Deck 3: Value Creation in Buyer-Seller Relationships

Question 1

A marketing communications mix for a large important purchase will be driven more by:

A)Advertising/sales promotion.
B)Personal selling.
C)Neither.
D)Both.

Answer 1

B

Question 2

Fred is the marketing manager for a food company.Knowing he has a fixed promotion budget,if he spends more on selling,he will have to allocate less to:

A)Advertising
B)Sales promotion
C)Public relations
D)All of the choices are correct

Answer 2

D

Question 3

The sales,marketing,advertising,and production people in an organization constantly communicate with each other in order to:

A)Keep the message about the value proposition consistent.
B)Avoid over-selling.
C)Prevent territorial disputes.
D)Minimize customer delight.

Answer 3

A

Question 4

Gordon,the new marketing director for a university knows the school's IMC program needs to be comprehensive,meaning:

A)The final exams in the marketing courses need to cover all the material.
B)All aspects of the marketing budget need to be understood by the administration.
C)All elements of the marketing communications mix need to be considered.
D)All of the choices are correct.

Question 5

In selling,value is the ______________ the customer derives from the product you are selling.

A)Costs
B)Net benefits
C)Revenues
D)All of the choices are correct.

Question 6

Teresa,the sales manager for a major computer manufacturer,is ecstatic over a new report showing rising customer satisfaction.She hopes higher satisfaction levels will lead to greater:

A)Customer loyalty.
B)Internal customer satisfaction.
C)Supply-chain management.
D)Promotional success.

Question 7

Good ___________ provides a consistency of message among employees.

A)Perceived value
B)Internal marketing
C)Value chain management
D)Strategic partnerships

Question 8

Marketing contributes to successful relationship selling through:

A)Puffery.
B)Systems that provide needed information for the sales process.
C)Utility identification and minimization.
D)All of the choices are correct

Question 9

The relative importance and use of selling in a firm's promotional strategy will depend on all of the following EXCEPT:

A)The number of customers.
B)Dispersion of customers.
C)Location of raw materials.
D)Importance of the purchase.

Question 10

A marketing communications mix for a complex product will be driven more by:

A)Advertising/sales promotion.
B)Personal selling.
C)Neither.
D)Both.

Question 11

Marketing provides all of the following types of utility to customers EXCEPT:

A)Form
B)Place
C)Time
D)Ownership

Question 12

The business philosophy of focusing on meeting customers' wants and needs is called the:

A)Value-generation proposal.
B)Perceived value thesis.
C)Marketing concept.
D)Integrated marketing philosophy.

Question 13

Selling is part of the __________ part of the 4Ps of marketing.

A)Product
B)Promotion
C)Price
D)Place

Question 14

Carolyn is the new sales manager for a health care company.She knows the single biggest challenge faced by her sales staff is:

A)Selling value.
B)Offering enough variety.
C)Finding qualified prospects.
D)All of the choices are correct.

Question 15

To a customer,utility is:

A)The energy cost,both electrical and other forms.
B)Whatever the salesperson says it is.
C)Value of the sale minus the commission paid to the salesperson.
D)The want-satisfying power of a good or service.

Question 16

Rick is the head-buyer for a small retail chain.When salespeople talk to him about value,he weighs the:

A)Ratio of benefits to costs.
B)Lifetime value of himself as a customer.
C)Brand equity as compared to the brand liability.
D)4 Ps of marketing as compared to the F Cs of credit.

Question 17

A marketing communications mix for a product with a large number of widely dispersed buyers will be driven more by:

A)Advertising/sales promotion.
B)Personal selling.
C)Neither.
D)Both.

Question 18

A well executed marketing mix strategy helps _________________ the overall bundle of benefits of a value proposition.

A)Marginal analysis of
B)Synergize and formalize
C)Form and communicate
D)Save and reduce

Question 19

Properly stated,what the customer wants is:

A)Value.
B)Longevity.
C)Minimum costs.
D)Perceived value.

Question 20

Roger is a new salesperson for an insurance company.He is often told his products are not a good value.To increase value he could attempt to:

A)Lower benefits.
B)Raise costs.
C)Raise benefits by more than the increase in costs.
D)Lower costs by more than the reduction in benefits.

Question 21

Fiona is a quality control consultant.Knowing product quality adds value,she studies each product's:

A)Reliability.
B)Aesthetics.
C)Perceived quality.
D)All of the choices are correct.

Question 22

A dentist who takes the time to explain the advantages and disadvantages of porcelain versus gold crowns is attempting to demonstrate the ________ value of the service he or she provides.

A)Reliability
B)Responsiveness
C)Empathy
D)Tangible

Question 23

Many banks expect their senior staff to dress conservatively recognizing the _________ property of selling banking services.

A)Intangibility
B)Inseparability
C)Variability
D)Perishability

Question 24

Web sites that offer last-minute cruise tickets and other travel services capitalize on the ___________ property of selling travel services.

A)Intangibility
B)Inseparability
C)Variability
D)Perishability

Question 25

Jennifer is deciding between sales jobs with a new company versus one with a well-established history of a strong marketing mix program.She chooses the established company because,a company with a reputation for a strong marketing mix program:

A)Always makes more money.
B)Adds credibility to the value propositions of its salespeople.
C)Offers a faster career advancement ladder.
D)Improves customer delight.

Question 26

The primary activities in a company's value chain include all of the following EXCEPT:

A)Operations.
B)Logistics
C)Service
D)Human resources

Question 27

You are hired as the new sales manager for a restaurant supply company and find little coordination between the sales and marketing departments.One thing you could do to improve synergy between sales and marketing would be to:

A)Create cross-functional selling teams.
B)Create a competition between the sales and marketing staff.
C)Offer rebates to customers.
D)All of the choices are correct.

Question 28

Terry has about a dozen highly profitable customers in her sales territory.One strategy she should consider is increasing the ____________ for those customers.

A)Retention rate.
B)Brand equity.
C)4Ps.
D)Supply-source management.

Question 29

Restaurants sometimes intentionally set up their exhaust systems to blow in the direction of a street where potential customers will smell the fumes and be attracted to the restaurant.They are attempting to overcome the _________ property of selling services.

A)Intangibility
B)Inseparability
C)Variability
D)Perishability

Question 30

When estimating the lifetime value of each of her customers,Kerry takes the __________ of the stream of expected future profits.

A)Leveraged estimate
B)Retention rate
C)Present value
D)Supply-chain value

Question 31

"The place a brand or product has carved out in the minds of its customers" refers to:

A)Utility
B)Customer delight
C)Positioning
D)Assessment

Question 32

Excellence in supply-chain management adds value to the company in the form of:

A)Price.
B)Perceived company reliability.
C)Integrated marketing communications.
D)Internal customer satisfaction.

Question 33

Gerald estimates the expected revenue stream against the expected costs for his customers and finds that for some of the customers the net present value is negative.Gerald should consider:

A)Quitting his job.
B)Working harder on those customers.
C)Using more advertising.
D)Firing those customers.

Question 34

Which of the following is a support activity in a firm's value chain?

A)Procurement.
B)Inbound logistics.
C)Service.
D)Marketing and sales.

Question 35

If your boss says,"we need to increase our margins," what is he or she referring to?

A)Profits
B)Costs
C)Sales
D)Equity

Question 36

Another way of describing efforts to work together to eliminate snags within a company is to:

A)Test the waters for integrated marketing communications.
B)Systematically shift the synergizing properties of the firm.
C)Align the elements of the value chain.
D)Coordinate marginal discrepancy reduction efforts.

Question 37

Michael Porter articulated the concept of the _____________,identifying ways to create more customer value within a selling firm.

A)Margin call.
B)Utility task analysis.
C)Synergy systems database.
D)Value chain.

Question 38

Serena is working to improve her value proposition.She should consider selling:

A)Product quality.
B)Trust.
C)Brand equity.
D)All of the choices are correct.

Question 39

A house repair contractor who regularly checks on homeowners after the job has been completed is demonstrating the ___________ of service quality.

A)Reliability
B)Responsiveness
C)Assurance
D)Tangible

Question 40

A well executed and integrated marketing mix:

A)Reduces the need for replacement parts.
B)Allows companies to eliminate expensive,external sales people.
C)Makes value-added selling easier.
D)All of the choices are correct.

Question 41

Repairmen,who promise to be there on Monday but show up on Thursday,do not understand the concept of:

A)Customer delight.
B)Time.
C)Value chain management.
D)Synergy

Question 42

The whole can never be greater than the sum of its parts.

Question 43

In ____________ companies share assets,including sales force capability,for mutual advantage.

A)Selected buyouts.
B)Strategic partnerships.
C)External marketing orders.
D)Straddles.

Question 44

Which of the following is NOT a dimension of service quality?

A)Tangibles
B)Empathy
C)Conservation
D)Reliability

Question 45

______________ is one way to sell based on professionalism.

A)Clear and concise correspondence.
B)Clearly labeled products.
C)Regularly offered discounts
D)All of the choices are correct.

Question 46

How can a salesperson increase the value of the customer offering?

Question 47

Companies known for environmental damage or financial irregularities make it difficult for their salespeople to sell based on:

A)Price.
B)Product quality.
C)Corporate reputation.
D)Technological capability.

Question 48

Where does personal selling "fit" into a company's marketing mix?

Question 49

Value-added selling changes little in the sales process.

Question 50

________________ can get you the initial sale but not the ______________.

A)Relationship; sale
B)Overpromising; long-term relationship
C)Customer delight; utility
D)Trust; marketing concept

Question 51

One way to increase customer value is to lower benefits by less than the reduction in costs.

Question 52

Today,the lines between the functions of marketing and selling are distinct.

Question 53

In general,a salesperson should over promise and under deliver.

Question 54

In relationship selling it makes sense to:

A)Under promise.
B)Over deliver.
C)Engage in customer expectations management.
D)All of the choices are correct.

Question 55

A company should never fire a customer.

Question 56

__________ is somewhat like goodwill on a company's balance sheet.

A)Customer delight.
B)Brand equity.
C)Internal customer satisfaction.
D)Perceived value.

Question 57

Getting customers to commit to your products in the long run is customer loyalty.

Question 58

One of the ways services are different from products is intangibility.

Question 59

A clothing salesperson who emphasizes how well known her company's labels are among teenage consumers is selling based on:

A)Brand equity.
B)Price
C)Customer satisfaction.
D)Strategic partnerships.

Question 60

Southwest Airlines is famous for selling based on:

A)Promotion.
B)Strategic partnerships.
C)Price.
D)Product quality.

Question 61

How can human resources management support the value chain a company provides its customers?

Question 62

Why do the authors devote a whole chapter to discussion of value?

Question 63

How can a salesperson sell product quality?

Question 64

How can a salesperson convey professionalism in their value proposition?

Question 65

What four unique properties do salespeople need to recognize when selling services.

Question 66

Why would a firm want to underpromise and overdeliver?

Question 67

How can brand equity be used as part of a value proposition?

Question 68

What is the difference between product quality and perceived quality?

Question 69

What factors influence the relative importance of selling in a company's communication mix?

Question 70

What does it mean to align the various elements of a firm's value chain?

Question 71

What is a value chain?

Question 72

What are the key characteristics of effective IMC programs?

Question 73

How are services different from products and how do these differences affect the value proposition?