Chapter 3

Question 1

Collaborative Advantage

Answer 1

demonstrating special skills in managing relationships with key customers or by jointly developing innovative strategies with alliance partners

Question 2

Relationship Marketing

Answer 2

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

Question 3

Transactional Exchange

Answer 3

Centers on timely exchange of basic products for highly competitive market prices

Question 4

Operational Linkages

Answer 4

reflect how much the systems, procedures, and routines of the buying and selling firms have been connected to facilitate operations

Question 5

Collaborative Exchange

Answer 5

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

Question 6

Relationship Commitment

Answer 6

involves a partner’s belief that an ongoing relationship is so important that it deserves maximum effort to maintain it

Question 7

Trust

Answer 7

exists when one party has confidence in a partner’s reliability and integrity

Question 8

Transactional Relationship

Answer 8

when competitive supply market feature many alternatives, the purchase decision is not complex, and the supply market is stable

Question 9

Collaborative Relationship

Answer 9

when alternatives are few, the market is dynamic, and the complexity of the purchase is high

Question 10

Switching Costs

Answer 10

investments and risk of exposure

Question 11

Activity-Based Costing (ABC)

Answer 11

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

Question 12

Net Margin

Answer 12

Equals the net price, after all discounts, minus manufacturing costs

Question 13

Costs of Serving the Customer

Answer 13

order-related costs plus the customer-specific marketing, technical, and administrative expenses

Question 14

Customer Relationship Management (CRM)

Answer 14

cross-functional process for achieving a continuing dialogue with customers across all their contact and access points, with personalized treatment of the most valuable customers to ensure customer retention and the effectiveness of marketing initiatives

Question 15

Value

Answer 15

refers to the economic, technical, service, and social benefits received by a customer firm in exchange for the price paid for a product offering

Question 16

Value Proposition

Answer 16

represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization

Question 17

Relationship Marketing Activities

Answer 17

represent dedicated relationship marketing programs, developed and implemented to build strong relational bonds

Question 18

Relationship Breadth

Answer 18

represents the number of interpersonal ties that a firm has with an exchange partner

Question 19

Relationship Composition

Answer 19

centers on the decision-making capability of relational contacts at the customer firm; a contract portfolio that includes high-level decision makers increases a seller’s ability to effect change in customer organizations.

Question 20

Relationship Strength

Answer 20

reflects the ability of a relationship to withstand stress and/or conflict, such that multiple, high-quality relational bonds result in strong, resilient relationships

Question 21

Relationship Efficacy

Answer 21

captures the ability of an inter-firm relationship to achieve desired objectives

Question 22

Relationship Orientation

Answer 22

represents the customer’s desire to engage in strong relationships with a current or potential supplier

Question 23

Relationship Quality

Answer 23

represents a high-caliber relational bond with an exchange partner that captures a number of interaction characteristic such as commitment and trust