Using pricing tactics,such as discounting,to acquire customers

A)encourages them to stockpile.
B)reduces the need to provide a differentiated offering.
C)creates switching costs.
D)attracts bargain hunters.
E)creates opportunities for cross-selling.

Question 10

Companies forming alliances with one another are exposed to certain risks,including all of the following except

A)loss of autonomy and control.
B)antitrust concerns.
C)synergies in bringing new products to market.
D)potential loss of proprietary information.
E)failure to achieve objectives.

Question 11

Which of the following is not an important reason for alliances among companies competing in high tech markets?

A)Need for rapid product development
B)High development costs
C)Importance of creative destruction
D)Need for complementary skills
E)Ability to offer customers a complete solution

Question 12

Companies that cooperate extensively with competitors:

A)often do so because they are desperate.
B)experience a lower return on equity than companies that have an intermediate level of competitor alliance intensity.
C)experience a higher return on equity than companies that have an intermediate level of competitor alliance intensity.
D)experience about the same return on equity as companies that have an intermediate level of competitor alliance intensity.
E)should try to "beat" the alliance partner.

Question 13

Which of the following is not a reason why companies in an industry would establish an industry consortium?

A)Establish industry standards
B)Influence government regulation.
C)Develop metrics for assessing the degree to which products are environmentally friendly.
D)Learn about competitors' technologies.
E)All are reasons why companies in an industry would establish a consortium.

Question 14

When does it make sense for a company to pursue selective partnering to establish industry standards?

A)There are high barriers to imitation,the firm has the requisite skills,and there are no capable competitors.
B)There are low barriers to imitation,the firm does not have the requisite skills,and there are capable competitors.
C)There are low barriers to imitation,the firm has the requisite skills,and there are capable competitors.
D)There are high barriers to imitation,the firm does not have the requisite skills,and there are capable competitors.
E)There are high barriers to imitation,the firm has the requisite skills,and there are capable competitors.

Question 15

Addressing disagreements in a way that allows for both partners to have a stake in the outcome,addresses both partners' needs simultaneously,and is mutually beneficial to both is the definition of ___________________.

A)co-opetition
B)complementarity
C)a horizontal alliance
D)corporate governance
E)integrative conflict resolution

Question 16

Commitment,trust,and communication are necessary in

A)a unilateral governance structure.
B)a bilateral governance structure.
C)a dominant alliance.
D)a reciprocal alliance.
E)an innovative firm.

Question 17

An increase in any of the following will have a positive impact on customer equity except

A)acquisition cost.
B)base revenues.
C)revenues from increased purchases over the life of the relationship.
D)customer referrals.
E)price premiums.

Question 18

Firms are most likely to form _____________ with members at other levels in the supply chain either suppliers,distribution channel members,or customers).

A)vertical partnerships
B)horizontal partnerships
C)product development alliances
D)joint ventures
E)None of the above

Question 19

Which of the following is not a particularly important type of partnership at the emergence stage of the product life cycle?

A)Standard setting
B)Product technology development
C)Process technology development
D)a and b above
E)All of the above

Question 20

Apple's partnerships with car manufacturers to ensure that the car stereo system is compatible with its iPod music devices is an example of

A)relationship marketing.
B)a vertical partnership.
C)a complementary alliance.
D)a merger.
E)early supplier involvement.

Question 21

Which of the following is not a reason why customer relationship management systems often do not live up to the expectations of senior managers?

A)Sales executives are not involved in the selection and deployment of the CRM system.
B)CRM systems generally do not provide the ability to track profitability per customer,to detect customer dissatisfaction,or improve the selling process.
C)Senior management does not consider CRM to be a strategic tool.
D)CRM systems are relatively easy and inexpensive to implement.
E)All are reasons why CRM systems often did not live up to the expectations of senior managers.

Question 22

Loyal but low profit customers should

A)be targets for up-selling or cross-selling.
B)have price lowered for them.
C)be "fired".
D)be targeted for increasing switching costs.
E)both a and d

Question 23

Loyal customers

A)are always more profitable than transient or transaction-oriented customers.
B)should be retained at all costs.
C)may cost more to serve than transaction-oriented customers.
D)have a cost to acquire that exceeds the cost to retain.
E)rarely increase their purchases from the selling company over time.

Question 24

Identify the marketing technique Sega is utilizing when they charge an extremely low price for their "Play Station" and make up the lower margin on the base unit by higher margins on game sales.

A)product diversification
B)strategic alliance
C)aggressive sole provider
D)aggressive product positioning
E)passive product positioning

Question 25

Setting strategy for a firm that: possesses the required skills and resources to establish their particular technology as the standard,barriers to imitation are high,and there are few capable competitors.

A)aggressive sole provider
B)passive multiple licensing
C)aggressive multiple licensing
D)selective partnering
E)passive partnering

Question 26

Oriented but profitable customer is to

A)retain them by investing heavily.
B)capture as much of their business as possible in the short time they buy from a particular company.
C)reduce the cost to serve them by imposing strict cost controls.
D)increase the share of these customers' business.
E)increase the amount of communication with them.

Question 27

___________ are the costs incurred by a customer that make it costly or risky to change to a competing vendor's products.

A)Transaction costs
B)Transfer costs
C)Loyalty costs
D)Conversion costs
E)Switching costs