Chapter 3: "Customer Relationship Management Strategies"

Value can be defined as the _____ benefits received by a customer firm in exchange for the price paid for a product offering. a.) technical b.) all of the answer choices c.) social d.) economic

b.) all of the answer choices

Transactional Relationship

many alternative suppliers

Low Cost Customer Characteristics

- Pay on time - High order quantities - Minimal sales support - Electronic order processing - Standard products/delivery

High Cost Customer Characteristics

- Pay slowly - Manual order processing - Unpredictable orders - Significant Sales Support - Custom Products/Quantities

Goals of CRM

- 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

collaborative relationship

- few alternative suppliers - supply market is vital

Value-Adding Relationship

- focus shifts from attracting customers to keeping customers

Which of the following statements about buyer-seller relationships is(are) true? a.) Collaborative relationships are more likely to involve operational linkages and high levels of information exchange b.) all of the answer choices c.) Customers prefer a transactional orientation when there are few alternative offerings from suppliers d.) Customers emphasize a collaborative orientation when the purchase decision is not complex

a.) Collaborative relationships are more likely to involve operational linkages and high levels of information exchange

Which of the following statements about transactional relationships is(are) true? a.) Customers emphasize a transactional orientation when the purchase is viewed as less important to the organization b.) all the answer choices c.) Customers prefer a transactional relationship when the market is dynamic (for example, rapidly-changing technology) d.) Transactional relationships are more likely to involve operational linkages

a.) Customers emphasize a transactional orientation when the purchase is viewed as less important to the organization

_____ centers on all activities directed toward establishing, developing, and maintaining successful exchanges with customers and other constituents a.) Relationship Marketing b.) Transactional exchange c.) buying centers d.) a strategic alliance

a.) Relationship Marketing

Collaborative relationships: a.) all the answer choices b) are emphasized by buying firms when the purchase is deemed important to the organization c.) are emphasized by buyers when the complexity is high d.) are more likely to involve operational linkages

a.) all the answer choices

Using the continuum of working relationships, the industry bandwidth refers to: a.) the range of relationship strategies (from transactional to collaborative) that are pursued by competing firms b.) the number of organizations in a straight rebuy situation c.) the number of competitors in the particular industry d.) always-a-share customers e.) the lost-for-good customer

a.) the range of relationship strategies (from transactional to collaborative) that are pursued by competing firms

Which of the following are reasons for business marketers to employ relationship marketing activities? a.) Having strong relationships with customers can be hard for competitors to understand or duplicate b.) none of the answer choices c.) Loyal customers are far more profitable than price sensitive customers d.) Both loyal customers are far more profitable than price sensitive customers and having strong relationships with customers can be hard for competitors to understand or duplicate are true

d.) Both loyal customers are far more profitable than price sensitive customers and having strong relationships with customers can be hard for competitors to understand or duplicate are true

Collaborative advantage

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

Transactional relationships: a.) all of the answer choices b.) both are characterized by high levels of information exchange and are more likely to involve operational linkages c.) are characterized by high levels of information exchange d.) are more likely to involve operational linkages e.) are emphasized by buyers when the purchase is viewed as less important to the organization's objectives

e.) are emphasized by buyers when the purchase is viewed as less important to the organization's objectives

On-going transactions in the business market where the customer and the supplier focus only on the timely exchange of standard products at competitive prices could be described as: a.) a joint venture b.) a strategic alliance c.) collabartive exchange d.) a partnership e.) transactional exchange

e.) transactional exchange