Test Bank For Business Marketing Management B2B 13th Edition by Michael Hutt, Thomas Speh, Douglas H

TEST BANK Business Marketing Management: B2B Test Bank For 13th Edition

by Michael Hutt, Thomas Speh, Douglas Hoffman Business Marketing Management B2B, 13th Edition Michael D. Hutt Thomas W. Speh Douglas Hoffman Chapter 1-15 Chapter 1 1. The intended use of the product and the intended consumer distinguishes business marketing from consumer-goods marketing. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-01 - Define the scope of business-to-business (B2B) marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. A direct link in demand for industrial products is derived from the ultimate demand for consumer products. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-02 - Identify the types of customers that comprise B2B markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. A close examination of a market-driven firm will reveal two important capabilities: market sensing and customer linking. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Firms operating in the business market must respond not to a single consumer but to a much wider group of buying influentials, all of whom may bring different criteria to bear on the purchase decision. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. Planning in the business marketing setting requires more functional interdependence and a closer relationship to total corporate strategy than does planning in the consumer goods sector. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-01 - Define the scope of business-to-business (B2B) marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. A particular industrial customer might be properly classified as a user by some business marketers and an original equipment manufacturer by other business marketers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

7. Industrial goods are classified on the basis of how organizational buyers purchase particular products and services. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. In contrast to raw materials, manufactured materials and parts would be classified as capital items. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. As foundation goods are used up or worn out, a portion of their original cost is assigned to the production process as a depreciation expense. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Personal computers and light factory equipment such as portable drills provide examples of industrial goods that Copyright Cengage Learning. Powered by Cognero.

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would be classified as accessory equipment. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. A marketing strategy that works well for selling entering goods should be equally successful for facilitating goods. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. Price may be critical in the marketing strategy for supplies because many supply items are undifferentiated. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-03 - Compare the similarities and differences between business-to-consumer (B2C) and B2B marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. Other functional areas affect all business marketing decisions, either directly or indirectly. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. The ―compatibility‖ of a cross-functional working relationship can be defined as the common ground or shared goals that can unite managers who represent different functional areas. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. During economic uncertainties, demand for many consumer products tends to fluctuate more than the demand for industrial products. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. None of the products purchased by customers in the business market are the same as those purchased by ultimate consumers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. Types of business market customers can be broadly classified into three categories: (1) commercial enterprises; (2) governments; and (3) institutions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Supply chain management requires information sharing, shared technologies, and shared benefits. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. Personal selling is less relevant for supplies than it is for other categories of goods, such as installations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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20. Relationships between business marketers tend to be close and enduring. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. A public university is an example of an institution market. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. The commonality of intended usage purpose makes it difficult to distinguish between business and consumer markets. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Market sensitivity and building relationships cannot stimulate demand for the products of the business marketer since organizations make decisions for all classifications of products based only on price. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. If there is a derived demand for a product which ABC Company sells to XYZ company, ABC’s success is very much tied to XYZ’s success. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. The business market consists of the following three components: a. households, resellers, and government. b. manufacturers, institutions, and defense. c. manufacturers, service organizations, and government. d. commercial enterprises, institutions, and government.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-02 - Identify the types of customers that comprise B2B markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. Concerning manufacturing customers, the business market is: a. concentrated by size. b. geographically concentrated. c. experiencing declining growth in many large metropolitan areas. d. concentrated both by size and geography.

ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-02 - Identify the types of customers that comprise B2B markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. Based on the volume of their purchases, __________ are the most important commercial customers in the business or industrial market. a. construction companies b. manufacturers c. transportation companies d. service firms (e.g., hotels) ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. Market-driven firms have which of the following capabilities: a. interfunctional capability and market-sensing capability. b. customer-linking capability and interfunctional capability. c. market-sensing capability, interfunctional, and customer-linking capability. d. Market-sensing capability and customer-linking capability.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. Market-driven firms spot market changes and react well in advance of their competitors. This illustrates: a. the customer-linking capability of market-driven firms. b. the value proposition of market-driven firms. c. the market-sensing capability of market-driven firms.

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d. the value of using direct channels of distribution in the business market.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. The particular skills, abilities, and processes that an organization has developed to manage close customer relationships are referred to as: a. the customer-linking capability. b. channel management. c. derived demand. d. the market-sensing capability.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as: a. market research capability. b. customer-linking capability. c. competitive intelligence. d. market-sensing capability.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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32. Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded. This suggests that Ford’s price elasticity of demand is: a. elastic. b. inelastic. c. neither elastic nor inelastic. d. insensitive to price changes.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. Dayco decreased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 3 percent. Price elasticity of demand for drive belts appears to be: a. elastic. b. inelastic. c. neither elastic nor inelastic. d. sensitive to price changes.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. A diverse array of organizations make up the business market. These organizations can be broadly classified as: a. Commercial enterprises, governmental organizations, and institutions b. Commercial enterprises, users, and governmental units c. Commercial enterprises, users, and original equipment manufacturers d. Producers and resellers of industrial products or services ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-01 - Define the scope of business-to-business (B2B) marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy - Explain how firms use the strategic management process to build a sustained competitive advantage.

Bloom’s: Knowledge

35. When purchasing a high-speed packaging machine, General Foods would be classified as: a. an original equipment manufacturer. b. a user. c. a distributor. d. a dealer.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. Concerning the chain of upstream suppliers involved in the creation and production of a Honda automobile, which of the following fall only within the business marketing domain? a. Honda purchasing power-steering components from direct suppliers. b. Honda purchasing raw materials for lawn mower engines. c. A rental company purchasing Honda automobiles for their fleets. d. A logistics company distributing Honda automobiles to dealerships.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. The following transactions fall into the business marketing domain, except: a. Ford purchasing machine tools for their plants from Cincinnati Milacron. b. Ford selling their automobiles to the fleet manager at Cincinnati Milacron for use by the sales force. c. Ford purchasing power-steering systems from Motorola for use in a particular model. d. Ford selling their automobiles to individual employees of Cincinnati Milacron for personal use.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. When purchasing machine tools for their plants, American Honda is: a. an original equipment manufacturer. b. a user. c. a distributor. d. an institutional buyer.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. Concerning the classification of customers in the business market, General Motors is a(n) __________ when purchasing a mainframe computer system from IBM, but is a(n) __________ when purchasing tires from Goodyear. a. user; original equipment manufacturer (OEM) b. user; distributor c. original equipment manufacturer (OEM); user d. user; upstream supplier ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. As an industrial customer, Ford Motor Company would be classified as: a. a user. b. an original equipment manufacturer (OEM). c. a user in purchasing some products, an OEM in purchasing other products. d. a producer of facilitating goods.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. When purchasing microprocessors from Intel Corporation to be incorporated into Dell's line of personal computers, IBM would be classified as: a. a user. b. an original equipment manufacturer (OEM). c. an institutional buyer. d. a dealer.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. When purchasing manufacturing equipment from General Electric, Chrysler would be classified as: a. a user. b. a reseller. c. an institutional buyer. d. a dealer.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. When AK Steel (formerly Armco Steel) realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles, this illustrates the concept of: a. derived demand. b. connector demand. c. linked demand. d. reflection demand.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. The method of classifying industrial goods into meaningful categories in the business market centers on this question: a. How does the industrial good enter the production process and the cost structure of the firm? b. How much effort are organizational buyers willing to exert in purchasing this industrial good? c. Will organizational buyers purchase this industrial good from a distributor or directly from a manufacturer? d. What is the weight and unit value of the industrial good?

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. Industrial products and services can be broadly classified as: a. upstream, downstream, and direct goods. b. entering, manufactured, and fabricated goods. c. entering, accessory, and manufactured goods. d. entering, foundation, and facilitating goods.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. The cost of raw materials such as sheet steel is treated as: a. an expense item which is depreciated over time. b. a capital item which is depreciated over time. c. a fixed cost. d. an expense item which is assigned to the manufacturing process.

ANSWER: d POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. Some industrial products have been processed before reaching the industrial customer and are then processed further by this customer before becoming part of their finished product inventory. These items are called: a. component parts. b. facilitating parts. c. accessory materials. d. component materials.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. Which of the following is (are) characteristic of the marketing strategy that would be appropriate for a firm like Otis Elevator, which sells installations of fixed equipment in the business market? a. Personal selling is the dominant promotional tool. b. Trade advertising and direct-mail advertising reinforce personal selling. c. Installations are typically purchased in larger quantities on a contractual basis. d. Both personal selling and trade advertising.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. Acco Brands (formerly Mead Paper Company) recently purchased a new high-speed paper machine for one of their plants. The new machine is used in manufacturing a special grade of paper at a rate of over 1,500 feet per minute. This product would be classified as: a. a facilitating good. b. an entering good.

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c. accessory equipment. d. an installation.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. The distinguishing characteristic(s) of foundation goods is(are) that they: a. are capital items. b. are expense items. c. become part of the finished product. d. capital items and become part of the finished product.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. With little or no additional processing, __________ can be installed directly into another product. a. component parts b. component materials c. operating equipment d. light factory equipment ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. Bond Office Products manufactures a diverse array of office supplies and serves the business market. All of the Copyright Cengage Learning. Powered by Cognero.

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following characteristics is (are) associated with the marketing strategy for this category of goods except: a. Personal selling is less important for supplies than it is for other categories of goods having a higher unit value, such as installations. b. The company requires a wide variety of marketing middlemen to cover the broad and diverse market adequately. c. Price may be critical in the marketing strategy because many office supply items are undifferentiated. d. Most supply items reach a concentrated, narrow market of business customers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. When companies want to sell products to both consumer and business markets, they must: a. produce products that are not identical. b. reorient their business strategies. c. link customer capabilities. d. produce products that are identical ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. Market-driven firms that want to serve both consumer and business market sectors should: a. develop a set of values and beliefs that place companies’ interests first. b. become proficient in understanding and satisfying customers. c. root their organizational plan in a product orientation. d. separate financial performance strategy from sales strategy.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. To demonstrate market-sensing and customer-linking capabilities, companies engage in all of the following except: a. sharing product movement information. b. jointly planning promotional activities with other channel members. c. jointly planning product changes with other channel members. d. isolating marketing planning within a functional area.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. A business marketer becomes a preferred supplier to major customers by: a. developing intimate knowledge of the customers operations. b. developing a market orientation organization plan. c. contributing r risk to a customer’s business. d. both developing intimate knowledge of the customers’ operations and contributing unique value to a customer’s business.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. Business marketing strategy must be based on an assessment of the customers, competitors, and: a. compatibility. b. coordination. c. the company. d. channels.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. Functional areas other than marketing directly or indirectly affect which of the following? a. Product and price marketing decisions b. Distribution and promotion marketing decisions c. Promotion, price, and distribution marketing decisions d. Promotion, distribution, product, and price marketing decisions ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. Which type of goods are treated as an expense item because they do not enter the production process or become part of the finished product? a. Facilitating goods b. Foundation goods c. Entering goods d. Exiting goods ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. The buying motives for major installations center on: a. emotional factors. b. purely economic or rational considerations. c. a blend of rational and emotional factors. d. the initial price and cost.

ANSWER: c POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. An implication of relationship marketing is: a. that sellers do not require an intimate knowledge of a customer’s operations. b. that a sale signals the beginning of a relationship, rather constituting the end result. c. the building of one-to-one relationships. d. both that a sale signals the beginning of a relationship, rather constituting the end result and the building of one-to-one relationships.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. The factors that distinguish business marketing from consumer marketing include: a. the importance of promotion. b. the intended use of the product. c. the nature of the customer. d. both the intended use of the product and the nature of the customer.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Which of the following characteristics of business customers is false? a. A single purchase by a business customer is typically larger than that of an individual consumer. b. Demand for industrial products is derived from ultimate demand for consumer products. c. Relationships between business marketers tend to be close and enduring. d. Business customers are more emotional than rational in buying decisions.

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ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-06 - Recognize the key imperatives for business marketing management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. The skills required to identify, initiate, develop, and maintain profitable customer relationships describes: a. customer management relationship capabilities. b. product-linking capabilities. c. derived demand. d. supply chain management.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. If consumers are not price sensitive in purchasing a consumer product such as Smucker’s Jams, a 10% increase in the retail price of strawberry jam because of a 10% increase in the cost of strawberries from farmers will not affect quantities demanded for jam. Thus, the derived demand indicates that the demand for strawberries is: a. elastic. b. inelastic. c. unpredictable. d. unknown.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-06 - Recognize the key imperatives for business marketing management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. Which of the following would be classified as foundation goods? a. Fixed equipment b. Computing goods Copyright Cengage Learning. Powered by Cognero.

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c. Purchased parts d. Maintenance and repair services ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-06 - Recognize the key imperatives for business marketing management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. The use of a goods classification system can be extremely valuable to business marketers because: a. A marketing strategy appropriate for one category of goods may be entirely unsuitable for another. b. A marketing strategy that works for consumer products will often work for products sold in business markets. c. The physical nature of the industrial good and its intended use by the organizational customer affects the marketing program’s requirements. d. Both a marketing strategy appropriate for one category of goods may be entirely unsuitable for another and the physical nature of the industrial good and its intended use by the organizational customer affects the marketing program’s requirements are true.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-06 - Recognize the key imperatives for business marketing management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. Market-driven firms attempt to match their resources, skills, and capabilities with: a. competitive intelligence. b. customers’ needs that are not currently being served adequately. c. derived demand. d. the needs of upstream suppliers.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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69. Which of the following statements about major installations is true? a. YouTube and the digital decision journey are the dominant promotional tools. b. Initial price, distribution, and advertising play lesser roles. c. A wide variety of channel partners are required. d. The goal is to secure an e-procurement linkage.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. Business marketers that define their business markets with a horizon that stretches beyond the boundaries of the United States to include foreign markets for industrial goods and services employ: a. a global market perspective. b. a target market perspective. c. a market orientation perspective. d. an ethnocentric perspective.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. Marketing activities directed toward establishing, developing, and maintaining successful exchanges with customers is: a. relationship marketing. b. cross-functional marketing. c. global marketing. d. supply chain management.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 72. The technique for linking a manufacturer’s operations with those of all its strategic suppliers and its key intermediaries and customers to enhance efficiency and effectiveness is called: a. relationship marketing. b. global marketing. c. supply chain management. d. consumer marketing.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 73. When it comes to classifying the commercial customers that constitute the business market, commercial enterprises can be divided into what three categories: a. users, institutions, and dealers and distributors. b. users, commercial enterprises, and governmental organizations. c. users, original equipment manufacturers, and dealers and distributors. d. commercial enterprises, governmental organizations, and institutions.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 74. Which of the following would qualify as facilitating goods? a. Fixed equipment b. Component materials c. Raw materials d. Operating supplies ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 75. The use of law firms or advertising agencies by business marketers constitutes what type of industrial good? a. Business services b. Foundation goods c. Installations d. Entering goods ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 76. Markets for products and services, local to international, bought by businesses, government bodies, and institutions for consumption, for use or for resale are: a. consumer markets. b. global markets. c. business markets. d. target markets.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-02 - Identify the types of customers that comprise B2B markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 77. Developing a marketing program that reaches the ultimate consumer directly for a product that incorporates your product, such as DuPont advertising to consumers to increase the sales of carpeting which incorporates their product is known as: a. demand elasticity. b. fluctuating demand. c. stimulating demand. d. price sensitivity.

ANSWER: c POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 78. At GE, this role involves scanning the entire business landscape for marketing ideas as opposed to thinking exclusively about current products and markets: a. innovator. b. implementer. c. instigator. d. integrator.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 79. Business market customers can be broadly classified into three categories: a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 01-02 - Identify the types of customers that comprise B2B markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 80. Institutions are considered to be part of the government market. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 01-02 - Identify the types of customers that comprise B2B markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 81. Because demand in business markets is derived from consumer markets, business must carefully monitor demand patterns and changing consumer buying preferences. Because of these changes, the demand for many industrial products can be described as: ANSWER: Fluctuating demand POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 82. Those that have the power in the business buying process are referred to as: ANSWER: Key buying influentials POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 83. This type of equipment is generally less expensive and is short-lived compared with installations, and is not considered part of the fixed plant: ANSWER: Accessory equipment POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 84. Like supplies, business services are considered expense items. Business services can be classified as: Copyright Cengage Learning. Powered by Cognero.

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ANSWER: Maintenance and repair support and advisory support POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-04 - Explain a method for classifying B2B products and services.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 85. Explain the bullwhip effect in supply chains.

ANSWER: Bullwhip effects are the wild swings in demand that business marketers can experience such as were vividly on display during the pandemic.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 86. Define a business market.

ANSWER: Business markets are markets for products and services, local to international, bought by businesses, government bodies, and institutions (such as hospitals) for incorporation (for example, ingredient materials or components), for consumption (for example, process materials, office supplies, and consulting services), for use (for example, installations or equipment), or for resale. . . . The only markets not of direct interest are those dealing with products or services that are principally directed at personal use or consumption such as packaged grocery products, home appliances, or consumer banking.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-01 - Define the scope of business-to-business (B2B) marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 87. Conrad Spring produces manufactured materials and parts for diverse customer groups in the business market, ranging from automobile manufacturers and household appliance producers to toy makers and medical equipment specialists.

Describe the nature of marketing strategy for industrial goods of this type.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the portion dealing with the types of customers. Given that the demand for some Copyright Cengage Learning. Powered by Cognero.

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of these products could be derived and require relationships, the student should find it useful to scan through portions of the chapter dealing with those topics.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 88. Dell Computer has excelled with a fast-paced build-to-order approach that involves taking customer orders online, orchestrating production tailored to each customer, and forging a one-to-one relationship with the customer after the sale.

Some auto industry executives have turned to Michael Dell, the company founder, for advice concerning how to make their businesses look like his. Senior executives at Ford, for example, envision a future where customers will order online and factories will build to order, eliminating billions of dollars of inventory costs (for example, large stocks of vehicles on hand). All of those mass produced cars sitting for weeks on dealer lots represent a massive investment that yields no return until a buyer comes along. a. Evaluate the feasibility of a build-to-order system for an automaker like Ford and outline the key requirements that Ford must meet to make the strategy work for a potential customer like you. b. How would a build-to-order system alter the way in which suppliers (business marketers) would serve Ford as a customer?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to supply chains. In addition, segments dealing with derived demand and the classifications of products can be useful. Dell's derived demand is not in the sense that its products will be a component of each car but it is derived in the sense that if it can help in developing a new way of ordering and building automobiles (improving an auto company's supply chain) it will also be increasing the demand for its goods and services.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 89. Consider some leading-edge consumer product manufacturers like Procter & Gamble, Gillette, or Coca Cola. What major differences would you expect to find in comparing the marketing strategy patterns employed by these consumerproducts companies to those of leading business marketing firms such as Intel, 3M, or Dow Chemical? Next, describe the similarities and differences that emerge when comparing the distinctive attributes of a leading-edge consumer products marketer to a firm that demonstrates superb skills serving customers in the business market.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the portion dealing with the business marketing environment and the basic Copyright Cengage Learning. Powered by Cognero.

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similarities and differences between consumer-goods and business marketing. Also, the segments dealing with types of customers and classifying products and services can be useful.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-01 - Define the scope of business-to-business (B2B) marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 90. Hayes enjoys a well-established position as a supplier to the automobile industry. The firm supplied wheels to the Model T Ford. Today, Hayes is betting on a new product, fabricated aluminum wheels, which weigh up to 20 percent less than cast aluminum wheels and 40 percent less than steel ones. Hayes has signed contracts worth $50 million for the new wheels—mostly for use in spare tires—with DaimlerChrysler, Ford, General Motors, and BMW. Drawing on the industrial goods classification scheme, how would you classify the aluminum wheels? Sketch out the critical buying motives that organizations like DaimlerChrysler would emphasize in evaluating the wheels and explore Hayes’ associated marketing strategy implications.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the portion dealing with derived demand. Also, the segments pertaining to types of customers and supply chains could be useful.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-05 - Contrast how business marketing strategy is adapted among B2B classification categories.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 91. Smucker’s sells products to both business and consumer markets. Compare and contrast the marketing strategies that Smucker’s will use when selling their products to each type of market.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the portion dealing with the business marketing environment and the basic similarities and differences between consumer-goods and business marketing.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-01 - Define the scope of business-to-business (B2B) marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Comprehension

92. Explain the different business markets (commercial, institutional, and governmental) and provide examples for each.

ANSWER: Commercial- entities that include manufactures, construction companies, service firms’ transportation companies, selected professional groups, and resellers. Manufacturing is the largest sector rd Institutional – 3 largest sector of the business market and are made up of schools and health-care organizations. Examples include colleges, universities, libraries, foundations, art galleries, and clinics.

Governmental- Government agencies purchase a wide variety of office supplies. Examples include Federal government, state government, local governments like counties and townships.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 01-07 - Describe the nature of buyer–seller relationships in a product’s supply chain.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

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1. The decision to purchase a fork-lift truck may be a new task buying situation in one organization and a modified or straight rebuy in another. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-02 - List the major stages in the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Tracing the customer decision journey (CDJ) reveals a wealth of rich information sources that business customers and prospects can use to make more informed purchasing decisions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. The information requirements of organizational buyers are highest in modified rebuy situations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Organizational buying forces—environmental, organizational, group, and individual—influence organizational buying behavior. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. The marketer who recognizes individual differences in decision criteria is best equipped to develop responsive marketing communications that the individuals in the organizational buyer center will remember. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. Members of the buying center are generally in agreement concerning the criteria that should be used in evaluating the merits of alternative suppliers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. When considering patterns of influence in the organizational buying process, marketers note that purchasing managers assume a dominant role in repetitive buying situations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. Those individuals who have an important personal stake in the decision will exert more influence than other members of the buying center. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. Well-known companies, recognized as credible sources, tend to be favored by organizational buyers facing high-risk decisions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-02 - List the major stages in the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. The higher the level of perceived risk in a buying situation, the lower the probability that the organizational buying decision will be made by a group. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-02 - List the major stages in the organizational buying process.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. For ―risky‖ purchase decisions, the buying center will become larger and will be comprised of members with higher levels of organizational status and authority. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. The primary role of the influencer in the buying center membership is to control information to be reviewed by other members of the buying center. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. The greatest level of uncertainty confronts firms in new task-buying situations because of the technical complexity of the product and the difficulty of evaluating the alternatives. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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14. The buying center becomes smaller and consists of lower-level experts as perceived risk increases. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. A business marketer confronting a new task-buying situation can gain a differential advantage by participating actively in the initial stages of the procurement process. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Factors that have an impact on organizational buying behavior are environmental, organizational, strategic, and individual. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. Because globalization is upsetting traditional patterns of competition, the rise of material costs, and customer resistance to price increases, the influence of the procurement function is increasing in most organizations. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-05 - Explain how organizational forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. In B2B organizations, though many are customer-centered, not all have yet adapted to identifying customer behavior. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. E-procurement involves a push strategy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. Evaluation criteria are product specifications that organizational marketers use to compare alternatives. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. In the organizational buying process, what stage does an experienced production manager assist a purchasing manager in developing a detailed and precise description of needed equipment? a. Supplier selection b. Product specifications c. Selection of order routine d. Problem recognition ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-02 - List the major stages in the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. When a delivery date is established for the proposed production equipment, this is what stage of the organizational buying process? a. Supplier search b. Product specifications c. Performance review d. Selection of order routine ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-02 - List the major stages in the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. The purchase of an expensive piece of material handling equipment would be classified as: a. a new task-buying situation. b. a modified rebuy. c. a straight rebuy. d. either new-task, modified buy, or straight rebuy.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. Mary Bronson, purchasing manager for the Los Angeles Tool Company, placed her quarterly order for supplies from the Gibson Paper Company. Mary has been dealing with Gibson for many years. What type of problem solving would Mary employ in this purchase decision? a. Routine problem solving b. Casual problem solving c. Limited problem solving d. Extended problem solving ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. As a result of poor delivery performance by a supplier of high-quality metal components, Jim Houser, purchasing agent at Milton Toy Company, plans to consider a possible change in suppliers. This provides an illustration of: a. the backlash effect. b. routinized problem solving. c. a modified rebuy. d. a straight rebuy.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. The problem solving approach followed by an organizational buyer in a new task-buying situation is: a. selective. b. extensive. c. cerebral. d. systematic.

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ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. The problem-solving approach followed by an organizational buyer in a modified rebuy situation is: a. limited. b. selective. c. routinized. d. extended.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. When buying influentials and decision makers lack well-defined criteria for comparing alternative products and suppliers and they also lack strong predispositions toward a particular solution, they are operating in a stage of __________ problem solving. a. cerebral b. extensive c. selective d. routinized ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. When organizational buyers have well-developed choice criteria to apply to the purchase decision, they are operating in a stage of problem-solving known as: Copyright Cengage Learning. Powered by Cognero.

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a. cerebral response behavior. b. limited response behavior. c. selective response behavior. d. routine response behavior.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. When organizational buyers have well-defined criteria to apply to the purchase decision but are uncertain about which suppliers can best fit their needs, they are operating in a stage of __________ problem solving. a. cerebral b. limited c. selective d. routinized ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. Because of the technical complexity of the product, the difficulty of evaluating alternatives, or the unpredictable aspects of dealing with a new supplier, this type of buying decision involves the greatest level of uncertainty. a. Complex modified rebuy decision b. Strategic modified rebuy decision c. Judgmental new task decision d. Strategic new task decision ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

32. Those buying decisions that are of extreme importance to the firm strategically and financially are referred to as: a. strategic new task buying decisions. b. strategic modified rebuy decisions. c. judgmental new task decisions. d. lost-for-good decisions.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. In choosing a new piece of manufacturing equipment, the buying organization is uncertain of the model or brand to choose, the suitable level of quality, and the appropriate price to pay. This represents which type of buying situation? a. Complex modified rebuy decision b. Strategic modified rebuy decision c. Judgmental new task decision d. Strategic new task decision ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. Those buying decisions that involve a narrow set of choice alternatives, encompass a moderate amount of both information search and analysis, and concentrate on the long-term relationship potential of suppliers are called: a. simple modified rebuy. b. complex modified rebuy. c. casual purchases. d. routine low priority purchases.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. The simple modified rebuy: a. involves a narrow set of choice alternatives. b. centers on a product of minor importance to the firm. c. encompasses little or no information search or analysis. d. all of the answer choices.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. Upon meeting with a General Electric buyer, a salesperson learned that the G.E. purchasing function is unhappy with the supplier's performance and is openly considering new options. This provides an illustration of: a. a new task buying situation. b. a straight rebuy. c. a modified rebuy. d. extended problem solving.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. Strategies that would be appropriate for an ―out‖ supplier to follow when confronting a modified rebuy situation include the following, except: a. offering performance guarantees. b. encouraging the organization to sample the firm’s offering. c. defining and responding to the organization’s problem with the existing supplier. d. renegotiating the order routine.

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ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. Which of the following is an example of a push marketing strategy: a. direct mail. b. publications. c. referral. d. videos.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. Jim Parker, Purchasing Manager for the Boston Motor Works, is involved in many organizational buying decisions each year. The forces that influence Jim's organizational buying decisions might be broadly classified as: a. economic, organizational, group, and legal. b. group, environmental, individual, and organizational. c. organizational, cultural, environmental, and economic. d. legal, political, organizational, and group.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. Which of the following is an example of environmental forces influencing organizational buying behavior: a. economic factors. b. influencers.

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c. organizational positioning. d. risk reductions.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. Within the buying center, individuals who actually make the organizational buying decision, whether or not they have formal authority to do so, are performing the role of: a. a user. b. a gatekeeper. c. an influencer. d. a decider.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. Within the buying center, an individual who has formal authority for selecting a supplier and implementing all procedures connected with securing the product is performing the role of: a. a user. b. a gatekeeper. c. an implementer. d. a buyer.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. Individuals who control the flow of information into the buying center are performing the role of: a. a user.

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b. a gatekeeper. c. an implementer. d. a decider.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. Which of the following is true about the composition of the buying center? a. It is the same during the purchase process. b. It varies from one purchase to another. c. It is similar for every firm. d. It is organized by the buyer.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. A common identifiable element in buying centers in all sectors of the industrial market is: a. the chief executive officer. b. the accounting function. c. the purchasing function. d. the production function.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. In the purchase of a new papermaking machine, what role would the firm’s operations manager assume in the group buying center? a. Buyer Copyright Cengage Learning. Powered by Cognero.

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b. Expeditor c. Gatekeeper d. Planner ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. In a buying center, which role would control the information to be reviewed by other members of the buying center: a. deciders. b. influencers. c. users. d. gatekeepers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. When organizational buyers modify a salesperson’s message to make it more consistent with their predispositions toward the company, this provides an illustration of: a. selective exposure. b. selective attention. c. selective perception. d. selective retention.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. The formation of organizational preferences and ultimately the organization’s buying choice is determined by the __________ of the members of the buying center.

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a. interaction structure b. operating resources c. relevant set d. primary set ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. During which process of information processing do individuals tend to accept communication messages consistent with their existing attitudes and beliefs: a. selective retention. b. selective perception. c. selective attention. d. selective exposure.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. Buying decisions that are somewhat important to the firm and involve a moderate amount of analysis are: a. casual purchases. b. straight rebuy purchases. c. routine low priority purchases. d. extensive problem-solving purchases.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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52. Those buying decisions that involve a large set of choice alternatives and pose little uncertainty, and are well suited to a competitive bidding process are called: a. simple modified rebuys. b. complex modified rebuys. c. casual purchases. d. routine low priority purchases.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. In a modified rebuy situation, the ―in‖ supplier should do which of the following? a. Make every effort to understand and satisfy the procurement need. b. Try to move decision makers into straight rebuy. c. Both: Make every effort to understand and satisfy the procurement need and try to move decision makers into straight rebuy. d. None of the answer choices.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. In a modified rebuy situation, the ―out‖ supplier should do which of the following? a. Try to move decisions makers into straight rebuy. b. Hold the buying organization in modified rebuy status long enough to consider new alternatives. c. Both try to move decisions makers into straight rebuy and hold the buying organization in modified rebuy status long enough to consider new alternatives. d. Remove performance guarantees for new alternatives.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the Copyright Cengage Learning. Powered by Cognero.

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appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. A significant increase in the price of gasoline that leads to a decrease in the purchases of new automobiles is an example of the impact of which environmental force? a. Economic factors b. Political and legal factors c. Technological factors d. Global technological factors ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. Which of the following does not reflect current, ambitious strategic priorities being pursued by many chief procurement officers? a. Becoming business partners, not just buyers. b. Developing fewer and deeper relationships with strategic suppliers. c. Emphasizing more than just price, including a focus on business outcomes, total cost of ownership, and the development of long-term value creation. d. Expanding the number of approved suppliers and partners.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. Individuals actually making the buying decision, whether or not they have the formal authority to do so, are performing the role of: a. a user. b. a gatekeeper. c. an influencer. d. a decider.

ANSWER: d POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. Individuals affecting the purchasing decision by supplying information for the evaluation of alternatives or by setting buying specifications is performing the role of: a. a gatekeeper. b. a user. c. an influencer. d. a decider.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. For a salesperson trying to determine the impact of group forces on the organizational buying process, which of the following questions would not apply? a. Which organizational members take part in the buying process? b. What is each member’s relative influence in the decision? c. What criteria are important to each member in evaluating prospective suppliers? d. Which competitors are the industry leaders in state of the art technology?

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. A __________ consists of individuals who participate in the purchasing decision and share the goals and risks arising from the decision. a. buying center b. sales force c. target market d. strategic task force Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. Which of the following statements about buying centers is an important insight to marketers? a. The composition can change from one buying situation to another. b. Only the key influential is important to the buying process at different times. c. Buying center composition are constant from firm to firm. d. The centralized or decentralized role of procurement in the organization.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. The following represent clues or techniques for identifying powerful buying center members, except: a. isolating the personal stakeholders. b. following the information flows. c. identifying the experts. d. understanding the competitors in the industry.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Selective __________ is the tendency to accept communication messages consistent with existing attitudes and beliefs. a. exposure b. attention c. perception d. retention Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. As the risk associated with an organizational purchase decision increases, which of the following occur? a. The buying center becomes smaller. b. The information search is active and a wide variety of information sources are consulted. c. Buying center participants invest greater effort. d. Both the information search is an active and a wide variety of information sources are consulted and buying center participants invest greater effort occur.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. Which of the following statements are true of reverse auctions? a. They are most appropriate for installations and capital investments. b. They involve one buyer who invites a bid from a single source ―in‖ supplier. c. They are most appropriate for commodity-type items. d. They are not useful in e-procurement situations.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. The Total Cost of Ownership (TCO): a. includes all production costs associated with the product and its delivery. b. is used by buyers to determine the price range of a purchase. c. considers the full range of costs associated with the purchase and use of a product or service over its complete Copyright Cengage Learning. Powered by Cognero.

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life cycle. d. is an accounting concept that buyers use to compare the value of competing offerings.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. Customer touchpoint critical steps include: a. inspiration. b. perception. c. sharing. d. both inspiration and sharing.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. Important to an individual’s cognitive structure are the processes of selective exposure __________. a. attention, perception, retention b. perception, recall, unaided-recall c. retention, perception, communication d. attention, motivation, inspiration ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 69. What type of buying forces involve job function, past experience, and buying motives of individual decision participants: Copyright Cengage Learning. Powered by Cognero.

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a. habit b. emotional c. individual d. complex ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. Collectively, uncertainty about the outcome of a decision and the magnitude of consequences from making the wrong choice comprise which of the following: a. Perceived risk b. Individual risk c. Group risk d. Informative risk ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. Key influencers are frequently located outside of the __________ department. a. finance b. marketing c. purchasing d. sales ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 72. The first stage of the Organizational Buying Process involves: Copyright Cengage Learning. Powered by Cognero.

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ANSWER: problem recognition POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 73. Alternative proposals are evaluated by a purchasing manager and a number of members of the production department in which stage of the Organizational Buying Process?

ANSWER: Acquisition and analysis of proposals POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 74. Mary Bronson recently completed the sales training program at Dow Chemical and has spent the past few months in San Diego, her assigned territory. Today she plans to call on two accounts and then complete a sales forecast for the next quarter.

The first account is a small, high-tech firm that potentially could use a Dow product directly in a production process. This production process is new and the purchasing manager indicated that several substitute products will likely receive consideration. What strategy should Mary follow in dealing with this customer?

The second account has been buying their chemical products from a different company for the past three years. Of course, Mary would like them to change to Dow but the purchasing manager at this firm seems preoccupied with other matters.

What strategy should Mary follow here? She wonders if it's even worth stopping by because she could spend the time talking to an existing customer.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the decision journey that organizational buyers follow in making purchase decisions and the resulting strategy implications for the business marketer.

Also, the student should consider the types of buying situations that business customers confront and the appropriate strategy response for each.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 75. Using an illustration of your choice, describe the factors that might move a purchasing manager to shift from a straight rebuy to a modified rebuy. Next, describe the steps that should be taken by both the ―in‖ supplier and ―out‖ supplier as a modified rebuy situation develops.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the decision journey that organizational buyers follow in making purchase decisions and the resulting strategy implications for the business marketer.

Also, the student should consider the types of buying situations that business customers confront and the appropriate strategy response for each.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-01 - Explain the decision journey that organizational buyers follow in making purchase decision and the resulting strategy implications for the business marketer.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 76. To remain competitive, Johnston Equipment has decided to adopt more sophisticated manufacturing technology. The eight members of the firm who have been actively involved in defining specifications and in evaluating suppliers are evenly split over ―which way to go.‖ Four members are strong advocates for Supplier A; four are committed to Supplier B. Describe the factors that motivate individual decision makers during the organizational buying process and explain why product perceptions and evaluation criteria often differ among organizational decision makers.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the individual, group, organizational, and environmental variables that influence organizational buying decisions. Also, the student should consider a model of organizational buying behavior that integrates these important influences and how a knowledge of organizational buying characteristics enables the marketer to make more informed decisions about product design, pricing, and promotion strategies.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 77. Boeing, AT&T, and 3M are among the corporations that have adopted centralized procurement. Other large Copyright Cengage Learning. Powered by Cognero.

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corporations may find that a decentralized procurement structure constitutes a better fit for their operations. First, which factors are conducive to the development of a centralized procurement function? Second, what adjustments must be made in business marketing strategy to reach the centralized purchasing unit?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the model of organizational buying behavior that integrates individual, group, organizational, and environmental variables.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 78. Texas Instruments has a major manufacturing plant that falls within your new sales territory. On your initial visit to this plant, you learn from a receptionist that the purchasing department is in the very preliminary stages of making a major purchase of the type of production equipment that you sell. First, how would you predict the likely composition of the buying center for this particular purchase? Second, what questions could you ask to determine the relative influence that different organizational members might exert on the buying decision?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to how a knowledge of organizational buying characteristics enables the marketer to make more informed decisions about product design, pricing, and promotion strategies.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-03 - Identify the types of buying situations that business customers confront and the appropriate strategy response for each.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 79. Members of the buying center assume different roles throughout the procurement or organizational buying process.

Discuss the nature of the five roles that a buying center member may assume. Provide an example of each role in the organizational buying context.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to how a knowledge of organizational buying characteristics enables the marketer to make more informed decisions about product design, pricing, and promotion strategies.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-06 - Recognize how group forces influence the organizational buying process.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 80. There are four categories of forces that influence organizational buying behavior. Please identify and briefly describe the four categories of forces. Assume that you are a salesperson in any industry you choose, provide one specific example in each category of how these forces affect organizational buying behavior in the industry you have chosen.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the individual, group, organizational, and environmental variables that influence organizational buying decisions.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-04 - Recognize the environmental forces that influence organizational buying decisions.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 81. What are the two components that determine perceived risk in purchase decisions? Please describe some of the characteristics of the buying center and decision-making process when perceived risk is high. What actions should a salesperson take when selling to an organization when perceived risk is high?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to how a knowledge of organizational buying characteristics enables the marketer to make more informed decisions about product design, pricing, and promotion strategies and the types of buying situations that business customers confront and the appropriate strategy response for each.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 02-07 - Identify the individual forces that influence the organizational buying process.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. Transactional exchange involves very close personal, informational, and operational connections. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Simple transactions provide the central focus in business marketing. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. Buying firms prefer a transactional relationship when there are few alternatives and the complexity of purchase is high. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Demonstrating superior skills in managing relationships with key customers and alliance partners provides firms with a collaborative advantage. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. Buyer–seller relationships that arise for important purchases are the ones that are more likely to involve operational linkages and high levels of information exchange. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. When supply needs are complex, the buying firm is less likely to opt for a close relationship with a supplier. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. Operational linkages and information-sharing mechanisms are common features of collaborative relationships. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

8. For collaborative customers, the salesperson not only works with the purchasing staff, but also with a wide array of managers throughout the organization. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. Relationship commitment exists when one party has confidence in a partner’s reliability and integrity. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Transactional exchange centers on the timely delivery of basic products for highly competitive market prices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. The cost of serving a long-standing customer is often more than the cost of acquiring a new customer.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. Relationship marketing activities help develop and implement strong relational bonds with customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. Collaborative exchange features very close information, social, and operational linkages as well as mutual commitments made in expectation of long-run benefits. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. Relationship commitment involves a partner’s belief than an ongoing relationship is so important that it deserves maximum efforts to maintain it. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. Total cost of ownership illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Activity-based costing provides a solid foundation for measuring and managing the profitability of individual customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. All customers hold similar amounts of growth potential. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Having a relationship orientation is critical to developing a customer-relating capability. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. The contribution of a firm’s customer-relating capability to the firm’s position of advantage depends on the degree to which the market offers an attractive opportunity. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. The whale curve of cumulative probability demonstrates that the most profitable 20 percent of customers generate between 150 and 300 percent of total profits. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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21. Transaction exchange refers to foreign exchange payments involving international transactions. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. Incremental-based pricing or menu pricing lowers the price for each service that is unbundled. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Marketing managers take actions to transform unprofitable relationships into profitable ones through process improvement. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. In regard to relationship management, social programs such as meals and sporting event engagements are not likely to strengthen relational ties. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-05 - Recognize the critical drivers of relationship marketing success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. Operational connections can be useful in collaborative exchange. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. Transactional exchanges feature: a. strategically significant purchases. b. value-based pricing. c. operational linkages. d. competitive market prices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. On-going transactions in the business market where the customer and the supplier focus only on the timely exchange of standard products at competitive prices could be described as: a. transactional exchanges. b. relationship orientation. c. collaborative exchanges. d. a strategic alliances.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. There is a gravitational pull that moves buyers toward the transactional side of the exchange spectrum because: a. relationship trust and commitment increases. b. customer requirements and expectations require supplier-customer collaboration. c. customers can freely explore new options in real time on the Internet. d. there are multiple interfirm connections.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. Which of the following reflect(s) the degree to which the systems, procedures, and routines of the buying and selling firms have been connected to facilitate operations? a. Relationship connectors b. Information exchange c. Cooperative norms d. Operational linkages ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. Buying firms prefer a transactional relationship when: a. the complexity of the purchase is high.

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b. there is a competitive supply market featuring many alternatives. c. the supply market is stable. d. there is both a competitive supply market featuring many alternatives and the supply market is stable.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. Buying firms prefer a more collaborative relationship when: a. the purchase is deemed strategically important to the buying organization. b. there are many alternatives and competitive market prices. c. purchasing supplies. d. the TCO is greater than ABC. ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. Transactional relationships: a. include purchases deemed strategically important to the buying organization. b. involve extended problem solving and relationship breadth. c. are more likely to involve e-procurement. d. include a higher, on average TCO. ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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33. Collaborative relationships: a. are emphasized by buying firms when the purchase is deemed important to the organization. b. occur when a competitive supply market features many alternatives. c. occur when the purchase decision is not complex. d. occur when the supply market is stable.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. Which of the following statements about buyer–seller relationships is (are) true? a. Customers prefer a transactional orientation when there are few alternative offerings from suppliers. b. Customers emphasize a collaborative orientation when the purchase decision is not complex. c. Collaborative relationships are more likely to involve operational linkages and high levels of information exchange. d. Transactional exchanges are the most profitable.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. Which of the following statements about transactional relationships is (are) true? a. Customers emphasize a transactional orientation when the purchase is viewed as less important to the organization. b. Customers prefer a transactional relationship when the market is dynamic (for example, rapidly changing technology). c. Transactional relationships are more likely to involve operational linkages. d. Customers emphasize a transactional relationship when the purchase is viewed as critical to the organization.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– Copyright Cengage Learning. Powered by Cognero.

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seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. Which of the following statements about collaborative relationships is (are) true? a. Customers prefer a collaborative relationship when there is a competitive supply environment featuring many alternatives. b. Collaborative relationships are less likely to involve operational linkages between the buying and selling firms. c. Buyers prefer collaborative relationships when the purchase decision is not complex. d. Customers emphasize a collaborative relationship when the purchase is viewed as critical to the organization.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. For collaborative customers, the business marketer should engage in all of the following, except: a. invest resources to build operational linkages and information-sharing mechanisms for the relationship. b. directly assist customers with planning and strategy development. c. work with a wide array of managers on strategy and coordination issues. d. centering primary attention on the purchasing staff.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. For transactional customers, the business marketer should: a. see that operational linkages are designed into the relationship to keep product and service offerings aligned with customer needs. b. directly assist the customer with planning and strategy issues. c. focus primary attention on the purchasing staff. d. directly assist customers with planning and strategy development.

ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. Rather than adopting the approach of ―one design fits all,‖ the astute marketer matches the strategy to the product and market conditions that surround a particular relationship. Which of the following statements is false? a. Research argues t unwise for marketers to make specialized investments in transactional relationships. b. For transactional customers, the salesperson should center primary attention on the purchasing staff. c. Transactional customers display less loyalty to a particular supplier and can easily switch part or all of their purchases from one vendor to another. d. all of the answer choices ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. Business marketing relationships vary in terms of their closeness or degree of collaboration. Transactions that are almost, if not entirely, void of a close, collaborative relationship: a. do not involve the exchange of money. b. involve long-term, contractual commitments. c. are one-time exchanges of value between two parties with no prior or subsequent interaction. d. intend to move each partner toward the attainment of some long-term strategic goal.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. The belief by a partner that an ongoing relationship is so important that it deserves maximum effort to maintain it is referred to as: Copyright Cengage Learning. Powered by Cognero.

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a. trust. b. solidarity. c. relationship commitment. d. a strategic alliance.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. Which of the following exists when one party has confidence in a partner's reliability and integrity? a. Trust b. Solidarity c. Relationship commitment d. A strategic alliance ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. The open exchange of information is a characteristic of __________ relationships. a. close b. distant c. transactional d. financial ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. Value can be defined as the __________ benefits received by a customer firm in exchange for the price paid for a Copyright Cengage Learning. Powered by Cognero.

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product offering a. economic b. technical c. social d. all of the answer choices ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. Using the continuum of working relationships, the industry bandwidth refers to: a. the range of relationship strategies (from transactional to collaborative) that are pursued by competing firms. b. the number of competitors in the particular industry. c. always-a-share customers. d. the lost-for-good customer.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Business marketers track customer loyalty and retention because: a. the cost of acquiring new customers is often far less than long-standing customers. b. all satisfied customers will remain loyal. c. the firm can identify opportunities for expanding the current relationship. d. the cost of serving established customers usually increases.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

47. 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: a. a collaborative advantage. b. an equal advantage. c. an arm’s length transaction. d. a transactional exchange.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. __________ centers on all activities directed toward establishing, developing, and maintaining successful exchanges with customers and other constituents. a. Relationship marketing b. A strategic alliance c. Transactional exchange d. Buying centers ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. Which of the following are reasons for business marketers to employ relationship marketing activities? a. Loyal customers tend to be more profitable than price sensitive customers. b. Having strong relationships with customers can be hard for competitors to understand or duplicate. c. Loyal customers tend to be more profitable than price sensitive customers and having strong relationships with customers can be hard for competitors to understand or duplicate are both true statements. d. Loyal customers are likely to consider competitors prices in negotiations.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Which of the following involves a partner’s belief that an ongoing relationship is so important that it deserves maximum efforts to maintain it. a. Trust b. Relationship marketing c. Relationship commitment d. A strategic alliance ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. When organizational buyers consider changes from one selling firm to another, what are the two main categories of switching costs they consider? a. Trust and relationship commitment b. Transactional and collaborative relationships c. Investments and risk of exposure d. Operational linkages and relationship connectors ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. Which exchange features very close information, social, and operational linkages as well as mutual commitments made in expectation of long-run benefits? a. Transactional exchange b. Competitive exchange c. Value-added exchange d. Collaborative exchange ANSWER: d POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. __________ occur in between the two extremes on the relationship continuum, where the focus of the selling firm shifts from attracting customers to keeping customers. a. Transactional exchanges b. Competitive exchanges c. Collaborative exchanges d. Value-added exchanges ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. Which of the following is not the goal of customer relationship management (CRM)? a. A continuing dialogue with customers b. Personalized treatment of the most valuable customers c. Achieving customer retention d. Crafting a ―one design fits all‖ efficient value proposition ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. A(n) __________ represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization. a. industry bandwidth b. value proposition c. marketing plan Copyright Cengage Learning. Powered by Cognero.

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d. customer relationship management program ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. Which of the following represents the customer’s desire to engage in strong relationships with a current or potential supplier? a. Relationship composition b. Relationship efficacy c. Relationship marketing d. Relationship orientation ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. When business marketers are assessing which of their current customers represent the best opportunities for company growth, which of the following factors should not be measured? a. The cost to serve the customer b. Projected profit margins c. The current share of the wallet the firm has attained d. Availability of alternatives ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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58. What activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources? a. Customer profitability b. Total cost of ownership c. Activity-based costing d. Margin analysis ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. The relationship marketing program that is designed to increase productivity and/or efficiency for customers through targeted investments that customer would not likely make themselves. a. Targeted RM programs b. Social RM programs c. Financial RM programs d. Structural RM programs ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. From the customer’s perspective, relationship quality centers on: a. the sensitivity of the salesperson in understanding how business conditions affect the industry within which the buying firm operates. b. the ability of the customer to understand the selection criteria of each member of its buying center. c. trust in the salesperson. d. both trust in the salesperson and satisfaction with the salesperson.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-05 - Recognize the critical drivers of relationship marketing success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

61. What is composed of at least two dimensions: (1) trust, and (2) commitment? a. Role definition b. Relational adaptiveness c. Relationship quality d. Collaborative exchange ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. Customers in the quadrant that reflects high net margin realized and low cost to -serve would consider what type of customer? a. agressive b. total cost c. advantage d. passive ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. The ability to form effective and rewarding partnerships with other firms for mutual benefit is: a. customer advantage b. collaborative advantage c. competitive advantage d. cost advantage ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

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NATIONAL STANDARDS: United States - AACSB Reflective Thinking - AACSB Group Dynamics United States - CB&E Model Marketing Plan - CB&E Model Marketing Plan United States - R&D Knowledge of general bus - R&D Knowledge of general business functions STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. When the focus of the selling firm shifts from attracting customers to keeping customers, these exchanges are best described as: ANSWER: value-added exchanges POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-01 - Recognize the strategic importance of relationship marketing.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. In a collaborative exchange, the availability of alternatives would best be described as: ANSWER: few alternatives POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. Once a firm implements an Activity-Based Costing approach, and plots cumulative profitability against customers, a striking pattern emerges that is known as: ANSWER: the Whale Curve POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. The process of creating value across a firm’s customer relationships from transaction to collaborative is called: Copyright Cengage Learning. Powered by Cognero.

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ANSWER: customer portfolio management POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. Value represents a tradeoff in the customer’s mind between: ANSWER: total customer value and total customer cost POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 69. Xerox serves a diverse set of customers in the business market.   

Customer group A demands a wide variety of services in addition to a perfectly functioning copier. These customers value the relationship with Xerox and are willing to pay a premium for product and service quality.

Customer group B wants a quality copier but, most of all, they want a rock bottom price and choose suppliers on that basis.

Customer group C demands a quality product and extensive service support but wants all of this for a ―rock bottom‖ price. These customers will freely switch from one supplier to the next. As competition intensifies for Xerox, more customers are moving into this group each month.

First, describe how Xerox might develop a portfolio of relationship strategies to meet the needs of such diverse customer groups. Second, some customers in each group are more costly to serve than others. How should such cost differences be reflected in the particular relationship strategies that Xerox follows? Third, what strategies can Xerox follow to increase the switching costs of customers in Group B or Group C? ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the factors that influence the profitability of individual customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

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NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 70. Rather than adopting the approach of ―one design fits all,‖ the astute marketer matches the strategy to the product and market conditions that surround a particular account. Describe the product and market conditions that support a collaborative relationship? a transactional relationship?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the patterns of buyer–seller relationships in the business market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 71. To optimize the purchasing strategy, buying firms across industries are beginning to segment the supply base: buyers seek a close relationship for strategic purchases and employ a more distant arm’s-length approach in procuring nonstrategic items. Describe the resulting implications for firms that are evaluating potential customers to target with relationship marketing strategies.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the patterns of buyer–seller relationships in the business market and also consider a procedure for designing effective customer relationship management programs and the critical determinants of relationship marketing effectiveness.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-02 - Contrast transactional exchange and collaborative exchanges when managing buyer– seller relationships.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 72. Some customers place a high value on supporting services (for example, technical advice and training) and are willing to pay a premium price for this support. Other customers do not value service support and are extremely price sensitive in making product selection decisions. Describe how a business marketer might profitably serve each of these customer segments.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a procedure for designing effective customer Copyright Cengage Learning. Powered by Cognero.

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relationship management programs and consider the patterns of buyer–seller relationships in the business market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-04 - Explain a procedure for designing effective customer relationship management programs.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 73. Gartner Group, a research firm for information technology users, reports that 55 percent of all customer relationship management software projects fail to produce results. Worse yet, one in every five companies report that their CRM initiatives not only had failed to deliver profitable growth but also had damaged long-standing customer relationships.

Experts suggest that these problems tend to occur when executives mistake CRM technology for a Customer Relationship Management strategy. First, define customer relationship management (the cross-functional process) and describe how CRM technology (the software) allows a firm to provide customized treatment of key customers. Second, describe the CRM Priorities of a customer relationship management strategy and the way in which CRM technology can help each priority.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a procedure for designing effective customer relationship management programs.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-05 - Recognize the critical drivers of relationship marketing success.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 74. As software manufacturers and consulting organizations diffuse best practices, and the relevant CRM software becomes widely available and economical to use, all competitors will be equally equipped. However, when compared to rivals, some firms will be rewarded by customers with higher rates of customer loyalty and lower rates of defection while others will continue to stumble. In the end, to excel at customer relationship management, a firm requires a customerrelating capability. Describe the central elements of a customer-relating capability and how it can provide a firm with a strong advantage over competitors.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a procedure for designing effective customer relationship management programs.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-05 - Recognize the critical drivers of relationship marketing success.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 75. Large firms tend to make up the majority of the most profitable customers AND of the least profitable customers.

What are some of the characteristics that define both high-cost-to-serve and low-cost-to-serve customers? What can business marketers do to manage high and low cost-to-serve customers?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the factors that influence the profitability of individual customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-03 - Describe the factors that influence the profitability of individual customers.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 76. To strengthen relational ties with customer, three types of relationship marketing programs are employed. Identify each type of RM program and how each lead to enhanced seller performance.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the critical determinants of relationship marketing effectiveness.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 03-05 - Recognize the critical drivers of relationship marketing success.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. The marketing strategist who analyzes the aggregate market and identifies neglected or inadequately served groups of buyers (segments) is ideally prepared for a market assault. Specific marketing strategy adjustments can be made to fit the unique needs of each target segment. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. The criteria for measuring the desirability of the potential market segments are: measurability, accessibility, responsiveness, and substantiality. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. Examples of possible micro bases of business market segmentation include size, geographical location, and usage rate of buying organizations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. If the business marketer can identify meaningful and profitable market segments at the macro level, the segmentation process is complete. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

5. Business market segmentation involves categorizing actual or potential buying organizations into mutually exclusive clusters. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. Compared to centralized buyers, decentralized purchasing units emphasize short-term cost efficiency. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. Industrial firms, much like their consumer goods counterparts, consider market characteristics and buying situation in order to distinguish market segments. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. Value-in-use constitutes a microlevel base of segmentation. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. The North American Industrial Classification System (NAICS) is an especially valuable tool to group business firms that use similar production processes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. There are three types of segmentation bases marketers can draw upon. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. If marketing managers understand the needs and requirements of a few firms within a NAICS classification category, they can project requirements for other firms that share that category. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. Buying organizations can be segmented based on the stages of the procurement process, such as new-task or straight rebuy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. By directing its resources to all of its customers evenly, the business marketer is less vulnerable to focused competitors that may seek to ―cherry pick‖ the firm’s most valuable customers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

15. If the requirements of segmentation are met, it should provide the business marketer with valuable guidelines for allocating marketing resources. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. In order to use macrolevel bases of segmentation, the business marketer must move beyond secondary sources of information by soliciting input from the sales force or by conducting a special market segmentation study. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. The personal characteristics of decision-makers in buying centers, such as their decision style and confidence, are examples of macrolevel bases of segmentation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Customers that actively seek business marketing firms that can help them create new value to gain a competitive edge in their markets can be segmented using value-based strategies. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. A well-defined segmentation plan will fail without careful attention to implementing the plan. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. The Delphi method constitutes a highly sophisticated quantitative approach to sales forecasting. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. AI-powered sales forecasting tools help uncover patterns in data and provide insights. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. The cycle component in a time series indicates the long-term general movement in the data in one direction. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. The fact that sales and some causal variables are correlated implies that the causal variable ―caused‖ sales. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. Time series methods are well suited to short-range forecasting because the assumption that the future will be like the past is more reasonable over the short run than over the long run. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. Qualitative sales forecasting techniques provide a systematic analysis of cause-and-effect relationships.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. Regression models are useful to industrial firms projecting final consumer demand for items of which their products become a part. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. Recent research on forecasting techniques indicates that improvements in forecasting accuracy can be achieved by combining the results of several forecasting methods. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. The primary advantage of the Executive Judgement method is that systematically analyzes cause-and-effect relationships. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. The sales force composite approach to forecasting is a quantitative forecasting method because it uses past sales data to predict future sales potential. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. Because the Delphi technique is often used for new products or when a product concept is unique, it is only applied to short-range forecasting. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. Regression methods of forecasting require considerable historical data to be valid and reliable. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

32. In time series analysis, the seasonal component represents regular, recurring movements within the year. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. Micro segmentation focuses within macro segments. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. In segmenting, customers may be categorized into profitability tiers based on current and/or future profitability. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. Estimating demand within market segments is of no value to marketing management. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. Concerning segmentation criteria, __________ refers to the degree to which information on the particular buyer characteristic exists or can be obtained. a. measurability b. accessibility c. substantiality d. responsiveness ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. Which of the following statements concerning business market segmentation is (are) true? a. The decision to enter a particular market segment carries with it significant long-term resource commitments for the industrial firm. b. In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior. c. Segmentation decisions can be reversed more easily in the business market than in the consumer market. d. Both the decision to enter a particular market segment carries with it significant long-term resource commitments for the industrial firm and in evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. Market segmentation is: a. more useful to consumer goods marketers than to business marketers.

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b. of little value to business marketers that concentrate on the governmental and institutional sectors of the organizational market. c. difficult to apply in the business market because groups, not individuals, make many purchasing decisions. d. a useful tool for both business and consumer goods marketers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. Which of the following statements concerning business market segmentation is(are) false? a. In selecting a market segment, the business marketer is also choosing a competitive environment. b. The cost of research increases if a microlevel of segmentation is required. c. Compared to their consumer goods counterparts, business marketers can more readily change segmentation strategies, shifting attention from one segment to another. d. Both in selecting a market segment, the business marketer is also choosing a competitive environment and compared to their consumer goods counterparts, business marketers can more readily change segmentation strategies, shifting attention from one segment to another.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. The business market can be segmented on several bases, broadly classified into two major categories: a. economic and demographic. b. macro and micro. c. top-down and bottom-up. d. concentration and coverage.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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41. The business market can be segmented on several bases. Macro bases of segmentation center on: a. characteristics of the buying situation. b. the most important criteria to each buying center member. c. the composition of the buying center membership. d. personal characteristics of procurement personnel.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. Bases of business or organizational market segmentation that center on the characteristics of the buying organization and the buying situation are broadly categorized as: a. macro segmentation. b. micro segmentation. c. economic bases. d. bottom-up bases.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. Bases of business or organizational market segmentation that focus on the characteristics of decision-making units are broadly classified as: a. macro segmentation. b. micro segmentation. c. economic bases. d. demographic bases.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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44. The micro segmentation of business markets center on characteristics of: a. buying organizations (e.g., the size). b. the product application (e.g., end market served). c. decision-making units (e.g., decision style). d. the purchasing situation (e.g., types of buying situation).

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. All of the following are potential macro bases of business market segmentation except: a. purchasing strategy. b. usage rate. c. size. d. product application.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. All of the following are potential micro bases of business market segmentation except: a. organizational innovativeness. b. importance of purchase. c. personal characteristics. d. type of buying situation.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

47. Large buying organizations may possess unique requirements and respond to different marketing stimuli than small firms. Research suggests that the influence of presidents, vice presidents, and owners __________ with an increase in corporate size. a. remains constant b. declines c. increases d. fluctuates ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. Park Rapids Electronics divides their market on the basis of NAICS category, end market served, and type of buying situation. They have also developed a special strategy for large, centralized buyers. They are emphasizing: a. macro bases of segmentation. b. micro bases of segmentation. c. a blend of macro and micro bases of segmentation. d. psychographic and economic bases of segmentation.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. Chandler Machine Tool has been successful in segmenting their market using the following bases: (1) NAICS category and (2) key purchasing criteria emphasized by particular groups of buyers within each NAICS industry. They are using: a. macro bases of segmentation. b. micro bases of segmentation. c. a blend of macro and micro bases of segmentation. d. psychographic and economic bases of segmentation.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Lansing Motor Works produces a line of precision motors. Based on feedback from the sales force, management has learned that one of their new motors is especially well-suited to high-speed packaging systems. The new motor requires less maintenance and has a longer useful life than competing offerings. Lansing Motor Works is now concentrating on this segment. This provides an illustration of segmentation on the basis of: a. usage rate. b. purchasing strategy. c. size of firm. d. value-in-use.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. For the medical x-ray market, Du Pont initiated a formal positioning study among hospital administrators, radiology department administrators, and technical managers in order to identify the firm's relative standing and the specific needs (criteria) for each level of buying influence within each potential segment. This provides an illustration of segmentation on the basis of: a. the importance of purchase. b. attitude toward vendors. c. value-in-use. d. key criteria.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. A segmentation study found that purchasers of IBM equipment are more concerned about software support and breadth of product line and they are less concerned about absolute price and price flexibility (i.e., willingness of suppliers to negotiate price). This provides an illustration of segmentation on the basis of: a. the importance of purchase. b. key criteria.

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c. the structure of the decision-making unit. d. attitude toward suppliers.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. When evaluating the desirability of a marketing segment __________ is the degree to which segments respond differently to different marketing mix elements, such as pricing or product features. a. measurability b. accessibility c. substantiality d. responsiveness ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. Business market segmentation at the __________ level requires a higher level of market knowledge and, therefore, a greater investment in research. a. geographic b. macro c. micro d. demographic ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. The Thompson Spring Company has developed a separate marketing strategy for each of the industries that uses its products. These industries include makers of machine tools, bicycles, surgical devices, telephones, and missile systems.

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This provides an illustration of segmentation on the basis of: a. usage rate. b. product application. c. type of buying situation. d. the structure of procurement.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. The criteria marketers use to evaluate the degree to which the firm can effectively focus its marketing efforts on chosen segments is: a. accessibility. b. measurability. c. sustainability. d. compatibility.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. Which of the following are means by which a marketer can implement a microlevel segmentation strategy? a. Importance of the purchase only. Field offices, headquarters, and manufacturing locations b. Number of employees c. Importance of the purchase and organizational innovativeness d. North American Industrial Classification System (NAICS) ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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58. A well-developed segmentation strategy will fail without careful attention to implementation. A successful implementation of a segmentation strategy requires attention to all of the following, except: a. how should the sales force be organized. b. what adaptations will be needed to serve selected international market segments. c. which media outlets can be used to target advertising at a new segment. d. the role of demand estimation.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. Which of the following is a benefit of effective segmentation? a. The mere attempt to segment business market forces the marketer to become more attuned to the unique needs of customer segments. b. It identifies the high cost-to-serve customers. c. It determines the method of forecasting demand. d. It eliminates the need for micro-level research expenses.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. The classification of customers on a continuum range from nonuser to heavy user is an example of: a. macro level segmentation. b. micro level segmentation. c. product application segmentation. d. ―value in use‖ segmentation.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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61. Which of the following is not one of the criteria for assessing the desirability of a potential market segment? a. Measurability b. Accessibility c. Accountability d. Substantiality ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. A __________ is a group of present or potential customers with common characteristics which are relevant in explaining and predicting their response to a supplier’s marketing stimuli. a. market segment b. business population c. prospect group d. market opportunity ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Concerning segmentation criteria, __________ refers to the degree to which the segments are large or profitable enough to be worth considering for separate marketing cultivation. a. measurability b. accessibility c. substantiality d. compatibility ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

64. When a business marketer determines whether a buyer is employing a new task, modified rebuy or straight rebuy decision-making process, what macro level segmentation variable is being used? a. Type of buying situation b. Geographical location c. Structure of procurement d. End market being served ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. When a business marketer decides to target only those firms with centralized buying centers, what macro level segmentation variable is being used? a. Geographical location b. Structure of procurement c. Usage rate d. End market served ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. Which of the following is NOT a personal characteristic used in microlevel segmentation? a. Demographics b. Risk c. Confidence d. Structure of procurement ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

67. Which of the following is not a requirement of the implementation stage of segmentation strategy? a. Adaptations to serve selected international markets. b. A comprehensive on-line strategy to provide continuous support to customers in the segments. c. Organization of the sales force. d. Gathering information on buyer characteristics.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. Qualitative techniques that can be used for forecasting sales include: a. regression analysis. b. time series. c. the Delphi method. d. single series statistical methods.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 69. Advanced Technologies, Inc. faces a forecasting dilemma. They wish to evaluate the level of sales that a new technology might enjoy upon its release. Historical data are limited and of little value since the new product is not welldefined and the product concept is unique. Which forecasting approach would appear to be most appropriate? a. Time series analysis b. Input/output analysis c. The Delphi method d. Regression analysis ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. Which sales forecasting approach is effective when intimate knowledge of customer plans is important? a. Single series statistical methods. b. The Delphi method c. Time series d. Sales force composite ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. The qualitative approach that most closely resembles the executive panel method of sales forecasting is: a. input/output analysis. b. the sales force composite. c. market surveys. d. time series methods.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 72. The sales forecasting approach that utilizes a panel of experts and converts their opinions into an informed consensus by means of highly structured, multi-stage pooling is: a. the Delphi method. b. executive panel method. c. the sales force composite. d. organizational learning.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 73. The industrial chemical industry in England shows a fairly regular rise and fall in demand over four- or five-year periods. This provides an illustration of the __________ component of a time series. a. trend b. cycle c. random d. seasonal ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 74. Albany Products found that the sales of one of their most important products is logically related to new construction expenditures. If the firm can forecast future values of this variable, which forecasting technique would appear to be most appropriate? a. Time series b. Regression c. Delphi method d. Trend extension ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 75. Which forecasting technique uses historical data ordered in time to project the trend and growth rate of sales? a. input/output analysis b. The Delphi method c. Causal techniques d. Time series analysis ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 76. Company sales, reported on a monthly basis for the past four years, is an example of a: a. cycle. b. time series. c. top-down approach. d. trend.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 77. The __________ component of a time series reflects short-term, random movements in the data that do not conform to a pattern which is regularly related to the calendar a. trend b. seasonal c. cycle d. irregular ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 78. The __________ component of a time series reflects intermediate-term, regularly recurring, upswings and downswings of data around the long-term general direction of the data. a. trend b. seasonal c. cycle d. irregular ANSWER: c POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 79. __________ techniques have as their objective the determination of a relationship between sales and one or more variables presumed to be related to sales. a. Time series b. Delphi c. Causal d. Qualitative ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 80. The most crucial limitation(s) associated with causal methods of sales forecasting is (are): a. the problem of determining future values of the independent or causal variables. b. the problem of securing unbiased sales estimates from the sales force. c. that seasonal variations in performance are difficult to precisely estimate. d. both the problem of securing unbiased sales estimates from the sales force and that seasonal variations in performance are difficult to precisely estimate.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 81. The ideal approach to sales forecasting for the business marketer relies on: a. strictly quantitative approaches. b. strictly qualitative approaches. c. a blend of the Delphi method and well-executed market surveys. d. a combination of qualitative and quantitative approaches.

ANSWER: d POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 82. Sales forecast data are used to: a. segment by profitability. b. manage stock levels. c. determine sales commissions. d. reduce the need for customer relationship management software.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 83. Executive judgement methods produce accurate forecasts when: a. forecasts are made infrequently. b. the environment is volatile. c. the linkage between decision, action, and feedback is short. d. long run projections are necessary.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 84. Quantitative forecasting includes the primary methodology called: a. Delphi. b. executive judgment c. regression. d. sales forecast.

ANSWER: c POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 85. Typically, causal models are more reliable for: a. intermediate than long-range forecasts. b. long-range than intermediate forecasts. c. long-range than short-range forecasts. d. short-range than long range forecasts.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 86. Which of the following are true of qualitative approaches to sales forecasting? a. Effectiveness depends on close relationships between customers and suppliers. b. They are more appropriate when large data sets are available. c. It brings users of the forecast into the forecasting process. d. Both effectiveness depends on close relationships between customers and suppliers and it brings users of the forecast into the forecasting process.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 87. The Delphi technique is particularly well suited to: a. new product forecasts. b. estimation of future events for which historical data sets are available. c. situations that are best suited to quantitative analysis. d. identify causal variables and seasonal cycles.

ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 88. In time series analysis, the __________ component indicates the long-term general direction of the data. a. trend b. cycle c. seasonal d. irregular ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 89. In time series analysis, the __________ component represents regular, recurring movements within the year. a. trend b. cycle c. seasonal d. irregular ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 90. Which is NOT a requirement in identifying a market segment? a. Measurability b. Accessibility c. Substitutionary d. Responsiveness ANSWER: c POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 91. Which might be a type of customer that should be considered as a possible valuable segment? a. Undershot customers b. Non-accessible customers c. High cost-to-serve customers d. Whale curve customers ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 92. Buyers that are knowledgeable customers who valued partnership and do not push for price or service concessions are called: a. Undershot customers b. Non-accessible customers c. High cost-to-serve customers d. Relationship customers ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 93. Buyers that are large-volume buyers who were very sensitive to any changes in price or service. a. Undershot customers b. Non-accessible customers c. Bargain hunters customers d. Whale curve customers ANSWER: c POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 94. Customers who are committed to being the first to the market with new technologies and who seek new-productdevelopment expertise and innovative solutions are called: a. Undershot customers b. Innovation-focused customers c. High cost-to-serve customers d. Whale curve customers ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 95. The forecasting techniques available to the business marketer are broadly categorized as: a. Qualitative, mixed method, and quantitative b. Mixed methods and quantitative c. Qualitative and quantitative d. Mixed method and qualitative ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 96. Once demand is estimated for each segment, the manager can allocate expenditures on the basis of __________ volume. a. projected sales b. sales goals c. previous sales d. potential sales ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 97. Data that is used to distribute inventory in the supply chain, manage stock levels at each link and schedule resources for all the members of a supply chain. a. Final sales b. Sales forecast c. Sales goals d. Sales history ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 98. The __________ method combines and averages top executives’ estimates of future sales and is popular because it is easy to apply and understand. a. Sales history b. Sales forecasts c. Executive judgment d. Qualitative ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 99. A unique approach to forecasting demand in that it involves combined efforts of many functions within the firm as well as with supply chain partners is called: a. Collaborative Planning and Replenishment b. Replenishment and Forecasting c. Collaborative Planning and Forecasting Copyright Cengage Learning. Powered by Cognero.

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d. Planning and Replenishment ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 100. An emerging high-technology firm develops and sells a line of electronic software products and services that enable businesses to engage in business-to-business communications and transactions with suppliers and customers. The firm’s products and services are used by retailers such as Wal-Mart, manufacturers like Pillsbury, apparel firms like New Balance Athletic Shoes, and insurance firms and others. The firm needs your assistance in segmenting this vast potential market that includes most types of businesses.

First, suggest possible bases of segmentation that the high-tech firm might use in isolating potential clusters or segments of customers. Next, provide a set of guidelines that the firm might follow in evaluating whether or not a particular base of segmentation provides an appropriate market and strategic fit for the firm.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the potential bases for segmenting the business market and also consider a procedure for evaluating and selecting market segments.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 101. Johnson Technology, a highly successful producer of specialized equipment for the paper industry is contemplating entry into a new industry segment. Beth Walker, the firm’s marketing vice-president, has always felt that Johnson Technology could serve the equipment needs of food processors like General Foods. The same basic technology underlies the equipment in both sectors and Beth feels that Johnson Technology has a meaningful edge over all competitors.

Describe the company, competitive, and market factors that the firm should consider before committing resources to this new industry segment.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a procedure for evaluating and selecting market segments.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 102. Your first task as a product manager at Dow Chemical is to evaluate the market segmentation strategy followed by your predecessor. For the past four years, this manager had been dividing the market on the basis of NAICS codes and developing a separate marketing strategy for each of 5 different NAICS industries. Describe the specific steps that you would follow in evaluating the existing segmentation plan. What factors might prompt you to seriously consider making a change in the existing segmentation approach?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a procedure for evaluating and selecting market segments.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 103. Provide an illustration of a situation where value-in-use segmentation would seem to be especially appropriate.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the potential bases for segmenting the business market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 104. You have just taken over as the new national sales manager for Smucker’s. You have just been presented with a plan from your boss, the Vice-President of Sales, to add new institutional market segments for Smucker’s products—cafeterias in schools and hospitals. After reading the report, you strongly believe that the new segments have been well-defined and are extremely viable. What steps can you take to ensure that this new segmentation strategy is successfully implemented?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the role of market segmentation in the development of business marketing strategy.

POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-01 - Explain business market segmentation requirements and benefits.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 105. Effective segmentation often begins with the analysis of macrolevel bases of segmentation, and then continues with the identification of microsegments within each potential macrosegment using microlevel bases of segmentation.

However, segmentation may effectively end after considering only macrolevel variables. Provide an illustration of a situation where only macrolevel bases are used to identify market segments and what variables or issues business marketers should use to determine whether macro segmentation alone is enough for effective organizational market segmentation.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the potential bases for segmenting the business market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-02 - Compare the different bases for segmenting business markets.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 106. Compare and contrast the different quantitative sales forecasting techniques that are used by business marketing managers. Be sure to note the strengths and limitations of each technique.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to specific techniques to effectively develop a forecast of demand.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 107. Using a product example and market setting of your choice, describe the underlying logic of forecasting with regression or causal analysis. What are the limitations of the approach?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was Copyright Cengage Learning. Powered by Cognero.

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covered in the segment pertaining to specific techniques to effectively develop a forecast of demand.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 108. Recent research on forecasting techniques indicates that forecasting accuracy can be improved by combining the results of several forecasting methods, leading many to advocate the use of a composite forecasting model that includes both qualitative and quantitative factors. Using a product example and market setting of your choice, demonstrate how the use of a composite forecasting model can lead to more accurate forecasting.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to specific techniques to effectively develop a forecast of demand.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 04-03 - Contrast specific methods of forecasting business demand.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. Functional strategy centers on how a firm will compete in a given industry and will position itself against its competitors. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. All business marketing decisions are affected, directly or indirectly, by other functional areas. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. The composition of the marketing strategy center is neatly prescribed on the organizational chart. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. The composition or functional area representation of the strategy center evolves during the marketing strategy development process, varies from firm to firm, and varies from one strategy situation to another. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. All participants in the business marketing planning process are evaluated on the basis of sales, profits, and market share. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. Corporate strategy is the overall scope and direction of a firm that defines the businesses in which a company competes, preferably in a manner that uses resources to convert distinctive competence into competitive advantage. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. Conflicts frequently emerge during the strategy formulation process because various functional units operate under unique reward systems and reflect unique orientations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. For a strategy to succeed, individuals in a company must understand and share a common definition of a firm’s existing business concept. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

9. The extent to which the business concept is common to competitors on dimensions shared by the customer is a factor than can determine the potential profit of a business concept. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Suppliers and coalitions are part of a firm’s value network. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. The business mission defines where the firm competes. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. In the hierarchy of strategies, the three major levels of strategy are corporate, business-level, and functional.

Copyright Cengage Learning. Powered by Cognero.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. The two most common forces that divide participants during the strategy formulation process are turf issues and different thought-worlds. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. Responsibility charting is an approach that can classify decision-making roles and highlight the multifunctional nature of business marketing decision making. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. The four perspectives used in the balanced scorecard to measure performance are financial, customer, internal business processes, and learning and growth. a. True b. False ANSWER: True POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Providing superior quality that reduces customer costs, and offering innovative product features are two forms of differentiation that can be used by business marketers when developing a value proposition. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. The customer interface element that refers to the channel a business marketing firm uses to reach customers is the fulfillment and support channel. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. The business concept model consists of four major components: customer interface, core strategy, strategic resources, and value network. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. Product/market scope defines where the firm competes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. The three elements involved in setting a core strategy are business mission, product/market scope, and basis for differentiation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. The three principal drivers of organizational learning and growth are human capital, information capital, and financial capital. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

22. The Marketing Strategy Center is involved in multifunctional marketing decisions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Business model components are tied together by bridge elements: configuration, company boundaries, and supplier chain members. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-03 - List specific actions managers can take to achieve marketing excellence in practice.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. The balanced scorecard is a tool used to visualize a firm’s strategy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. In the hierarchy of strategies, __________ strategy defines the businesses in which a company will compete, preferably in a manner that utilizes resources to convert distinctive competence into competitive advantage. a. functional Copyright Cengage Learning. Powered by Cognero.

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b. corporate c. business-level d. product ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. In the hierarchy of strategies, __________ strategy centers on how a firm will compete in a given industry and will position itself against its competitors. a. functional b. corporate c. business-level d. product ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. In the hierarchy of strategies, __________ strategy centers on how resources allocated to various functional areas can be used most effectively and efficiently to support the strategy of a strategic business unit. a. functional b. corporate c. business-level d. product ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. A __________ is a single business or collection of businesses that has a distinct mission, a responsible manager, its Copyright Cengage Learning. Powered by Cognero.

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own competitors, and an independent position in the firm. a. strategic business unit b. market segment c. sub-business center d. divisional organizational scheme ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. The collective action perspective of strategy formulation applies to strategic decisions that cut across functional areas, involve issues related to the organization’s long-term goals, or involve the allocation of resources across business units.

According to the collective action perspective, strategic decision processes: a. are typically centered in a single functional area (e.g., in marketing or in R&D). b. help participants resolve conflicts of self-interest that often divides participants in the strategy formulation process. c. involve negotiation and compromise among partisan participants. d. both help resolve conflicts of self-interest that often divide participants in the strategy formulation process and involve negotiation and compromise among partisan participants.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. Conflict often divides participants in the strategy formulation process. Conflict most often emerges from: a. power dynamics within a single functional area. b. thought-world differences. c. turf issues. d. both turf issues and thought-world differences.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

31. The composition or functional area representation of the marketing strategy center: a. is strictly prescribed by the organizational chart. b. evolves during the strategy development process. c. varies from one strategy situation to another. d. both evolves during the strategy development process and varies from one strategy situation to another.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. Responsibility charting provides a tool for defining decision-making roles. A manager who accepts or vetoes a decision before it is implemented, or chooses from alternatives developed by others, is performing which of the roles? a. responsible b. approve c. consult d. implement ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. Responsibility charting constitutes an approach that can be used to classify decision-making roles and to highlight the multifunctional nature of business marketing decision making. A manager who takes initiative for analyzing a situation, developing alternatives, assuring consultation with others, and who makes initial recommendations is performing which of the following roles? a. responsible b. approve c. consult d. implement ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. In developing strategic plans, managers who represent the various business functions in the firm often hold different views concerning the best strategic course. Why? a. Because different functions are rewarded for different things b. Because negotiation outcomes unfold incrementally c. Because marketing managers build pockets of commitment and trust d. Because strategies are interpreted consistently across functional areas ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. A business concept or model consists of the following major components except: a. core strategy. b. negotiated outcomes c. customer interface. d. value network.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. The overall objectives of the strategy that sets a course of direction and defines a set of performance criteria that will be used to measure progress is called the: a. business mission. b. market scope. c. product scope. d. basis for differentiation.

ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. Which of the following describes where the firm competes? a. The business mission b. The product scope c. The market scope d. Both the product scope and the market scope ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. All of the following are elements that determine how a firm chooses to compete except: a. the business mission. b. the basis for differentiation. c. the product scope. d. the core processes.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. Which of the following is an element of the customer interface? a. Relationship dynamics b. Core processes c. Pricing structure d. Both relationship dynamics and pricing structure Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. All of the following are components of a firm’s value network except: a. suppliers. b. strategic alliance partners. c. Coalitions. d. customers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. Cisco and General Electric demonstrate special skills in forging relationships with suppliers and alliance partners. This is an example of: a. a value network. b. a strategic asset. c. relationship dynamics. d. a market scope.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. Responsibility charting constitutes an approach that can be used to classify decision-making roles and to highlight the multifunctional nature of business marketing decision-making. A manager who is asked to provide substantive input before the decision is approved but does not possess veto power is performing which of the following roles?

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a. Responsible b. Approve c. Consult d. Implement ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. Responsibility charting constitutes an approach that can be used to classify decision-making roles and to highlight the multifunctional nature of business marketing decision-making. A manager who is told of the decision when it is made, but may not have been consulted before the decision was approved is performing which of the following roles? a. Responsible b. Approve c. Consult d. Inform ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. The element of customer interface that refers to the channels a business marketing firm uses to reach customers and the level of service it provides is: a. fulfillment and support. b. relationship dynamics. c. information and insight. d. pricing structure.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

45. The element of customer interface that refers to the knowledge captured from customers and the degree to which this information is used to provide enhanced value to the customer is: a. fulfillment and support. b. information and insight. c. relationship dynamics. d. pricing structure.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Techniques for differentiating products and services include which of the following? a. Superior service or technical assistance b. Superior quality c. Commodity pricing d. Both superior service or technical assistance and superior quality ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. __________ are the set of skills, systems, and technologies a company uses to create uniquely high value for customers. a. Strategic assets b. Core competencies c. Core processes d. Core strategies ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. __________ are the most tangible requirements for advantage that enable a firm to exercise its capabilities. a. Core competencies b. Strategic assets c. Core processes d. Core strategies ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. __________ are the methodologies and routines companies use to transform competencies, assets, and other inputs in to value for customers. a. Core competencies b. Core strategies c. Core processes d. Value networks ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. The three major levels of strategy include which of the following? a. Corporate strategy, business-level strategy, and functional strategy b. Competitive strategy, business-level strategy, and functional strategy c. Corporate strategy, competitive strategy, and strategic business unit strategy d. Competitive strategy, strategic business unit strategy, and competitive strategy ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. The role of marketing at the corporate level of strategy includes all of the following, except: a. assess market attractiveness. b. coordinate marketing activities to achieve the firm’s objectives. c. formulate the firm’s overall value proposition. d. assess competitive effectiveness.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. The members of the organization involved in the business marketing decision-making process constitute the __________. a. marketing strategy center. b. buying center. c. value network. d. target market.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. Common challenges for marketers using the marketing strategy center to manage across business functions include which of the following? a. The fostering of a shared appreciation of other functional units. b. Minimization of interdepartmental conflict. c. Elimination of interdependencies between functional units. d. Both the fostering of a shared appreciation of other functional units and the minimization of interdepartmental conflict.

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ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. Which of the following represent the three bridge elements that tie together the major components of the business model? a. Customer benefits, configuration, and company boundaries b. Firm benefits, configuration, and functional boundaries c. Customer benefits, configuration, and functional boundaries d. Core strategies, strategic resources, and value networks ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. The __________ provides managers with a comprehensive system for converting a company’s vision and strategy into a tightly connected set of performance measures. a. value network b. balanced scorecard c. customer interface d. financial audit ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. The balanced scorecard uses which of the following perspectives to measure firm performance? a. Financial, learning and growth, and strategy maps b. Customer, internal business processes, and strategy maps Copyright Cengage Learning. Powered by Cognero.

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c. Financial, customer, internal business processes, and learning and growth d. Learning and growth and internal business processes ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. Which of the following is a form of differentiation that can be used by business marketers when developing a value proposition? a. Commodity pricing b. Variable margins c. Product innovation d. Customer retention ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. Which of the following are used in the Customer Perspective of the Balanced Scorecard to measure core customer outcome measures? a. Market share b. Product development c. Process innovation d. Efficiency ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. Internal business processes support which elements of a company’s strategy?

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a. They create and deliver the value proposition for customers. b. They create and support interfirm supply chain teams. c. Both: They create and deliver the value proposition for customers and they create and support interfirm supply chain teams. d. They establish the product scope in which a firm competes.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. The three principal drivers of organizational learning and growth include: a. human capital, information capital, organizational capital. b. information capital, value network capital, organizational capital. c. organizational capital, customer retention capital, information capital. d. human capital, value network capital, customer retention capital.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. A __________ enables an organization to describe and illustrate its objectives, initiatives, targets, the measures used to assess performance, and the linkages that are the foundation for strategic direction. a. value network b. marketing strategy center c. strategy map d. strategic alignment ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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62. The component of the business model that can be converted into a superior? position of advantage does NOT include: a. core strategy. b. strategic resources. c. financial history. d. value network.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Smart, connected product classifications include ________. a. Monitoring only b. Control and autonomy c. Autonomy and monitoring d. monitoring, control, and autonomy.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-03 - List specific actions managers can take to achieve marketing excellence in practice.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. Subcultures exist when one subunit shares different values, beliefs, and goals than another subunit, resulting in different: a. Assumptions b. Thought-worlds c. Autonomy d. Belief systems ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

65. Responsibility charting is an approach that can classify __________ roles and highlight the multifunctional nature of business marketing decision making. a. Decision-making b. Control and autonomy c. Authoritative d. Democratic ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. A set of skills, systems, and technologies a company uses to create uniquely high value for customers is: a. company objectives b. core competencies c. mission statement d. company vision ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. The __________ describes the overall objectives of the strategy. a. business statement b. business vision c. business mission d. business goals ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. A __________ is a tool used for visualizing a firm’s strategy as a chain of cause-and-effect relationships among strategic objectives. a. vision map b. strategy map c. forecast map d. Goals map ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 69. The __________ defines the processes that will transform intangible assets into customer and financial outcomes. a. customer service b. selling process c. value-creating process d. value-add process ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. Growth, sustain, and __________ are three stages of a business that are isolated and linked to appropriate financial objectives. a. harvest b. maturity c. new product development d. start-up ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. For a strategy to succeed, individuals in a company must understand and share a common definition of a firm’s existing business concept. For example, ask any employee at Dell and they will tell you about the ―Dell model‖ that sets them apart from competitors. A critical component of a business model is the core strategy. Describe the key elements that are involved in setting a core strategy.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the components of a business model that can be converted into superior positions of advantage in the business market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 72. Some business models demonstrate more profit potential than others: Southwest Airlines is more profitable than America West Airlines; Dell is more profitable than Gateway; and Intel readily outperforms its rivals. Describe the factors that determine the profit potential of a business concept or model.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the components of a business model that can be converted into superior positions of advantage in the business market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 05-02 - Provide examples of components of a business model that can be converted into superior positions of advantage in the business market.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 73. Angela Craig, a marketing manager at a communications equipment firm, was enthusiastic about the prospects for the new, upgraded model of the Apex tester. The previous two models were quite profitable and a marketing research study clearly identified the improvements that should be embodied in the new model. Key market segments wanted a lighter more compact system and one that could handle a wider range of equipment test functions. Given the strength of the firm’s R&D and manufacturing capabilities and the ―can do‖ attitude that prevailed in the organization, Angela was confident that the model could be designed to incorporate the new upgrades and meet the planned target to release the new Copyright Cengage Learning. Powered by Cognero.

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model in fifteen months. To her surprise, however, R&D and manufacturing vigorously resisted the proposed modification.

In the end, the upgraded model of the Apex tester was released on schedule, embodied the attributes isolated by marketing research, and was a glowing market success. Why do managers who represent different functional areas often see things differently and clash over the appropriate strategic course? What steps can marketing managers like Angela take to minimize cross-functional conflict while serving as a strong advocate for the consumer?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the multifunctional nature of business marketing decision making.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 74. A central challenge for the business marketer during the strategy formulation process is to minimize interdepartmental conflict while fostering shared appreciations of the interdependencies with other functional units. Explain.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the multifunctional nature of business marketing decision making.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 75. The marketing strategy center includes the members of an organization involved in the business marketing decisionmaking process. Using any product and market setting you choose, please illustrate how responsibility charting can be used to classify decision-making roles and highlight the multifunctional nature of business marketing. Be sure to include a discussion of all five roles that participants can play in the decision-making process.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the multifunctional nature of business marketing decision making.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 05-01 - Explain marketing’s strategic role in corporate strategy development.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 76. The balanced scorecard provides managers with a performance measurement system that can be linked to a company’s business marketing strategies. Identify and briefly describe the four perspectives of performance in the balanced scorecard. Next, explain how each perspective can help business marketers with their business strategies.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a valuable framework for detailing the processes and systems that drive strategy success.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 05-04 - Identify the five stages that pertain to building the strategic plan.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. Pressure on companies to assign more prominent attention to Environmental, Social, Governance issues continues to grow. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 2. An industrial firm’s first encounter with an overseas market usually involves the formation of a wholly owned subsidiary in another country. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 3. Exporting involves giving up direct control of the marketing program, which often makes it difficult to coordinate activities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 4. As an entry strategy, licensing requires a major capital investment in a foreign market. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 5. Problems often plague joint ventures and, as a result, many of them fall short of expectations or are disbanded. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 6. A multidomestic strategy seeks competitive advantage with strategic choices that are highly integrated across countries. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 7. Upstream activities in the value chain involve those primary activities that are closely tied to where the buyer is located. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 8. In multidomestic industries, a firm’s competitive position in one country is significantly influenced by its position in other countries. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 9. The purest global strategy concentrates as many activities as possible in one country, serves the world market from this home base, and closely coordinates those activities that must be performed near the buyer. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 10. In high-risk foreign markets, firms can reduce their equity exposure by adopting low-commitment modes of entry such as licensing or contract manufacturing. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 11. Markets of limited size surrounded by trade barriers may be supplied most cost effectively by using the exporting mode of entry. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 12. The home base for a business is the location where strategy is set and where a critical mass of sophisticated production and service activities reside. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

13. ESG touches a broad set of issues that are of interest to a company’s employees and internal stakeholders. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 14. The choice of a particular entry mode will also depend on the size of the market and its growth potential. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 15. Coordination centers on where each activity is performed, including the number of locations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 16. The need for a global strategy is determined by the nature of international competition in a particular industry. a. True b. False ANSWER: True POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 17. For truly global industries, a firm’s position in one country significantly affects its position elsewhere, so a multidomestic strategy is required. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 18. Across industries, customers are emphasizing sustainable purchasing objectives and seeking partners that understand and can deliver sustainable product and service solutions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-02 - Recognize how a strong ESG proposition can drive a firms’ profitability.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 19. A factory in a rapidly developing economy can be built with 70% of the investment level needed in a highly developed economy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-02 - Recognize how a strong ESG proposition can drive a firms’ profitability.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 20. According to BCG Global Advantage Diamond, companies that decisively and intelligently pursue integrated strategies can achieve global leadership. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-02 - Recognize how a strong ESG proposition can drive a firms’ profitability.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 21. Disagreements over how profits are shared and management styles are disadvantages experienced in exporting. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 22. Configuration centers on where each activity is performed, including the number of locations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 23. Multidomestic industries do not need a global strategy because the focus should be on developing a series of distinct domestic strategies.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 24. A firm which experiences interdependence in its operations around the world is most likely to choose a multidomestic strategy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 25. ESG involves the integration of economic, environmental, and societal considerations into business decision-making. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-02 - Recognize how a strong ESG proposition can drive a firms’ profitability.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 26. Lower operating costs leads to a stronger brand. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 06-02 - Recognize how a strong ESG proposition can drive a firms’ profitability.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 27. In contrast to a strategic alliance, a joint venture creates a whole new firm. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 28. An industrial firm’s first encounter with an overseas market usually involves __________ because it involves the least commitment and risk. a. contracting b. licensing c. exporting d. franchising e. a turnkey operation ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 29. Exporting is a viable international entry strategy when the firm: a. wishes to maintain direct control of the marketing program. b. lacks the resources to make a significant commitment to the market. c. wants to form long-term relationships with international customers. d. is not profiting in a current market.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 30. Included among the contractual modes of international market participation are all of these except: a. licensing. b. management contracts. c. exporting. d. contact manufacturing.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 31. As a mode of international market entry, licensing agreements pose the following limitation(s): a. a firm has less control over a license than over its own exporting or manufacturing abroad. b. licensing agreements include a time limit and additional extensions (beyond the first) that may not be readily permitted by a number of foreign governments. c. the licensee may become an important competitor in the future. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 32. __________ involves sourcing a product from a producer located in a foreign country for sale there or in other countries. a. Contract manufacturing b. Exporting c. Franchising d. A joint venture ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 33. This mode of international market participation permits a client to require a complete operational system, together with skills sufficient to allow the unassisted maintenance and operation of the system. Once the package agreement is on line, the system is owned, controlled, and operated by the client. This provides an apt description of: a. licensing. b. a turnkey operation. c. a joint venture. d. contract manufacturing.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 34. In pursuing international entry options, joint ventures often constitute a feasible option because: a. they provide the only path of entry into many foreign markets. b. they may provide for better relationships with local organizations (for example, local authorities) and with customers. c. they may open up market opportunities that neither party to the venture could pursue alone. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 35. Consider this position: If you run a pharmaceutical company with a good product to distribute in Japan but have no sales force to do it, find someone in Japan who also has a good product but no sales force in your country. Why not join forces to maximize contribution to each other’s fixed costs? This describes the logic of: a. a joint venture. b. exporting. c. franchising. d. importing.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 36. Multinational firms have traditionally managed operations outside their home country with an approach that permits individual subsidiaries to compete independently in different country markets. Here each subsidiary resembles a strategic business unit that is expected to contribute earnings and growth to the organization. This describes: a. a multidomestic strategy. b. a differentiated strategy. c. a global strategy. d. an export-based strategy.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 37. When a firm seeks competitive advantage with strategic choices that are highly integrated across countries (for example, a standardized core product that requires minimal local adaptation across country-markets), this describes: a. a multidomestic strategy. b. a differentiated strategy. c. a global strategy. d. an export-based strategy.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 38. __________ is one in which a firm’s competitive position in one country is significantly influenced by its position in other countries. a. A multidomestic industry Copyright Cengage Learning. Powered by Cognero.

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b. A differentiated industry c. A global industry d. An export-based industry ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 39. In __________, firms pursue separate strategies in each of their foreign markets-competition in each country is essentially independent of competition in other countries. a. a multidomestic industry b. a differentiated industry c. a global industry d. an export-based industry ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 40. The type of international strategy that concentrates as many activities as possible in one country, serves the world market from the home base, and closely coordinates those activities that must be performed near the buyer (for example, service) is referred to as: a. a country-centered strategy. b. an export-based strategy. c. a purest global strategy. d. a segmented international strategy.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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41. Concerning international strategy, a firm that concentrates manufacturing and support activities in one country but gives local marketing subsidiaries significant latitude in each region of the world is following which type of international strategy? a. A country-centered strategy b. An export-based strategy c. A purest global strategy d. A segmented international strategy ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 42. The choice of a particular international market entry mode depends on a range of factors including the size of the market and its growth potential. Markets of limited size surrounded by trade barriers may be supplied most cost effectively via: a. licensing or contract manufacturing. b. a local production and marketing subsidiary. c. exporting. d. selective distribution.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 43. In entering high-risk country markets, firms can reduce their risk exposure by adopting low-commitment modes of entry such as: a. licensing. b. wholly owned subsidiaries. c. contract manufacturing. d. both licensing and contract manufacturing.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 44. Which of the following modes of international market entry provides for greater potential returns and a greater degree of control over operations? a. Licensing b. Wholly owned subsidiaries c. Contract manufacturing d. Exporting ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 45. As an entry strategy, licensing requires: a. capital investment. b. marketing strength in foreign markets. c. a company to have less control over a licensee than over its own exporting or manufacturing abroad. d. a turnkey operation.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 46. Potential partners for a strategic global alliance are evaluated based on all of these except: a. resources. b. relationships. c. culture. d. profitability.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 47. An advantage of joint ventures is: a. they include the only path of entry into many foreign markets. b. they open up market opportunities that neither partner to the venture could pursue alone. c. they transfer knowledge to the partner. d. they include the only path of entry into many foreign markets and they open up market opportunities that neither partner to the venture could pursue alone.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 48. The home base for a business is the location where all of these are established except: a. strategy is set. b. core product and process technology is created and maintained. c. a critical mass of sophisticated production and service activities reside. d. the marketing communications are centrally located.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 49. Successful global companies achieve unified action by: a. establishing strategies that are independent across countries. b. developing accounting systems that are country specific. c. encouraging personal relationships and the transfer of learning among subsidiary managers across locations. d. using common logistics partners.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 50. Research suggest that over __________ percent of joint ventures are disbanded or fall short of expectations. a. 10 b. 50 c. 30 d. 40 ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 51. In high-risk markets, firms can reduce their equity exposure by adopting low commitment modes such as: a. licensing. b. contract manufacturing. c. both licensing and contract manufacturing. d. strategic global alliances.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUS PROG: Analytic Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 52. Rather than modifying the firm’s product offerings from country to country, __________ strategy requires a patient, long-term campaign to enter every significant foreign market while maintaining and leveraging the company’s unique strategic position. a. a global b. multi-domestic c. international d. adapted domestic ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 53. The location where strategy is set, core product and process technology is created and maintained, and a critical mass of sophisticated production and service actives resides is known as: a. Turnkey. b. configuration. c. multi-domestic strategy. d. home base.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-05 - Explain key insights for building a unique competitive position with a global strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 54. A firm that includes rapidly developing economies (RDEs) in their global cost structures can realize savings of __________ in the landed costs of their products. a. 0–20 percent b. 40–60 percent c. 20–40 percent d. 60–80 percent ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 55. The hidden costs in operating in rapidly developing economies include which of the following? a. One-time setup costs b. Risk management costs c. Exit costs d. All of the answer choices ANSWER: d POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 56. Successful global competitors achieve unified action by: a. assigning accounting systems by product. b. subsidiary-based organizational structures. c. further standardize products in the home country. d. establishing a clear global strategy understood across countries.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-05 - Explain key insights for building a unique competitive position with a global strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 57. Which of the following is a disperse activity used to extend home-base advantages: a. Capturing competitive advantages in purchasing. b. Establishing a clear global strategy. c. Developing information systems that are consistent on a worldwide basis. d. Tie incentive programs to subsidiary performance.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-05 - Explain key insights for building a unique competitive position with a global strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 58. When Honda invests more than $2 billion in facilities in the United States, this is an example of: a. establishing a clear global strategy. b. selectively tapping competitive advantages at other locations. c. capturing competitive advantages in purchasing. d. securing or improving market access.

ANSWER: d POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-05 - Explain key insights for building a unique competitive position with a global strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 59. When Honda gains exposure to California’s styling expertise and Germany’s high-performance design competencies through small, local, company-financed design centers that transfer knowledge back to the Japanese home base, this is known as: a. encouraging personal relationships and the transfer of learning among subsidiary managers across locations. b. selectively tapping competitive advantages at other locations. c. capturing competitive advantages in purchasing. d. securing or improving market access.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-05 - Explain key insights for building a unique competitive position with a global strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 60. Each of the following pose special management challenges to business marketers considering strategic alliance as a market entry mode except? a. Problems with maintaining alliances over time b. Problems implementing alliances on a global scale c. Problems establishing coordination and trust d. Problems with rival entrants ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 61. Which of the following issues pose problems to firms trying to manage joint-venture relationships? a. Disagreements over profit sharing b. Opening up of new market opportunities Copyright Cengage Learning. Powered by Cognero.

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c. Problems responding to changing market needs d. Problems with entry strategies ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 62. The choice of a foreign market entry mode depends upon: a. the size of the market. b. both the size of the market and the market’s growth potential. c. the market’s growth potential. d. none of the answer choices.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 63. Which of the following terms refers to how similar activities performed in various countries are coupled with each other? a. Coordination b. The home base c. Configuration d. The value network ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 64. Inputs that are not central to the innovation process, such as raw materials or general-purpose component parts, must be purchased from the most cost-effective location. This is known as what type of home-base opportunity? a. Capturing competitive advantages in purchasing Copyright Cengage Learning. Powered by Cognero.

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b. Securing or improving market access c. Establishing a clear global strategy d. Selectively tapping competitive advantages at other locations ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-05 - Explain key insights for building a unique competitive position with a global strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 65. ABC Company is headquartered in the U.S. and produces a product in the U.S. which it exports around the world. It also produces a different product in Germany and exports it around the world. Furthermore, it produces a totally different product in Japan which it also exports around the world. As a result, the firm has a home base in: a. the U.S. b. Germany. c. Japan. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 66. A business marketing firm’s stakeholders may include: a. Customers, employees, and investors b. Employees, managers, and customers c. Investors, managers, and communities d. Customers, employees, investors, and communities ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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67. Addressing the relationships that a company has with its employees and supply-chain partners and the reputation it fosters with institutions in the communities where the business is conducted is known __________ criteria. a. environmental b. social c. financial d. governmental ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 68. A strong ESG proposition allows business marketing firms to attract and retain: a. Customers b. Suppliers c. Employees d. Investors ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 69. An industrial firm’s first foray into an overseas market usually involves __________ because it requires the least commitment and risk. a. importing b. negotiations c. governments d. exporting ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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70. What type of manufacturing involves sourcing a product from a producer located in a foreign country for sale there or in other countries. a. Coordination b. Discrete c. Contract d. Additive ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 71. The type of alliance that offers a number of benefits, such as access to markets or technology, economies of scale in manufacturing and marketing, and the sharing of risk among partners. a. Non-competitive b. Precompetitive c. Joint venture d. Strategic ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 72. Multinational firms have traditionally managed operations outside their home country with __________ that permit individual subsidiaries to compete independently in their home country markets. a. Coordination strategies b. Exporting strategies c. Multidomestic strategies d. International strategies ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Environmental Influence Bloom’s: Knowledge

73. A global industry is one in which a firm’s __________ in one country is significantly influenced by its position in other countries. a. competitive position b. alliance c. revenue d. operations ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 74. Achieving a balance between greenhouse gas emissions produced and greenhouse gas emission taken out of the atmosphere is called: a. Carbon neutral b. Global citizenship c. Net-zero emissions d. Green manufacturing ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Knowledge 75. Some experts emphasize that since customer needs are becoming increasingly homogeneous worldwide, the opportunity exists to sell the same type of product across countries and to use essentially the same marketing strategy around the globe. If customers respond favorably to a strategy in St. Louis, will the same strategy work in London or Tokyo? While a standardized approach might work for Coke or Levi’s, will it work for business marketers like Dow Chemical or Hewlett-Packard? Explain.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the distinctive types of international strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension 76. Discuss the key components of a firm’s ESG profile.

ANSWER: E—environmental criteria consider the energy a company uses and the waste it discharges, the resources it requires, and the consequences for society that result. Importantly, E encompasses carbon emissions and climate change.

S—social criteria address the relationships that a company has with its employees, supply chain partners, and the reputation it fosters with institutions in the communities where business is conducted. S includes labor relations, employee diversity, inclusion, and pay equity.

G—governance is the internal system of procedures, controls, and transparent practices a company applies to make effective decisions, comply with the law, and meet the needs of external stakeholders. G includes mandatory company disclosures on global sustainability, corporate board diversity, and other regulatory filings.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-01 - Identify the key components of a firm’s ESG profile.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension 77. Joint ventures assume a very prominent role in the global strategy of many businesses marketing firms like Dow Chemical and Xerox. While offering significant benefits, joint ventures often fall short of expectations or dissolve. Why? ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the spectrum of international market-entry options and the strategic significance of different forms of global market participation.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension 78. Rather than modifying the firm’s product and service offerings from country to country, a global strategy requires a patient, long-term campaign to enter every significant foreign market while maintaining and leveraging the company’s unique strategic positioning. Agree or disagree? Support your position.

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ANSWER:

Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the distinctive types of international strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension 79. While the location of the corporate headquarters is less important and may reflect historical factors, a firm must develop a clear home base for competing in each of its strategically distinct businesses. What role does a home base assume in forming a global strategy and what factors should be considered in choosing a location? Under what conditions might a firm create a home base for a different product line in another country?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the essential components of a global strategy. Also, it could be useful to consider the distinctive types of international strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-03 - Analyze the forces that shape global advantages of a firm.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension 80. Rapidly developing economies (RDEs) are having a significant impact on the global economy, both as attractive new markets but also as new competitors for firms in highly developed economies. Explain the three forms of competitive advantage that firms can achieve by moving operations to and marketing in RDEs. What products or services make the most sense to relocate to RDEs? ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to how to capture the sources of global advantage in rapidly developing economies such as China and India.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-02 - Recognize how a strong ESG proposition can drive a firms’ profitability.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension Copyright Cengage Learning. Powered by Cognero.

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81. Options for entry into foreign markets range from exporting to global strategies. Explain how commitment, complexity, risk, and control change as firms move across the spectrum of involvement in international marketing. What factors should firms consider when choosing entry modes?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the spectrum of international market-entry options and the strategic significance of different forms of global market participation.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 06-04 - Compare global market entry options.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Environmental Influence KEYWORDS: Bloom’s: Comprehension

1. Brand equity is a set of brand assets and liabilities linked to a brand, its name, and symbols that add to or subtract from the value provided by a product or service and/or to that firm’s customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Brand resonance is deep, broad brand awareness. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. To achieve the right identity for a brand, the business marketer must create brand salience with customers.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Determinant attributes are both important and differentiating in the eyes of business market customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. Industrial product lines can only be broadly classified into proprietary or catalog items and custom-built items. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. Smart, connected products are changing how companies compete and how value is created for targeted customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. Smart, connected products open up a spectrum of new business models that require new marketing and sales practices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. Brand attitude is defined as the percentage of organizational buyers who have a negative image of a company minus the buyers with a positive one. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. The two forms of customer benefits are core and add-on. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Recent research has demonstrated that add-on benefits more strongly influence customer value than core benefits. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. The unifying goal for the business marketer is to provide superior market-perceived quality and value versus competitors. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. The four dimensions of a product market definition are: customer function, environmental, technological, and valueadded system. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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13. For high-technology firms, well-recognized executives and competitive actions can both be drivers of brand attitude change. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. The central success factors for the tornado phase of the technology adoption life cycle are remarkably similar to the bowling alley phase. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. Active engagement tends to destroy brand loyalty since buyers do not want to be bothered. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Sustainability gets into controversial environmental and societal issues that offend most customers and can destroy a firm. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. Providing value added services will be viewed negatively by customers since they expect all value to be inherent in the product with no need to be added. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Catalog items are an example of an industrial product line. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. Skeptics do not become part of the technology adoption life cycle since they have too many doubts. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. Industrial product lines that are created to meet the needs of one or a small group of customers are defined as: a. custom-built items. b. catalog items. c. proprietary items. d. custom-designed items.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. Industrial product lines that are offered only in certain configurations and are produced in anticipation of orders are called: a. custom-designed items. b. services. c. catalog items. d. custom-built items.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. When the buyer is purchasing a company’s capability in a particular area, such as maintenance or machine repair, the customer is buying: a. a catalog item. b. an industrial service.

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c. a custom-designed item. d. a generic product class.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. A lathe manufacturer that offers a line of products in different sizes, with a range of options (such as different motor sizes) and accessories for different applications is a producer of: a. custom-designed items. b. services. c. catalog items. d. custom-built items.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. Which of the following represents the place that a product occupies in a particular market? It is found by measuring organizational buyers’ perceptions and preferences for a product in relation to its competitors. a. Product positioning b. Product anchor c. Product determinacy d. Product segment ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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25. Which of the following dimensions of a product market definition is (are) relevant? a. The alternative technologies available to satisfy a particular need (technology dimension). b. The sequence of stages along which competitors serving the market can operate (value-added system dimension). c. The customer groups that have needs that must be served (customer segment dimension). d. All of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. All of the following are dimensions relevant to the definition of a product-market except: a. customer function. b. technological. c. customer segment. d. physical distribution system.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. Because organizational buyers perceive products as bundles of attributes, the product strategist should examine the attributes that assume a central role in buying decisions. Attributes that are both important and differentiating are called: a. primary attributes. b. star attributes. c. determinant attributes. d. quality attributes.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a Copyright Cengage Learning. Powered by Cognero.

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marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. St. Louis Capital Equipment Company found that organizational buyers view reliability as being important in the purchase of a machine tool. In turn, research indicates that a new model recently introduced by the firm is viewed by organizational buyers as being superior to competing brands on the reliability dimension. Thus, reliability would be classified as a __________ attribute. a. primary b. star c. dominant d. determinant ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. If organizational buyers view a particular attribute as being neither important nor differentiating, an appropriate generic strategy for a product manager to follow would be to: a. increase the importance of the attribute to customers. b. increase the difference between the competition and the firm’s brand. c. convert this determinant attribute into a non-determinant one. d. both increase the importance of the attribute to customers and increase the difference between the competition and the firm’s brand.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. Consider this dilemma: A product manager finds that organizational buyers view a particular product attribute as being both important and differentiating; unfortunately, the firm’s brand is viewed as being inferior to competing brands on this attribute. In this situation, an appropriate generic strategy for the product manager to follow would be to: a. increase the importance of the attribute to customers. b. increase the difference between the competition and the firm’s brand.

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c. convert this determinant attribute into a non-determinant one. d. all of the answer choices.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. Some industrial products are created to meet the needs of one or a small group of customers. Boeing, for example, serves a very defined group of customers with its 747 aircraft model. This is an example of: a. a proprietary product. b. a specialty product. c. a custom-built product. d. a custom-designed product.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. NCR offers a set of basic equipment items to retailers that includes numerous accessories and options. The retailer can begin with a simple cash register or checkstand system and later add inventory control systems for the store and ultimately a computer that ties multiple stores in a chain together. This provides an example of: a. proprietary products. b. specialty products. c. custom-built products. d. custom-designed products.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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33. The brand meaning is composed of two broad categories: a. brand positioning and brand performance. b. brand performance and brand imagery. c. brand positioning and brand imagery. d. brand performance and brand positioning.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. The ways in which the brand attempts to meet customers’ more abstract psychological or social needs is known as: a. brand positioning. b. brand imagery. c. brand recognition. d. brand performance.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. A short three-to-five-word summary of the essence of the brand: a. brand resonance. b. brand awareness. c. brand mantra. d. brand attitude.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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36. The strength of the psychological bond that a customer has with a brand and the degree to which this connection translates into loyalty is known as: a. brand equity. b. brand resistance. c. brand resonance. d. brand mantra.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. The percentage of organizational buyers who have a positive image of a company minus those with a negative opinion is known as: a. brand attitude. b. brand mantra. c. brand resonance. d. brand resistance.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. In the customer value equation of benefits/sacrifice, which of the following is a perceived customer benefit? a. Operations costs b. Acquisition costs c. Price d. Add-on ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. The quality standards set out by the Geneva-based International Standards Organization are referred to as: a. ISO 9000. b. the Big Q. c. quality assurance d. Six Sigma.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. The standard of quality that means a product would have to have a defect level of no more than 3.4 parts per million is called: a. Six Sigma. b. the Big Q. c. ISO 9000. d. Lean9000.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. The first stage of the quality movement: a. centers on conformance to standards or success in meeting specifications. b. emphasizes that quality is more than a technical specialty. c. examines a firm’s quality performance relative to competitors. d. focuses on market-perceived quality and value versus that of competitors.

ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. In stage three of the quality movement, attention shifts: a. from zero defects in products to zero defections in customers. b. to customer loyalty. c. to the conformance to standards or success in meeting specifications. d. from zero defects in products to zero defections in customers and to customer loyalty.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. The percentage of organizational buyers who have a positive image of a company minus the buyer with a negative opinion is called: a. brand attitude. b. a strong brand. c. brand equity. d. brand placement.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. Which of the following statements is false in regard to brand attitude for high-technology firms? a. The appointment of a well-recognized executive officer who introduced a new strategy increases. b. Brand attitude is independent of competitive actions. c. Changes in brand attitude have been shown to be associated with stock market performance. d. Investments in building brand attitude for high-technology firms increases the firm’s value.

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ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. The place that a product occupies in a particular market is known as: a. target market. b. market segment. c. product positioning. d. product market.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Sophisticated, smart, connected products are able to: a. operate autonomously and self-diagnose service needs. b. adapt to user’s preferences and self-coordinate with other products. c. self-coordinate with other products and operate autonomously. d. operate autonomously, adapt to user’s preferences, and self-coordinate with other products.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. A set of brand assets and liabilities linked to a brand, its name, and symbols that add or subtract form the value provided by a product to that firm’s customers is called: a. brand salience. b. brand equity.

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c. brand awareness. d. brand positioning.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. Which of the following represents a business customer’s overall assessment of a relationship with a supplier based on perceptions of benefits received and sacrifices made? a. Market analysis b. A value network c. Customer value d. Relationship management ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. Customer benefits from a relationship with a supplier include which of the following? a. Core benefits b. Add-on benefits c. Gross margin benefits d. Both core benefits and add-on benefits ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Benefits and sacrifices are both considered when assessing customer value. Sacrifices include: Copyright Cengage Learning. Powered by Cognero.

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a. the purchase price. b. acquisition costs. c. operations costs. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. Which dimension of the product market definition involves the benefits that are provided to satisfy the needs of the organizational buyers? a. Customer function b. Customer segment c. Technological d. Value-added system ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. Which dimension of the product market definition considers the distinct customer needs that must be served? a. Customer function b. Customer segment c. Technological d. Value-added system ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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53. Which of the following is NOT a step in the product-positioning process? a. Identify the relative set of competitive products. b. Determine the product’s current position versus competing offerings. c. Develop an evoked or consideration set of possible positions. d. Examine the fit between preferences of segments and the current product position.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. This term refers to the massive amounts of data collected over time. a. Cloud computing b. Big data analytics c. Big data d. Internet of Things (IoT) ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. When a device connects to everyday consumer objects and industrial equipment onto a network, enabling information gathering and management of those devices, it is known as: a. Big data analytics b. Big data c. Internet of Things (IoT) d. Cloud computing ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

56. A style of computing where scalable and elastic IT-related capabilities are provided as a service to external customers using Internet technologies is called: a. big data analytics. b. big data. c. Internet of Things (IoT). d. cloud computing.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. The basic premise of his CBBE model is that the power of a brand lies in: a. what consumers have learned, felt, seen, and heard about the brand over time. b. the market shares it commands. c. how the decision maker perceives the ultimate value of the item. d. all of the answer choices.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. The main factor stimulating the megatrend of sustainability is: a. intensified global competition for natural resources. b. escalating public concern. c. escalating government concern. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. A brand mantra: a. is a very short summary of the essence of the brand. b. is used to communicate the core values of the brand. c. helps employees understand the key meaning of the company’s product. d. is all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. A set of brand assets and liabilities linked to a brand, its name, and symbol that add to or subtract from the value provided by a product or service and/or to that firm’s customers. a. Brand Competition b. Brand Equity c. Brand Value d. Brand Awareness ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. The differential effect that customers’ brand knowledge has on their response to marketing activities and programs for that brand is called: a. Brand association b. Perceived quality c. Customer-based brand equity d. Brand awareness ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. Brand __________ is described as the ways in which the brand attempts to meet customers’ more abstract psychological or social needs. a. performance b. judgement c. personality d. imagery ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Brand __________ refers to the customer’s ability to recall or recognize a brand under different conditions. a. associations b. awareness c. loyalty d. quality ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. Brand ___________ represents the strength of the psychological bond that a customer has with a brand and the degree to which this connection translates into loyalty, attachment, and active engagement with the brand. a. awareness b. loyalty c. resonance d. recognition ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. When Joy Global is able to operate its mining equipment system far underground, overseen by human operators in the mine control center on the surface, this is an example of what smart capability? a. Communication b. Autonomy c. Management d. Collaboration ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. Along with consumer-goods names like Nike or Coca Cola, the world’s most valuable brands include high-tech representatives such as Intel, Hewlett-Packard, IBM, and Microsoft. Describe the attributes of a strong high-tech brand.

Do the investments in building a high-tech brand pay off? Explain.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to how to build a strong business-to-business brand.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 07-01 - Explain the key steps to follow in building a strong business-to-business brand.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 67. Strategy experts suggest that a company’s product or service is competitively superior if, at a price equal to the price of competing products, customers always choose it. With this in mind, consider the spectacular growth of Dell Computer—a firm that sells direct to organizations and individuals who can place orders by phone or through the Internet.

Using the value-in-use concept, describe the costs and benefits a customer faces in buying a computer directly from Dell.

On what dimensions would local computer dealers and retailers enjoy an edge over Dell? Overall, what are the critical factors that shape the product strategy followed by Dell?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the various types of industrial product lines and the Copyright Cengage Learning. Powered by Cognero.

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strategic choices that smart, connected products present. Also consider the strategic importance of providing competitively superior value to customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 68. Discuss the four types of product lines with definitions.

ANSWER: 1. Proprietary or catalog products. These items are offered only in certain configurations and produced in anticipation of orders. Product-line decisions concern adding, deleting, or repositioning products in the line.

2. Custom-built products. These items are offered as a set of basic units, with numerous accessories and options. For example, NCR offers a line of retail workstations used by large customers like Wal-Mart and 7-Eleven stores as well as by smaller businesses. The basic workstation can be expanded to connect to scanners, check readers, electronic payment devices, and other accessories to meet a business’s particular needs. The firm’s wide array of products provides retailers with an end-to-end solution, from data warehousing to the pointof-service workstation at checkout. The marketer offers the organizational buyer a set of building blocks. Product-line decisions center on offering the proper mix of options and accessories.

3. Custom-designed products. These items are created to meet the needs of one or a small group of customers. Sometimes the product is a unique unit, such as a power plant or a specific machine tool. In addition, some items produced in relatively large quantities, such as an aircraft model, may fall into this category. The product line is described in terms of the company’s capability, and the customer buys that capability. Ultimately, this capability is transformed into a finished good.

4. Industrial services. Rather than an actual product, the buyer is purchasing a company’s capability in an area such as maintenance, technical service, or management consulting.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 07-03 - Identify the various types of product lines and demonstrate how to position a product in the marketplace against rivals.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 69. Describe some of the emerging innovations that are driving the third IT wave and the new era of smart, connected products.

ANSWER: Cloud computing is a style of computing where scalable and elastic IT-related capabilities are provided as a service to external customers using Internet technologies. The largest cloud players are Amazon Web Services, Microsoft Azure, and Google Cloud.

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Internet of Things (IoT) connects devices such as everyday consumer objects and industrial equipment onto the network, enabling information gathering and management of those devices via software to increase efficiency, enable new services, or achieve other health, safety, or environmental benefits.

Big data refers to the massive amounts of data collected over time that are difficult to analyze and process using common database management tools. The types of data include business transactions, activity logs, and the vast amounts of data that can be collected from sensors of all varieties (for example, machine-generated data).

Big data analytics is the process of examining large data sets containing a variety of data types to uncover hidden patterns, unknown correlations, market trends, customer preferences, and other useful information.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 70. Describe some of the factors that should be considered when a company is considering embedding technology into a product or using technology through cloud?

ANSWER:  Response time—a feature that demands a fast response (e.g., a safety shutdown in a nuclear power plant) requires that the software be incorporated directly in the physical product.  Automation—fully automated products, such as antilock brakes, generally require functionality that is embedded into the device.  Network availability, reliability, and security—by minimizing dependence on network availability and reducing the amount of data that must flow from the product to cloud-based applications, embedding software in the product lowers the risk that confidential data will be compromised during transmission.  Frequency of service or product upgrades—by hosting functionality in the product cloud, companies can make product changes and upgrades easily and automatically (e.g., Diebold’s automated teller machines receive regular feature enhancements and often occur remotely, via software).

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 07-04 - Recognize the way in which a new class of smart, connected products is transforming competition and the strategic choices that this presents for business marketing strategies.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 71. Customer value represents a business customer’s overall assessment of a supplier based on perceptions of benefits Copyright Cengage Learning. Powered by Cognero.

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received and sacrifices made. Discuss the benefits and sacrifices typically considered by customers when assessing value. What has recent research discovered matters most in customer value and how do these findings impact business marketing strategies?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the strategic importance of providing competitively superior value to customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 07-02 - Recognize customers value product offerings and what matters most in developing a marketing strategy.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. Induced strategic behavior relates primarily to major types of innovations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 2. Product championing refers to the process of creating or adopting an idea for an innovation and actively creating momentum for the project. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies Copyright Cengage Learning. Powered by Cognero.

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3. Induced strategic behavior corresponds to deliberate strategies while autonomous strategic behavior gives rise to emergent strategies. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 4. Creators of successful product portfolios emphasize planning rather than experimentation or improvisation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 5. Derivative projects establish new core products and new core processes that differ fundamentally from previous generations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

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6. Platform projects create the design and components that are shared by a set of products. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 7. Breakthrough projects center on incremental product enhancements, incremental process improvements, or incremental changes on both dimensions. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 8. ―Lead users‖ are consistent early adopters of new technologies. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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9. Research and development is the creation of knowledge concerning new materials and technologies that eventually leads to commercial development. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 10. Cross-functional teams appear to work best when the products are familiar, such as product modifications. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-03 - Recognize the factors that drive a firm’s new product performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 11. For well-known markets and technologies, a compression strategy speeds development. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 12. Improvisation involves activities in which the design and execution of actions approach convergence with each other in time. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 13. New product ventures require systematic thought. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-03 - Recognize the factors that drive a firm’s new product performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 14. Competitors are less motivated to react to a new production introduction when the market is experiencing a high rate of growth. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 15. A detailed market research study and a preliminary business/financial analysis is an example of predevelopment proficiency. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 16. All development projects center on either improving the manufacturing process or improving product, but not both. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 17. Many business marketing strategists believe that firms should focus on product families instead of single products to improve planning. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 18. A disruptive innovation targets demanding, high-end customers with better performance than was previously available. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 19. Research has shown that creators of successful product portfolios do not invest in one version of the future but use several low-cost probes to create options. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 20. Research has shown that the three factors that drive a firm’s new product performance are the quality of the firm’s new product development process, the resource commitments made to new product development, and the new product strategy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 21. Lead user projects are conducted by cross-functional teams that include four to six managers from the marketing and technical departments. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 22. In order for a firm to unite all of its people to achieve corporate objectives, it is important to eliminate autonomous behavior. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 23. There is a danger of undershooting but never of overshooting the needs of mainstream customers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 24. A disruptive strategy can benefit a firm. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 25. In today’s fast paced product development, it is important for managers to prevent time pacing. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 26. Concerning the management of product innovation, which of the following statements is incorrect? The successful management of product innovation: a. is vital to the long-term health of an industrial company. b. requires the firm to take risks. c. is properly characterized as a rational, deliberate, and analytical process. d. should lead to a stream of attractive products.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 27. With respect to induced strategic behavior, please identify the incorrect statement. Induced strategic behavior: a. exhibits communication that is consistent with the organizational work flow pattern. b. is generally observed in conjunction with major types of innovations for new markets. c. typically involves formal organizational channels related to decision making. d. follows established administrative procedures.

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ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 28. Please identify the incorrect statement concerning autonomous strategic behavior. Autonomous strategic behavior: is analogous to entrepreneurial activity. a. normally relies on the emergence of an informal network of participants. b. exhibits communication flows that depart from the formal organizational workflow pattern. c. is analogous to entrepreneurial activity. d. all these statements are correct.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 29. Within the context of autonomous strategic behavior, product championing refers to the process of: a. defining organizational goals more clearly. b. actively promoting an existing product for an existing market. c. creating or adapting an idea for an innovation and actively creating momentum for the project. d. specifying organizational roles to be assumed as strategic alternatives are mapped out.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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30. In contrasting induced strategic behavior with autonomous strategic behavior, which of the following statements is incorrect? a. Induced behavior corresponds to deliberate strategies while autonomous behavior gives rise to emergent strategies. b. Autonomous behavior stems from the organization’s existing concept of strategy while induced behavior will eventually be integrated into the firm’s concept of strategy. c. The two types of behavior cannot be meaningfully separated and discussed. d. While autonomous behavior will initially rely on an informal network of support, induced behavior will draw support from formal organizational channels.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 31. Identify the correct statement(s) concerning differences between induced strategic behavior and autonomous strategic behavior: a. Induced behavior will rely on the firm’s current concept of strategy for its rationale while autonomous behavior necessitates active championing. b. Autonomous behavior will appear haphazard in nature, when compared to induced behavior. c. While induced behavior will normally exhibit a creeping commitment toward a particular strategy, autonomous behavior can often benefit from existing administrative mechanisms and commitment. d. Both: Induced behavior will rely on the firm’s current concept of strategy for its rationale while autonomous behavior necessitates active championing and autonomous behavior will appear haphazard in nature, when compared to induced behavior.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 32. The type of development project that centers on incremental product enhancements (for example, new feature), incremental process improvements (for example, a lower-cost manufacturing process), or incremental changes in both dimensions is referred to as a: a. platform project. b. breakthrough project.

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c. research and development project. d. derivative project.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 33. A feature-enhanced or cost-reduced Canon fax machine provides an example of which type of development project? a. Platform project b. Breakthrough project c. Research and development project d. Derivative project ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 34. Commercial development projects that create the design and components that are shared by a set of products are referred to as: a. platform projects. b. breakthrough projects. c. research and development projects. d. derivative projects.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

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35. A common motor in all Black & Decker hand tools provides an example of which type of commercial development project? a. Platform project b. Breakthrough project c. Research and development project d. Derivative project ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 36. Commercial development projects that establish new core products and new core processes that differ from those of previous generations are referred to as: a. platform projects. b. breakthrough projects. c. research and development projects. d. derivative projects.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 37. Computer disks and fiber-optic cable each created a new product category. The type of commercial project that created these products would be classified as a: a. platform project. b. breakthrough project. c. research and development project. d. derivative project.

ANSWER: b POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 38. __________ involve the creation of the know-how and know-why of new materials and technologies that eventually translate into commercial development. a. Platform projects b. Research and development projects c. Breakthrough projects d. Derivative projects ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 39. Which of the following designs involves activities in which the decision and execution of strategy actions approach convergence with each other in time. a. Time pacing b. Patching c. Routinization d. Improvisation ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 40. __________ is a strategy for competing in fast-changing markets by creating new products at predictable intervals.

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a. Time pacing b. Patching c. Routinization d. Quality function deployment ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 41. Successful product innovators in the computer industry: a. restrict communication within new product development teams to decrease competitive espionage. b. predict an accurate single new product future version of the future. c. carefully manage the transition between current and future projects. d. use project management practices that highlight all possible customer needs as the top priority for development.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 42. Products that share a common platform but have different specific features and enhancements that are required for different sets of consumers constitute: a. a product family. b. a product market. c. derivative products. d. a product consideration set.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and Copyright Cengage Learning. Powered by Cognero.

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learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 43. A benchmarking study sought to uncover the critical success factors that drive a firm’s new product performance. The results indicate that successful firms: a. center development efforts on clearly defined market and technology domains. b. seldom ―kill‖ a project once the new product development process has been initiated. c. emphasize low-price strategies to penetrate a mass market. d. limit the communication to the development team to protect against competitive espionage.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 44. Successful companies employ a high-quality new product development process. Among high performing firms, the common best practices include: a. the new product process follows prescribed, standard stages. b. tough project Go/Kill decision points are included in the process and the Kill option is actually used. c. market and technical assessments are conducted during the research phase only. d. project teams that have worked together on previous product developments.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-03 - Recognize the factors that drive a firm’s new product performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 45. ―Lead users‖ are characterized as important sources of new product ideas because they: a. have needs that will be general in the marketplace in the future. b. represent purchasing managers in buying organizations. c. are consistent early adopters of new technologies. d. represent the gatekeeper in the buying organizations.

ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 46. Rapid product development offers a number of competitive advantages. Research indicates that the _____ strategy increased the speed of product development for products that had predictable designs and that were targeted for stable and mature markets. a. induced b. experiential c. autonomous d. compressed ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 47. Speed is becoming an important strategic weapon, particularly in high-technology markets. Research indicates that the __________ strategy increased the speed of product development for markets characterized by rapidly evolving technology and unpredictable patterns of competition. a. induced b. experiential c. autonomous d. compressed ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 48. This strategy for the new product development process views product development as a predictable series of steps and Copyright Cengage Learning. Powered by Cognero.

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speed comes from carefully planning these steps and shortening the time it takes to complete each step. This describes the __________ strategy. a. induced b. experiential c. autonomous d. compressed ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 49. This strategy for the new product development process views product development as a highly uncertain path and speed comes from multiple design iterations, extensive testing, and a powerful leader who can keep the product teams focused. This describes the __________ strategy. a. induced b. experiential c. autonomous d. compressed ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 50. The move toward a product family perspective requires: a. a long-term view of technology strategy. b. an isolated R&D function that free to create. c. both a long-term view of technology strategy and a multiple-year commitment of resources. d. both a long-term view of technology strategy and an isolated R&D function that free to create.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and Copyright Cengage Learning. Powered by Cognero.

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learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 51. Competitors are strongly motivated to react to new product introductions in their market when: a. the market is experiencing a low rate of growth. b. the new product represents a major threat to their market. c. the new product targets a niche markets. d. the new product targets a new market.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 52. New products ideas flow from: a. top management who know the company’s strengths and weaknesses. b. salespersons who are close to customer needs. c. channel members. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 53. Which of the following characteristics is true of induced strategic behavior? a. Communication is consistent with organizational flow. b. An informal network assesses technical and market merit. c. An individual manager defines a market need that diverges from the organization’s concept of strategy. d. A formal network assesses upstream support.

ANSWER: a POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 54. Which of the following is NOT a type of development project? a. Derivative b. Platform c. Breakthrough d. Market capital ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 55. The use of a product-family focus in planning should include which of the following? a. Close interfunctional working relationships b. A short-term view of technology strategy c. A year-by-year commitment of resources d. Common core product features and benefits ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 56. Special insights into innovation management can come from examining the rate at which products are improving and customers can use the improvements. These insights are captured in: a. the disruption innovation model. b. the supply chain management model.

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c. the derivative projects model. d. the value network.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 57. A(n) __________ targets demanding, high-end customers with better performance than what was previously available. a. sustaining innovation b. new market innovation c. disruptive innovation d. improvisational innovation ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 58. A(n) __________ represents a product or service that is not as good as currently available alternatives, but that is typically simpler and less expensive. a. sustaining innovation b. improvisation innovation c. disruptive innovation d. breakthrough innovation ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Information Technologies Bloom’s: Knowledge

59. For a low-end disruptive innovation strategy to work, which of the following requirements must be met? a. There needs to be customers at the low end of the market who are eager to purchase a ―good enough‖ product for a lower price. b. The company must be able to create a business model to make profits at a discount price. c. Both there needs to be customers at the low end of the market who are eager to purchase a ―good enough‖ product for a lower price and the company must be able to create a business model to make profits at a discount price. d. There is a niche market of premium customers who are willing to utilize the full range of performance.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 60. Examples of low-cost probes or experiments in product development include which of the following? a. Development of experimental products for current markets. b. Conducting customer surveys and studies on features and performance. c. Increase understanding of future customer needs by entering into strategic alliances with leading-edge customers. d. Conducting planning sessions to review current product profit margins and share growth.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 61. According to research, major drivers of a firm’s new product performance include: a. resource commitment. b. profitability relative to competition. c. success rate of new products. d. market share relative to the competition.

ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 62. Important dimensions of the new product development process include technical knowledge, predevelopment proficiency, and: a. CRM technology knowledge. b. TCO knowledge. c. market knowledge. d. supplier knowledge.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-03 - Recognize the factors that drive a firm’s new product performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 63. For a new-market strategy innovation strategy to work, which of the following requirements need to be met? a. The company must be able to create a business model to make profits at a discount price. b. Present customers need to go to an inconvenient location to use the product or service. c. Both the company must be able to create a business model to make profits at a discount price and present customers need to go to an inconvenient location to use the product or service. d. Neither the company must be able to create a business model to make profits at a discount price nor present customers need to go to an inconvenient location to use the product or service.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 64. A firm that leads customers where they want to go before the customers actually know it themselves is employing: Copyright Cengage Learning. Powered by Cognero.

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a. the lead user method. b. time pacing. c. the new product development process. d. a discontinuous innovation.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 65. Which is NOT a determinant of new product success? a. Compression strategies b. Predevelopment c. Risk avoidance d. Synergy ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 66. An organization member who creates, defines, or adopts an idea for an innovation and is willing to assume significant risk to successfully implement the innovation is known as a: a. Product coordinator b. Product innovator c. Product champion d. Product developer ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Information Technologies Bloom’s: Knowledge

67. Compared with induced strategic behavior, autonomous or __________ initiatives are more likely to involve a communication process that departs from the regular work flow and the hierarchical decision-making channels. a. entrepreneurial b. direct c. indirect d. Agenda setting ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 68. Disruptive strategies can take two forms: __________ disruptions and __________. a. low-end; existing-market b. high-end; new-market c. low-end; new-market d. high-end; existing-market ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 69. A small number of highly influential and high-volume buying organizations that are consistent early adopters of new technologies that deserve special attention are known as: a. Lead users b. New users c. Existing users d. Advanced users ANSWER: a POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 70. Marketing __________ is the fit between the needs of the project and the firm’s resources and skills in marketing. a. methods b. strategies c. synergy d. innovation ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 71. New products developed and designed to meet foreign requirements and targeted at world or nearest-neighbour export markets is enhanced by firms holding an __________ orientation. a. Global b. National c. Domestic d. International ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 72. New-product-development efforts for existing businesses or market-development projects for the firm’s present products are the outgrowth of __________ strategic initiatives. a. induced b. time paced c. aligned Copyright Cengage Learning. Powered by Cognero.

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d. forecasted ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Knowledge 73. Kathleen Eisenhardt argues that in fast-paced high-technology markets, ―strategy is a video game.‖ Strategic decision making is often described as a rational and deliberate process; in turbulent markets, new technology and rapidly changing customer expectations can upset the established order. Given the unstable state, describe the characteristics that separate winners and losers in high-tech markets.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the determinants of new product success and timeliness.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Comprehension 74. Research indicates that the most significant and profitable innovations that many leading-edge firms have introduced in the past decade emerged from an informal championing effort rather than from a highly structured planning system.

What implications does this raise for structuring the new product development process, for motivating and rewarding employees, and for nurturing creativity and risk-taking?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the strategic processes, both formal and informal, through which product innovations take shape and also consider the characteristics of innovation winners in high-technology markets.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - DISC: Group Dynamics Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies Bloom’s: Comprehension

75. Consider this position taken by Tom Peters in Thriving on Chaos: ―You must become what I call an executive champion-a nurturer, protector, facilitator, and interference runner for as many energetic champions as you can induce to sally forth.‖ Compare and contrast induced versus autonomous strategic behavior and describe the role that the product champion assumes in new product development.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the strategic processes, both formal and informal, through which product innovations take shape.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-01 - Explain the strategic processes, both formal and informal, through which product innovations take shape.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Comprehension 76. Successful new product creation is a collective achievement that requires the energy and commitment of multiple functions in the organization. Often, however, managers who represent different functional areas hold sharply different views concerning the course that product development should take. Discuss the source of this conflict.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the determinants of new product success and timeliness and the factors that drive a firm’s new product performance.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Comprehension 77. Research has isolated certain determinants of new product success in the business market. What factors are most important in determining the success of a new industrial product?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the factors that drive a firm’s new product performance.

POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Comprehension 78. What are the characteristics of lead user firms? What are the characteristics of lead user projects and how can the lead user method be used to develop new products?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the factors that drive a firm’s new product performance.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-04 - Discuss the determinants of new product success and timeliness.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Comprehension 79. What are the differences between a sustaining and disruptive innovation? Explain the differences in creating newgrowth businesses represented by sustaining innovations, low-end disruptions, and new market disruptions.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the characteristics of innovation winners in hightechnology markets.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 08-02 - Identify the characteristics of innovation winners in high-technology markets and learn how to apply the innovation flywheel concept to business market opportunities.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Creation of Value | DISC: - DISC: Creation of Value | DISC: Information Technologies KEYWORDS: Bloom’s: Comprehension

1. A pure service, by definition, accompanies the sale of a physical product. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Simultaneous production and consumption require that the service be done ―right.‖ a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. An emphasis on strict quality control standards is necessitated by service variability. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Planning capacity based on peak demand is necessitated by service variability. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. The more labor-intensive the service, the less uniform the output will be. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. Perishability of services may necessitate equating capacity with peak demand. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. Research suggests that responsiveness is most important to customers among the service quality dimensions. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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8. Hybrid service offerings can be classified based on whether the provider promises to perform a deed or to achieve a certain performance outcome. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. The service offer refers to the detailed service elements that make up the total services package. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. In marketing business services, logos, uniforms, and color schemes are examples of physical evidence of the actual service. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. Product lifestyle services refer to services that facilitate the customer’s access to a manufacturer’s product and ensure is functioning throughout the product’s useful life.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. The concept of tangibility helps the manager to focus clearly on the firm’s total market offering. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. For services, capacity is a substitute for inventory. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. The actual performance of the service provider is of little relevance compared to the customer’s perception of the service. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. Business-to-business service firms are more likely to emphasize transactional strategies as opposed to relationship strategies. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. A solution-centered approach starts with the product and leads to a solution that satisfies customers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. To effectively use a solutions perspective, business marketers need to define their unique capabilities and determine how to use them to help customers reduce costs, increase responsiveness, or improve quality. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Reliability, responsiveness, and empathy are all dimensions of service quality. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 19. Service quality encompasses the procedures, policies, and processes a firm uses to resolve customer service problems promptly and effectively. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 20. Hybrid Offerings known as Process Delegation Services (PDS) represent those services where a manufacturer performs specific processes on behalf of the customer. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 21. Demand for services is rarely steady or predictable enough to avoid service perishability.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 22. Research indicates that manufacturers typically earn a very high percentage of gross profits from the aftermarket, though it accounts for a very much smaller percentage of revenue. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 23. As covered in the text, political counseling involves lobbying government officials for changes in legislation that will make it easier to offer a new product or service to organizational customers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-02 - Explain the central role that business services assume in customer solutions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 24. As covered in the text, service recovery involves restoration of service once a dispute has been solved. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 25. A hybrid offering sales capability can best be described as the capacity to reach the key decision makers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 26. Assisting customers to increase their efficiency would be an example of process support services. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 27. From the following list, identify the item that is least likely to be considered a pure service. a. Market research b. Security and protection services c. After-sales equipment repair and maintenance d. Insurance ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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28. Many business offerings are composed of a combination of product and service elements. From the following, choose the correct ordering, from tangible dominant to intangible dominant, of the items listed. a. Industrial grease, executive management seminars, convention hotel b. Executive management seminars, industrial grease, convention hotel c. Convention hotel, industrial grease, executive management seminars d. Industrial grease, convention hotel, executive management seminars ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. Simultaneous production and consumption is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic. a. Planning capacity on the basis of peak demand b. Buyer-seller interaction requires that the service be done ―right‖ c. Focusing promotion on the advantages of non-ownership d. Using pricing and promotion to even out demand peaks and valleys ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. The degree of tangible-intangible dominance of an industrial offering refers to the: a. simultaneous production and consumption of the service. b. variability in the quality of the service. c. perishability of the offering. d. relative importance accorded, by the buyer, to tangible versus intangible elements.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to Copyright Cengage Learning. Powered by Cognero.

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product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. Service variability is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic. a. Buyer-seller interaction requiring that the service be done ―right.‖ b. Planning capacity on the basis of peak demand. c. Emphasizing strict service quality control standards. d. Using pricing and promotion to even out demand peaks and valleys.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. When the marketer invests in systems to minimize human error and seek approaches to automating the service, this relates to the service characteristic of: a. heterogeneity. b. perishability. c. simultaneous production and consumption. d. intangibility.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. In the production and sale of industrial services, productive capacity is often a substitute for inventory. In other words, capacity will reflect the level of demand which the service provider can meet. This is primarily in response to which service characteristic? a. Perishability b. Inconsistency c. Intangibility d. Inseparability ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. Concerning the nonstandardized nature of most industrial services, which of the following statements is incorrect? a. The more labor-intensive the service, the less uniform will be the output. b. As the extent to which equipment is utilized to produce the service increases, variability will increase. c. As automation of the service decreases, uniformity of the output will also decrease. d. It is important to develop systems to minimize human error.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. The interaction of the individual service provider with the customer may be the key element in the firm’s entire marketing strategy. This is an explicit recognition of which characteristic is unique to business services. a. Inseparability b. Perishability c. Variability d. Inability to stockpile ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. Buyers of business services often experience difficulty in evaluating service quality. Since it is difficult to evaluate quality: a. buyers tend to experience more perceived risk.

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b. buyers rely on the capacity available. c. buyers tend to experience less perceived risk. d. buyers tend not to trust delivery promises.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. When the business service marketer attempts to facilitate the customer’s evaluation process, this is in response to: a. the nonstandardized nature of services. b. the simultaneous consumption and production of services. c. perceived determinant attributes. d. the difficulty in evaluating service quality.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. In dimensions of service quality, customers focus on: a. hybrid offerings. b. responsibilities. c. assurance. d. knowledge gaps.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. In evaluating the quality of a service, which of the following dimensions is most important to customers? a. Empathy Copyright Cengage Learning. Powered by Cognero.

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b. Responsiveness c. Assurance d. Reliability ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. ―Delivering on promises‖ relates to which of the following dimensions of service quality? a. Empathy b. Responsiveness c. Assurance d. Reliability ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. Development of the marketing mix is contingent upon the customer segment to be served. How do customer service segments differ from product market segments? a. Service segments are often narrower than product segments. b. Service segmentation focuses on what business buyers need versus on what they expect. c. Service segments are often wider than product segments. d. The demand patterns of each service segment are very similar.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-02 - Explain the central role that business services assume in customer solutions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. The customer benefit concept refers to: a. a detailed listing of which services will be provided.

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b. guidelines for the delivery of the service product. c. the core benefit that the customer will derive from the service. d. the general benefits the service company will provide to the customer.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. In conceptualizing the service product, the service offer refers specifically to the: a. actual creation and delivery of the service product. b. detailed service elements that will make up the total services package. c. general benefits the service company will provide to the customer. d. benefits sought by customers.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. The __________ defines the general benefits the service company will provide in terms of the bundle of goods and services sold to the customer. a. customer-benefit concept b. service offer c. cross-selling concept d. service concept ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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45. In the marketing of business services, items such as uniforms, logos, guarantees, written contracts, and color schemes are examples of: a. determinant attributes. b. the service concept. c. the actual service offer. d. physical evidence of the actual service.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Which of the following capabilities are particularly critical to the successful launch of hybrid service offerings: a. design-to-service capability. b. demand elasticity on price changes. c. production capacity evaluation. d. customer engagement in the design process.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. Research on successful new service suggests that: a. the determinants of success for new services differ from those found for successful new products. b. a well-managed service development process is unimportant. c. successful projects provide clear customer benefits. d. a well-managed knowledge gap is necessary.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. Services are: a. deeds, processes, and performances. b. processes, pricing, and deliverables. c. performances, deeds, and pricing. d. performances, pricing, and deliverables.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. The concept of tangibility helps the manager to: a. focus clearly on the firm's product market offering. b. recognize that a change in one of the elements of the marketing offering may completely change the offering in the view of the customer. c. determine how to price the service. d. focus on the compatibility of the customers with each other.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Which of the following statements regarding the perishability of services is incorrect? a. Capacity is a substitute for inventory. b. The demand for services is often predictable and consistent. c. If capacity is set for peak demand, a service inventory must exist to supply the highest level of demand. d. Both—capacity is a substitute for inventory and if capacity is set for peak demand, a service inventory must exist to supply the highest level of demand.

ANSWER: d POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. When a manager is in charge of intangible and heterogeneous services, he/she should develop marketing strategies that: a. emphasize capacity. b. provide inseparable activities. c. employ value pricing. d. employ cost pricing.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. Recent research shows that business-to-business service firms are more likely to emphasize: a. relationship strategies as opposed to transactional strategies. b. arms-length strategies. c. the total buyer-seller process. d. both—relationship strategies as opposed to transactional strategies and the total buyer–seller process.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. Service quality benefits should be linked to: a. third-party capital. b. overhead. c. profitability. d. reduction in staff.

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ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. If a firm provides maintenance and repair services to its installed base of products at a customer location, then: a. the service attributes can be evaluated before purchase. b. the core service demand is inelastic. c. product usage data can be systematically gathered and used to tailor service offerings that advance customers’ goals. d. the service capacity becomes more important.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. When Xerox offers a Total Satisfaction Guarantee that allows customers to return copiers for any reason, this is an example of: a. word of mouth. b. service bundling. c. developing tangible clues. d. customer benefit.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. Which of the following is NOT true of the solutions-centered approach instead of a product-centered approach? a. Win by creating and delivering superior customer solutions.

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b. Value is decided by the firm. c. Relationship with customer is interaction-based. d. Quality focus on customer-firm interactions.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. Benefits of a solution-centered marketing strategy include: a. new avenues for growth. b. sustained differentiation and customer loyalty. c. both new avenues for growth and sustained differentiation and customer loyalty. d. developing the product first, followed by the solution.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. Differences between goods and services include: a. intangibility. b. variability. c. both profitability and variability. d. both intangibility and variability.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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59. Perishability is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic. a. Need to use promotion and pricing to even out demand patterns. b. Use physical cues in promotions to help customers evaluate service quality. c. Emphasize strict quality control standards. d. High-level training for service personnel.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. Non-ownership is a unique service characteristic. From the following list, choose the marketing implication most closely related to this characteristic. a. Need to use promotion and pricing to even out demand patterns. b. Need to emphasize the benefits of reduced labor and overhead. c. Use strict quality control standards. d. High-level training needed for service personnel.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. Which of the following is NOT a component of a firm’s service offering and customer-linking processes that affect customer satisfaction? a. Technical assistance and training b. Recovery process for fixing service problems c. Basic elements of the service offering expected by customers d. The competitor’s customer knowledge gap ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. __________ encompasses the procedures, policies, and processes a firm uses to resolve customer service problems promptly and efficiently. a. A value network b. Service recovery c. Service quality d. Service loyalty ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. The __________ is the product dimension of service, including decisions about the essential concept of the service, the range of services provided, and the quality and level of the service. a. service strategy b. service package c. service recovery d. service bundling ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. The service offer is linked with the service concept and also: a. spells out in more detail the service offering. b. when and to whom they will be provided. c. how they will be presented. d. All of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 09-06 - List the five dimensions of service quality evaluations and the five service quality gaps.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. Hybrid service offerings: a. may be a combination of services and products. b. have inelastic demand. c. come from a well-managed new-service-development process. d. have elastic demand.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. In following a ―solutions‖ strategy‖ for B2B services, solution effectiveness can be enhanced by the service provider by: a. Laying out a blueprint to guide customers on creating a solution. b. Documenting the history of prior employee solution engagements. c. developing complementary incentives for all of the staff that may be involved. d. training customers on the list of possible solutions.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-02 - Explain the central role that business services assume in customer solutions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. The critical point of contact is: a. interactive. b. real-time marketing. c. when the firm encounters negativity. d. both interactive and real-time marketing.

ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 68. Customer __________ represents the internal and subjective response a business customer has to any direct or indirect contact with a company. a. experience b. engagement c. delivery d. service ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 69. Instances where the customer has direct contact with either the product or service itself or with representatives of it by a third party, such as a channel partner are known as: a. layout design b. supply chain c. touchpoints d. customer engagement ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 70. The first step in understanding a customer’s experience is to develop a __________ map. a. journey b. life-cycle c. road d. solution ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 71. Service __________ means that services cannot be stored or stockpiled; if they are not provided at the time they are available, the lost revenue cannot be recaptured. a. solutions b. perishability c. capacity d. intangibility ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-03 - Contrast the special challenges faced by business service marketers compared to product marketers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 72. Treating customers as individuals exemplifies the __________ dimension of service quality. a. competence b. reliability c. empathy d. communication ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 73. The combined products and services into innovative value propositions for customers is known as: a. Shopping offerings b. Hybrid offerings c. Unsought offerings d. Convenience offerings ANSWER: b POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 74. The type of manufacturer’s capacity to integrate the product and service elements of the offering early in the development process to tap the full potential for revenue generation and/or cost reduction. a. Product capacity planning b. Workforce capacity planning c. Design-to-service capability d. Equipment capacity planning ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic KEYWORDS: Bloom’s: Knowledge 75. A large hospital in Chicago recently purchased four top-of-the-line, high-speed copiers from Xerox. The purchasing department carefully scrutinized several vendors’ quality, price, warranties, and service features prices before choosing Xerox. In the words of Jim Parker, the director of purchasing at the hospital, ―It was the quality that gave Xerox the edge.‖ Describe the role of service quality in this buyer–seller relationship. What factors may have shaped Jim Parker’s perception of service quality?

ANSWER: Answers will vary since the question requires the student to together combined various concepts covered in the chapter. In doing so, the student will consider what was covered about the segment to the roles that service quality, customer satisfaction, and loyalty assume in service market success.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - DISC: Group Dynamics KEYWORDS: Bloom’s: Comprehension 76. Automatic Data Processing (ADP) was born through an innovation that created a new business niche-a foolproof outside service to help small businesses meet their weekly payrolls. First, position this service on a product-service continuum for which the basic underlying variable is tangibility. Second, describe how ADP’s marketing strategy would differ from an office equipment manufacturer that called on the same small businesses.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was Copyright Cengage Learning. Powered by Cognero.

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covered in the segment pertaining to how offerings that combine products and services can be created to deliver innovative value propositions for customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 09-08 - Examine hybrid offerings that combine goods and services that can be created to deliver innovative value propositions for customers.

NATIONAL STANDARDS: United States - DISC: Group Dynamics KEYWORDS: Bloom’s: Comprehension 77. The development of marketing programs for both products and services can be approached from a common perspective. Yet, the relative importance of various strategic elements and the form of these strategic elements will differ between products and services. Explain.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the value of systematically monitoring and managing the customer experience.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 09-01 - Recognize the value of systematically monitoring and managing the customer experience (CX).

NATIONAL STANDARDS: United States - DISC: Group Dynamics KEYWORDS: Bloom’s: Comprehension 78. Explain the essentials of customer satisfaction evaluations: ANSWER: Traditionally, customer satisfaction is defined as a short-term, transaction-specific measure achieved when customer perceptions meet or exceed customer expectations.

Given this relationship, B2B marketers can increase customer satisfaction by (1) enhancing perceptions and/or (2) managing (decreasing) expectations. As a result, many management experts argue that service companies should carefully position themselves so that customers expect a little less than the firm can actually deliver. The strategy: under promise and overdeliver.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 09-05 - Explain the essentials of customer satisfaction evaluations.

NATIONAL STANDARDS: United States - DISC: Group Dynamics KEYWORDS: Bloom’s: Comprehension 79. Identify the fundamental components that comprise a service recovery process.

ANSWER: Service recovery encompasses the procedures, policies, and processes a firm uses to resolve Copyright Cengage Learning. Powered by Cognero.

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customer service problems promptly and effectively. This can be done using the following approaches: Organistic recovery approach—This reflects the ―supportiveness of the internal environment with respect to complaint handling. Research pertaining to service recovery cultures has found that organizations with positive cultures conduct business in a much more customeroriented manner, provide employees with a sense of focus and priority, and respond to customer complaints with a much more customer-oriented approach.

Mechanistic recovery approach—Firms that establish a formal service recovery program pursue a mechanistic recovery approach to service recovery. A complimentary relationship exists between organistic and mechanistic approaches, and both types of approaches impact customer complaining assessments. In other words, a recovery culture supports the development of formal recovery processes and vice versa.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 09-07 - Identify the fundamental components that comprise a service recovery process NATIONAL STANDARDS: United States - DISC: Group Dynamics KEYWORDS: Bloom’s: Comprehension 80. Because business marketers cannot always provide flawless service, the response to service problems is critical to future success. Explain how an excellent service recovery process can lead to a differential advantage for firms. How does a business marketer determine how much to spend on service recovery and service quality?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the central role that business services assume in customer solutions.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 09-02 - Explain the central role that business services assume in customer solutions.

09-04 - Identify the primary components of the service customer benefit concept.

NATIONAL STANDARDS: United States - DISC: Group Dynamics KEYWORDS: Bloom’s: Comprehension

1. Industrial distributors are generally large business firms that cover broad geographical markets. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. The industrial distributor takes title to the products sold but rarely maintains an inventory. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. A business marketer that uses industrial distributors will usually, as a matter of policy, not utilize any manufacturers’ representatives. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. A source of conflict between business marketers and their manufacturers’ representatives centers on the size of inventory levels reps maintain. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

5. Manufacturers’ representatives sell non-competing but complementary products. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. When a manufacturer sells through hundreds of distributors across the U.S., reps may sell and service the distributors. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. There are many situations in business marketing where a direct distribution channel is not feasible. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. The compensation to intermediaries should be based on loyalty, length of service, and past years’ sales performance. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. By retaining title to the goods, the business marketer has a higher level of channel control in a rep channel as opposed to a distributor channel. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. A business marketer serving many market segments would likely use a direct channel. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. Indirect distribution is appropriate when control of the selling job is necessary to ensure proper implementation of the total product package and to guarantee a quick response to market conditions. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. Industrial distributors provide an efficient channel path for products that are bought frequently, repetitively, and in small quantities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. Frequently, the manager has little flexibility in selecting channel structures because of trade, competitive, company, and environmental factors. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. Once a particular industrial channel structure is selected, channel participants must be selected, and arrangements made to ensure that all obligations are assigned. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. A direct sales force is best used for complex sales opportunities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Channel member motivation begins with the understanding that the channel relationship is a partnership. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. Business marketing channels typically include fewer types of intermediaries than consumer-goods channels. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. A multichannel model aims to coordinate the activities of many channels to enhance the total customer experience and Copyright Cengage Learning. Powered by Cognero.

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profitability. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. The two critical elements of the distributor’s function are to secure financing and have products readily available. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. The availability of good intermediaries and product characteristics are two factors that often limit the choice of industrial channels. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. The geographic dispersion of customers and competitive strategies have little influence on the choice of industrial channels. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. The backbone of channel design is the analysis of objectives, constraints, and channel activities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Smart, connected products tend to reduce the need for distribution channel partners. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. CRM has improved channel coordination. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

25. Manufacturers’ representatives are the manufacturer’s buying arm. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. Manufacturers’ representatives are paid on a salary basis. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. The channel strategy that does not utilize any manufacturers’ representatives, industrial distributors, or other kinds of intermediary is referred to as: a. indirect distribution. b. selective distribution. c. direct distribution. d. exclusive distribution.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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28. The channel strategy that involves the utilization of one or more intermediaries is referred to as: a. indirect distribution. b. direct distribution. c. selective distribution. d. exclusive distribution.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. The most appropriate channel of distribution for an industrial product is: a. direct. b. indirect. c. one that relies on the firm’s sales force. d. dependent upon a host of product, company, market, and competitive conditions.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. The need to employ more than one type of industrial channel of distribution arises as a result of: a. different target markets sought by the firm. b. a geographically concentrated market. c. different marketing tasks associated with different products produced by the firm. d. both a different target markets sought by the firm and different marketing tasks associated with different products produced by the firm.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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31. The largest proportion of sales handled by industrial channel members is accounted for by: a. brokers and jobbers. b. brokers and commission merchants. c. manufacturers’ representatives and industrial distributors. d. jobbers and industrial distributors.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. Services provided by industrial distributors includes all of the following other than: a. repair b. credit. c. maintenance. d. research and development.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. The industrial distributor: a. takes title to the product sold. b. occasionally does some assembly and manufacturing work. c. provides delivery. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

34. A distributor classification, the combination house: a. operates in two sectors of the industrial market. b. operates a chain of distributorships. c. operates in both the industrial and consumer markets. d. does not take title to the goods handled.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. Generally, manufacturers’ reps: a. take title to the products handled. b. are restricted to a limited geographical area. c. hold inventory. d. provide customers with prompt delivery.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. Manufacturers’ reps: a. possess expert product knowledge. b. sell non-competing but complementary products. c. take title to the goods handled. d. both possess expert product knowledge and sell non-competing but complementary products.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as Copyright Cengage Learning. Powered by Cognero.

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marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. Concerning the compensation of manufacturers’ representatives, the business marketer compensates them on the following basis: a. percentage commission. b. a salary. c. salary plus commission. d. varies by product category.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. A business marketer who places the highest priority on achieving control in the channel of distribution should use: a. a direct channel. b. a channel that includes numerous industrial distributors. c. a channel that includes numerous manufacturers’ representatives. d. a channel that includes numerous commission merchants.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. The first step in the channel design process is to: a. determine channel design constraints. b. define customer segments c. outline key channel alternatives. d. determine the tasks to be performed by the channel.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. Which of the following statements concerning selecting industrial channel structures is (are) true? a. Frequently, the manager has little flexibility in the selection because of trade, competitive, company, and environmental factors. b. The channel should be viewed as a set of channel institutions rather than as a sequence of activities to be performed. c. Competitors often have the better intermediaries ―locked up.‖ d. Both—frequently, the manager has little flexibility in the selection because of trade, competition, company, and environmental factors, and competitors often have the better intermediaries ―locked up.‖ ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. In specifying channel alternatives, which of the following issues is(are) involved? a. Determining the levels of competition. b. Determining the number of members possible. c. Determining the types of intermediaries to employ. d. Determining the market segments possible.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. Industrial products that are complex, unique, and made to order are more frequently sold through: a. direct channels. b. indirect channels. c. manufacturers’ representatives. d. industrial distributors.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. Factors that contribute to the use of more than one distribution channel for the same product include: a. various market segments are served. b. the needs and buying processes employed by prospective customers varies. c. both—various market segments are served and the needs and buying processes employed by prospective customers vary. d. none of the answer choices.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. Which of the following channels would give the business marketer the greatest amount of channel control? a. A channel consisting of merchant wholesalers b. A channel composed of industrial distributors c. A channel consisting of manufacturers’ reps d. A channel composed of jobbers ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. The compensation provided to industrial channel members should reflect: a. the length of service of the channel member. b. the nature of the marketing tasks performed by the channel member. c. the loyalty of the channel member.

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d. the amount of market potential available in the territory.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Manufacturers who wish to strengthen the dependence that channel members have on them could: a. reduce commissions. b. encourage channel members to carry the firm’s lower margin products. c. increase marketing support and promotion to enhance the profitability of channel members. d. decrease the marketing support to lower the margin of channel members.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. Robert Morgan and Shelby Hunt suggest that relationship commitment and trust develop when: a. firms align themselves with partners that have distinctly different corporate values. b. firms share valuable information on expectations, markets, and performance. c. firms offer benefits and resources that are superior to what other partners could offer. d. firms share valuable information on expectations, markets, and performance and firms offer benefits and resources that are superior to what other partners could offer.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. A direct sales force is best used for: a. highly standardized solutions.

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b. simple transactions. c. small customers. d. complex products.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. The industrial distributor’s primary responsibilities include all of the following except: a. contact. b. repair. c. product availability. d. research and development.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. __________ cater to a broad array of industrial goods. a. Specialists b. A combination house c. General-line distributors d. Direct channels ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. There is a trend toward __________ as a result of the increasing technical complexity of products.

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a. general-line distributors b. combination houses c. specialists d. brokers ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. A recent poll asked distributors which business strategies would have the largest impact on them in the future. The top two factors were: a. collaboration with supply chain partners. b. new information technologies. c. the increase in general-line distributors d. both collaboration with supply chain partners and new information technologies.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. Manufacturers’ reps are most likely used: a. by large firms. b. when there is unlimited market potential. c. to eliminate significant overhead costs. d. both by large firms and to eliminate significant overhead costs.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

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54. The manufacturer-rep channel is generally used when: a. the firm is large. b. the product is not technically complex. c. the product is not standard but is closer to made-to-order. d. there is a geographic concentration of buyers.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. The primary reason for using more than one type of intermediary for the same product is: a. the gross margin is not large. b. the product tends toward technical complexity. c. different market segments require different channel structures. d. the product is not standard but is closer to made-to-order.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. When evaluating alternative channels, compare both systems on the basis of: a. customer service and performance. b. performance and structure. c. structure, cost, and performance. d. costs, customer service, performance, and structure.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

57. When evaluating channel alternatives, if the existing channel is about as good as it can be and if customer satisfaction is low: a. an alternative channel should be utilized. b. the fault is not with the channel design, it is with poor management. c. the existing system can be changed without sacrificing management goals. d. none of the answer choices.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. When evaluating channel alternatives, if the feasible system lies between the ideal and existing system, then: a. the existing system can be changed without sacrificing management goals. b. relaxing management constraints might produce even greater benefits. c. the fault is not with the channel design, it is with poor management. d. both the existing system can be changed without sacrificing management goals and relaxing management constraints might produce even greater benefits.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. Techniques for motivating individual channel members include all of the following except: a. dealer advisory councils. b. competitive compensation. c. building trust. d. channel design changes.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. Which of the following are tasks that are performed by channels of distribution? a. Financing, storage, transportation b. Financing, storage, direct marketing c. Transportation. Storage, direct marketing d. Transportation, financing, direct marketing ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. Use of a direct sales force is best for: a. highly customized solutions. b. smaller customers. c. both complex products and smaller customers. d. both highly customized solutions and complex products.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. Business marketing firms can use e-channels firms to provide all of the following, except: a. information platforms. b. transaction platforms. c. customer relationship management platforms. d. commission platforms.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. What percentage of U.S. Gross Domestic Product is sold through indirect distribution channels? a. 10% b. 25% c. 40% d. 60% ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. __________ are generally small, independent businesses serving narrow geographic markets. a. Distributors b. Channel partners c. Manufacturers’ representatives d. Broker houses ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. Responsibilities for distributors include: a. making products available. b. repair. c. providing service and technical advice. d. All of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. In the classification of distributors, __________ focus on one line or a few related lines. a. general-line distributors b. combination houses c. specialists d. brokers ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. Manufacturers’ representatives are used: a. by larger firms. b. when a manufacturer’s market potential is limited. c. to support lower prices. d. to support premium prices.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. __________ is the dynamic process of developing new channels where none existed and modifying existing channels. a. Channel structure b. Channel design c. Channel choice d. Channel partnering ANSWER: b POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 69. Channel length increases: a. when the purchase becomes more significant. b. when market or industry concentration increases. c. when customer potential increases. d. when customers are small and have unique buying needs.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. When motivating channel members, the primary motivating device tends to be: a. dealer advisory councils. b. trust. c. compensation. d. strong relationships.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. Selecting the best channel of distribution to accomplish objectives can be difficult because: a. the alternatives are so numerous. b. marketing goals are similar. c. separate channels address the same customer segments. d. omnichannel structures are declining.

ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 72. Channel design involves: a. developing new channels. b. modifying existing channels. c. simply allowing channels to evolve into effective channels. d. both developing new channels and modifying existing channels.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 73. A key to omnichannel success that helps B2B customers identify and understand their options as well as the total value of a solution is called: a. trust b. transparency c. speed d. competence ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 74. What involves giving prospective buyers instant access to information when, how, and where they want it is known as: a. trust b. transparency c. speed d. competence Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 75. The primary responsibility of __________ salespersons is to take telephone orders, processing orders, and schedule delivery. a. telemarketing b. outside c. inside d. b2b ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 76. Full-service intermediaries that take title to the products they sell and perform the full range of marketing functions are known as: a. disruptors b. suppliers c. distributors d. customers ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 77. A system that harmoniously integrates functions that allow prospective customers to discover, research, evaluate, purchase, and reorder products is known as: Copyright Cengage Learning. Powered by Cognero.

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a. social media channel b. omnichannel c. demand generation d. advertising ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 78. The last step of the channel design process is: a. analyze the consumer b. establish channel objectives c. evaluate and select channel alternatives d. evaluate performance ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 79. The surest way to lose intermediary support is __________ policies that do not meet industry and competitive standards. a. internal b. compensation c. legal d. functional ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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80. An Arizona-based high-technology firm, Three Five Systems, produces component parts sold to cellular phone manufacturers and a diverse set of customers across several industry sectors. The firm uses a corporate sales force for large customers, like Motorola. It relies on a mix of manufacturers’ reps and/or industrial distributors to serve small- and medium-sized customers.

The top management team at Three Five Systems would like you to audit the firm’s channel strategy. These executives are concerned that rapidly changing customer needs have created important gaps in the firm’s market coverage and market offerings. Describe the specific steps that you would follow in conducting this audit and highlight the particular questions that you would emphasize in the assessment.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the central components of channel design.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 81. A medium-sized industrial firm plans to expand their operations next year significantly and is considering a change in channel structure. Discuss five (5) questions you would ask them to help you determine whether they should use their own sales force, reps, or industrial distributors.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the alternative paths to business market customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 82. Describe specific product, market, and competitive conditions that lend themselves to: (a) a direct channel of distribution and (b) an indirect channel of distribution.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the alternative paths to business market customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-01 - Explain the four types of marketing channels and the reasons for their existence.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 83. A large consumer goods company recently entered the business market with a new product with broad industrial application. They must develop a channel of distribution through which the product will be sold. Discuss, generally, the key factors the company must evaluate in designing the channel.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the central components of channel design.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 84. Since all organizations or member firms that comprise the business marketing channel are interested in achieving important profit goals, why does conflict often emerge in the channel, and what steps can the business marketing manager take to control it?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to requirements for a successful channel strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 85. Explain the important product/market factors that lend themselves to business marketers’ use of manufacturers’ representatives.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the critical role of industrial distributors and manufacturers’ representatives in marketing channels.

POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 86. Discuss the primary participants in a business marketing channel.

ANSWER: The primary participants in business marketing channels are distributors and reps.

Distributors provide their suppliers the full range of marketing services, although customer contact and product availability are their most essential functions. Manufacturers’ representatives specialize in selling, providing their suppliers with quality representation and extensive product and market knowledge. The rep is not involved with physical distribution, leaving that burden to the manufacturers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-02 - Contrast the roles of industrial distributors and manufacturer’s representatives as marketing channel participants.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 87. Describe the major factors that limit the choice of industrial channels for business marketers.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the central components of channel design and consider the alternative paths to business market customers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-03 - List the specific steps for designing a channel of distribution to serve business market customers.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 88. Discuss the central objective to channel management. How does the channel design process hinge on the customer?

ANSWER: The central objective of channel management is to enhance the value delivered to customers through the carefully orchestrated activities of channel partners. The channel design process hinges on deep knowledge of customer needs, and the channel structure must be adjusted as customer or competitor behavior changes. Selection and motivation of channel partners are Copyright Cengage Learning. Powered by Cognero.

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two management tasks vital to channel success. The business marketing manager may need to apply inter-organizational management techniques to resolve channel conflict. Conflict can be controlled through various means, including channel-wide committees, joint goal-setting, and cooperative programs that demonstrate trust and commitment.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 10-04 - Recognize the role of channel administration it pertains to channel member selection and channel member motivation.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. A well-managed supply chain ultimately creates tangible benefits for customers throughout the supply chain. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Properly implemented, supply chain management will lead to longer order-to-delivery cycle time. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. Firms that adopt supply chain management generally find that costs increase but are more than offset by higher profit margins and revenue growth. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. For innovative products, the goal is to design a supply chain that minimizes logistics and inventory costs and assures low-cost manufacturing. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. For supply chain management, functional products typically have predictable demand patterns, while innovative products do not. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. If the costs of each logistical activity are minimized, total logistical costs for the enterprise will be minimized. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. An increase in the supplier’s delivery time performance permits a buyer to hold less inventory. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. If the business marketer can offer a buyer more consistent delivery performance from the logistical system, the buyer would be able to cut the level of safety stock maintained. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. The longer the delivery time in the logistical system, the more inventory customers must maintain to service their needs. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Not all products nor all customers require the same level of logistical service. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. Warehousing is usually the largest single logistical expense. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. Although air provides the lowest average delivery time, generally it has the highest variability in delivery time relative to the average. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. As a customer adopts JIT purchasing, the typical order size shrinks, and more frequent deliveries are required. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. Some firms are reluctant to use third-party logistics firms because they wish to maintain direct contact with customers and retain control over the logistics process. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. The faster modes of transportation result in higher levels of customer service and higher inventory investments. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Supply chain management, as a source of competitive advantage, should be seen as a source of revenue and a means of reducing costs. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. The underlying premise of SCM is that waste reduction and enhanced supply chain performance come only when there is both intrafirm and interfirm functional integration, sharing, and cooperation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Recent evidence suggests that firms that stumble in the SCM area are punished by the stock market. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. Speed of service is usually more important than service consistency. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

20. Supply chain management is both a boundary and function spanning endeavor. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. Waste reduction, time compression, and flexibility are all goals of supply chain management. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. Logistics management is primarily concerned with movement and storage activities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-04 - Explain why logistics is a critical element of supply chain management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Materials handling is the controllable element of a logistics system that relates to the effectiveness of creating time and place utility.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Va - DISC: Strategy | Creation of Val DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. The two performance variables that must be considered when managing logistical activities are the total distribution costs and the level of logistical service. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. Service consistency is usually more important than the average delivery time when evaluating transportation performance. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. Reasons for having inventories in business channels include the inability of business customers to predict their demand perfectly and operational problems in the logistics system that can cause stockouts. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. Time compression enables supply chain partners to more easily observe and understand the cumulative effect of problems that occur anywhere in the chain and respond quickly. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. One problem with SCM is its negative effect on cash flow. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. As global business expands, the odds of a major or minor supply chain disruption decrease. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. SCM is focused on the integration of ALL business processes that add value for customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-04 - Explain why logistics is a critical element of supply chain management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. According to the text, airfreight may be almost ten times more expensive than motor freight. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. The supply chain includes a variety of firms, ranging from those that process raw materials to make component parts to those engaged in wholesaling. Included also are organizations engaged in: a. warehousing. b. transportation. c. both warehousing and transportation. d. recycling.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

33. To integrate activities across the supply chain, supply chain management often: a. requires that firms in the supply chain share sensitive and proprietary information about customers and corporate plans. b. creates excess inventory in the pipeline leading to the customer. c. involves higher transportation and handling costs. d. both creates excess inventory in the pipeline leading to the customer and involves higher transportation and handling costs.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. Supply chain management seeks to achieve which of the following goals? a. Volume reduction b. Unit cost reduction c. Standardized response d. Market share expansion ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. A firm that can respond to a customer’s unique requirements for packaging and order size in a cost-effective manner is addressing which of the following supply chain goals? a. Time compression b. Waste reduction c. Unit cost reduction d. Flexible response ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. The most commonly reported benefits for firms that adopt supply chain management are: a. both higher profit margins and enhanced cash flow. b. enhanced cash flow. c. higher order-to-delivery cycle time. d. establishing new customer accounts ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. The supply chains for products that could be categorized as ―innovative‖ (e.g., high-tech products) differ from the supply chains for functional products because: a. demand is more predictable for innovative products. b. attention centers on capturing high profits during peak demand periods for innovative products. c. minimizing inventory capacity is a major concern with innovative products. d. demand cannot keep up with supply of innovative products.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. In contrast to ―innovative‖ products, the supply chain for functional products is designed to: a. minimize logistics and inventory costs. b. assure low-cost manufacturing. c. adapt production capacity to uncertain demand patterns. d. both minimize logistics and inventory costs and assure low-cost manufacturing.

ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. Many U.S. manufacturers have adopted the just-in-time (JIT) purchasing principle. Concerning this trend, all of the following statements are accurate except: a. One objective of a JIT system is to eliminate waste of all kinds from the production process. b. Because JIT attempts to relate purchases to production requirements, the typical order size increases. c. A significant effect of JIT purchasing has been the drastic reduction in the number of suppliers utilized by manufacturers. d. Both because JIT attempts to relate purchases to production requirements, the typical order size increases, and a significant effect of JIT purchasing has been the drastic reduction in the number of suppliers utilized by manufacturers. Suppliers find that relationships with JIT customers are longer lasting.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. In serving JIT customers, business marketers find that: a. the typical order size varies. b. more frequent deliveries are expedited to express shipping. c. relationships with JIT customers are long lasting, and often formalized with a written contract that may be spanning up to five years. d. the increased number of deliveries reduces the carbon emissions.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. As a controllable element in the logistics system, __________ triggers the logistics process and directs the activities necessary to deliver products to customers.

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a. order processing b. customer service c. production planning d. inventory management ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. In applying the total cost approach to logistical management, management: a. seeks to minimize the cost associated with each logistical activity in the firm. b. attention centers on minimizing transportation costs. c. attention centers on minimizing inventory costs. d. recognizes that a decision made for one logistical variable affects all or some of the other logistics variables.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. In the management of logistical activities, the performance variable(s) of prime interest (is) are: a. the number of products handled. b. total distribution costs. c. inventory movement per warehouse facility. d. the level of logistical service provided to customers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. Regarding logistical service, the business marketer should: Copyright Cengage Learning. Powered by Cognero.

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a. provide the same level of logistical service to all customers. b. adjust the level of logistical service for different segments based on the requirements of the product type. c. adjust the level of logistical service for different segments based on customer requirements. d. both adjust the level of logistical service for different segments based on requirements of the product type and adjust the level of logistical service for different segments based on requirements of the customer.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. A business marketer that provides erratic delivery service to industrial distributors: a. increases the distributor’s inventory carrying costs and damages channel relations. b. creates stockouts at the distributor level and damages channel relations. c. damages channel relations and third-party logistics. d. increases the distributor’s inventory carrying costs, creates stockouts, and damages channel relations.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. The warehouse circumvents the need for premium transportation (for example, air freight) and costly order processing by keeping products readily available in local markets. Which type of warehousing involves no capital investment and offers the advantage of flexibility—the firm can increase or decrease its use of space in a given market? a. Merchant b. Mobile c. Fixed d. Third-party ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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47. The use of faster modes of transportation within the logistical network results in: a. lower variable costs for product movement. b. higher customer service levels. c. lower investments in inventory. d. lower net carbon emissions.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. __________ is typically the largest logistics expense. a. Warehousing b. Inventory control c. Transportation d. Order processing ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. Concerning speed of service in the logistical system, which of the following is(are) accurate? a. The longer the delivery time, the more inventory customers must maintain to service their needs while the shipment is in transit. b. The slower modes of transportation involve higher variable costs for product movement. c. The faster modes of transportation result in the need for higher inventory investments by customers. d. Both the slower modes of transportation involve higher variable costs for product movement, and the faster modes of transportation result in the need for higher investments in inventory by customers.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

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50. A business marketer who shifts from rail to air in the logistical system would likely generate: a. higher variable costs associated with product movement. b. reduced net carbon emissions c. reduced customer service level. d. increased elapsed time to move products.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. The ―best‖ mode(s) of transportation to use in moving industrial products to customers is: a. rail and air. b. air and truck. c. truck, air. and barge. d. dependent upon cost, service, and investment tradeoffs.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. The use of slower modes of transportation within the logistical network results in: a. lower variable costs for product movement. b. higher customer service levels. c. higher investments in inventory. d. both lower variable costs for product movement and higher investments in inventory.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

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53. An emerging development in performing the logistics process is the utilization of third-party logistics firms. Thirdparty logistics firms can: a. perform the warehousing function. b. perform the transportation function. c. perform the entire logistics process from production scheduling to delivery of finished goods to the customer. d. all of the answer choices. e. both perform the warehousing function and perform the transportation function.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. The advantages of third-party warehouses are that they allow the business marketing firm to: a. increase or decrease warehouse space in a given market. b. include the need to add a distributor channel. c. replace transportation solutions. d. focus on operating and logistics costs.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. Despite the advantages, some firms are reluctant to use third-party logistics firms because: a. of the diminished direct contact with customers. b. they lose direct control of the logistics process and because of the problems associated with terminating internal operations. c. delivery times are standardized. d. of the diminished direct contact with customers, the problems associated with terminating internal operations, and because they lose direct control of the logistics process.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. Which of the following statements are false regarding Supply Chain Management? a. SCM is one of the predominant management approaches driving many organizations. b. The supply chain is increasingly seen as the main conduit for getting products from its source to the ultimate customer. c. The supply chain touches almost every function within the organization. d. The supply chain has the least impact on customer satisfaction and the greatest potential for improving the bottom line and enabling competitive advantage.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. Supply chains should manage __________ in an integrated manner across organizational borders. a. relationships and information b. information and material flow c. material flow and profit margins d. relationships, information, and material flow ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. Which of the following statements is false regarding supply chain management? a. SCM seeks to create an overlap among participants in the supply chain. b. Traditional supply chains openly share information across the supply chain. c. Non-integrated approaches to managing product and information flows are expensive and time-consuming. d. Aligning both internal and external processes is the ultimate goal of SCM. ANSWER: b POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. The underlying premise of SCM is that waste reduction and enhanced supply chain performance are at their highest levels when there is both intrafirm and interfirm: a. functional integration. b. sharing. c. cooperation and sharing. d. functional integration, sharing, and cooperation.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. Waste reduction throughout the supply chain is accomplished by minimizing: a. duplication. b. intrafirm sharing. c. slower modes of transport. d. demand volume.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. The Internet has allowed business marketers to realize several supply chain related benefits, including more timely: a. product development. b. access to new customer segments. c. reduction in communication and customer support costs.

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d. product development, reduction in communication and customer support costs, and access to new customer segments.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. Which of the following statements is false regarding the relationship of the Internet and SCM? a. The Internet promotes efficiency across the supply chain. b. The Internet promotes effectiveness across the supply chain. c. The Internet permits suppliers to gain real-time knowledge of their customer’s needs for materials and components. d. The Internet has provided companies opportunities to increase channel inventories.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Which of the following is false regarding supply chain management? a. The focus of logistics is the flow of product through the supply chain. b. Timely information drives the entire supply chain process. c. Product flow in the reverse direction is an important aspect of supply chain management. d. Supply chain management is synonymous with customer relationship management.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-04 - Explain why logistics is a critical element of supply chain management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. The mechanism to trace the cost of performing logistics services to the customers that use these services is called: Copyright Cengage Learning. Powered by Cognero.

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a. ABC b. TCO c. JIT d. SCM ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-06 - Compare alternative methods for calculating logistical costs.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. Inventories are needed in business channels because: a. production and demand are perfectly matched. b. operating deficiencies in logistical system often result in product unavailability. c. business customers can predict their product needs with certainty. d. both production and demand are perfectly matched and business customers can predict their product needs with certainty.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. A firm that is able to accomplish production and logistics processes in less time is addressing which of the following supply chain management goals? a. Waste reduction. b. Time compression. c. Flexible response. d. Unit cost reduction.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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67. A firm that is able to lower costs through: minimizing duplication, harmonizing operations, and enhancing quality is addressing which of the following supply chain management goals? a. Waste reduction b. Time compression c. Flexible response d. Inventory reduction ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. As a controllable element in the logistics system, __________ ensures that products are available for inventory in the correct assortment and quantity. a. production planning b. plant and warehouse location c. customer service d. inventory control ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 69. As a controllable element in the logistics system, __________ relates to the effectiveness of creating time and place utility. a. customer service b. order processing c. inventory control d. production planning ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. As a controllable element in the logistics system, __________ ensures that information exchanged in the distribution process guides the activities of the logistics system. a. customer service b. order processing c. logistics communications d. inventory control ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. __________ is the integration of business processes from end user through original suppliers that provides products, services, and information that add value for customers. a. Customer relationship management b. Supply chain management c. Logistics management d. A marketing plan ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 72. The final stage in the adoption of supply chain management, where companies have successfully aligned both their internal and external processes, is called the: a. Expanded Enterprise stage. b. Internal Process Integration stage. c. Informal stage. d. Functional stage.

ANSWER: a POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 73. The key to maintaining a competitive advantage through supply chain strategies is to: a. the ability to adapt to changes. b. the ability to maintain low cost relationships with partners. c. the ability to continuously develop successful new products. d. continue purchasing the most advanced supply chain software and technologies.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 74. For a supply chain partnership to succeed, which of the following are true? a. Partners need to clearly define their strategic objectives. b. Managers in both organizations need to equally divide decision-making responsibilities. c. Partners use performance metrics that are tied to chosen strategies. d. Both partners need to clearly define their strategic objectives and use performance metrics that are tied to chosen strategies.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 75. When compared to logistics management, supply chain management is: a. broader. b. less integrative. c. is focused on moving and storing activities. d. less customer focused.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-04 - Explain why logistics is a critical element of supply chain management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 76. Common elements of logistics service include: a. delivery time. b. order accuracy. c. cost-per-unit. d. both delivery time and order accuracy.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 77. __________ is the variable cost of moving products from origin to destination, including any terminal and accessory charges. a. Speed of service b. Transportation consistency c. Cost of service d. Fixed cost ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-07 - Explain the importance of logistical service as a measure of supplier performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 78. The focus of __________ in the supply chain for business marketers is the flow of product through the supply chain, with timely information driving the entire process. a. service b. consistency c. logistics Copyright Cengage Learning. Powered by Cognero.

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d. costs ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-04 - Explain why logistics is a critical element of supply chain management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 79. The __________, or trade-off, approach to logistical management guarantees to minimize total logistical costs in the firm and within the channel. a. 4PL b. total-cost c. time-efficiency d. 3PL ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: DISC: Strategy | Creation of Value 80. The __________ increases the speed of, and reduces the cost of, picking orders in the warehouse and moving products between storage and the transportation carriers. a. outbound logistics b. materials handling c. cost of service d. fixed cost ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 81. A measure of the physical conditions of the product when received by the buyer is known as __________, this common element of logistics service. a. possession Copyright Cengage Learning. Powered by Cognero.

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b. damage c. transportation d. logistics ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-08 - Identify the key components of business-to-business logistical management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 82. Innovative approaches to tighten the distribution process, bolstering links with suppliers and customers, and integrating production and marketing is described by the term __________ management. a. distribution b. transportation c. cost of service d. supply chain ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 83. Central to SCM are the coordination and collaboration activities performed with channel partners, which may include: a. Transportation costs b. Third-party service providers c. Channel marketing d. Fixed cost ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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84. Supply chain management can improve overall company performance in two fundamental ways: __________ and __________. a. transportation consistency; supplier support b. transportation consistency; cost reduction c. revenue enhancement; transportation consistency d. revenue enhancement; cost reduction ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 85. When designing the supply chain, firms should concentrate on creating __________ processes for functional products and __________ processes for innovative products. a. responsive; effective b. effective; responsive c. efficient; responsive d. efficient; effective ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 86. SCM requires __________ not only among departments within the organization but also with external partners. a. integration b. trustworthiness c. support d. management ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 87. Rather than Ford competing with Honda on a firm-to-firm basis, some experts argue that the true competitive battle involves Ford’s supply chain versus Honda’s supply chain. Define the supply chain management concept and relate it to the competitive rivalry between Ford and Honda.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the importance of integrating both firms and functions throughout the entire supply chain.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 88. By reducing waste, compressing time, reducing unit costs, and by demonstrating a flexible response, Dell Computer achieves the four major goals of supply chain management. Briefly describe the meaning and significance of each of these goals to a firm like Dell.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the importance of integrating both firms and functions throughout the entire supply chain.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 89. What are the most commonly reported financial benefits that accrue to firms that excel in supply chain management?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the role of supply chain management in business marketing strategy.

POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-01 - Explain the four major goals of supply chain management that are utilized as a tool for competitive advantage.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 90. The Ford Motor Company’s electronic components plant in Lansdale, Pennsylvania produces 124,000 engine controllers, anti-lock brake sensors, and speed-control units a day. Since each product has 400 to 500 parts, managers have to keep track of more than five million individual pieces daily. Lean inventories and quick production changeovers require dependable suppliers. To maintain tight control, Ford issues a monthly report card to suppliers listing quality rejects, conformance with schedule, and over-shipments. In the words of the plant manager, ―this puts our relationship with them on an objective basis.‖ Describe the particular logistical capabilities that a business marketer must possess to successfully meet the requirements of this highly sophisticated Ford plant. Explore other elements of the business marketing strategy that may be crucial in initiating and sustaining a profitable relationship with this customer.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the critical role of logistics activities in achieving supply chain management goals and also consider the importance of achieving high levels of logistics service performance while simultaneously controlling the cost of logistics activities.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 91. Rather than waiting for customers in the business market to demand just-in-time (JIT) service, explain how a business marketer could proactively seek out opportunities to assist customers using JIT inventory management as a marketing strategy. To implement such a strategy, what adjustments would be required in the logistical system?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the importance of achieving high levels of logistics service performance while simultaneously controlling the cost of logistics activities.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension Copyright Cengage Learning. Powered by Cognero.

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92. Discuss the importance logistics plays in managing a supply chain.

ANSWER: Logistics is the critical function in the firm’s supply chain because logistics directs the flow and storage of products and information. Successful supply chains synchronize logistics with other functions such as production, procurement, forecasting, order management, and customer service. The systems perspective in logistical management cannot be stressed enough—it is the only way to assure management that the logistical function meets prescribed goals. Not only must each logistical variable be analyzed in terms of its effect on every other variable, but the sum of the variables must also be evaluated considering the service level provided to customers. Logistics elements throughout the supply chain must be integrated to assure smooth product flow. Logistical service is critical in the buyer’s evaluation of business marketing firms and generally ranks second only to product quality as a desired supplier characteristic.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-05 - Demonstrate the strategic role of logistics.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 93. What is the total-cost approach to developing a logistical system? Explain what variables should be considered when designing and administering a logistical system aimed at utilizing the total-cost approach.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the importance of achieving high levels of logistics service performance while simultaneously controlling the cost of logistics activities.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-03 - Identify the six strategies for increasing supply chain resilience.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 94. Describe key drivers, expected objectives, and possible barriers or challenges to supply chain management.

ANSWER: A key driver to SCM is coordination and integration among all the participants in the supply chain, primarily through sophisticated information systems and management software.

Reducing waste, minimizing duplication, reducing cost, and enhancing service are the major objectives of SCM. As a host of unexpected events have served to upset the established order in recent years, the ability to avoid, absorb, and recover from the business impact of major supply chain disruptions became a strategic priority. B2B companies can increase supply chain relevance in a number of ways, from adding inventory buffers and multisource to nearshoring and ecosystem partnerships. Firms successful at managing the supply chain understand the nature of their products and the type of supply chain structure required to meet the needs of their customers. In particular, effective supply chains integrate operations, share information, and above all, provide added value to customers.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 11-02 - Contrast the supply chain management approaches for functional and innovative products.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. Organizational buyers tend to associate high price with high quality. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Business marketers should base their pricing decisions solely on cost and competitive considerations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. If the business marketer’s product input plays an insignificant role in the final product’s total cost, demand is likely elastic. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Success in penetrating a buying organization with one item often means success for other items in the product line. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. The most strategic response to a competitor’s price attack is to match the price cut immediately. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. To sustain profitability, price reductions should be avoided by strategists in hypercompetitive environments. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

7. The value customers assign to a firm’s offering can vary by market segment because of how the product will be used. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. Buyers tend to be price sensitive when they can switch from one supplier to another without incurring additional costs. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. The importance of the business marketer’s product as an input into the total cost of the end product influences demand elasticity. If the business marketer’s product has an insignificant effect on cost, demand is likely to be inelastic. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. In response to a competitor’s price cut, one important question to address is, ―If we respond, will our competitor merely reduce the price again to restore the price difference?‖ a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. Price elasticity of demand is not the same at all prices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. Total revenue will increase if the demand is price elastic and the price is decreased. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. Low switching costs allow a buyer to focus on minimizing the cost of a particular transaction. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. Raw materials are an example of indirect traceable costs. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. According to the Robinson-Patman Act, price differentials are permitted, but they must be based on cost differences or the need to meet competition. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Because making competitive bids is costly and time-consuming, firms should choose potential bid opportunities with care. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

17. Differentiation value is the value associated with product features that are unique and different from competitors a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. Recent research indicates that highly satisfied customers are just as sensitive to price changes as customers with low to moderate levels of satisfaction. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. The goals of a cost-classification system are to properly classify cost data as fixed and variable components and to link costs to the activities causing them properly. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. A penetration pricing policy is optimal if there is a relatively low repurchase rate for durable goods. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. If demand is truly inelastic, cutting prices will decrease revenue. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. Target costing is a customer-oriented approach in which the seller keeps price down so as to help keep the buyer’s cost down. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Price skimming may be a good idea when introducing a new product in which it is not clear what price to charge initially. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. Cost-justification guidelines are useful not only when making pricing decisions but also when providing a legal defense against price discrimination charges a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. When responding to a price attack by an aggressive competitor, it is best to fight them by using their own rules. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. From an organizational buyer’s perspective, the cost of an industrial good: a. is equal to the seller’s price. b. is equal to the seller’s price plus order processing costs. c. includes not only the seller’s price, but also transportation, installation, order handling, and inventory carrying costs. d. includes the seller’s price adjusted for quantity discounts that may be received in the future.

ANSWER: c POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. The price elasticity of demand: a. is not the same at all prices. b. varies by industrial market segment. c. is relatively easy to measure in the industrial market. d. is not the same at all prices and varies by industrial market segment.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. The business marketer will find that total revenue will __________ if the price is decreased and demand is price inelastic. a. rise a little b. remain the same c. rise sharply d. fall ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. If the business marketer’s product input assumes an insignificant role in the final product’s total cost, demand is likely: a. elastic. b. inelastic. c. price sensitive. d. Small.

ANSWER: b POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. Successful pricing strategies are: a. value based. b. proactively competitive c. inelastic. d. cost driven.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. Those costs, fixed or variable, that can be traced to a product, customer, or sales territory (for example, general plant overhead may be indirectly assigned to a product) are called: a. direct traceable costs. b. indirect traceable costs. c. assignable costs. d. general costs.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. Concerning pricing and the competitive environment, which of the following statements is (are) accurate? a. Competition establishes prices. b. Early entrants to the market often enjoy potential cost advantages over the pioneering firm. c. Competitors will be less sensitive toward price reductions that threaten market segments that they deem important. d. Late entrants to the market often enjoy potential cost advantages over the pioneering firm.

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ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. The degree of latitude that an industrial firm has in setting prices above those offered by competitors is dependent upon: a. the firm’s objectives. b. the cost of producing the product. c. the level of differentiation that the product enjoys in the perceptions of organizational buyers. d. the size of the firm’s promotional budget.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business user but the firm plans to reduce the price later and capture a share of the consumer market. This policy of beginning with a high price and then moving to a lower price is referred to as: a. product differentiation. b. market segmentation. c. price administration. d. time segmentation.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. The policy of using a skimming pricing approach when a product is introduced, followed by penetration pricing as the product matures, is referred to by Joel Dean as: Copyright Cengage Learning. Powered by Cognero.

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a. product differentiation. b. market segmentation. c. time segmentation. d. price administration.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. A penetration policy is appropriate when there is: a. a strong threat of imminent competition. b. inelastic demand. c. an opportunity for a substantial reduction in production costs as volume expands. d. both a strong threat of imminent competition and an opportunity for a substantial reduction in production costs as volume expands.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. During the innovative firm’s monopoly period, a __________ is optimal if the demand curve is stable over time (no diffusion) and production costs decline with accumulated volume. a. life cycle costing pricing policy b. skimming policy c. penetration policy d. time segmentation policy ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

38. A __________ is optimal if there is a relatively high repeat purchase rate for nondurable goods or if a durable good’s demand is characterized by diffusion. a. life cycle costing pricing policy b. skimming policy c. penetration policy d. time segmentation policy ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as: a. closed bidding. b. contractual bidding. c. opening bidding d. institutional bidding ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. Before preparing a bid for any potential contract, the industrial firm should first: a. estimate the profitability of the potential contract. b. assess the probability of winning the contract. c. carefully define their objectives. d. conduct a preliminary analysis of their expected costs in performing the potential contract.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. Which of the following statements concerning target costing is (are) accurate? a. Japanese managers who pioneered the approach view target costing as a profit-management tool. b. The approach is designed to reach market segments comprised of buyers who consistently select the lowestpriced alternative. c. Target costing tends to move product developers toward products that include only the bare essentials. d. Target costing is based on the target market’s preferred price points.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use: a. product differentiation. b. a skimming approach to pricing. c. a penetration approach to pricing. d. a bid price policy.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. In hypercompetitive environments, a. leading-edge firms are reluctant to lower prices because they enjoy attractive margins. b. successful firms sustain quality but drive to the next lower price point to enjoy a burst of volume and an expansion of market share. c. successful firms are reluctant to disrupt the equilibrium of the market.

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d. successful firms look for the first opportunity to raise prices.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. The successful implementation of value-based strategies requires close coordination between the __________ and __________ units in the firm. a. production, sales, service b. human resources, sales, service c. marketing, sales, human resources d. shipping, receiving, sales ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. Pertinent considerations for pricing industrial products or services include: a. global pace of technological change. b. demand determinants c. cost determinants. d. service promises.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Examples of pricing objectives include: a. channel relationships. b. achieving a market-share goal.

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c. achieving a target return on investment. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. Since higher costs are incurred in providing higher levels of performance on one or more of the attributes, the strategists should assess the: a. relative importance of the attributes to different market segments. b. strength of the firm’s offering on each of the importance attributes vis-a-vis competitors. c. costs associated with the experience effect. d. both relative importance of the attributes to different market segments and strength of the firm’s offering on each of the importance attributes vis-a-vis competitors.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. The buyer’s price sensitivity increases to the degree that: a. buyers can switch from one supplier to another without incurring additional costs. b. organizational buyers can easily shop around and assess the relative performance and price of alternatives. c. the product represents one for which it is difficult to make price comparisons. d. buyers can switch from one supplier to another without incurring additional costs and organizational buyers can easily shop around and assess the relative performance and price of alternatives.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. Which of the following support a number of activities that cannot be objectively assigned to a product on the basis of a Copyright Cengage Learning. Powered by Cognero.

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direct physical relationship? a. Indirect traceable costs b. Attributable costs c. General costs d. Variable costs ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Which of the following statements regarding competitive threats is incorrect? a. Matching a price cut will be an ineffective strategy if the competitor simply reestablished the differential by a further price reduction. b. A single response is rarely enough to stop price moves by competitors that are struggling to establish a market position. c. If a price response is required, the strategist should focus the firm’s competitive retaliation on those actions that are most cost-effective for the firm. d. Hypercompetitive rivalries establishes the range of response a firm ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. General plant overhead is an example of __________ costs. a. direct traceable b. general c. indirect traceable d. attributable ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

52. If competitors are likely to continue to pursue price cutting, the best strategy for the defender is to: a. allow the competitor to win where it is least damaging to profitability. b. create barriers that make it more difficult for competitors to reach less price-sensitive customer segments. c. center reactive price cuts on a particular geographic region. d. both allow the competitor to win where it is least damaging to profitability and create barriers that make it more difficult for competitors to reach less price-sensitive customer segments.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. __________ costs include financing, storage, and inspection costs. a. Acquisition b. Usage c. Possession d. Obsession ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. __________ refers to the rate of percentage change in quantity demanded attributable to change in price. a. Cost/benefit analysis b. Customer demand c. Price elasticity of demand d. Perceived value ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

55. A skimming strategy is appropriate when: a. there is high price elasticity of demand. b. strong threat of imminent competition. c. the firm has a distinctly new product in a monopoly period. d. generating high demand is required.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. __________ features a design-to-cost philosophy that begins by examining market conditions. a. Target costing b. ABC costing c. Value-based segmentation d. Total cost costing ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. __________ represents a business customer’s overall perceived assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made. a. Core benefits b. Add-on benefits c. Customer value d. Relationship commitment ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputCopyright Cengage Learning. Powered by Cognero.

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cost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. __________ are those attributes that are not typically required but that can ultimately lead to a supplier being selected by a customer over other qualified suppliers. a. Core benefits b. Add-on benefits c. Supplier personality traits d. Customer values ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. Examples of typical add-on benefits include: a. joint working relationships, commitment, and supplier flexibility. b. commitment, trust, and reciprocity. c. supplier flexibility, commitment, and reciprocity. d. joint working relationships, reciprocity, and supplier flexibility.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. The following are useful to business marketers trying to gauge competitive responses to pricing except: a. examining the cost structure and strategy of direct competitors. b. examination of annual reports and other public records. c. identifying which markets competitors deem as important. d. the degree of internal rivalry with the competitor.

ANSWER: d POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. Which of the following are reasons why followers into a market often find lower costs than the pioneer firm? a. The use of traditional production practices b. Experience of suppliers leads to cost reductions c. Understanding new customers’ needs d. Increased access to new entrants ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. Which of the following are questions that must be addressed when determining responses to a competitor’s threat? a. If you respond, is the competitor willing and able to lower their price again? b. Is our position in other markets at risk if the competitor gains market share? c. Is there a response that would cost you more than the preventable sales loss? d. If you respond, is the competitor willing and able to lower their price again and is our position in other markets at risk if the competitor gains market share?

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. __________ involves a formal invitation to potential suppliers to submit written, sealed bids. a. Closed bidding b. Open bidding c. On-line bidding d. E-commerce ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 64. Costs that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship are classified as __________ costs. a. fixed b. general c. variable d. mixed ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. A __________ pricing approach is most appropriate for a distinctly new product, and provides an opportunity to profitably reach market segments that are not sensitive to the high initial price. a. value-based b. variable c. skimming d. bundle ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. The Robinson-Patman Act holds that it is unlawful to __________ price differences between the purchases of grade like commodities and quality. a. discriminate b. disseminate Copyright Cengage Learning. Powered by Cognero.

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c. inflate d. deflate ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 67. Two types of benefits can contribute to customer value in business markets: __________ benefits which are the basic requirements the business marketer must meet to be included in the customer’s consideration set and __________ benefits which are those attributes typically not required, that assist the customer in selecting a supplier from among a qualified set of potential suppliers. a. add-ons; core b. expected; add-ons c. core; add-ons d. Add-ons; expected ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. Costs that include financing, storage, inspection, taxes, insurance, and other internal handling costs are called: a. Possession costs b. Variable costs c. Fixed costs d. Boarding costs ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

69. The first component in the Price-Setting Decision Process is called: a. Determining demand b. Set strategic pricing objectives c. Analysing competitors costs d. Choosing pricing method ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-01 - Explain the three action steps that can be taken to overcome the challenges that inputcost inflation presents.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. Drivers that add incremental value by facilitating revenue or margin expansion are called: __________ , while the drivers that create value by providing economic savings are called: a. cost; volume b. cost; revenue c. revenue; cost d. revenue; volume ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. A small high-technology firm in Arizona recently developed a new component part that offers superior advantages over competing products. The component is used in high-speed production systems and due to its durable composition, has a useful life of 12 months versus 3 months for competing products. By reducing downtime and frequent changeovers, the product will offer users a significant improvement in production efficiency. Of course, the exact savings will vary by market segment. The two executives who launched the firm are divided over the course that should be followed in pricing the component—one favors a high price for a quick payback while the other opts for a lower price and a more deliberate approach. Outline the critical issues and steps that should be examined in setting the price.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to how effective new-product prices are established and the need to periodically adjust the prices of existing products.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-03 - Demonstrate how effective new-product prices are established and the prices of existing products are adjusted throughout the product life cycle.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 72. Two competitors with similar products may ask differing prices because their total offerings are perceived as being unique by buyers. In the eyes of the organizational buyer, one firm may provide more value than another. Demonstrate how this might occur and outline the corresponding marketing strategy implications.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the central elements of the pricing process and a valuebased strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 73. A firm developed a new component part (i.e., a timing mechanism) that can be effectively used in dishwashers, automobiles, toys, and medical equipment. Describe the process the firm might follow in measuring the elasticity of demand for the new product. Is it likely to vary by application?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the central elements of the pricing process and a valuebased strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 74. What are the principle objectives and what adds collateral to pricing goals for marketers?

ANSWER: The marketer starts with principal objectives and adds collateral pricing goals: (1) achieving a target return on investment, (2) achieving a market share goal, or (3) meeting competition.

Many other potential pricing objectives extend beyond profit and market share goals, taking into account competition, channel relationships, and product-line considerations.

POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 75. What are some guidelines to pricing strategies for competitive strategy development?

ANSWER:  Never participate in a competitive engagement you cannot win. Fight those battles where you have competitive strength and avoid those where you are clearly at a disadvantage.  Always participate in competitive engagements from a position of advantage. Don’t fight by competitors’ rules (which they select for their advantage); use what is advantageous for you.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 76. What are the four important questions one should address in determining whether to reduce price to meet a competitor’s challenge and why do these questions matter?

ANSWER: 1. Is there a response that would cost you less than the preventable sales loss?

2. If you respond, is the competitor willing and able to merely reduce the price again to restore the price difference?

3. Will the multiple responses that may be required to match the competitor’s price still cost less than the avoidable sales loss?

4. Is your position in other markets at risk if the competitor increases market share?

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-04 - Recognize the key considerations when responding to a price attach by an aggressive competitor.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension Copyright Cengage Learning. Powered by Cognero.

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77. Describe the key components of the price-setting process in business markets.

ANSWER: There is no easy formula for pricing an industrial product or service. The decision is multidimensional: The interactive variables of demand, cost, competition, profit relationships, and customer usage patterns each assumes significance as the marketer formulates the role of price in the firm’s marketing strategy. Pertinent considerations, illustrated in Figure 12-1, include: (1) pricing objectives, (2) demand determinants, (3) cost determinants, and (4) competition.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 12-02 - Identify the key components of the price-setting decision process.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

1. Advertising supports personal selling by informing potential buyers of the company and product. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 2. B2B buyers have been shaped by their experience as B2C shoppers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 3. Business-to-business advertising objectives are usually stated in terms of a specific sales goal. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 4. Organizational buyers tend to retain messages that clash with their attitudes, needs, and beliefs. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 5. From the business marketer’s perspective, the cost-per-thousand calculations for various media options should be based on circulation to the target audience, not the total audience. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 6. One in five B2B decision makers is willing to spend between $500,000 and $5 million on a single purchase entirely online. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 7. The organizational buyer may read every word of the ad copy and find meaning in it quite opposite from that intended by the advertiser. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 8. Measuring advertising effectiveness means assessing advertising’s impact on sales. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 9. Internet marketing costs far less than direct mail marketing. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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10. Although certain mechanical aspects help create awareness and interest in the advertisement, its ultimate success will depend on how well the message is targeted to the benefits sought by the buying influential. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 11. Circulation is the most important criterion in the selection of publications. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 12. If a business marketer’s product has applications only within a few industries, horizontal publications are a logical choice. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 13. Among the most popular ways to promote content and attract buyers to a B2B firm’s website are social media, search engine optimization (SEO), and pay-per-click advertising. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 14. Vertical publications are directed at a specific task, technology, or function, whatever the industry. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 15. Even though a publication has a high cost-per-thousand basis, it may be a cost-effective alternative due to a low rate of wasted circulation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 16. Using social media is a technique used to improve qualified traffic to web pages. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

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NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 17. Advertising alone cannot create product preference for many purchasing decisions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 18. The rules of thumb approach to setting advertising budgets is not always effective, but it is commonly used because it is easy to implement and managers are familiar with it. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 19. The five primary areas for evaluating advertising are profits generated, markets, motives, messages, and results. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 20. Google Analytics is the most popular tool used to assess the performance of a website and spot opportunities for improvement.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 21. A creative strategy statement provides guidelines for the company and advertising agency on how to position the product in the marketplace. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 22. Because budgeting is so important to advertising effectiveness, managers must closely follow rules of thumb. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 23. A microsite is a specialized Web page a visitor lands on after clicking an online ad or e-mail. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 24. Requester publications sell subscriptions to selected readers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 25. Advertising affects word-of-mouth communications and plays an important role in buyer decision making. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 26. B2B buyers have been influenced by their experiences with social media as B2C shoppers and therefore they may search for product and services information by using which of the following social media communication touchpoints? a. YouTube videos b. Professional selling c. Read blogs, email newsletters d. Trade shows ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Motivation Concepts Bloom’s: Knowledge

27. Social media: a. are more effective than traditional media at reaching hard-to-reach prospects. b. are typically less expensive than print media. c. increase sales, build companies’ brands, and drive website traffic. d. enhance the impact of trade promotions.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 28. In designing advertising strategy, the business marketer should first: a. determine the size of the advertising budget. b. select appropriate media sources. c. determine advertising objectives. d. develop a series of responsive messages.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 29. Advertising objectives are typically stated in terms of: a. sales goals. b. profit goals. c. cost constraints. d. communication goals.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Motivation Concepts Bloom’s: Knowledge

30. __________ provides the guidelines for company and advertising agency personnel on how the product is to be ―positioned‖ in the marketplace. a. The creative strategy statement b. The objective-task concept c. Product position d. Controlled circulation ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 31. A useful method for determining the size of the business or industrial advertising budget is: a. the objective-task method. b. the percentage of sales approach. c. the competitive parity approach. d. the affordable approach.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 32. In formulating advertising messages targeting the technical member of the buying center, the business marketer should: a. emphasize product and technical specifications. b. use indirect appeals to action. c. use color and illustrations sparingly. d. put themselves in the position of the sender.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

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NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 33. The most successful advertisements directed at business customers tend to focus on: a. the physical product. b. product attributes. c. product benefits. d. indirect appeals to action.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 34. Which method for determining advertising expenditures focuses on the communications effects of advertising, not on the sales effects? a. Affordable b. Percent-of-sales c. Match competitors d. Objective-task ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 35. Concerning business-to-business advertising media, __________ publications are directed at a specific industry and may be read by everyone from foreman to company president. a. common b. specialty c. horizontal d. vertical ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 36. Concerning business-to-business advertising media, the publications Purchasing, Advertising Age, and Materials Handling Engineering would be classified as a: a. specialty publication. b. target publication. c. horizontal publication. d. vertical publication.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 37. Concerning business-to-business advertising media, __________ publications are directed at a specific task, technology, or function, whatever the industry. a. common b. specialty c. horizontal d. vertical ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 38. Concerning the allocation of the publication budget among various journals, a. the cost-per-thousand calculation should be based on circulation to the total audience. b. the cost-per-thousand calculation should be based on circulation to the target audience. c. the comparison of alternative journals can readily be made by examining their actual page rates (cost-perpage). d. the comparison of alternative journals can readily be made by examining total circulation.

ANSWER: b POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 39. In evaluating the effectiveness of a business-to-business advertising program, the manager should center on: a. changes in the target market’s purchase rate. b. changes in the target market’s product awareness. c. changes in the target market’s product knowledge. d. both changes in the target market’s product awareness and changes in the target market’s product knowledge.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 40. Measuring industrial advertising effectiveness involves an assessment of advertising’s impact on: a. sales commission variables. b. cost-per-thousand CPM variables. c. intervening variables in the buyer’s purchase-decision process. d. publication variables.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 41. An advertising evaluation program would include an assessment of each of the following, except: a. target markets. b. media and messages. c. overall results. d. trade show leads.

ANSWER: d POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 42. U.S. B2B companies spend more than __________ billion annually on advertising. a. $5 b. $15 c. $30 d. $50 ANSWER: c POINTS: 1 REFERENCES: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 43. The marketing strategy used to attract, engage, and retain an audience by creating and sharing relevant articles, videos, blogs, and other informational media is called: a. social media marketing. b. PPC advertising. c. search engine optimization. d. content marketing.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 44. A recent study showed that if given a choice of sales channels the preferred delivery is: a. traditional (in-person). b. traditional, remote, and self-service. c. remote (video or phone). d. self-service (e-commerce).

ANSWER: b POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 45. The final, and critical, step for managing Business-to-Business advertising is: a. integrating it with other business components. b. formulating advertising objectives. c. evaluating and selecting media. d. evaluating the effectiveness of the campaign.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 46. An advertising objective must be realistic, measurable, and: a. specify what is to be achieved and when. b. result in increased sales. c. an integrated message. d. offer a customer value proposition.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 47. Which of the following statements regarding advertising expenditures is incorrect? a. Because advertising is a relatively large part of the total marketing budget for business firms, managers tend to follow simple rules of thumb (e.g., allocate 1% of sales to advertising). b. The fundamental problem with percentage-of-sales rules is that they implicitly make advertising a consequence rather than a determinant of sales and profits. c. Percentage-of-sales rules suggest that the business advertiser reduce advertising when sales volumes decline. d. The decision to ―match the competition’s level of advertising spending‖ is an example of a rule of thumb philosophy.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 48. The Objective-Task method addresses the major problem of the rule-of-thumb methods by applying funds to accomplish a specific goal: a. so that advertising is a determinant of those results. b. so that advertising is a consequence of those results. c. because the manager does not have to have some knowledge or instinct for the proper relationship between expenditure level and communication response. d. so that advertising sales volume is determinant task.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 49. The formula for calculating adverting cost is: a. cost per thousand = cost per page/circulation in thousands. b. cost per thousand = circulation in thousands/cost per page. c. cost per page = cost per thousand/circulation in thousands. d. cost per page = circulation in thousands/cost per thousands.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 50. Direct mail is commonly used for: a. corporate image promotion. b. customer relationship management. c. sales force engagement.

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d. reverse bidding.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 51. Which of the following statements regarding direct mail is incorrect? a. Direct mail is efficient when compared to other media. b. Direct mail is a viable medium when potential buyers cannot be clearly identified. c. A direct mail advertisement typically gains the full attention of the reader. d. Direct mail can accomplish all of the major advertising functions.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 52. An e-mail list can be created by: a. creative copy. b. creative statements. c. collecting contact information at trade shows. d. social media shares.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 53. An evaluation of an advertising campaign will usually measure awareness, motivation, and: a. salience. b. recall. c. loyalty.

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d. brand performance.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 54. The business customer purchasing process stage where a rise of new suppliers drives down switching costs: a. Research stage. b. Use and service stage. c. Loyalty repurchase stage. d. Buy stage.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 55. The business customers purchasing process stage where well-placed comparison engines and apps shortcut the evaluation process: a. Consider and evaluate stage. b. Buy stage. c. Formal request for proposals stage. d. Use and service stage.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 56. The business customers purchasing process stage where venues for identifying solutions proliferate and evolve: a. loyalty repurchase stage.

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b. buy stage. c. research stage. d. problem identification stage.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-01 - Explain how marketing communications can be tailored to assist buyers across the customer decision journey.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 57. Which of the following are advantages of the objective-task method of setting advertising budgets? a. Advertising is determinant of results, not a consequence. b. It is easy to use and familiar to management. c. Instinct must be used for identifying proper level of expenditures to reach goals. d. Determining what competitors are spending on advertising.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 58. The important elements of perception include: a. attention. b. interpretation. c. benefits. d. both attention and interpretation.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 59. Horizontal publications are more effective for business marketers when: a. their product has applications in only a few industries.

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b. many industries are potential users c. well-defined functions are the principal buying influencers. d. many industries are potential users and well-defined functions are the principal buying influencers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 60. Characteristics of effective B2B print ads include: a. the use of a ―rational approach.‖ b. a clear description of the product and its benefits. c. a detailed listing of most pricing considerations. d. both the use of a ―rational approach‖ and a clear description of the product and its benefits.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 61. Recent research has indicated that the indirect communication effects of advertising includes: a. increased word-of-mouth communications. b. increased overall company reputation. c. improved logistics performance. d. both increased word-of-mouth communications and increased overall company reputation.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-04 - Compare particular ways to measure business advertising effectiveness.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 62. The form of content marketing that uses success stories from previous clients is known as: a. articles.

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b. videos. c. news releases. d. customer testimonials.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 63. When a marketer uses a technique to improve qualified traffic to a webpage it is called: a. search engine optimization. b. pay-per-click advertising. c. content marketing. d. social medial marketing.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 64. Online advertising model where advertisers pay publishers a fee each time someone click on their ad. a. Social media marketing b. Pay-per-click advertising c. Content marketing d. Search engine optimization ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 65. Which of the following is a design feature for the best B2B websites? a. Targeting options Copyright Cengage Learning. Powered by Cognero.

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b. Measurable and trackable options c. Clear language d. A clean look ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 66. The most popular ways to promote content and attract buyers to a B2B firm’s website are social media, __________, and __________. a. Social media marketing; Search engine optimization (SEO) b. Pay-per-click advertising; social media marketing c. Content marketing; Pay-per-click advertising d. Search engine optimization (SEO); Pay-per-click advertising ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 67. The initial stage of developing the business-to-business advertising program entails setting __________ and defining the __________. a. Social media; target market b. Advertising objectives; target market c. Social media; advertising objectives d. Advertising objectives; marketing strategy ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 68. The __________ statement provides guidelines for the company and advertising agency on how to position the Copyright Cengage Learning. Powered by Cognero.

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product in the marketplace. a. social media strategy b. creative strategy c. marketing strategy d. search engine optimization strategy ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 69. The objective-task method for budgeting ad expenditures consists of evaluating the tasks advertising will perform, analyzing the costs, and summing up the __________ to arrive at a final budget. a. marketing costs b. budget costs c. total costs d. advertising costs ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 70. Many trade publications are __________ publications, meaning that they offer free subscriptions to selected readers. a. research b. niche c. profession d. requester ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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71. The provisioning of information that supports the completion of critical buying jobs is called: a. Information search b. Purchase decision support c. Buyer enablement d. Buyer remorse ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Knowledge 72. Dell Computer has been developing closer relationships with its corporate customers by setting up websites on internal company networks. The system enables individual employees at customer locations to easily order from a preapproved line of Dell Computers. Discuss how Dell might use direct e-mail advertising to reach employees at these companies and reinforce its web strategy.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the business media options, including the important role of online advertising.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Comprehension 73. For most business marketers, the amount of the promotional budget spent on personal selling far exceeds expenditures on advertising. In addition, it is nearly impossible to evaluate the impact of advertising on industrial sales. Given this situation, should business marketers advertise, and how can they justify advertising if they cannot measure its impact on sales?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the business media options, including the important role of online advertising.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Motivation Concepts Bloom’s: Comprehension

74. Describe the steps that a business marketing manager should follow in developing an appropriate advertising message for a new high-speed packaging system targeted for the food industry.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the business media options, including the important role of online advertising.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Comprehension 75. Explain why a full-page ad by Digital in the Wall Street Journal might be carefully read by a production manager at Pillsbury but quickly passed over by the purchasing manager across the hall.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the business media options, including the important role of online advertising.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Comprehension 76. Explain what it means to enable and support buyers in a B2B market enabling a digital-first customer experience.

ANSWER: To enable and support buyers, this section explores (1) the characteristics of a strong website; (2) strategies, including the use of social media for driving qualified buyers to the website; and (3) content marketing options to advance the customer decision journey.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-02 - Identify the necessary components of enabling a digital-first customer experience.

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KEYWORDS:

Bloom’s: Comprehension

77. Compare and contrast the rules of thumb and objective task method of setting advertising budgets. Describe the process that business marketers should use that decide to use the objective-task method.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the business media options, including the important role of online advertising.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Comprehension 78. Interactive marketing, or the use of the Internet, e-mail, and websites in advertising, is becoming more common.

Compare and contrast direct mail with interactive marketing as direct marketing tools. What factors should business marketers consider when deciding on the mix of direct marketing approaches to use?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the business media options, including the important role of online advertising.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 13-03 - Outline the decision stages pertaining to managing business-to-business advertising.

NATIONAL STANDARDS: United States - BUSPROG: Communication STATE STANDARDS: United States - OH - DISC: Motivation Concepts KEYWORDS: Bloom’s: Comprehension

1. High-performing salespeople are generally set apart from low performing sales people on the basis of: a. their time on the job. b. their ability to recruit desired ad-hoc members on to their sales team. c. their past experience in new-task selling situations. d. their interpersonal technical skills.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-04 - Outline the fundamentals of key account management.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. Expertise coordination is the process of: a. integrating the functions of finance and operations with sales. b. working with top management to help engage the top level managers in the sales process. c. diagnosing customer requirements and assembling an ad hoc team of internal experts who possess the skills to deliver a superior customer solution. d. evaluating competitive offers and developing plausible approaches for surpassing those offers in the mind of prospective customers.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-05 - Detail the skills and characteristics of high-performing account managers as they successfully navigate the account management process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 3. The best practices of high-performing salespeople can provide: a. relational adaptiveness to a sales effort. b. improved role definition to the sales job. c. a template for improving the client management process. d. relationship quality to the sales team.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-05 - Detail the skills and characteristics of high-performing account managers as they successfully navigate the account management process.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. The product-oriented sales organization presents which of the following disadvantages? a. A ―critical mass‖ of demand is required to offset the associated costs. b. Compared to other ways of organizing the sales force, the salesperson has the greatest degree of latitude in choosing which products and customers to emphasize. c. Several salespersons may be required to meet the diverse product requirements of a single customer. d. Both a ―critical mass‖ of demand is required to offset the associated costs and several salespersons may be required to meet the diverse product requirements of a single customer.

ANSWER: d POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. When each industrial salesperson performs all of the selling tasks associated with all of the firm’s products, and performs these tasks for all customers in a particular territory, the sales force is organized on: a. a customer basis. b. a market-centered basis. c. a geographical basis. d. a product basis.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. The geographical sales organization structure presents which of the following disadvantages? a. Each salesperson requires substantial product and customer knowledge. b. This is the most costly form of sales organization. c. Sales personnel may have a tendency to emphasize those products and end-use applications with which they are most familiar. d. Each salesperson requires substantial product and customer knowledge, and sales personnel may have a tendency to emphasize those products and end-use applications with which they are most familiar.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. By organizing its sales force around retailing, financial services, and the petroleum industry, Hewlett-Packard is employing the __________ approach in structuring the sales force. a. geographical Copyright Cengage Learning. Powered by Cognero.

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b. product c. market-centered d. territory ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. Effective sales training: a. builds the confidence and motivation of the salesperson. b. keeps the personal selling function aligned with marketing program objectives. c. reduces the costs associated with recruiting. d. all of the answer choices.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. Salespersons tend to have a high level of job satisfaction when: a. management provides them with the assistance and support needed to meet unusual and nonroutine problems. b. they perceive themselves to have an active part in determining company policies and standards that affect them. c. they perceive that their first-line supervisor closely directs and monitors their activities. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Both behavior-based and outcome-based measures are used by sales managers to evaluate salesperson performance.

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When the system is outcome-based, the sales manager: a. employs objective measures (sales results, market share gains) to evaluate performance. b. directly monitors the activities of salespeople. c. uses subjective measures of salesperson performance. d. emphasizes a compensation system with a large fixed component.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. In the sales performance literature, recent evidence suggests that a strict reliance on the __________ measurement approach may not produce the desired sales or marketing results because it ―has lulled some sales executives into thinking that important sales outcomes could be reasonably accomplished without intense management reinforcement.‖ a. esteem-based b. behavior-based c. satisfaction-based d. outcome-based ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. The __________ measurement approach of salesperson performance is best suited for the emerging emphasis on relationship selling. a. esteem-based b. behavior-based c. satisfaction-based d. outcome-based ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

13. Using the behavior-based measurement approach to salesperson performance, sales managers: a. monitor and direct the activities of salespeople. b. use subjective measures of salesperson behavior. c. emphasize a compensation system with a large fixed component. d. all of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. Concerning the level of sales that a salesperson might achieve in a particular territory, which specific territory traits appear to be most important? a. Potential, workload, dispersion b. Potential, concentration, dispersion c. Potential, competition, concentration d. Potential, workload, competition ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. The characteristic of a sales territory that refers to the degree to which potential is available in the larger accounts in a particular territory is called: a. potential. b. concentration. c. critical mass. d. workload.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

16. The sales resource grid indicates that a particular territory (planning and control unit) possesses high PCU opportunity but low sales organization strength. This suggests which of the following sales resource assignments? a. Invest a high level of sales resources to take advantage of opportunity. b. Invest a minimal level of sales resources; selectively eliminate resource coverage; possible elimination of PCU. c. Either direct a high level of sales resources to improve position and take advantage of opportunity or shift resources to other planning and control units. d. Invest a moderate level of sales resources to maintain current position.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. The sales resource grid indicates that a particular territory (planning and control unit) possesses low PCU opportunity but high sales organization strength. This suggests which of the following sales resource assignments? a. Invest a high level of sales resources to take advantage of opportunity. b. Invest a minimal level of sales resources; selectively eliminate resource coverage; possible elimination of PCU. c. Either direct a high level of sales resources to improve position and take advantage of opportunity or shift resources to other planning and control units. d. Invest a moderate level of sales resources to maintain current position.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. The appropriate form of sales force organization depends on: a. the role of intermediaries in the marketing program. b. the training required for the sales force. c. the depth and breadth of the customer relationship. d. the category manager’s sales objectives.

ANSWER: a POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-04 - Outline the fundamentals of key account management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. A __________ sales organization is especially appropriate when the product line is large or diverse. a. geographical b. market-centered c. product-oriented d. customer-oriented ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 20. A key account represents a customer who: a. purchases an insignificant volume as a percentage of a seller’s total sales. b. buys for an organization with geographically concentrated units. c. involves several organizational members in the purchasing process. d. both purchases an insignificant volume as a percentage of a seller’s total sales and buys for an organization with geographically concentrated units.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. Responsibility for recruiting salespersons may lie with: a. the first-line supervisor. b. the Human Resources department. c. executives at the headquarters level. d. all of the answer choices.

ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. Motivation to perform is thought to be related strongly to: a. the value the salesperson places on rewards. b. the individual’s perceptions of the types and amounts of rewards that will accrue from various degrees of job performance. c. the extent to which a salesperson can see him/herself as a member of the target market. d. both the value the salesperson places on rewards and the individual's perceptions of the types and amounts of rewards that will accrue from various degrees of job performance.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. Job satisfaction is theorized to decline when the salesperson’s perception of his/her role is: a. inaccurate in terms of the expectations of superiors. b. characterized by conflicting demands among role partners that the salesperson cannot possibly resolve. c. surrounded by uncertainty due to a lack of information about the expectations and evaluation criteria of superiors and customers. d. both characterized by conflicting demands among role partners that the salesperson cannot possibly resolve and surrounded by uncertainty due to a lack of information about the expectations and evaluation criteria of superiors and customers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. GE’s Sales Force Effectiveness Initiative surmised that driving growth can be based on four priorities. Which of the following is NOT a priority? a. Determine customer potential and prioritization Copyright Cengage Learning. Powered by Cognero.

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b. Target setting and potentialization c. Invest and iterate d. Territory alignment ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. The sales resource grid indicates that a particular territory (planning and control unit) possesses low PCU opportunity and low sales organization strength. This suggests which of the following sales resource assignments? a. Invest a high level of resources to take advantage of opportunity. b. Invest a moderate level of resources. c. Invest a minimal level of sales resources, selectively eliminate resource coverage, or possibly eliminate the PCU. d. None of the answer choices.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. __________ is a measure of the total business opportunity for all sellers in a particular market. a. Potential b. Dispersal c. Concentration d. Territory workload ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. The final phase of selecting key accounts: Copyright Cengage Learning. Powered by Cognero.

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a. centers on the profit potential of a customer. b. identifies those customer accounts that have unique support requirements. c. considers the degree to which the transactions with potential customer will complement the economies of the seller’s business. d. determines customer potential and prioritization.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. The first phase of selecting key accounts: a. identifies those customer accounts that have unique support requirements. b. centers on the profit potential of a customer. c. considers the degree to which the transactions with potential customer will complement the economies of the seller’s business. d. determines customer potential and prioritization.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. The second phase of selecting key accounts: a. considers the degree to which the transactions with potential customer will complement the economies of the seller’s business. b. identifies those customer accounts that have unique support requirements. c. centers on the profit potential of a customer. d. determines customer potential and prioritization.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. Organization of the sales force depends on the nature of the product, the length of the product line and, a. the length of time the selling professionals have covered specific accounts. b. the number of new accounts relative to existing accounts. c. the nature of the buying behavior in each segment. d. the support of senior management.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. A key account represents a customer who: a. buys for an organization with geographically concentrated units. b. involves a small number of key organizational members in the purchasing process. c. purchases a significant volume as a percentage of a seller’s total sales. d. holds technical expertise in a particular product area.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. When compared to a traditional selling focus, a key account selling focus is different in which of the following ways? a. Uses a longer-term time horizon. b. Wants to lower customer’s total costs. c. Individual salesperson is primary link to customer organization. d. Uses both a longer-term time horizon and wants to lower customer’s total costs.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. Research suggests that successful national account units: a. have narrow focus on price and product features. b. have objectives that emphasize maximizing revenues. c. have experienced individuals who know how to create effective customer solutions. d. are focused on short-term results.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-04 - Outline the fundamentals of key account management.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. Which of the following topics must be part of a business firm’s salesperson training programs? a. Effective communication skills. b. Knowledge about the company. c. Knowledge about the product line. d. All of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. __________ is the amount of effort a salesperson desires to expend on each of the activities or tasks associated with his or her job. a. Supervision b. Motivation c. Attitude d. Performance ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. A salesperson’s job performance is a function of: a. product knowledge and expertise. b. level of motivation. c. aptitude or ability. d. both level of motivation and aptitude or ability.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. When a salesperson attains rewards on a personal basis, such as feelings of accomplishment or self-worth, this is an example of: a. internally mediated rewards. b. job satisfaction. c. externally mediated rewards. d. aptitude.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. Which of the following is not a key influence on the potential level of sales in a particular territory? a. Salesperson characteristics b. Competition c. Territory characteristics d. Product line depth and breadth ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. To identify coverage gaps across territories and to better match sales resources with market opportunity, the GE process for accomplishing territory alignment involves all of the following except: a. evaluating account quality. b. examining account density. c. implementing changes to enhance sales force effectiveness and efficiency. d. the challenging nature of the objectives for the salespeople.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. The most common form of sales organization found in the industrial market is the market-centered organization. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. Frequent contact between the salesperson and sales manager is instrumental to the job satisfaction of the salesperson. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

42. Salespersons appear to be able to accept authority and direction from a number of different departments in the organization without a significant negative impact on job satisfaction. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. An example of a planning and control unit or PCU is a sales territory. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 44. If the territory is geographically dispersed, sales will probably be lower due to time wasted in travel by the salesperson. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. A key account represents a customer who buys for an organization with geographically concentrated units. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. The final phase for selecting key accounts centers on the profit potential of a customer. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 47. A successful training effort will increase the cost of recruiting. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. Internally mediated rewards are those controlled and offered by managers or customers. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. A salesperson’s job performance is a function of aptitude. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Salespersons tend to have a higher level of job satisfaction when they perceive that their first-line supervisor closely directs and monitors their activities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. Smaller firms often reduce training costs by hiring experienced and more expensive salespersons. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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52. Because the salesperson is crucial in implementing the firm’s segmentation strategy, careful coordination and control are required to align personal selling effort with marketing objectives. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. When the sales resource opportunity grid indicates a low PCU and a high PCU sales organization strength, the firm should invest a moderate level of sales resources to keep current position strength. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. Strategic components of sales force management include methods for organizing the sales force and key account management. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. The organization of the sales force can be affected by the length of a product line and the nature of buying behavior in each market segment. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. A key account represents a customer that purchases a significant volume as a percentage of a seller’s total sales but is easier to manage because there are only a few organizational members involved in the purchasing process. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. The decision whether to use key accounts depends on three factors: profit potential, learning benefits, and cost drivers associated with customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. Salesperson job satisfaction decreases when there is increased uncertainty about expectations and the length of the product line increases. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. Key account customers purchase in very large volume and the focus of exchange extends beyond a core product as the seller augments the offering through __________ services and support. a. quality b. value-added c. efficient d. communication ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. The structure of the buying center in a traditional selling focus is indicated by the __________ and a few other individuals are involved in the buying decision a. service manager b. front-line manager c. executive manager d. purchase manager ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. Externally mediated rewards are controlled and offered by __________ or __________, such as financial incentives, pay, or recognition. a. managers or suppliers b. managers or customers Copyright Cengage Learning. Powered by Cognero.

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c. customers or suppliers d. customers or employees ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. An outcome-based sales force control system involves less direct field supervision of salesperson activities and uses __________ measures to evaluate __________ and a compensation system with a large incentive component. a. subjective; performance b. objective; performance c. objective; service d. subjective; service ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. Key account management strategies are emphasized by top-tier business marketing firms like 3M, IBM, and Dow Chemical. Compare and contrast a key account with a traditional account. Next, describe how the sales focus for a key account differs from the traditional selling focus used for traditional focus.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the methods for organizing the sales force.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 64. While key accounts possess buying power, they are also very demanding customers that are often costlier to serve. If the business marketing firm can have close and important relationships with a rather small set of customers and if these Copyright Cengage Learning. Powered by Cognero.

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relationships each require a large investment, key accounts must be chosen wisely. Describe the process, along with the specific criteria that the business marketing strategist should use, in selecting the right key accounts.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the methods for organizing the sales force.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 65. IBM is reorganizing its marketing and sales operations into 14 worldwide industry groups such as banking, retail, and insurance. In moving away from an organization based on geography, IBM hopes to eliminate turf wars and make itself more responsive to customers. Explain the cost/benefit trade-offs of a market-centered sales organization. What is the nature of the turf wars that plague firms that are organized around products or geographical territories?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the methods for organizing the sales force.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 66. Cassidy Computer Systems has witnessed a gradual decline in the performance of its sales force since a key sales manager left the company for another position. While well-educated and extremely knowledgeable about the computers that they sell, the sales force is not inspired by the management style of their new superior. Using the concepts of sales force motivation, job satisfaction, and role perceptions, describe why salesperson performance may have declined at Cassidy. Recommend a strategy that Cassidy could adopt to improve the effectiveness and productivity of their sales force.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the nature of the sales management function.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

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NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 67. What roles do account managers play in the selling organization? What are some of the characteristics and factors that separate high performing account managers from other account managers?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the skills and characteristics of high-performing account managers.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 14-05 - Detail the skills and characteristics of high-performing account managers as they successfully navigate the account management process.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 68. Why is training so important to selling organizations? What are some of the keys to effective salesperson training programs?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the nature of the sales management function.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 14-03 - Contrast approaches that are utilized to organize the personal selling effort.

NATIONAL STANDARDS: United States - DISC - Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 69. Which are part of IBM’s BANT? a. Budget and need b. Authority, need, and timeline c. Need, budget, and authority d. Budget, authority, need, and timeline ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales Copyright Cengage Learning. Powered by Cognero.

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strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 70. One characteristic of a key account is that the customer does not require or expect specialized services such as logistical support, inventory management, price discounts, and customized applications. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 71. In the three-phase approach for selecting key accounts, which is NOT an example of one of the three phases? a. If the product is critical to a customer’s operations, support services are more valuable. b. Investing in support capabilities that are valued by multiple accounts. c. The customer’s sales have increased 300 percent in the past five years. d. Some customers have purchased products with a higher margin than others or provided a better match to the firm’s manufacturing capabilities.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 14-01 - Explain the four priorities that B2B firms emphasize in implementing a hybrid sales strategy for digital first buyers.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 72. Expertise coordination is a process that a salesperson follows in diagnosing customer requirements. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-04 - Outline the fundamentals of key account management.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 73. PCU opportunity is the PCU’s total potential for all sellers, whereas sales organization strength includes the firm’s competitive advantages or distinctive competencies within the PCU. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 14-06 - Recognize the key issues pertaining to sales force deployment analysis.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge

1. The balanced scorecard attempts to keep the sales of a business unit in balance with profit growth. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 2. One component of the balanced scorecard centers on customer satisfaction while another centers on employee satisfaction. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

3. The central focus of a marketing audit is on the firm’s cost accounting system. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 4. Expense-to-sales ratios provide one measure of the efficiency of marketing operations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 5. R&D, manufacturing, technical service, and other business functions play fundamental roles in developing and implementing business marketing strategy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 6. Under an activity-based cost system, managers must refrain from allocating all expenses to individual units and, instead, separate the expenses and match them to the level of activity that consumes the resources. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 7. Warehousing costs fit into an activity-based cost system, but advertising costs do not. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 8. Sales results provide an excellent benchmark against which to measure performance. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 9. Although the dividing line between strategy and execution is a bit fuzzy, it is often not difficult to diagnose implementation problems and to distinguish them from strategy deficiencies. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 10. Market share analysis attempts to determine why actual sales varied from planned sales. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 11. Good implementers struggle with their markets and businesses until they can simply and powerfully express the ―back of the envelope ratios necessary to run the business, regardless of formal control system inadequacies.‖ a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 12. The Balanced Scorecard measures performance from a learning and growth perspective. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 13. Marketing control is a process whereby management generates information on performance, such as efficient Copyright Cengage Learning. Powered by Cognero.

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allocation of marketing effort. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 14. The efficiency of a marketing operation can be accessed via expense-to-sales ratios. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 15. Regarding profitability control, a segment can be a channel structure. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 16. Strategy maps can be used to align internal processes to support different marketing strategies. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 17. When coupled with the measures and targets from the balanced scorecard, the strategy map provides a valuable framework for the strategist. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 18. For customers with a transactional focus, business marketers should discontinue using expensive customer databases and set revenue targets and profit goals. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 19. Middle management is typically primarily responsible for efficiency and effectiveness control. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic Copyright Cengage Learning. Powered by Cognero.

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STATE STANDARDS: KEYWORDS:

United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Bloom’s: Knowledge

20. In annual plan control, the objectives specified in the annual plan become the performance standards that are compared to actual results. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 21. Relating sales revenues and marketing costs to market segments improves decision making. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 22. Important implementation skills for marketers include interacting, allocating, and monitoring. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 23. The strategy map provides a framework for highlighting the interdisciplinary role of marketing strategy and for exploring key implementation requirements. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 24. The strategy map converts into four different perspectives: financial, customer, internal business process, and learning and growth. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 25. A strategy map provides a visual representation of a firm’s critical objectives but fails to cover the cause-and-effect relationships among them. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 26. Strategic control is operationalized through the marketing audit. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 27. According to the text, ―dashboards‖ are a unique tool designed to evaluate strategy performance in the transportation industry. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 28. Organizing is a skill the marketing manager must first use before using the four implementation skills covered in the text. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 29. The balanced scorecard measures the performance of a business unit from: a. a customer lifetime value. b. a strategy mapping and alignment. c. a learning and growth perspective. d. responsibility charting.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

Copyright Cengage Learning. Powered by Cognero.

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NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 30. The level of marketing control that examines whether the strategy is being implemented as planned and whether it produces the intended results is termed: a. strategic control. b. annual plan control. c. strategic component control. d. profitability control.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 31. The level of marketing control that examines how well resources have been utilized in each element of the marketing strategy is: a. strategic control. b. annual plan control. c. efficiency and effectiveness control. d. profitability control.

ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 32. The ____ is a comprehensive, periodic and systematic evaluation of the firm’s marketing operation which analyzes the market environment and the firm’s internal marketing activities. a. environmental audit b. marketing audit c. profit audit d. annual plan ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 33. The purpose of annual plan control is to: a. examine the general direction the company is pursuing. b. examine how well resources have been utilized in each element of the marketing strategy. c. examine where the company is making or losing money. d. examine whether the planned performance standards are being achieved.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 34. If a business marketer is concerned with over- or under-spending on a particular marketing strategy element, such as advertising, which of the following tools would be most useful? a. Expense-to-sales ratio analysis b. Market-share analysis c. Sales analysis d. Marketing audit ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 35. If a business marketer is concerned with the firm’s performance relative to competition, which of the following tools would be most useful? a. Expense-to-sales ratio analysis b. Market potential analysis c. Market-share analysis d. Segmental analysis ANSWER: d POINTS: 1 DIFFICULTY: Easy Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 36. __________ is an assessment of how the firm is doing relative to competition. a. Sales analysis b. Expense-to-sales analysis c. Profit analysis d. Market-share analysis ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 37. St. Paul Equipment Company experienced a 15 percent sales gain that, on the surface, appears favorable. However, if total industry sales are up 30 percent, an analysis of __________ could suggest that the firm has not fared well relative to competitors. a. expense-to-sales ratios b. market share c. distribution costs d. sales by channel type ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 38. Flagstaff Electrical Supply wonders whether they are spending too much or too little on various elements in their marketing program. Which of the following tools would appear to be most appropriate in examining the efficiency of operations? a. Sales analysis b. Market-share analysis c. Expense-to-sales ratio analysis d. Price analysis Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 39. __________ reveals the links between performing particular activities and the demands that those activities make on the organization’s resources. a. A logistical cost system b. A supply-oriented cost system c. A demand-oriented cost system d. An activity-based cost system ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 40. Which of the following statements concerning an activity-based cost (ABC) system is (are) correct? a. ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources. b. ABC analysis often relies on percentage allocations that are somewhat arbitrary. c. ABC analysis segregates the expenses of indirect and support resources by activities. d. ABC analysis both illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources, and ABC analysis also segregates the expenses of indirect and support resources by activities.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 41. Using this approach, the costs of producing a printed circuit board are determined by evaluating the activities required to produce the board and then costing out each. This describes: Copyright Cengage Learning. Powered by Cognero.

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a. traditional cost accounting. b. an activity-based cost system. c. variable cost analysis. d. direct traceable costing.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 42. The process that translates marketing plans into action assignments and ensures that such assignments are executed in a manner to accomplish a plan’s defined objectives is called: a. marketing control. b. marketing implementation. c. strategic marketing. d. marketing accountability.

ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 43. If marketing implementation is poor: a. management may never become aware of the soundness of the strategy. b. the cause of failure is hard to diagnose because poor strategy might be masked by the inability to execute. c. management can usually see the problem immediately. d. management may never become aware of the soundness of the strategy and the cause of failure is hard to diagnose because poor strategy might be masked by the inability to execute.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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44. Each of the following could assume a responsibility role in the marketing strategy center, except: a. technical service managers. b. physical distribution managers. c. research and development executives. d. management consultants.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 45. __________ provide(s) a visual representation of the cause-and-effect relationships among the components of a company’s strategy. a. A strategy map b. Market sensing c. Customer-linking d. Building blocks ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 46. Marketing managers who are flexible and intelligent in dealing with the firm’s information and control systems are exhibiting good __________ skills. a. monitoring b. allocation c. interacting d. organizing ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Knowledge

47. Which of the following is not a step in the planning process that utilizes the Balanced Scorecard and a Strategy Map to build a tightly integrated marketing strategy? a. Define financial objectives. b. Define the customer value proposition. c. Identify the critical strategic themes and internal processes. d. Acquiring the right customers.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 48. When using strategy maps, shareholder value can be created via: a. long-term revenues. b. short-term productivity. c. product differentiation. d. both long-term revenues and short-term productivity.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 49. The __________ of the Balanced Scorecard describes the human capital, information capital, and organizational capital that must be aligned with strategy. a. financial perspective b. customer perspective c. internal perspective d. learning and growth perspective ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 50. Which of the following are interrelated evaluations required to design a marketing strategy? a. How much should be spent on marketing in the research and development period? b. How are advertising budgets being set? c. Within each element of the marketing strategy, how should dollars be allocated? d. What value networks are available?

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 51. __________ represents the portion of total purchases in a product and service category that a customer makes from the firm. a. Share-of-wallet b. Market share c. Marketing reach d. Feedforward control ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 52. The major forms of marketing control are: a. control over the efficient allocation of marketing effort. b. the comparison of planned and actual performance. c. both control over the efficient allocation of marketing effort and the comparison of planned and actual performance. d. physical distribution service support.

ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 53. The primary levels of marketing control include: a. strategic control. b. annual plan control. c. efficiency and effectiveness control. d. All of the answer choices.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 54. Examples of product measures for efficiency and effectiveness control include which of the following? a. Sales by market segments b. Logistics costs by logistics activity by channel c. New accounts per time period d. Margins related to channel member ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 55. The goal of __________ is to describe where the firm is making or losing money in terms of the important segments of its business. a. strategic control b. annual plan control c. efficiency and effectiveness control d. profitability control Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 56. Research has shown that which of the following are important implementation skills for marketing managers? a. Scheduling b. Recording c. Monitoring d. Motivating ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 57. To be successful, successful business marketing managers: a. must assume an active role in the marketing strategy center. b. must negotiate with other functions. c. must get advanced secondary education. d. must assume an active role in the marketing strategy center and must negotiate with other functions.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 58. The __________ of the Balanced Scorecard describes the expected outcomes of strategy, such as revenue growth or productivity improvements. a. financial perspective b. customer perspective c. internal perspective d. learning and growth perspective Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 59. The primary responsibility for strategic control typically lies with: a. top management. b. middle management. c. salespeople. d. buying organizations.

ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 60. In the balanced scorecard, the __________ perspective describes the business processes that have the greatest effect on the chosen strategy, such as customer relationship management, innovation management or supply-chain management. a. top management b. internal c. external d. customer ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 61. The second step of the strategy process is defining the customer __________ for target customer segments, in an effort to generate revenue from existing customers. a. buying power Copyright Cengage Learning. Powered by Cognero.

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b. value proposition c. Loyalty d. buying alternatives ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 62. The __________ coupled with the balanced scorecard provides a valuable framework by describing the strategy, detailing objectives for the processes that create value and the organizational assets needed to support them. a. strategy map b. process map c. sales forecasting method d. value added method ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 63. The portion of the total purchases in a product and service category that a customer makes from the firm is known as: a. market share b. share-of-wallet c. revue d. costs of goods sold ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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64. Strategic __________ focuses on assessing whether the strategy is being implemented as planned and whether it produces the intended results. a. initiatives b. planning c. control d. Alignment ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 65. Efficiency and effectiveness control is the primary responsibility of __________ management. a. top b. middle c. front-line d. self ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 66. Expense-to-sales ratios are analyses of the __________ of marketing operations to determine whether the firm is overspending or underspending. a. efficiency b. effectiveness c. success d. return on investment (ROI) ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge Copyright Cengage Learning. Powered by Cognero.

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67. Cost systems that reveal the links between performing particular activities and the demands those activities make on the organization’s resources. a. Historical costing b. Marginal costing c. Job-costing d. Activity-based ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Knowledge 68. Dell Computer entered into a strategic alliance with Lexmark, a producer of printers and ink cartridges, to provide a more direct challenge to Hewlett-Packard (H-P)—the market leader in printer and cartridge sales. Clearly, this will take time and a well-conceived strategy by Dell because H-P has about 50 percent market share in printer sales and a huge installed base of printer customers around the world. For this strategic initiative in the printer business, describe how Dell might use a strategy map to illustrate objectives, targets, and strategies as well as measures it might use to assess its performance in this new business.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the function and significance of marketing control in business marketing management.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-02 - Describe the six steps that comprise the strategy map for a company’s strategy.

15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 69. With the balanced scorecard, executives can now measure how their business units create value for current and future customers and how they must enhance internal capabilities and the investment in people, systems, and procedures necessary to improve future performance. Describe the four perspectives of organizational performance that are considered in the balanced scorecard approach.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a system for converting a strategic vision into a concrete set of performance measures.

POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 70. Motorola plans to introduce an advanced personal communicator to the business market. They feel that the system is ideally suited for managers. While a broad marketing strategy has been sketched out, it is now time to put together the specific details of the marketing plan from start-to-finish. The planned introduction is six months away. Provide a comprehensive list of the key decisions the firm should make in the areas of pricing, channels, advertising, sales force training, segmentation, and related areas. Next, describe the specific types of information that might be gathered to facilitate each decision. Finally, once the product is introduced, what performance areas should be monitored to determine if strategy adjustments are required for the new product?

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a system for converting a strategic vision into a concrete set of performance measures.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 71. A firm that sells sophisticated equipment to paper manufacturers learned that the same technology may have important potential in the lucrative food-processing industry. Suggest several critical issues that this firm should address before embarking on this new strategy course.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the function and significance of marketing control in business marketing management.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-03 - Recognize the four interrelated issues that must be determined to achieve effective resource allocation decisions.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension Copyright Cengage Learning. Powered by Cognero.

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72. Many marketing plans fail because they are poorly implemented. Explain the special implementation challenges that emerge for managers operating in the business marketing environment.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the distinctive value of ―dashboards‖ for evaluating marketing strategy performance.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 73. Illustrate how a business marketing manager might use a responsibility chart to pinpoint the roles that diverse functional specialists must perform in implementing marketing strategy.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the distinctive value of ―dashboards‖ for evaluating marketing strategy performance.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension 74. Using any selling firm, product, and market of your choice, please illustrate how a strategy map that utilizes the balanced scorecard measures can be used to build an effective and efficient marketing strategy plan.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to a system for converting a strategic vision into a concrete set of performance measures.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-01 - Identify the strategic priorities that Chief Marketing Officers (CMOs) are emphasizing at B2B companies.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS:

Bloom’s: Comprehension

75. Marketing control is a process business marketers can use to generate information on marketing performance. For each of the levels of marketing control, describe the purpose of the control, identify who is primarily responsible for that control in the organization, and provide examples of tools that can be used.

ANSWER: Answers will vary since the question requires the student to bring together various concepts covered in the chapter. In doing so, the student will wish to especially consider what was covered in the segment pertaining to the distinctive value of ―dashboards‖ for evaluating marketing strategy performance.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic LEARNING OBJECTIVES: 15-05 - Recognize how implementation is a crucial element of marketing strategy success.

15-04 - Explore the four levels of marketing control used to measure strategy performance.

NATIONAL STANDARDS: United States - DISC: Group Dynamics STATE STANDARDS: United States - OH - DISC: Strategy | Creation of Val - DISC: Strategy | Creation of Value KEYWORDS: Bloom’s: Comprehension

Copyright Cengage Learning. Powered by Cognero.

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