MKT 442 Final exam

Chapter 9, 10, 11, 12

T/F Operation questions salespeople with individual customers must consider: price, communication, and logistics?

True

T/F A well-balanced portfolio is one that ensures that the business earns value over the long term by selectively harvesting above-average current returns and investing them into future products?

True

What are the main four options to portfolio management?

Build, maintain, harvest, redce

Based on Jackson’s customer relationship differentiation, what are the two classifications?

Customers where a supplier can always get a share of the business

Those that want stability in their supply dealings

Between the customer where a supplier can always get a share of the business and one who wants stability, which one makes price a lesser consideration over other things?

The one who wants stability

T/F it is more useful to spilt the customer relationship base into two rather to take a process of sequential application of classificatory variables

False

Y/N Do Sales alone say anything about the level of profitability of an account?

No

What are two good measures to state the customer base?

net price and cost-to-serve figures

With respect to net price and cost-to-serve, what characteristics is Bargain Basement Customers?

Low, Low, those who are very price-sensitive, but insensitive to levels of quality or service

With respect to net price and cost-to-serve, what characteristics is carriage trade customers?

high net price, high cost-to-serve, willing to pay premium, but seek quality or service to match that

What are buying habits of a Passive customer?

prepared to pay higher prices despite not commanding premium levels of service or quality from their suppliers

What are buying habits of aggressive customers?

highest level of service and product quality at low prices

What type of customer is low value, and low commonality; thus only should be served standard products?

Acquintance

What type of customer is high value, low commonality; they seek opportunities for price reduction?

Rivals

What type of customer is low value and high commonality; they show strategic interests in common with supplier, but nothing to grand of deals in place

Friend

What type of customer is high value and high commonality

Partner

What are the stages of a relationship?

Pre-relationship, early stage, Development stage, long-term, final stage, commitment stage, dissolution phase

In what relationship stage does the commitment of time lead to manifest reductions in uncertainty and distance between the parties?

Development

What are the three positive mechanisms that drive relationship migration?

exploration, endowment, and recovery

What are the two negative mechanisms that drive relationship migration?

neglect and betrayal

Customer __________ is the percentage of customers who stay with a company in a given period, while customer __________ is the percentage of customers who leave a company within a given period of time.

attrition rate; churn rate

retention rate; equity

attrition rate; defection rate

retention rate; churn rate

churn rate; retention rate

retention rate; churn rate

A paper products company is concerned with distributors’ reliance on price discounts. Although price discounts successfully increase sales during the price-discount promotions, sales decrease between those price promotions. A systematic reliance on discounts to drive sales is MOST likely to risk which of the following in the long-term?

Ability to capture value from customers

ability to measure customer lifetime value (CLV)

ability to estimate customer equity

ability to deliver value to customers

ability to increase market share

Ability to capture value from customers

Customer value has two sides: capturing value through customer __________ and delivering value through customer __________.

Revenue; satisfaction

share of wallet; satisfaction

Profitability; satisfaction

revenue; experience

profitability; experience

profitability; experience

The group of customers who receive high value from customer experience and who provide high value to the company are referred to as

Star customers

In the Relationship Cycle, the ____________ stage is characterized by the need to deal with substantial unknowns.

early

A branch manager of a rental car company set a goal to increase customer satisfaction ratings. To achieve this goal, she authorized the sales associates to provide customers with additional price discounts. Although customer satisfaction ratings increased, the brand manager later discovered that 20% of its rental contracts with the highest customer satisfaction ratings were also unprofitable. This group of highly satisfied but unprofitable customers represents the company’s

free riders

Which one of the following is NOT one of the variables factored in the Relationship Lifecycle?

exposure

T/F the business marketer has to determine what further elements to integrate to augment the product offer, so that the overall adapted configuration reduces costs or adds value for the customer

True

What are hybrid offerings?

combination of physical goods and augmenting service elements

What is a product-service system?

product offer that combines goods and services

The most dramatic increase in revenue is most likely to occur in the _______ phase of the product life cycle.

Growth

During which stage of the product life cycle would Dannon Greek Yogurt most typically add new flavors and sizes to its new organic product line?

Growth

In which of the following stages of the product life cycle are promotion efforts minimal?

Decline

In the ____________ phase of the product life cycle, sales continue to increase but at a decreasing rate.

Maturity

in the BCG matrix, firms categorized in the question mark (problem child) quadrant are characterized by

low share and high growth

The introduction phase of the product life cycle for an industry is usually characterized by _______________.

no profit

The demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp. is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Matrix, the fine wood division would most likely be classified as a ________.

dog

The objective in the introduction phase of the product life cycle is to _______________.

build market awareness for the product leading to trial purchase

The Boston Consulting Group Matrix utilizes two key measurements: _________ and __________.

relative market share; relative market growth

During the decline phase of the product life cycle, ________________________________.

channel members cease to support the product

Which of the following is an analysis that the channel steward needs to perform when constructing a channel value chain?

customer wants and needs and company’s supply chain capabilities

Which of the following distribution decisions is NOT part of channel coverage?

Expand internationally

Several factors are driving the rise of online channels. Online music distribution and online book sales are two examples. Which factor below is a contributor to the increase in online distribution?

The product is easily digitized

One of the four forces affecting channel strategy is channel power and influence. Which of the following is NOT a source of power or influence in a distribution channel?

Premium pricing

The marketing organization will be less inclined to want to control all exchanges with all customers when

the risk/uncertainty associated with the solution is lower and involves a standard product offering.

The coordination of activities that contribute to the forward and reverse flow of information, goods and services between the point of origin and point of consumption is known as __________.

logistics management

A key challenge in supply chain, with regards to activities that contribute to addressing and meeting customer needs, is _________.

minimizing cost

The following are functions of channel members, except _____________.

planning activities within the channel

A company that can respond to a customer's unique requirements for packaging and order size would address which supply chain goal?

flexible response

Accomplishing production and logistics processes in less time addresses which supply chain management goal?

time compression

A firm’s incentive to sell is equal to:

product price minus cost of goods sold (COGS).

Product indicators of sensitivity to price include all of the following EXCEPT:

the ability to switch easily

Marketers often use which of the following technique to determine the impact of a price change?

breakeven analysis

All the factors below affect how a company might customize prices except:

fixed costs

Starbucks offers a variety of types of coffee to its customers at various price points based on the quality of the coffee beans and where the coffee is grown. This is an example of:

good/better/best strategy.

All the following indicators heighten consumer sensitivity to price EXCEPT:

difficult comparability.

All of the following are examples of commonly used market research procedures for assessing price sensitivity EXCEPT:

focus groups

Which of the following choices is NOT an example of a business-to-business (B2B) buyer becoming more sophisticated and deliberate about purchasing smartphones for his sales force?

realizes quality cues have an impact on price

Which of the following choices is NOT one of the reasons cost-plus pricing is so popular?

It captures the full price that customers might be willing to pay for a product.

A consumer’s incentive to purchase is equal to:

perceived value (PV) minus price