MKT 360 Ch3

__ selling is a sales approach that involves building and maintaining customer trust over a long period of time.

Relationship

From the following list, select all the benefits of EDI. automated ordering manual processing of information more accurate accounting increased need for human interaction in the transaction better inventory management lower cost

automated ordering more accurate accounting better inventory management lower cost

Which term refers to groups of individuals who ultimately have a voice in the purchase decision? buying teams purchase coordinators selling teams sourcing agents

buying teams

Which term refers to the characteristics of openness, honesty, and sincerity displayed by salespeople in their communications? Multiple choice question. dependability likeability integrity candor

candor

To act as a consultative salesperson, you must demonstrate a high level of ___ in various knowledge bases: customer knowledge, company knowledge, product knowledge, competitive knowledge, industry knowledge, technological knowledge, and service knowledge.

competence

What type of loyalty exists when customers continue to purchase from a selling firm because they are contractually required to do so? constrained spurious personal affective

constrained

The definition of what constitutes strong character is ______. That is, it depends on the situation. personal contextual objective obsolete

contextual

The ______ offering refers to the actual product or service purchased, while the _______ offering addresses the intangible elements (such as responsiveness and communication) that determine customer satisfaction. product, satisfaction core, service primary, secondary basic, extended

core, service

During the evaluation of alternatives, customers weight their decisions based on the ______ that are most important in their decision. solutions cost estimates sales presentations criteria

criteria

A salesperson high in _______ knowledge has a deep understanding of a customer's business and the functions and processes that support the business. technological company industry customer

customer

From the following list, select the knowledge bases on which a high level of competence is built. customer knowledge industry knowledge informal knowledge company knowledge spurious knowledge service knowledge technological knowledge product knowledge competitive knowledge

customer knowledge industry knowledge company knowledge service knowledge technological knowledge product knowledge competitive knowledge

Which group of people in the buying team helps determine the priorities to be addressed when making the purchase decision and expresses their opinions regarding potential solutions? purchasers deciders influencers product users

influencers

During the _______ stage of the decision-making model, customers gather information and identify potential suppliers. problem recognition information search problem evaluation latent-needs declaration

information search

During the _______ stage of the decision-making model, customers gather information and identify potential suppliers. problem recognition latent-needs declaration problem evaluation information search

information search

Salespeople who have high ______ have a strong set of core values they adhere to regardless of the situation. dependability likeability candor integrity

integrity

When a salesperson leaves a firm, his or her clients are likely to ______. not change their buying behavior follow the salesperson to another company consider the salesperson disloyal and untrustworthy continue buying from the firm

follow the salesperson to another company

A trusted advisor displays which two of the following characteristics? high sales volume high maintenance high competence high character

high competence high character

From the following list, select all of the aspects of character-based trust. modesty high integrity candor dependability likeability profit orientation customer orientation

high integrity candor dependability likeability customer orientation

Place the five steps of the customer-relationship life cycle in order from first to last.

1. awareness 2. exploration 3. expansion 4. commitment 5. dissolution

Place the five steps in the decision-making model for customer purchases in order from first to last.

1. problem recognition 2. information search 3. evaluation of alternatives 4. supplier solution decision 5. post-purchase evaluation

Which of the following statements are true of the information-search stage of decision making? Although this step historically required assistance from salespeople, customers are now able to gather a great deal of information on their own via the internet. In this step, the customer will gain focus on the actual nature of the problem and the requirements that must be fulfilled in a solution. During this phase, the emphasis shifts from which solution will be chosen to how the solution will be implemented. During this stage, the customer gathers information and identifies potential suppliers. In this stage, customers weight their decisions based on the criteria that are most important to them. Salespeople need to stay engaged with customers during this step to ensure that they are receiving the information they need.

Although this step historically required assistance from salespeople, customers are now able to gather a great deal of information on their own via the internet. In this step, the customer will gain focus on the actual nature of the problem and the requirements that must be fulfilled in a solution. During this stage, the customer gathers information and identifies potential suppliers. Salespeople need to stay engaged with customers during this step to ensure that they are receiving the information they need.

From the following list, select all the statements that are true of straight-rebuy purchases. Customers' information needs for these purchases are low. These purchases require significant formal decision making. These purchases are often automated based on parameters agreed upon between buyer and seller. These purchases require significant time and energy. The customer has a significant history to rely on for these purchases. Many people are involved in the purchase decision. The dollar volumes associates with these purchases are typically low.

Customers' information needs for these purchases are low. These purchases are often automated based on parameters agreed upon between buyer and seller. The customer has a significant history to rely on for these purchases. The dollar volumes associates with these purchases are typically low.

Which of the following statements are true of the exploration phase of the customer-relationship life cycle? During this phase, the salesperson and customer first interact. In this phase, the customer has decided to continue the relationship with the salesperson and the selling firm. In this phase, the customer assesses whether the selling firm will be able to deliver the necessary level of benefits needed to justify a long-term relationship. In this phase, the customer invests time, money, and effort to expand or strengthen the relationship. The customer engages in initial prospecting activities to determine the desirability of a long-term relationship with a particular selling firm.

During this phase, the salesperson and customer first interact. In this phase, the customer assesses whether the selling firm will be able to deliver the necessary level of benefits needed to justify a long-term relationship. The customer engages in initial prospecting activities to determine the desirability of a long-term relationship with a particular selling firm.

Which technology provides a mechanism through which many straight-rebuy purchases are transacted, especially in B2B settings? ROI (return on investment) EDI (electronic data interchange) LIFO (last in, first out) PERT (program evaluation and review technique)

EDI (electronic data interchange)

Which of the following is an example of a straight-rebuy situation? Each week, a company automatically receives a supply of beverages for its break room. The purchasing department decides to purchase a brand-new ethics-training program for all of its employees. This purchase is in response to a new emphasis on corporate ethics. For the first time, an organization purchases a corporate jet. A company places an order for brand-new office furniture for all of its employees (a significant investment).

Each week, a company automatically receives a supply of beverages for its break room.

Which of the following is an example of a straight-rebuy situation? For the first time, an organization purchases a corporate jet. Each week, a company automatically receives a supply of beverages for its break room. A company places an order for brand-new office furniture for all of its employees (a significant investment). The purchasing department decides to purchase a brand-new ethics-training program for all of its employees. This purchase is in response to a new emphasis on corporate ethics.

Each week, a company automatically receives a supply of beverages for its break room.

For salespeople who have high integrity, differentiating right from wrong depends on the context. True false

False

Most customer relationships remain the same over time. True false

False

Today, honest and open communications in sales are the exception rather than the rule. True false

False

Today, most people differentiate their sales pitch through the company's core offering. True false

False

Which of the following statements are true of the information-search stage of decision making? During this phase, the emphasis shifts from which solution will be chosen to how the solution will be implemented. In this step, the customer will gain focus on the actual nature of the problem and the requirements that must be fulfilled in a solution. In this stage, customers weight their decisions based on the criteria that are most important to them. Although this step historically required assistance from salespeople, customers are now able to gather a great deal of information on their own via the internet. Salespeople need to stay engaged with customers during this step to ensure that they are receiving the information they need. During this stage, the customer gathers information and identifies potential suppliers.

In this step, the customer will gain focus on the actual nature of the problem and the requirements that must be fulfilled in a solution. Although this step historically required assistance from salespeople, customers are now able to gather a great deal of information on their own via the internet. Salespeople need to stay engaged with customers during this step to ensure that they are receiving the information they need. During this stage, the customer gathers information and identifies potential suppliers.

From the following list, select all the statements that apply to spurious loyalty. It is marked by a strong attitudinal connection or a constraint in the relationship. It may exist because the customer does not have time to seek out alternative suppliers. It exists when the customer continues to purchase only out of habit. It exists when the customer continues to purchase from the supplier out of convenience and there is no impetus for change. It frequently arises from a contractual obligation. It may exist because the customer believes that purchases in the product category are particularly important.

It may exist because the customer does not have time to seek out alternative suppliers. It exists when the customer continues to purchase only out of habit. It exists when the customer continues to purchase from the supplier out of convenience and there is no impetus for change.

__ needs are needs that are undetected or of which the customer is unaware.

Latent

___-rebuy purchases combine elements of new-task purchases and straight-rebuy purchases.

Modified

From the following list, select all the characteristics of candor. secretiveness honesty openness extroversion sincerity

honesty openness sincerity

From the following list, select all the reasons why salespeople confront a greater number of ethical dilemmas than other types of employees do. Companies' codes of ethics exempt salespeople from following certain aspects of those codes. Salespeople often work alone, which can reduce normative group influences. Salespeople need to balance the interests of the buying and selling organizations. Unlike most other employees, salespeople undergo a rigorous annual performance review. The people who manage sales reps may be willing to overlook ethical questions, particularly in the face of aggressive sales goals. Salespeople are under intense pressure to perform.

Salespeople often work alone, which can reduce normative group influences. Salespeople need to balance the interests of the buying and selling organizations. The people who manage sales reps may be willing to overlook ethical questions, particularly in the face of aggressive sales goals. Salespeople are under intense pressure to perform.

___ loyalty exists when the customer continues to purchase only out of habit. Attitudinal Constrained Spurious Affective

Spurious

From the following list, select all that statements that apply to the supplier-solution decision. The customer chooses a vendor from which to buy. The focus shifts from how the solution will be implemented to which solution will be chosen. This stage takes place after the evaluation of alternatives but before the post-purchase evaluation. The purchaser works closely with the salesperson to ensure a seamless purchasing process.

The customer chooses a vendor from which to buy. This stage takes place after the evaluation of alternatives but before the post-purchase evaluation. The purchaser works closely with the salesperson to ensure a seamless purchasing process.

From the following list, select all the characteristics of modified-rebuy purchases. They usually are unimportant purchases for the organization. Usually, few participants are involved in the buying decision. They combine elements of new-task purchases and straight-rebuy purchases. In many cases, they are high-dollar-volume purchases. There is some history for the customer to rely upon when making the purchase.

They combine elements of new-task purchases and straight-rebuy purchases. In many cases, they are high-dollar-volume purchases. There is some history for the customer to rely upon when making the purchase.

From the following list, select all the characteristics of influencers. They help determine the priorities that need to be addressed when making the purchase decision. They often affect the final purchase decision or some facet of the purchase decision. They play only a minor role on the buying team. They are the first to recognize the customer's need to purchase a product or service. They express their opinions regarding potential solutions.

They help determine the priorities that need to be addressed when making the purchase decision. They often affect the final purchase decision or some facet of the purchase decision. They express their opinions regarding potential solutions.

From the following list, select all the statements that are true of deciders. They typically rely on other individuals on the buying team when making their decision. They negotiate sales terms with the selling organization and make the actual purchase. They make the actual choice of a product or service for purchase. The titles of these individuals is typically a function of purchase importance, with higher-level executives usually in charge of new-task purchase situations.

They typically rely on other individuals on the buying team when making their decision. They make the actual choice of a product or service for purchase. The titles of these individuals is typically a function of purchase importance, with higher-level executives usually in charge of new-task purchase situations.

Which of the following is an example of a modified-rebuy purchase? the conversion of a car lease into a car sale at the end of the leasing period a line review to decide which products the company will regularly stock in the coming year the purchase of personal-care products, such as deodorant and hairspray, from a retailer such as Walmart or Target a new purchase of expensive inventory-management software

a line review to decide which products the company will regularly stock in the coming year

From the following list, select all the statements that are true of salespeople who are high in customer knowledge. They have a strong understanding of the resources that their own company possesses and the means of attaining those resources. They understand the customer as a person—what motivates the customer and what personal goals the customer is seeking to achieve within the organization. They understand how the solutions they propose will be applied within the customer's organization and will affect it. They have a deep understanding of a customer's business and the functions and processes that support the business.

They understand the customer as a person—what motivates the customer and what personal goals the customer is seeking to achieve within the organization. They understand how the solutions they propose will be applied within the customer's organization and will affect it. They have a deep understanding of a customer's business and the functions and processes that support the business.

When customers feel affective loyalty, they are unlikely to defect to the competition even if the competition offers a lower price. True false

True

Constrained loyalty exists when ______. customers continue to purchase only out of habit customers continue to purchase from the selling firm because they are constrained to the relationship, perhaps by a contract customers feel a strong attitudinal connection with the salesperson or selling firm customers stop purchasing from a firm when their salesperson leaves his or her job

customers continue to purchase from the selling firm because they are constrained to the relationship, perhaps by a contract

Affective loyalty exists when ______. customers feel extremely emotional about their purchasing decisions customers feel a strong attitudinal connection with the salesperson and/or selling firm customers continue to purchase from the selling firm because they are constrained to the relationship customers continue to purchase only out of habit

customers feel a strong attitudinal connection with the salesperson and/or selling firm

Which members of the buying team make the actual choice of a product or service for purchase? deciders influencers purchasers product users

deciders

Which of the following is the final phase in the overall customer relationship life cycle?

dissolution

Today, customers conduct much of their initial search for information ______. at a showroom in a retail location at a library electronically

electronically

Customer _______ refers to the connection that exists between the salesperson, the selling firm, and the customer. satisfaction loyalty engagement service

engagement

In the _______ phase of the customer-relationship life cycle, the customer engages in initial prospecting activities to determine the desirability of a long-term relationship with a particular selling firm. awareness expansion dissolution exploration

exploration

Salespeople and customers first interact during the ______ phase of the customer-relationship life cycle. awareness commitment interaction exploration

exploration

In situations that involve the purchase of high-importance items, the same person is usually both decision maker and purchaser. True false

false

In the exploration phase of the relationship life cycle, the customer recognizes a need and begins seeking out selling firms that may potentially be able to solve a problem or fulfill a need.

false

Influencers are in communication with other members of the buying team, but they rarely affect buying decisions. True false

false

It is always clear who is influential in an organization's buying decision. True false

false

Modified rebuy purchases refer to purchases that the customer makes on a frequent basis, involving low information needs and a short timeline.

false

New-task purchases require little time and energy from the customer or buyer. True false

false

The customer always has the same relationship with the salesperson and with the selling firm. True false

false

Within the buying team, deciders help determine the priorities to be addressed when making the purchase decision and express their opinions regarding potential solutions.

false

Salespeople who fall into the trap of taking a product orientation ______. lose track of their customers' needs and focus only on the products they are selling and the features of those products are generally more successful than those who emphasize a customer orientation in their job place the customers' interests ahead of their own or those of the company believe that the customer is the origin of all sales activities and therefore the most important aspect of selling.

lose track of their customers' needs and focus only on the products they are selling and the features of those products

When repurchasing from a firm, customers may exhibit three different types of__ : constrained, affective, or spurious.

loyalty

Tomás is a salesperson for Stylus, a company that sells benefits packages to firms in an attempt to keep overall costs down. The solution is highly complex, as stylus works with a variety of medical providers to provide in-network care at negotiated prices. From the customer's perspective, the implementation of the program comes at a high cost initially and requires the input of many people within the company. As this is a new offering to the market, information needs for the custom are typically high. Based on this description, Tomás should recognize that this is what type of purchase for customers?

new task

Of the key types of customer purchases, which are new to the purchasing organization, meaning that the customer has no history to draw from when making the purchase decision? modified rebuy new-task purchase straight rebuy product research

new-task purchase

Customer ______ describes the extent to which salespeople place the customer's interests ahead of their own or those of their company. emphasis orientation focus satisfaction

orientation

During the ______ step of the decision-making model for customer purchases, a customer recognizes that a need or problem exists. evaluation of alternatives post-purchase evaluation problem recognition information search

problem recognition

The five-step decision-making model for customer purchases begins with ______ and ends with _______. problem recognition, post-purchase evaluation information search, evaluation of alternatives supplier solution decisions, product placement decisions evaluation of solutions, the recognition of new problems

problem recognition, post-purchase evaluation

Which type of knowledge requires a strong understanding of product attributes and features? product knowledge industry knowledge competitive knowledge technological knowledge

product knowledge

Which member of the buying team negotiates final terms and makes the actual purchase? decider purchaser influencer gatekeeper

purchaser

To engage with customers, salespeople must align their selling processes to their customers' ______. purchasing preferences profit targets socioeconomic background place in the organizational hierarchy

purchasing preferences

Within a(n) ________ selling approach, the salesperson seeks to build and maintain customer trust over a long period of time.

relationship

In which type of selling does the primary strategy focus on building and maintaining customer trust over a long period of time? . direct selling virtual selling relationship selling telemarketing

relationship selling

Research has found that customers believe that the _______ relationship is more important than the ______ relationship. firm, salesperson salesperson, firm

salesperson, firm

____ knowledge is an understanding of the additional layer of benefits that accompany the core offering. extended premium service bonus

service

In straight-rebuy purchases, the customer has ______ to rely on, and the purchases themselves require ______. a purchasing department, minimum outlays of cash significant history, little time or energy no history, a great deal of time and energy internet reviews, large outlays of cash

significant history, little time or energy

In the modern era, salespeople must have strong product knowledge, but to be successful they must focus on ______. being likeable communicating that product knowledge via seminars solving their customers' problems increasing the size of all their sales orders

solving their customers' problems

From the following list, select the three types of loyalty that customers may exhibit when repurchasing from a firm. spurious constrained affective brand

spurious constrained affective

Which term refers to purchases that a customer makes on a frequent basis? new-task purchases modified-rebuy purchases straight-rebuy purchases traditional purchases

straight-rebuy purchases

During which phase of the decision-making process does the focus shift from which solution will be chosen to how the solution will be implemented? pre-purchase evaluation information search supplier-solution decision post-purchase evaluation

supplier-solution decision

During which phase of the decision-making process does the focus shift from which solution will be chosen to how the solution will be implemented? supplier-solution decision pre-purchase evaluation post-purchase evaluation information search

supplier-solution decision

When making the ______, the customer chooses a vendor from which to make a purchase. internet information summary post-purchase evaluation supplier-solution decision evaluation of alternatives

supplier-solution decision

When making the ______, the customer chooses a vendor from which to make a purchase. supplier-solution decision evaluation of alternatives internet information summary post-purchase evaluation

supplier-solution decision

An essential aspect of selling successfully is identifying who has ______ a buying decision. an interest in making no input into the authority to make the time to research

the authority to make

A key challenge in adhering to ethical sales practices is ______. the constraints on behavior that results from a company's statement of social responsibility customers' unwillingness to purchase from ethical salespeople the existence of a companywide code of ethics and mission statement the intense pressure on salespeople to succeed or "bring in the numbers"

the intense pressure on salespeople to succeed or "bring in the numbers"

Which of the following is part of the core offering? the product itself sales rep communication sales rep responsiveness sales rep reliability

the product itself

During the evaluation of alternatives, salespeople may suggest that customers consider additional criteria for making their decision. True false

true

Historically, the salesperson was the primary provider of information required to begin the purchasing process, but this situation has changed as the internet has become a dominant force in society. True false

true

In many companies, salesperson-owned loyalty is more important than selling-firm-owned loyalty in determining whether the relationship will continue if the salesperson leaves. True false

true

In order to be viewed as a trusted advisor, salespeople must demonstrate high levels of character and competence.

true

In relationship selling, the actions of the salesperson largely determine the level of value and the satisfaction provided the customer.

true

Salespeople confront more ethical dilemmas than most other employee groups. True false

true

Our belief that another person will act with integrity on a reliable basis is called

trust

A salesperson who has earned the trust of a customer through high character and high competence is known as a ______. sales advocate relationship seller moral leader trusted advisor

trusted advisor

In the Pilot Flying J case, the FBI accused the company of ______. engaging in discrimination against states with Republican leadership refusing to work with companies that were unwilling to provide bribes and kickbacks to Pilot Flying J executives illegally outsourcing contracts to overseas companies withholding customers' rebates and discounts in order to enhance company profitability

withholding customers' rebates and discounts in order to enhance company profitability