Question 1

A downstream relationship in the supply chain refers to the relationship between a company and the product's users.

Accepted Answer

A downstream relationship in the supply chain refers to the connections a company has with entities that are closer to the end consumer or user of the product, including distributors, retailers, and the consumers themselves.

Question 2

Strategic alliances typically include only the largest firms in any industry because of the amount of capital required to invest in shared facilities.

Accepted Answer

Strategic alliances can include firms of any size, not just the largest ones. The purpose of strategic alliances is to combine resources, knowledge, and capabilities to achieve common goals and gain a competitive advantage in the industry. Small firms can also benefit from strategic alliances by gaining access to new markets, technologies, and expertise that they may not have on their own.

Question 3

Business partners can communicate with each other through web services only if they are using the same software and network platforms.

Accepted Answer

Web services use standardized protocols and formats such as XML, SOAP, and REST, which allow for interoperability between different software and network platforms. Business partners can communicate with each other through web services regardless of the software and network platforms they are using, as long as they implement these standardized protocols and formats.

Question 4

The supply chain relationship affects only the upstream relationship between a company and its suppliers.

Accepted Answer

The supply chain relationship affects both the upstream relationship between a company and its suppliers and the downstream relationship between a company and its customers, encompassing the entire process of producing and delivering products or services.

Question 5

The advantages of managing the supply chain include lower costs, improved communications, faster conflict resolution, and a higher level of innovation.

Accepted Answer

Managing the supply chain effectively leads to lower operational costs due to optimized processes, improved communication between stakeholders, quicker resolution of conflicts due to better coordination, and a higher level of innovation through collaborative efforts and shared knowledge.

Question 6

Many businesses have replaced their buyer-managed inventory systems with vendor-managed systems because electronic data interchange allows suppliers to reduce response time.

Accepted Answer

Vendor-managed inventory systems leverage electronic data interchange (EDI) to improve supply chain efficiency, allowing suppliers to manage inventory levels directly and reduce response times, which is why many businesses have adopted this model over buyer-managed systems.

Question 7

Assume that Ford has established a strategic alliance with Michelin to design an exclusive line of tires for Ford automobiles. The Ford-Michelin strategic alliance would be a horizontal alliance.

Accepted Answer

A strategic alliance between Ford and Michelin is considered a vertical alliance because it involves companies at different stages of the supply chain (automobile manufacturer and tire manufacturer), rather than a horizontal alliance which would involve companies at the same stage.

Question 8

If Boeing and General Electric get together and form an alliance to design and produce the next generation of jet engine, this would be a vertical strategic alliance.

Accepted Answer

The answer of If Boeing and General Electric get together...

Question 9

The average lifetime of a customer relationship ultimately depends on the sales representative assigned to handle the account or customer.

Accepted Answer

The average lifetime of a customer relationship depends on multiple factors including product quality, customer service, pricing, brand reputation, and customer satisfaction, not solely on the sales representative.

Question 10

Retailers using electronic data interchange can implement quick-response merchandising strategies or just-in-time strategies that reduce the time they hold merchandise in inventory.

Accepted Answer

Electronic Data Interchange (EDI) allows for the efficient exchange of business documents and data between retailers and suppliers, enabling more accurate demand forecasting and inventory management. This efficiency supports quick-response merchandising and just-in-time inventory strategies by reducing the need for large inventories and minimizing the time merchandise is held before sale.

Question 11

What are the major differences between relationship marketing and transaction-based marketing?

Accepted Answer

The answer of What are the major differences between relationship...

Question 12

Lifetime value calculations involve matching the costs of acquiring and maintaining customer relationships with the profit produced by those customers over the length of time they can be expected to do business with the company.

Accepted Answer

Lifetime value calculations are designed to assess the profitability of customer relationships by comparing the costs of acquisition and maintenance with the revenue generated over the duration of their business with the company.

Question 13

The customer payback is a determination of when a firm will recoup or, at the very least, break even on the costs of customer acquisition.

Accepted Answer

Customer payback refers to the period it takes for a company to recover the costs associated with acquiring a new customer, essentially reaching the break-even point on their investment in customer acquisition.

Question 14

A horizontal strategic alliance is between firms at different levels of the supply chain.

Accepted Answer

A horizontal strategic alliance is between firms that operate in the same industry and are at the same level of the supply chain, often as competitors or potential competitors, aiming to achieve mutual benefits such as expanding market reach or sharing resources.

Question 15

Electronic data interchange has been less popular among businesses because it is an aging technology, does not work with incompatible computer systems, and is prone to errors.

Accepted Answer

Electronic Data Interchange (EDI) remains popular among businesses for its ability to streamline processes, reduce errors, and facilitate faster transactions, despite being an older technology. Compatibility and standardization efforts have largely addressed issues with incompatible systems.

Question 16

Quintal Communications contributes $100 million and two patents to a joint venture. Systemware, a software giant, in turn contributes $60 million, one patent, and a facility for operations. Each company knows what technical support, resources, and personnel are required of each business. This arrangement is most likely a cooperative alliance.

Accepted Answer

The answer of Quintal Communications contributes $100 million and two...

Question 17

Electronic data interchange involves computer-to-computer exchange of invoices, orders, and other business documents.

Accepted Answer

Electronic Data Interchange (EDI) is a computer-to-computer exchange of business documents in a standard electronic format between business partners, which includes invoices, orders, and other transactional documents.

Question 18

Strategic alliances are long-term business-to-business partnerships formed to create a competitive advantage.

Accepted Answer

Strategic alliances are indeed long-term partnerships between businesses. They are formed to leverage the unique strengths and capabilities of each partner, aiming to create a competitive advantage in the market.

Question 19

Quick-response merchandising is a just-in-time strategy that reduces the time merchandise is held in inventory.

Accepted Answer

Quick-response merchandising is indeed a strategy aimed at reducing inventory levels by speeding up the delivery of products to the retail floor, thus minimizing the time merchandise spends in inventory and aligning production with consumer demand more closely.

Question 20

Collaborative planning, forecasting, and replenishment (CPFaR) has a proven track record as a system that can reduce lead times, produce accurate forecasts, increase reaction times to marketplace trends and, in some cases, cut inventories in half.

Accepted Answer

Collaborative Planning, Forecasting, and Replenishment (CPFR) is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand. By sharing information and planning together, companies can reduce lead times, improve forecast accuracy, respond more quickly to market changes, and often significantly reduce inventory levels, achieving the benefits mentioned.

Quiz 17: Relationship Marketing and Customer Relationship Management CRM