Question 1

Customer lifetime value is measured the same way for both buyers and sellers.

Accepted Answer

Customer lifetime value (CLV) is a metric used to calculate how much revenue a customer will bring to a business over the course of their relationship. When it comes to buyers and sellers, their respective CLVs are measured differently. For buyers, CLV typically takes into account their repeat purchases and their referrals to other customers. For sellers, CLV focuses on the total amount of revenue generated by their customers over time. Therefore, the statement "customer lifetime value is measured the same way for both buyers and sellers" is false.

Question 2

In "In Tough Times, Can We Afford Partnerships" one commentator states, "What works when times are tough will work when times are good-and the reverse is always true."

Accepted Answer

The statement implies that strategies effective in tough times will work in good times and vice versa, but this is not always true as different economic conditions may require different approaches.

Question 3

A study found that the average company loses 20-50 percent of its customer base each year. This is an example of how salespeople create lifetime customer value.

Accepted Answer

The statement is actually highlighting the problem of customer churn, not the creation of lifetime customer value. Customer churn indicates that companies are losing customers at an alarming rate, which means they need to work harder to retain them or attract new ones. Creating lifetime customer value involves building long-term relationships with customers, providing excellent products and services, and continually adding value to their lives, which in turn promotes loyalty and repeat business.

Question 4

Relational partnerships are created explicitly for the purpose of uncovering and exploiting joint opportunities.

Accepted Answer

The answer of Relational partnerships are created explicitly for the...

Question 5

Using a consultative customer-oriented sales approach has been shown to improve:
A)macroeconomic equilibrium.
B)customer retention and firm profitability.
C)production efficiency and source complementary synergy.
D)buyer's resistance to post-purchase ambiguity.
E)partnering exploration and functional likability.

Accepted Answer

A consultative customer-oriented sales approach focuses on building a relationship with the customer, understanding their needs, and providing solutions that meet those needs. This approach has been shown to improve customer retention, as satisfied customers are more likely to continue doing business with the firm. Increased customer retention, in turn, can lead to higher firm profitability.

Question 6

Lead users face and resolve problems after the rest of the marketplace has addressed these needs.

Accepted Answer

The answer of Lead users face and resolve problems after...

Question 7

Using a consultative customer-oriented sales approach has been shown to improve both customer retention and firm profitability.

Accepted Answer

A consultative customer-oriented sales approach involves understanding and addressing the specific needs and preferences of the customer, rather than simply pushing a product or service. This approach can build trust and rapport with customers, leading to greater satisfaction and loyalty. Additionally, customers are more likely to purchase additional products or services and recommend the company to others. This ultimately leads to higher profits for the firm. Therefore, using a consultative customer-oriented sales approach can improve both customer retention and firm profitability.

Question 8

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.

Accepted Answer

No sale can take place without some buyer-seller relationship being established.

Question 9

The market exchange is the highest level of long-term relationship that a buyer and seller can commit to.

Accepted Answer

A market exchange is typically a short-term transaction, whereas a strategic partnership or alliance represents a higher level of long-term commitment between a buyer and seller.

Question 10

The typical goal for market exchange selling is to maximize lifetime customer relationships.

Accepted Answer

The typical goal for market exchange selling is to maximize short-term profits, not lifetime customer relationships.

Question 11

Supplier relationship management uses existing vendor relationships to cultivate new vendor relationship.

Accepted Answer

Supplier relationship management focuses on optimizing and managing existing vendor relationships rather than using them to cultivate new ones.

Question 12

The sum of the purchases a customer makes over their entire life is equimarginal value of a customer.

Accepted Answer

Equimarginal value of a customer refers to the amount of money a company is willing to spend in order to acquire and retain a customer. It is not the same as the total sum of purchases a customer makes over their entire lifetime.

Question 13

Boundary-spanning employees are only needed in the early stages of the development of the buyer-seller relationship.

Accepted Answer

Boundary-spanning employees are needed throughout the entire duration of the buyer-seller relationship, not just in the early stages. They serve as a bridge between the organization and its customers, maintaining communication and providing assistance throughout the relationship.

Question 14

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)customer lifetime value

Accepted Answer

The term that best fits the blank is "customer lifetime value." This term refers to the total amount of purchases and donations a customer (in this case, a graduate) makes over their entire lifetime. Universities are aware that recent graduates may not have a lot of money to donate immediately, but by fostering loyalty, they can potentially increase the customer lifetime value of their graduates.

Question 15

The total potential revenue derived from a customer over an extended period of time is called:
A)economic profit maximization.
B)mutual sales investment.
C)supplier relationship management.
D)customer lifetime value.
E)partnering value delivery.

Accepted Answer

Customer lifetime value refers to the total revenue a customer is expected to generate over the course of their relationship with a business. This includes both the initial purchase and any subsequent purchases or referrals they may bring. It is an important metric for businesses to consider when making marketing and sales decisions, as it helps to calculate the value of a customer and the return on investment for acquiring and retaining them.

Question 16

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

Accepted Answer

Behaviorally loyal consumers purchase a product out of habit or repeat purchase without considering alternatives or price. The fact that 40 percent of consumers always buy the products of each major soft drink company without consideration of alternatives or price indicates that they are behaviorally loyal. Attitudinal loyalty (A) refers to consumers who have a strong preference for a brand but may not necessarily purchase it consistently. Customarily (C), dependably (D), and strategically (E) are not commonly used terms to describe types of consumer loyalty.

Question 17

Customer satisfaction occurs when the buyer's expectations are met and needs fulfilled.

Accepted Answer

Customer satisfaction is all about exceeding and fulfilling customer expectations and needs. When customers feel that their requirements have been fulfilled beyond their expectations, they become satisfied. Therefore, the statement is true.

Question 18

In "In Tough Times, Can We Afford Partnerships" advises salespeople to:
A)go, and stay in front of your customers.
B)be essential.
C)use this time to innovate.
D)resist the urge to sell on price alone.
E)all of the above

Accepted Answer

The article advises salespeople to go and stay in front of their customers, be essential, use this time to innovate, and resist the urge to sell on price alone. Therefore, all of the above choices are the best options.

Question 19

In the opening profile Kevin Clonch from Total Quality Logistics (TQL) knows transportation issues make customers nervous because so many things can go wrong.

Accepted Answer

The opening profile states that Kevin Clonch from Total Quality Logistics (TQL) knows transportation issues make customers nervous because so many things can go wrong.

Question 20

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

Accepted Answer

The answer of For many years thousands of loyal fans...

Quiz 13: Building Partnering Relationships

Customer lifetime value is measured the same way for both buyers and sellers.

In "In Tough Times, Can We Afford Partnerships" one commentator states, "What works when times are tough will work when times are good-and the reverse is always true."

A study found that the average company loses 20-50 percent of its customer base each year. This is an example of how salespeople create lifetime customer value.

Relational partnerships are created explicitly for the purpose of uncovering and exploiting joint opportunities.

Using a consultative customer-oriented sales approach has been shown to improve:

Lead users face and resolve problems after the rest of the marketplace has addressed these needs.

Using a consultative customer-oriented sales approach has been shown to improve both customer retention and firm profitability.

Which of the following transactions can occur without the buyer and seller having a relationship?

The market exchange is the highest level of long-term relationship that a buyer and seller can commit to.

The typical goal for market exchange selling is to maximize lifetime customer relationships.

Supplier relationship management uses existing vendor relationships to cultivate new vendor relationship.

The sum of the purchases a customer makes over their entire life is equimarginal value of a customer.

Boundary-spanning employees are only needed in the early stages of the development of the buyer-seller relationship.

The total potential revenue derived from a customer over an extended period of time is called:

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.

Customer satisfaction occurs when the buyer's expectations are met and needs fulfilled.

In "In Tough Times, Can We Afford Partnerships" advises salespeople to:

In the opening profile Kevin Clonch from Total Quality Logistics (TQL) knows transportation issues make customers nervous because so many things can go wrong.

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.