Chapter 13

Question 1

customer lifetime value

Answer 1

how often x how much x retention

Question 2

relationship marketing

Answer 2

creating the type of relationship that best suits the customers need, which may or may not require a partnership

Question 3

behavioral loytalty

Answer 3

purchase of the same product from the same vendor over time, often out of habit

Question 4

attitudinal loyalty

Answer 4

emotional attachment to a brand, company, or salesperson, for example Apple

Question 5

market exchanges

Answer 5

solo exchanges

functional relationships

Question 6

partnership

Answer 6

relational partnerships

strategic partnerships

Question 7

market exchange definition

Answer 7

transaction between a buyer and a seller in which each party is concerned only about its own benefit

Question 8

solo exchanges

Answer 8

both the buyer and the seller pursue their own self interests

Question 9

functional relationships

Answer 9

long term market exchanges characterized by behavioral loyalty

Question 10

win win relationship

Answer 10

both parties are concerned about each other’s welfare

• relational partnerships
• strategic partnerships

Question 11

relational partnerships

Answer 11

• buyer and seller have close relationship
• open communication
• partners trust each other
• flexible

Question 12

strategic partnerships

Answer 12

• long term relationships
• partners invest to improve profits of both parties
• beyond trust
• strategic advantage
• uncover joint opportunities

Question 13

market exchange selling goals

Answer 13

make contact
close the sale
follow through

Question 14

long term relationship selling goal

Answer 14

initiating relationship
developing the relationship
enhancing the relationship

Question 15

choosing the right relationship factors to consider

Answer 15

size
access & image
access to innovation
type of relationship customer desires

Question 16

knowledge management technology

Answer 16

helps salespeople manage all the information required to be effective (catalogs, records, transaction history)

Question 17

relational management technology

Answer 17

builds on customer knowledge management systems to create models that can be used to develop strategy

Question 18

phases of relationship development

Answer 18

awareness
exploration
expansion
commitment
dissolution

Question 19

awareness

Answer 19

• salespeople find/qualify prospects
• buyers identify sources of supply
• supplier relationship management

Question 20

supplier relationship management

Answer 20

use of technology and statistics to identify important suppliers and opportunities

Question 21

exploration

Answer 21

• search and trail phase for buyer and seller
• satisfaction allows relationship to progress
• dependability and competence are tested

Question 22

expansion

Answer 22

involves efforts by both parties to investigate the benefits of long term relationship

both parties want to develop the appropriate type of relationship

Question 23

commitment

Answer 23

customer and seller implicitly or explicitly pledge to continue the relationship for a period of time

Question 24

dissolution

Answer 24

process of terminating the relationship. can occur because of:

• poor performance
• clash in culture
• change in needs
• other factors

Question 25

foundations of successful relationships

Answer 25

mutual trust
open communication
common goals
commitment to mutual gain
organizational support

Question 26

mutual trust

Answer 26

trust
dependability
competence
customer orientation
honesty 
likeability

Question 27

competence

Answer 27

know what they are talking about

Question 28

open communication

Answer 28

key building block for building successful relationships

relational partnership and strategic partnership

Question 29

relational partnership

Answer 29

communication goes through the salesperson

Question 30

strategic partnership

Answer 30

direct communication between the buying organization and selling organization

Question 31

common goals

Answer 31

• pool abilities
• exploit opportunities
• sustain partnership
• measuring goals

Question 32

commitment to mutual gain

Answer 32

• creates win-win relationship

- mutual investment

Question 33

mutual investment

Answer 33

tangible investment in the relationship by both parties