B2B CH 11, 12, 13, 14
In formulating advertising messages, the business marketer should: a. emphasize product and technical specifications. b. identify general buying criteria of importance to a range of buying center members. c. use color and illustrations sparingly. d. both (a) and (b) e. none of the above
E
In deciding which trade shows to attend, some business marketing strategists turn to reports published by Exhibit Surveys, Inc., a company that surveys trade show audiences. One useful measure that they provide isolates the percentage of the show audience that has decision authority for the types of products being exhibited. This is called: a. Surveys of Industrial Purchasing Power. b. Controlled Audience Index. c. Total Buying Plans. d. Buying Power Index. e. Net Buying Influences.
E
Both behavior-based and outcome-based measures are used by sales managers to evaluate salesperson performance. 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. e. measures the self-esteem and verbal intelligence of each salesperson.
A
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 thousands / Circulation in thousands. d. Cost per page = Circulation in thousands / Cost per thousands
A
The important elements of perception include: a. attention. b. interpretation. c. benefits. d. Only (a) and (b). e. Only (b) and (c).
A
The sales resource grid indicates that a particular territory (planning and control unit) possesses high PCU opportunity and 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. c. Invest a moderate level of sales resources to keep current position strength. d. Either direct a high level of sales resources to improve position or shift resources to other PCUs.
A
When a salesperson attains rewards on a personal basis, such as feelings of accomplishment or self-worth, this is a an example of: a. internally mediated rewards. b. externally mediated rewards. c. job satisfaction. d. aptitude.
A
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. Easy to use and familiar to management. c. Must use instinct for identifying proper level of expenditures to reach goals. d. All of the above. e. Only (a) and (c).
A
23. 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. none of the above.
A
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.
A
_____ is a measure of the total business opportunity for all sellers in a particular market. a. Potential b. Concentration c. Dispersed d. Territory workload
A
A _____ sales organization is especially appropriate when the product line is large or diverse. a. geographical b. product oriented c. market centered d. none of the above
B
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 e. potential, dispersion, competition
B
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. all of the above e. none of the above
B
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 e. none of the above
B
The first phase of for 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. none of the above.
B
The second phase of for 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. none of the above.
B
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.
B
_____ 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 e. Intrinsic satisfaction
B
28. The final phase of for selecting key accounts: 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. none of the above
C
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. All of the above. e. Only (b) and (c).
C
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. (a) and (b) only. e. (b) and (c) only.
C
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 b. product c. market-centered d. territory e. national accounts
C
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 e. All of the above
C
In deciding which trade shows to attend, some business marketing strategists turn to reports published by Exhibit Surveys, Inc., a company that surveys trade show audiences. One useful tool that they provide measures the percentage of the audience planning to buy the products being exhibited within the next 12 months. This is called: a. Surveys of Industry Purchasing Power. b. Controlled Audience Index. c. Total Buying Plans. d. Buying Power Index. e. Net Buying Influences.
C
Sales managers use a variety of measures to evaluate salesperson performance. When the measurement system is behavior-based, the sales manager: a. employs objective measures to evaluate performance. b. emphasizes a compensation system with a large incentive component. c. monitors and directs the activities of salespeople. d. indirectly supervises salesperson activities. e. measures the self-esteem of each salesperson.
C
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. critical mass. c. concentration. d. workload.
C
The cost of reaching a prospect at a trade show is approximately: a. $50 b. $150 c. $250 d. $500 e. $750
C
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.
C
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 above.
C
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. e. a cluster basis.
C
20. 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.
D
An advertising objective must: a. specify what is to be achieved and when. b. be measurable. c. be realistic. d. all of the above. e. (a) and (c) only.
D
An e-mail list can be created by: a. offering an e-mail alert service. b. asking for e-mail addresses in direct mail campaigns. c. collecting e-mail addresses at trade shows. d. all of the above. e. (b) and (c) only.
D
An evaluation of an advertising campaign will usually measure: a. awareness. b. recall. c. motivation. d. all of the above. e. (a) and (b) only.
D
Direct mail is commonly used for: a. corporate image promotion. b. sales force support. c. distribution channel communication. d. all of the above. e. (a) and (b) only.
D
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 above e. (a) and (b) only
D
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 e. none of the above
D
Indices of trade show performance include: a. attraction. b. contact. c. conversion efficiency. d. All of the above. e. Only (b) and (c).
D
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. (a) and (b) only. e. (a) and (c) only.
D
Organization of the sales force depends on the: a. nature of the product. b. the length of the product line. c. the nature of the buying behavior in each segment. d. All of the above. e. Only (a) and (c).
D
Research suggests that successful national account units: a. have senior management support. b. have well-defined objectives. c. have experienced individuals who know how to create effective customer solutions. d. All of the above. e. Only (b) and (c).
D
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 above. e. (a) and (b) only.
D
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 non-routine 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 above e. (a) and (b) only
D
The benefits of having a trade show exhibit to business marketers include: a. the ability communicate with a large and interested audience. b. free publicity. c. the generation of sales leads. d. All of the above. e. Only (a) and (c).
D
The primary objective of the organizational selling center include: a. acquisition and processing of pertinent marketing-related information. b. execution of selling strategies. c. designing the channel structure. d. all of the above. e. (a) and (b) only.
D
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.
D
To identify coverage gaps across territories and to better match sales resources with market opportunity, the GE process for accomplishing territory alignment involves a. evaluating account quality b. examining account density c. implementing changes to enhance sales force effectiveness and efficiency d. all of the above e. a and c above
D
Which of the following are influences on the potential level of sales in a particular territory? a. Salesperson characteristics. b. Competition. c. Territory characteristics. d. All of the above. e. Only (a) and (b).
D
Which of the following factors should be considered when planning an effective trade show communications strategy? a. The focus of the marketing efforts. b. The appropriate show mix. c. The functions performed by the trade show in the total marketing communications program. d. All of the above. e. Only (a) and (c)
D
Which of the following represent common trade-show objectives? a. Identification of decision influencers. b. Handling current customer problems. c. Providing product, service, and company information. d. All of the above. e. Only (a) and (c).
D
Which of the following statements concerning trade shows is(are) accurate? a. The cost of reaching a prospect at a trade show less than the cost of making a personal sales call. b. Over 83 percent of all trade show visitors have some buying authority. c. The average company participates in 45 trade shows per year. d. all of the above e. (a) and (b) only
D
Which of the following statements is (are) true about the Internet's impact on marketing communications? a. Changed from a one-way to a two-way process. b. Customization of advertising messages. c. Improved customer service. d. All of the above. e. Only (a) and (b).
D
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 above. e. Only (a) and (c).
D
A model of "lead efficiency" is calibrated using the firm's: a. historical sales lead and lead conversion-to-sale data. b. total number of sales booths at past shows. c. gross margin. d. all of the above. e. (a) and (c) only.
E
A salesperson's job performance is a function of: a. product knowledge and expertise. b. level of motivation. c. aptitude or ability. d. All of the above. e. Only (b) and (c).
E
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. All of the above. e. Only (a) and (b).
E
Horizontal publications are more effective for business marketers when: a. their product has applications in only a few industries. b. many industries are potential users c. well-defined functions are the principal buying influencers. d. All of the above. e. Only (b) and (c).
E
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. all of the above. e. (b) and (c) only.
E
Recent research has indicated that the indirect communication effects of advertising include: a. increased word-of-mouth communications. b. increased overall company reputation. c. improved logistics performance. d. All of the above. e. Only (a) and (b).
E
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. the opportunity to create relationship congruity d. relationship quality to the sales team e. a template for improving the client management process.
E
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. all of the above e. (a) and (c) only
E
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. all of the above e. both (a) and (c)
E
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. consider the knowledge and presentation skills of the salesperson. e. all of the above
E
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. All of the above. e. Only (a) and (b).
E
The mechanism to trace the cost of performing logistics services to the customer that use these services is called: a. ABC b. JIT c. TCO d. SCM
A
A firm that is able to lower costs by 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. e. Transportation cost reduction.
A
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. e. the trend line approach.
A
As a controllable element in the logistics system, ____ triggers the logistics process and directs the activities necessary to deliver products to customers. a. order processing b. customer service c. production planning d. inventory management e. information management
A
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 e. logistics communication
A
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 e. logistics communication
A
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 investments in inventory by customers. d. all of the above e. both (b) and (c)
A
The final stage in the adoption of supply chain management where companies have successfully aligned both their internal and external processes is called: a. the Expanded Enterprise stage. b. Internal Process Integration stage. c. the Informal stage. d. the Functional stage. e. the Customer Relationship Management stage.
A
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.
A
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. all of the above. e. (b) and (c) only
A
When compared to logistics management, supply chain management is: a. broader. b. less integrative. c. is focused on moving and storing activities. d. All of the above. e. Only (a) and (b).
A
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 lowest-priced alternative. c. Target costing tends to move product developers toward products that include only the bare essentials. d. All of the above. e. None of the above.
A
____ 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 e. Advertising objectives
A
_____ 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 e. Penetration pricing
A
_____ 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 e. Comparative bidding
A
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. d. successful firms look for the first opportunity to raise prices. e. both (a) and (c).
B
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. all of the above. e. (a) and (c) only.
B
8. 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. Suppliers find that relationships with JIT customers are longer lasting. e. both (b) and (c)
B
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. e. Transportation cost reduction.
B
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-per-page). d. the comparison of alternative journals can readily be made by examining total circulation. e. publications with low circulation levels should be avoided.
B
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 e. bid price policy
B
General plant overhead is an example of _____ costs. a. direct traceable b. indirect traceable c. general d. attributable
B
The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as: a. closed bidding. b. open bidding. c. contractual bidding. d. institutional bidding.
B
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. higher investments in inventory. d. all of the above e. (a) and (c) only
B
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. e. administrative overhead.
B
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.
B
_____ 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 e. Elasticities of demand
B
_____ costs include financing, storage, and inspection costs. a. Acquisition b. Possession c. Usage d. None of the above
B
_____ 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 e. Order processing
B
11. 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. e. common publication.
C
12. 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 e. target
C
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. All of the above. e. Only (b) and (c).
C
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 e. production planning
C
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. e. evaluate the strength of potential competing bidders.
C
During the innovative firm's monopoly period, 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 e. bid price policy
C
If the business marketer's product input assumes an insignificant role in the final product's total cost, demand is likely: a. elastic. b. price sensitive. c. inelastic. d. small.
C
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. e. forecast sales.
C
Measuring industrial advertising effectiveness involves an assessment of advertising's impact on: a. sales variables. b. profit variables. c. intervening variables in the buyer's purchase decision process. d. all of the above e. both (b) and (c)
C
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. e. a life cycle costing pricing policy.
C
Social media: a. are more effective than traditional media at reaching hard-to-reach propects. b. are typically less expensive that print media. c. facilitate targeted, personalized contact across the customer experience landscape. d. enhance the impact of trade promtions. e. all of the above
C
Which of the following are reasons why followers into a market often find lower costs than the pioneer firm? a. The use of more current production technologies. b. Experience of suppliers leads to cost reductions. c. Learning from the pioneer's mistakes. d. All of the above. e. Only (b) and (c).
D
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. e. both (a) and (b)
C
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. e. the price of the advertised product.
C
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: a. product differentiation. b. market segmentation. c. time segmentation. d. price administration. e. life cycle pricing.
C
_____ are those that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship. a. Indirect traceable costs b. Attributable costs c. General costs d. none of the above.
C
_____ is the variable cost of moving products from origin to destination, including any terminal and accessory charges. a. Speed of service b. Transportation cost c. Cost of service d. Fixed cost e. None of the above.
C
_____ is the variable cost of moving products from origin to destination, including any terminal and accessory charges. a. Speed of service b. Transportation cost c. Cost of service d. Fixed cost e. None of the above.
C
_____ is typically the largest logistics expense. a. Warehousing b. Inventory control c. Transportation d. Order processing e. Materials handling
C
_____ 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 e. Competitive edge
C
_____ represents a business customer's overall 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 e. Total cost analysis
C
10. 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 e. target
D
14. 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 (b) and (c) e. none of the above
D
A business marketer that provides erratic delivery service to industrial distributors: a. increases the distributor's inventory carrying costs. b. creates stockouts at the distributor level. c. damages channel relations. d. all of the above e. (a) and (c) only
D
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. lower customer investments in inventory. c. a higher customer service level. d. all of the above e. (a) and (c) only
D
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 e. inventory reduction
D
Advertising objectives are typically stated in terms of: a. sales goals. b. profit goals. c. cost constraints. d. communication goals. e. market share goals.
D
An emerging development in performing the logistics process is the utilization of third-party logistics firms. Third-party 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 above. e. (a) and (b) only.
D
Concerning pricing and the competitive environment, which of the following statements is(are) accurate? a. Competition establishes an upper limit on price. b. Late entrants to the market often enjoy potential cost advantages over the pioneering firm. c. Competitors will be more sensitive toward price reductions that threaten market segments that they deem important. d. all of the above e. (a) and (b) only
D
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. c. of the problems associated with terminating internal operations. d. all of the above e. (b) and (c) only
D
Examples of pricing objectives include: a. channel relationships. b. achieving a market-share goal. c. achieving a target return on investment. d. all of the above. e. (b) and (c) only.
D
Examples of typical add-on benefits include: a. joint working relationships. b. commitment. c. supplier flexibility. d. All of the above. e. Only (a) and (b).
D
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. e. recognizes the importance of minimizing fixed facility (warehouse) costs.
D
In serving JIT customers, business marketers find that: a. the typical order size shrinks. b. more frequent deliveries are required. c. relationships with JIT customers are longer lasting and often formalized with a written contract that may span up to five years. d. all of the above e. (b) and (c) only
D
In the management of logistical activities, the performance variable(s) of prime interest (is) are: a. number of products handled. b. total distribution costs. c. inventory movement per warehouse facility. d. the level of logistical service provided to customers. e. both (a) and (d)
D
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. e. life cycle pricing.
D
Pertinent considerations for pricing industrial products or services include: a. competition. b. demand determinants. c. cost determinants. d. all of the above. e. (b) and (c) only.
D
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. (a) and (b) only. e. (b) and (c) only.
D
Successful pricing strategies are: a. value based. b. proactive. c. profit-driven. d. all of the above. e. only a and c.
D
Supply chain management seeks to achieve which of the following goals? a. waste reduction b. unit cost reduction c. flexible response d. all of the above e. (a) and (b) only
D
Supply chains should manage _____ in an integrated manner across organizational borders. a. relationships b. information c. material flow d. all of the above. e. (b) and (c) only.
D
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. d. all of the above. e. (b) and (c) only.
D
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. replace the distributor channel when the sales function can be performed by a direct sales force or by manufacturers' representatives. c. reduce expenditures on company-owned warehouses. d. all of the above e. (a) and (c) only
D
The business marketer will find that total revenue will ____ if the price is decreased and demand is price inelastic. a. rise a little b. rise sharply c. remain the same d. fall
D
The successful implementation of value-based strategies requires close coordination between the _____and _____ units in the firm. a. product b. sales c. service d. all of the above. e. (b) and (c) only
D
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. materials handling. d. all of the above. e. (a) and (b) only.
D
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 less predictable for innovative products. b. attention centers on capturing high profits during peak demand periods for the innovative product. c. minimizing inventory costs is not a major concern with innovative products. d. all of the above e. (a) and (b) only
D
The underlying premise of SCM is that waste reduction and enhanced supply chain performance will exist when there is both intrafirm and interfirm: a. functional integration. b. sharing. c. cooperation. d. all of above. e. (b) and (c) only.
D
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 e. private
D
Waste reduction throughout the supply chain is accomplished by minimizing: a. duplication. b. harmonizing operations and systems. c. quality defects. d. all of the above. e. (a) and (b) only.
D
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 e. arbitrary
D
Which of the following are useful to business marketers trying to gauge competitive responses to pricing? 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. All of the above. e. Only (a) and (c).
D
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. All of the above.
D
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. all of the above e. (a) and (c) only
E
An advertising evaluation program would include an assessment of: a. target markets. b. media and messages. c. overall results. d. buying motives. e. all of the above
E
Common elements of logistics service include: a. delivery time. b. order accuracy. c. cost-per-unit. d. All of the above. e. Only (a) and (b).
E
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 fairly divide decision-making responsibilities. c. Use performance metrics that are tied to chosen strategies. d. All of the above. e. Only (a) and (c).
E
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. all of the above. e. (a) and (b) only.
E
Important social media to be considered by B2B marketers would be focused on: a. discussion forums b. blogs. c. social networks. d. wiki e. all of the above
E
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. all of the above e. (a) and (b) only
E
In regard to logistical service, the business marketer should: a. provide the same level of logistical service to all customers. b. adjust the level of logistical service for different segments based on requirements of the product type. c. adjust the level of logistical service for different segments based on requirements of the customer. d. all of the above. e. (b) and (c) only.
E
The "best" mode of transportation to use in moving industrial products to customers is: a. rail. b. air. c. truck. d. barge. e. dependent upon cost, service and investment tradeoffs.
E
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. all of the above. e. (a) and (b) only.
E
The most commonly reported benefits for firms that adopt supply chain management are: a. higher profit margins. b. enhanced cash flow. c. higher order-to-delivery cycle time. d. all of the above. e. (a) and (b) only.
E
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. all of the above e. (a) and (b) only
E
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. all of the above e. (a) and (c) only
E
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. All of the above. e. Only (a) and (b).
E
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. The formation close relationships among participants is an inherent need of SCM. e. All of the above are true statements.
E
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 increasingly is 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 greatest impact on customer satisfaction and the greatest potential for improving the bottom line and enabling competitive advantage. e. All of the above are true statements.
E
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 use of the Internet as a part of supply chain management has allowed business marketers develop new products in a more timely manner. e. The Internet has provided companies the opportunities to increase channel inventories.
E