Question 1

_____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources.

Accepted Answer

Activity-based costing (ABC) is a method that identifies and assigns costs to specific activities related to serving a customer, linking these activities to revenues and resource consumption.

Question 2

Using the continuum of working relationships, the industry bandwidth refers to:

Accepted Answer

The industry bandwidth refers to the range of relationship strategies, from transactional to collaborative, that firms in an industry may pursue to manage their relationships with customers and other stakeholders.

Question 3

When organizational buyers consider changes from one selling firm to another, what are the two main categories of switching costs they consider?

Accepted Answer

Switching costs for organizational buyers typically involve the investments made in the current relationship and the risk of exposure to potential issues with a new supplier.

Question 4

The open exchange of information is a characteristic of ____ relationships.

Accepted Answer

The answer of The open exchange of information is a...

Question 5

_____ occur in between the two extremes on the relationship continuum, where the focus of the selling firm shifts from attracting customers to keeping customers.

Accepted Answer

Value-added exchanges occur between transactional and collaborative exchanges, focusing on retaining customers by adding value to the relationship.

Question 6

Value can be defined as the _____ benefits received by a customer firm in exchange for the price paid for a product offering.

Accepted Answer

Value encompasses economic, technical, and social benefits that a customer firm receives in exchange for the price paid for a product offering.

Question 7

A(n) _____ represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization.

Accepted Answer

A value proposition is a statement that summarizes the benefits of a product or service and how it will meet the needs of the customer.

Question 8

Which of the following are goals of customer relationship management (CRM)?

Accepted Answer

CRM aims to maintain ongoing communication with customers, provide personalized service to valuable customers, and achieve customer retention, making all the choices correct.

Question 9

Business marketers track customer loyalty and retention because:

Accepted Answer

Tracking customer loyalty and retention helps firms identify opportunities to expand relationships with existing customers, who are often more profitable and less costly to serve than acquiring new customers.

Question 10

_____ features very close information, social, and operational linkages as well as mutual commitments made in expectation of long-run benefits.

Accepted Answer

Collaborative exchange involves close information, social, and operational linkages, along with mutual commitments aimed at achieving long-term benefits.

Question 11

From the customer's perspective, relationship quality centers on:

Accepted Answer

From the customer's perspective, relationship quality is primarily centered on trust and satisfaction with the salesperson, as these factors directly influence the customer's experience and perception of the relationship.

Question 12

Which of the following performance attributes has research recently shown influences customer satisfaction of business buyers?

Accepted Answer

Research indicates that all these attributes—responsiveness, product quality, and delivery reliability—are important factors influencing customer satisfaction among business buyers.

Question 13

Which of the following are reasons for business marketers to employ relationship marketing activities?

Accepted Answer

Loyal customers tend to generate more profit over time due to repeat business and lower acquisition costs. Additionally, strong customer relationships create a competitive advantage that is difficult for competitors to replicate.

Question 14

_____ exists when one party has confidence in a partner's reliability and integrity.

Accepted Answer

Trust is the belief in a partner's reliability and integrity, which is essential for successful relationships.

Question 15

The procedure for designing effective customer relation programs includes

Accepted Answer

Designing effective customer relation programs involves obtaining the right customers, crafting the right value propositions, and motivating employees, making all the choices relevant.

Question 16

The belief by a partner that an ongoing relationship is not so important that it deserves maximum effort to maintain it is referred to as:

Accepted Answer

The belief that a relationship is not important enough to deserve maximum effort is not specifically defined by any of the given terms.

Question 17

When a business marketer demonstrates special skills in managing relationships with key customers or by developing innovative strategies with alliance partners, they are trying to create:

Accepted Answer

A collaborative advantage is created when a business marketer effectively manages relationships with key customers or develops innovative strategies with alliance partners.

Question 18

_____ centers on all activities directed toward establishing, developing, and maintaining successful exchanges with customers and other constituents.

Accepted Answer

Relationship marketing focuses on building long-term relationships with customers and other stakeholders to ensure ongoing exchanges and mutual benefits.

Question 19

_____ involves a partner's belief that an ongoing relationship is so important that it deserves maximum efforts to maintain it.

Accepted Answer

Relationship commitment refers to a partner's belief in the importance of maintaining an ongoing relationship, warranting maximum efforts to sustain it.

Question 20

When business marketers are assessing which of their current customers represent the best opportunities for growth, which of the following factors should be considered?

Accepted Answer

All of the factors listed (cost-to-serve, projected profit margins, and current share of the wallet) are important considerations when assessing customer growth opportunities.

Quiz 3: Customer Relationship Management Strategies for Business Markets