Yarmouk University - MKT 321

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1)Why is a salesperson's relationship with each business -to -business customer so important?

1. 1. Each business -to -business customer is the source of referrals, and referrals are essential to building a sales business.
   2. Customer retention policy states that salespeople must provide follow -up service as a way to increase customer satisfaction and increase the volume of sales.
   3. If a salesperson does not maintain a good relationship with each customer, that customer may leave the company and tell others to leave the company as well, starting a domino effect.
   4. A good salesperson focuses on all customers equally as a matter of integrity.
   5. Each business -to -business customer represents a higher percentage of a salesperson's total business.

2. A good CRM software system allows managers to track all of the following EXCEPT:                              
   1. industry growth forecasts
   2. monthly sales forecasts
   3. salesperson call volume
   4. customer purchasing history
   5. interactions between customers and customer service representatives

3. After a buyer recognizes a problem or opportunity, what does the buyer do next, in the normal purchase process?
   1. evaluates the purchase
   2. evaluates alternatives
   3. searches for information
   4. decides to purchase
   5. approves a vendor
4. Which of the following would be a step in a new buy situation that would NOT take place in a straight re -buy?
   1. evaluating proposals from various suppliers
   2. figuring out the specifications of the product
   3. setting the amount of product needed
   4. reexamining the performance of the product
   5. paying an invoice for product delivered
5. A customer has purchased fittings from Allied Fitting Supply for the past three years and is happy with Allied's sales and service representatives. Which of the following is a reason the customer might begin a modified re -buy process instead of performing a straight re -buy?
   1. Allied Fitting Supply's sales process has changed.
   2. The customer's product design has changed.
   3. Allied Fitting Supply's catalog has gone from paper to digital.
   4. The customer's management structure has changed.
   5. The customer's sales process has changed.

6. Use of an electronic data interchange (EDI) system is most appropriate for which type of buying situation?
   1. a straight re -buy
   2. a modified re -buy
   3. a new buy
   4. integrative
   5. facilitative
7. For the last 5 years, Dominguez Industrial has been buying diecast machines from Access Corp. Dominguez Industrial has been approached by DMC, a rival diecast machine manufacturing company, about purchasing from DMC instead of Access Corp. In this scenario, Access Corp is the:
   1. modified re -buyer
   2. customer
   3. in -supplier
   4. out -supplier
   5. straight re -seller

8. Who uses a multi -attribute matrix in a selling situation, and why?                                        
   1. the buyer, to compare vendors by factors that are important in the process
   2. the salesperson, to calculate monthly commission figures
   3. the salesperson, to rate the potential lifetime value of the customer
   4. the sales manager, to determine the likelihood that the sale will close
   5. the buyer, to determine which vendor is offering the lowest price

9. 

   Which of the following is true of the way buyers use the multi -attribute matrix to evaluate vendors?
   1. The buyer evaluates out -suppliers by the matrix but does not evaluate in -suppliers with the matrix.
   2. The buyer uses a standard matrix that applies across all industries.
   3. The buyer always gives more importance to price than to other considerations.
   4. The buyer changes the weighting of different factors for different vendors.
   5. The buyer weights the matrix so a strong performance in one area compensates for a weak performance in another.

10. The marketing manager at Norgren Windows would like to buy software that allows her to track the return on the ads she places in trade publications. She asks her assistant to contact software suppliers and get demonstrations of their software along with pricing and purchase options. Once her assistant has obtained and summarized the information, the marketing manager emails the info to the head of IT to see if he has any opinions about which software she should buy. After receiving feedback from the head of IT, the marketing manager makes her decision about which software to buy, and asks her boss, the VP of sales and marketing, to sign off on the decision.

Which of the following roles does the head of IT play in this sales process?

1. 1. user
   2. decision maker
   3. controller
   4. gatekeeper
   5. influencer

11. A buying center is most often:
    1. a department that controls all purchases for a given company
    2. a committee formed to meet to make a purchase decision or decisions
    3. a person, usually a controller or purchaser, who has the final say in a purchase decision
    4. a warehouse or facility the receives all the purchases for a company and forwards them to the person who ordered them
    5. a group of people who perform the purchase decision roles without a formal structure
12. What role can an account manager play on an extended selling team?                                   
    1. gatekeeper for the other departments
    2. figurehead for the team
    3. technical expert
    4. decisionmaker for the purchase process
    5. coordinator of different members of the team
13. Which of the following is NOT a major challenge in a team selling situation?                          
    1. sharing responsibility for closing or losing a sale
    2. coordinating the members smoothly
    3. communicating among all the members of the team and the customer
    4. compensating the members fairly
    5. finding members with expertise in the product they are selling
14. A sales manager must build which of the following into any compensation plan for a selling team?                                                                                                                                                  
    1. a fine for responding too slowly to customer requests
    2. a penalty for not achieving a monthly quota
    3. a bonus for landing a sale that a different team couldn't close
    4. an allowance for the expenses required for so many people to communicate with one another
    5. an incentive for the team to cooperate to make its goals

15. An example of multi -selling would be which of the following?                                               
    1. A paper salesperson brings along his sales manager to call on the director of purchasing.
    2. A buyer emails the salesperson to ask a question about pricing, and the customer service representative follows up on the question to make sure it was answered adequately.
    3. A director of sales requires all salespeople to bring along engineers on sales calls to explain the technical specifications of the product to the purchasers.
    4. A software salesperson calls on the office manager who purchases, and the training director makes a training plan with the manager in charge of training the employees who will be using the software.
    5. A tech support representative answers tech support requests from a programmer, and a salesperson calls on the gatekeeper at the same company.

16. Recently, ADV computers started advertising that all their laptops contain Medula processors. This is an example of:
    1. multi -selling
    2. a marketing alliance
    3. a B2B sale
    4. a value -added reseller
    5. an extended sales effort
17. What one development has made managing B2B customer relationships much easier than it was in the past?
    1. CRM strategy
    2. the internet
    3. deregulation of certain industries
    4. sales training courses
    5. emerging leader theory

18. The phrase "data mine" means:
    1. to calculate the lifetime value of current customers
    2. to look for industry research to improve your product
    3. to search for information on competitors on the internet
    4. to examine information in your database
    5. to research potential prospects on the internet

19. 

    Software that tracks the profitability of individual sales and groups of sales allows managers to do all of the following EXCEPT:
    1. drop product lines or customers that do not make the company money
    2. access key decision -makers they have not previously been able to contact
    3. analyze how much each sale or customer costs the company
    4. prevent salespeople from making unprofitable deals
    5. compensate salespeople on profits, not total sales

20. Which of the following is NOT something a company could discover by mining its own data?
    1. how the company has done historically in different economic climates
    2. how many sales calls happen on average before a customer buys
    3. which divisions create the strongest relationships with clients
    4. which sales approaches work best with different sizes of customers
    5. which production methods their competitors are using
21. A company that has a customer -centric point of view puts what at the center of its activities?                
    1. problem solving
    2. profitable customer relationships
    3. information technology (IT)
    4. the product
    5. sales strategy

22. 

    Who decides which customers should receive excess time and resources from a company as part of the sales and relationship process?
    1. the customer
    2. the industry oversight organization
    3. management
    4. the salesperson
    5. the competition

23. 

    A transactional relationship is more likely than other selling relationships to be:                    
    1. cooperative, because the sellers can agree on a standard price to charge the buyer
    2. cooperative, because the buyer can state a price it will pay and reduce competition among sellers
    3. hostile, because the buyer could force the sellers to compete against each other on price
    4. cooperative, because the buyer can take turns purchasing from buyers
    5. hostile, because the sellers could refuse to provide price quotes to the buyer

24. 

    A "bow tie" relationship between the buying and selling company is characteristic of which type of selling relationship?
    1. integrative
    2. transactional
    3. consulting
    4. adversarial

    5. 

       facilitative

25. How does a facilitative relationship create value for both buyer and seller?                            
    1. The buyer saves money by limiting the number of presentations it listens to, and the seller saves money by reducing the shipping costs it charges the buyer.
    2. The buyer saves time and money by using only one seller, and the seller reduces buying and marketing costs by repeat sales to the same buyer.
    3. The buyer increases costs by buying from one seller, and the seller decreases profits by selling to the same buyer.
    4. The buyer trusts that the seller will deliver the product and the seller trusts that the buyer will pay for the product.
    5. The buyer reduces costs by eliminating the buying center, and the seller reduces the sunk costs of developing elaborate sales presentations.

26. A integrative relationship is deeper than a facilitative relationship in that:                                            
    1. in an integrative relationship, the seller and buyer work so closely together that they actually become partners in helping the buyer use the product
    2. in a facilitative relationship, multi -level selling opportunities give the two companies better knowledge of each other
    3. in a facilitative relationship, the seller takes a consulting role in determining how best to match the product to the customer
    4. in an integrative relationship, the buying process is constantly being reevaluated
    5. in an integrative relationship, workers may be employed by both the buyer and the seller, and paid by both companies

27. The goal of a vendor working toward an integrative relationship with a customer is:              
    1. to become a sole source supplier for the customer
    2. to design the product specifically for the customer
    3. to maximize the profit on each transaction
    4. to perform multi -level sales with the customer
    5. to place employees at customer work sites

28. Companies that have which type of selling relationship with a buyer are least likely to have that relationship fail?
    1. integrative
    2. transactional
    3. valued -added
    4. allied
    5. facilitative

29. 

    In some Asian countries, the process of forming a sales relationship with a customer:                            
    1. must be done at the customer's office
    2. can only be done from an office in that country
    3. takes months, and perhaps even years
    4. requires native knowledge of body language and customs
    5. is not proscribed by customs or rituals

30. Moving from a transactional model of sales to an integrative model of sales requires a move from:
    1. communicating directly to communicating partially
    2. a win -lose mentality to a win -win mentality
    3. asking questions to answering questions
    4. a repeat model to an episodic model
    5. a paradigm of excellence to a paradigm of empathy
31. Computing a customer's lifetime value is:
    1. too complicated to be worth it except for the biggest customers
    2. simple to do, but not important for customer relationship management
    3. complicated, but possible with the assistance of special software
    4. both complicated and necessary
    5. simple, but vital to knowing how much time to spend with the customer

32. A company can plan its sales strategy, including how much contact to make and money to spend on a customer if:
    1. the customer agrees to award the company a sole source supplier contract
    2. the customer is forthcoming about its buying needs
    3. the company has calculated the customer's lifetime value
    4. the company follows all standard sales processes
    5. the company invests in external research about the customer
33. CRM software helps firms understand how to increase income. Directly after management understands this stage, how does their understanding of the process increase?
    1. They understand that mistakes they've made in the relationship can be remedied by face -to -face contact.
    2. They understand that they can find ways to maximize profits by managing customer relationships.
    3. They understand that careful routing of sales calls and assignment of territories can increase revenues significantly.
    4. They understand that finding new business is a repeatable process.
    5. They understand that managing customers creates more lifetime value from those customers.

34. 

    The best way for a seller to increase value for a customer is to:
    1. increase benefits and hold costs steady
    2. increase benefits and increase costs
    3. increase benefits and decrease costs
    4. decrease benefits and increase costs
    5. decrease benefits and decrease costs

35. Managing risk for the customer is an important job for a salesperson. This is because:        
    1. risk is the biggest reason a selling relationship fails
    2. risk is a key factor in whether a customer will purchase from that vendor or not
    3. risk always outweighs cost as a factor in a purchase decision
    4. risk is an unavoidable part of life for all organizations
    5. risk is at odds with the drivers of delight
36. One of a salesperson's main goals with regard to each business -to -business customer is to:                    
    1. treat that customer as if they might switch to another supplier at any moment
    2. treat that customer exactly the same as every other client company
    3. ask the customer for referrals to other potential customers
    4. create a relationship that is friendly instead of businesslike
    5. create a relationship that lasts long -term, instead of a one -time sale
37. It is NOT a requirement of a good sales representative to:                                                      
    1. meet the commitments he or she makes to a customer
    2. understand the customers' business on a deep level
    3. provide service after the sale is completed
    4. give the customer a bigger price discount than other vendors do
    5. create a relationship with the customer that lasts for more than one transaction
38. Providing a customer with service after the sale is:
    1. important, because it gives the customer the illusion that the vendor is a larger company than it is
    2. important, because these follow -up services can generate more revenue for the vendor
    3. a luxury, because no money is generated by providing follow -up service
    4. important, because it is a commitment to the buyer that cements a long -term relationship
    5. a luxury, because most salespeople are busy chasing new customers
39. When a business relationship fails, which party is often blamed for the failure?                                     
    1. the decision make
    2. the salesperson
    3. the sales manager
    4. the customer
    5. the customer relationship director

40. In which of the following scenarios would a failed relationship not be the fault of the salesperson?                                                                                                                                                  
    1. The customer service representative tells the salesperson that the customer does not know how to install the product, but the salesperson does not act on this information.
    2. The shipping department fails to ship product to the customer, but records in the CRM software that the product was shipped on schedule.
    3. The sales manager asks all salespeople to offer incentives in the form of free service contracts to get the customers to purchase quickly.
    4. The tech support department is not able to figure out why they product is not connecting to the customer's other systems, but the salesperson does not check to see that implementation has been completed.
    5. The salesperson quotes the customer a price for the product, and honors that price even though the customer purchases past the date on the written quote.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

41. Each B2B customer is important because it represents a higher proportion of a salesperson's business than normal retail customers do.

42. In the normal purchase process, the buyer identifies a problem, searches for information, evaluates alternatives, makes a purchase decision, and reevaluates the purchase once it's made.

43. The difference between a straight re -buy and a modified re -buy is that in a straight re -buy the customer does not solicit information from other vendors or products.

44. A multi -attribute matrix is a standard formula used in all selling situations to evaluate potential vendors.

45. 

    In the purchase process, another name for "decision maker" is "purchaser."                                         

46. 

    Multi -level selling is appropriate for transactional sales, but not facilitative or integrative sales.             

47. 

    Putting profitable customer relationships at the center of strategy decisions makes a company customer -centric.

48. The goal for sales representatives and managers is to establish and maintain long -term sales relationships with all their customers.

49. Determining a customer's lifetime value can help determine how much time and how many resources should be put into that customer.

50. 

    Buyers are less concerned with risk than with money when they make purchase decisions.                    

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

51. Why is it especially important for sales executives to understand the issues surrounding business -to -business sales?

52. List the main steps of the buyer's purchase process. Are there certain buying situations that alter this process? In what ways?

53. Explain the differences between a new boy, a modified re -buy, and a straight re -buy.                

54. 

    What is the difference between an in -supplier and an out -supplier? What advantage does an in -supplier have over an out -supplier?

55. What part do roles play in a purchase decision process? What different roles are possible in the decision process?

56. What is an extended selling team? What are the advantages of an extended selling team in a selling situation?

57. Explain multi  -level selling. How can it strengthen a sales relationship?                                    
58. What is a marketing alliance? Give an example of a marketing alliance.                     

59. 

    Explain data mining. What kinds of things can companies discover by mining their own data?

60. Discuss the three selling relationships. Which one leaves room for the most hostility? Which one is the deepest?

61. 

    Should companies provide the same level of service to all customers? Why or why not?                                                                                                                                      
62. What does customer lifetime value mean? How is it calculated?                                             
63. What are the stages of business -to -business customer relationship management?                    

64. What are the ways the seller can increase the value of their products or services in the mind of the buyer?

65. What are some reasons a business relationship might end? Who is usually blamed for the end of a business relationship? Is this an accurate assignment of responsibility?