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Unformatted text preview: identify frequent purchasers who are definitely more likely to
repeat their purchasing behavior in the future. The monetary value of sales is important because
big spenders can be the most profitable customers for a business. Another measure of success is a
site’s stickiness factor, which is a measure determined by multiplying the frequency of visits
times the duration of a visit times the number of pages viewed during each visit (site reach). By
measuring the stickiness factor of a Web site before and after a design or function change, the
marketer can quickly determine whether visitors embraced the change.
KEY: CB&E Model Strategy OBJ: 07-2 TOP: AACSB MSC: BLOOMS Synthesis 4. Discuss the difference between disintermediation and reintermediation. Give an example of a
company you are aware of that has used these strategies.
ANS: Disintermediation is eliminating intermediaries such as wholesalers or distributors from a
marketing channel. Reintermediation is reintroducing an intermediary between producers and
users. Examples may vary. Students may use text examples of Dell or Walmart for
disintermediation. An example of a company using reintermediation would be Apple computers,
which once sold its products through companies like Comp USA. Another example would Apple
using AT&T stores for retail sales of the iPhone.
KEY: CB&E Model Strategy OBJ: 07-2 TOP: AACSB MSC: BLOOMS Synthesis 5. What is a strategic alliance? How is it linked to relationship marketing?
A strategic alliance, sometimes called a strategic partnership, is a cooperative agreement between
business firms. Strategic alliances can take the form of licensing or distribution agreements, joint
ventures, research and development consortia, and partnerships, sometimes on a multinational
level. The two key features that characterize most successful strategic alliances are commitment
and trust. Strategic alliances are therefore connected to relationship marketing, which is defined
as a strategy that entails seeking and establishing long-term partnerships with customers.
KEY: CB&E Model Strategy OBJ: 07-3 TOP: AACSB MSC: BLOOMS Synthesis 6. Briefly describe the four major categories of customers in business marketing. Give examples of
companies or organizations in each category.
PRODUCERS include individuals and organizations that purchase goods and services for the
purpose of making a profit by using them to produce other goods, to become part of other goods,
or to facilitate the daily operations of a firm. Examples include General Motors, Coca-Cola, and
Kraft Foods. RESELLERS include those wholesale and retail businesses that buy finished goods
and resell them for a profit. Examples could include any grocery store, furniture store, or retail
clothing store. GOVERNMENT organizations include a large number of buying units that
purchase goods and services. The federal government, as well as stat...
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- Fall '13