MKTG 336 Exam 1 - FLASHCARDS - Chapter 3 Flashcards by Stu Diaz

What is collaborative advantage created by?

Created by demonstrating special skills in:
1. Managing relationships with key customers
2. Developing innovative strategies with alliance partners

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What relationship centers on timely exchange of basic products at highly competitive market prices?

Transactional exchange

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True or false: transactions in transactional exchange are autonomous?

TRUE

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What relationship features close information, social, operational linkages, and mutual commitments?

Collaborative exchange

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What relationship reflects how much the systems, procedures, and routines of the buying and selling firms have been connected to facilitate operations?

Operational linkages

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What is the availability of alternatives with transactional exchange?

Many alternatives

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What is the availability of alternatives with collaborative exchange?

Few alternatives

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Is the supply of market dynamism stable or volatile with transactional exchange?

Stable

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Is the supply of market dynamism stable or volatile with collaborative exchange?

Volatile

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How important are purchases in transactional exchange?

Low

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How important are purchases in collaborative exchange?

High

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How complex are purchases in transactional exchange?

Low

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How complex are purchases in collaborative exchange?

High

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Is the exchange of information high or low in transactional exchange?

Low

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Is the exchange of information high or low in collaborative exchange?

High

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True or false: transaction customers display less commitment to a particular supplier and can easily switch part or all of the purchases from one vendor to another?

TRUE

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True or false: in transactional exchange, the marketer needs to offer an immediate, attractive combination of product, price, technical support, and other benefits?

TRUE

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What are value drivers in collaborative relationships?

Service support and personal interaction
Supplier’s know-how and its ability to improve a customer’s time to market
Product quality and delivery performance
Cost savings associated with the acquisition process and from operations

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True or false: switching costs include investments and risk of exposure?

TRUE

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What do investments include?

Money
People
Training costs
Equipment
Procedures and processes

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True or false: customers perceive more risk when they purchase products important to their operations?

TRUE

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True or false: customers perceive more risk when they buy from less established suppliers?

TRUE

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True or false: customers perceive more risk when they buy technically complex products?

TRUE

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True or false: with collaborative customers, strong and lasting commitments are recommended?

TRUE

True or false: with collaborative customers, marketers can invest resources to secure commitments and directly assist customers with planning?

TRUE

True or false: with collaborative customers, regular visits to the customer by executives and technical personnel strengthen the relationship?

TRUE

What helps businesses understand their costs and make decisions about pricing, manufacturing, and outsourcing?

Activity based costing (ABC)

What does ABC costing do with data?

Link customer transaction data from customer relationship management (CRM) systems with financial information

What does ABC costing provide marketing managers with?

Provides marketing managers with an accurate picture of the gross margins and cost-to-serve components?

What is a tool that visualizes which customers are profitable for your business, which are breaking even, and which are unprofitable?

Whale curve

What presale costs do high cost to serve customers have?

Extensive presales support required (i.e., technical and sales resources)

What presale costs do low cost to serve customers have?

Limited presales support (i.e., standard pricing and ordering)

What are the production costs for high cost to serve customers?

Order custom products Small order quantities Unpredictable ordering Pattern manual processing

Do high cost to serve customers order custom or standard products?

Custom products

Do high cost to serve customers have large or small order quantities?

Small order quantities

Do high cost to serve customers have predictable or unpredictable ordering?

Unpredictable ordering

Do high cost to serve customers have manual or electronic processing?

Manual processing

What are the production costs for low cost to serve customers?

Order standard products Large order quantities Predictable ordering Electronic processing

Do low cost to serve customers order custom or standard products?

Standard products

Do low cost to serve customers have large or small order quantities?

Large order quantities

Do low cost to serve customers have predictable or unpredictable ordering?

Predictable ordering

Do low cost to serve customers have manual or electronic processing?

Electronic processing

What are the post sale service costs for high cost to serve customers?

Extensive post-sales support required (i.e., customer training, installation, technical support)

What are the post sale service costs for low cost to serve customers?

Limited post-sales support

When managing unprofitable customers, what is one thing marketing managers must do?

Explore possible ways to reduce the cost of activities associated with serving these customers

When managing unprofitable customers, should marketing managers direct attention to the customer actions that contribute to higher selling costs?

Yes

What RM programs use social engagements, personalized communication that develop bond, and highlight the customer’s special status?

Social RM programs

What RM programs are designed to increase productivity and/or efficiency for customers through targeted investments?

Structural RM programs

What RM programs provide economic benefits to increase customer loyalty?

Financial RM programs

Does a CRM yield positive returns when a firm has a customer strategy?

Yes

Does a CRM help with continuing dialogue with customers across all contact and access points?

Yes

True or false: a CRM system leads to increased customer retention?

TRUE

True or false: some relationship-building efforts fail as expectations of the parties do not weave together?

TRUE

What is the goal of a relationship?

Goal of a relationship is to enable the buyer and seller to maximize joint value

True or false: business marketers should continually update the value of their product and relationship offering?

TRUE

What is the high-caliber relational bond characterized by commitment and trust?

Relationship quality

What is the number of interpersonal ties that connect the relationship?

Relationship breadth

What is the ability of the buyer–seller relationship to withstand stress and/or conflict?

Relationship strength

What is the ability of an interfirm relationship to achieve desired objectives?

Relationship efficacy