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Marketing has long emphasized the importance of being close to the customer. A research project that explored long-term relationships between industrial customers and their suppliers led to questions about how realistic this goal is and revealed other issues regarding patterns of customer-vendor behavior. Discussed here are the concepts of relationship marketing and transaction marketing and how customers' purchasing behaviors call for one or the other approach. To build and maintain lasting customer ties, and to outperform competitors, marketers will profit from careful and explicit consideration of their customer relationships.

Industrial marketers should set prices according to their customers' perceptions of product benefits and costs. Because price defines a product market, price should be seen as one of the product's several critical performance attributes. Industrial marketers must manage product planning and pricing simultaneously, taking maximum advantage of the company's cost structure and building on the company's competitive competence.

Presents the results of a computer simulation of aircraft hull insurance. Discussion will focus on the interpretation of the results described. Designed to be handed out in class. Rewrite of an earlier supplement by P. Vatter.

Summary of the main concepts of (simple) decision trees--structuring a problem, assigning endpoint values, using probabilities, averaging out and folding back. Also treats risk profile.