Test Bank for Marketing 2016, 18th Edition, William M. Pride, O. C. Ferrell
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1. What are the four major types of business markets, and what are the characteristics of each?
ANSWER: The four categories of business markets are producer, reseller, government, and institutional markets. Individuals and business organizations that purchase products for the purpose of making a profit by using them to produce other products or using them in their operations are classified as producer markets. Reseller markets consist of intermediaries, such as wholesalers and retailers, which buy finished goods and resell them for a profit. Aside from making minor alterations, resellers do not change the physical characteristics of the products they handle. Federal, state, county, and local governments make up government markets. These markets spend billions of dollars annually for a wide range of goods and services, ranging from office supplies and health-care services to vehicles, heavy equipment, and weapons, to support their internal operations and provide citizens with such products as highways, education, energy, and national defense. Organizations with charitable, educational, community, or other nonbusiness goals constitute institutional markets. Members of institutional markets include churches, some hospitals, fraternities and sororities, charitable organizations, and private colleges.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
2. Discuss the differences between business and consumer transactions.
ANSWER: Transactions that involve business customers differ from consumer transactions in several ways. Business transactions tend to be larger and negotiations occur less frequently, though they are often lengthy. They may involve more than one person or department in the purchasing organization. They may also involve reciprocity, an arrangement in which two organizations agree to buy from each other. Business customers are usually better informed than ultimate consumers and are more likely to seek information about a product’s features and technical specifications.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
3. What are some of the major concerns of business customers in making purchase decisions?
ANSWER: When making purchasing decisions, business customers take into account a variety of factors. Among their chief considerations are price, product quality, service, and supplier relationships. Price is an essential consideration for business customers because it influences operating costs and costs of goods sold, which affects selling price, profit margin, and ultimately the ability to compete. Most business customers try to maintain a specific level of quality in the products they buy. To achieve this goal, most firms establish standards (usually stated as a percentage of defects allowed) for these products and buy them on the basis of a set of expressed characteristics, commonly called specifications. Typical services business customers desire from suppliers are market information, inventory maintenance, on-time delivery, and repair services. Business buyers may need technical product information, data regarding demand, information about general economic conditions, or supply and delivery information. Maintaining adequate inventory is critical to quality, customer service, customer
satisfaction, and managing inventory costs and distribution efficiency. Furthermore, on-time delivery is crucial to ensuring that products are available as needed. Reliable on-time delivery saves business customers money because it enables them to carry only the inventory needed at any given time. Customer expectations about quality of service have increased and broadened over time. Using traditional service quality standards based only on traditional manufacturing and accounting systems is not sufficient. Finally, business customers are concerned about the costs of developing and maintaining relationships with their suppliers. By building trust with a particular supplier, buyers can reduce their search efforts and uncertainty about prices.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
4. What factors affect the purchase method that business customers choose?
ANSWER: Although no two business buyers do their jobs the same way, most use one or more of the following purchase methods: description, inspection, sampling, and negotiation. The most straightforward is description. When products are standardized and graded according to certain characteristics such as size, shape, weight, and color, a business buyer may be able to purchase simply by describing or specifying quantity, grade, and other attributes. Certain products, such as industrial equipment, used vehicles, and buildings, have unique characteristics and may vary with regard to condition. Depending on how they were used and for how long, two products may be in very different conditions, even if they look identical on paper. Consequently, business buyers of such products should base purchase decisions on inspection. Sampling entails evaluating a portion of the product on the assumption that its characteristics represent the entire lot. This method is appropriate when the product is homogeneous for instance, grain and examining the entire lot is not physically or economically feasible. Some purchases by businesses are based on negotiated contracts. In certain instances, buyers describe exactly what they need and ask sellers to submit bids. They then negotiate with the suppliers that submit the most attractive bids. This approach is generally used for very large or expensive purchases, such as commercial vehicles. This is frequently how government departments conduct business. A buyer and seller might negotiate a contract that specifies a base price and provides for the payment of additional costs and fees. These contracts are most commonly used for one-time projects such as buildings, capital equipment, and special projects.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
5. Compare and contrast the three major types of purchases made by business customers.
ANSWER: Most business purchases are one of three types: new-task, straight rebuy, or modified rebuy. Each type is subject to different influences and thus requires business marketers to modify their selling approaches accordingly. For a new-task purchase, an organization makes an initial purchase of an item to be used to perform a new job or solve a new problem. A newtask purchase may require development of product and vendor specifications and procedures
for future product purchases. A straight rebuy purchase occurs when buyers purchase the same products routinely under approximately the same terms of sale. Buyers require little information for routine purchase decisions and tend to use familiar suppliers that have provided satisfactory service and products in the past. For a modified rebuy purchase, a newtask purchase is altered after two or three orders, or requirements associated with a straight rebuy purchase are modified. A business buyer might seek faster delivery, lower prices, or a different quality level of product specifications.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
6. Demand for business products can be characterized in four ways; describe these four characteristics and compare and contrast their attributes.
ANSWER: Demand for business products (also called industrial demand ) can be characterized as (1) derived, (2) inelastic, (3) joint, or (4) fluctuating. Because business customers, especially producers, buy products for direct or indirect use in the production of goods and services to satisfy consumers’ needs, the demand for business products derives from the demand for consumer products it is therefore called derived demand . In the long run, no demand for business products is totally unrelated to the demand for consumer products. The derived nature of demand is usually multilevel in that business marketers at different levels are affected by a change in consumer demand for a product. With inelastic demand , a price increase or decrease does not significantly alter demand for a business product. A product has inelastic demand when the buyer is not sensitive to price or when there are no ready substitutes. Because many business products are more specialized than consumer products, buyers will continue to make purchases even as the price goes up. Certain business products, especially raw materials and components, are subject to joint demand. Joint demand occurs when two or more items are used in combination to produce a product. Understanding the effects of joint demand is particularly important for a marketer that sells multiple jointly demanded items. Such a marketer realizes that when a customer begins purchasing one of the jointly demanded items, a good opportunity exists to sell related products. Because the demand for business products is derived from consumer demand, it is subject to dramatic fluctuations. In general, when consumer products are in high demand, producers buy large quantities of raw materials and components to ensure that they meet long-run production requirements. These producers may expand production capacity to meet demands as well, which entails acquiring new equipment and machinery, more workers, and more raw materials and component parts. Conversely, a decline in demand for certain consumer goods reduces demand for business products used to produce those goods.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
7. Explain how purchase decisions for business products may be influenced by persons in a buying center.
ANSWER: Purchase decisions are made by a single person. Often they are made through a buying center. The buying center is the group of people within the organization who make business
purchase decisions. They include users, influencers, buyers, deciders, and gatekeepers. One person may perform several roles within the buying center and participants share goals and risks associated with their decisions. Users are the organizational members who will actually use the product. They frequently initiate the purchase process and/or generate purchase specifications. Influencers are often technical personnel, such as engineers, who help develop product specifications and evaluate alternatives. Buyers select suppliers and negotiate terms of purchase. They may also be involved in developing specifications. Finally, gatekeepers, such as secretaries and technical personnel, control the flow of information to and among the different roles in the buying center.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
8. Describe the various stages of the business buying decision process.
ANSWER: In the first stage of the business buying decision process, one or more individuals recognize that a problem or need exists. The second stage of the process, development of product specifications, requires that buying center participants assess the problem or need and determine what is necessary to resolve or satisfy it. During this stage, users and influencers, such as engineers, provide information and advice for developing product specifications. Searching for and evaluating potential products and suppliers is the third stage in the decision process. The results of deliberations and assessments in the third stage are used during the fourth stage of the process to select the product to be purchased and the supplier. In some cases, the buyer selects and uses several suppliers, a process known as multiple sourcing. During the fifth stage, the product’s performance is evaluated by comparing it with specifications. Sometimes the product meets the specifications, but its performance fails to adequately solve the problem or satisfy the need recognized in the first stage.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
9. In what ways do environmental factors affect the business buying decision process?
ANSWER: Environmental factors include competitive and economic factors, political forces, legal and regulatory forces, technological changes, and sociocultural issues. These factors can generate considerable uncertainty for an organization, including in buying decisions. Changes in one or more environmental forces, such as new government regulations or increased competition, can create opportunities and threats that affect purchasing decisions.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
10. Discuss how interpersonal factors influence the business buying decision process.
ANSWER: Interpersonal factors are the relationships among people in the buying center. Trust is crucial in collaborative partnerships. This is especially true when customized products are involved the buyer may not see the product until it is finished and must trust that the producer is creating it to specifications. Trust and clear communication ensure that all parties are satisfied with the outcome, however interpersonal dynamics and varying communication abilities within the buying center may complicate processes.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
11. How do individual factors affect the business buying decision process?
ANSWER: Individual factors are the personal characteristics of participants in the buying center, such as age, education level, personality, and tenure and position in the organization. Let us consider a 55-year-old manager who has been in the organization for 25 years. This manager is likely to have a greater influence and power over buying center decisions than a 30-year-old employed at the firm for only two years. The influence of various factors, such as age and tenure, on the buying decision process depends on the buying situation, the type of product, and the type of purchase (newtask, modified rebuy, or straight rebuy). Employee’s negotiating styles will vary as well. To be effective, marketers must know customers well enough to be aware of these individual factors and their potential effects on purchase decisions.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
KEYWORDS: Bloom's: Knowledge
12. Compare and contrast the consumer buying decision process and the business buying decision process.
ANSWER: The consumer buying decision process includes five stages: problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation. First, this process can be affected by numerous influences, which are categorized as situational, psychological, and social. Second, the actual act of purchasing is usually not the first stage of the process. Third, not all decision processes lead to a purchase individuals can end the process at any stage. Finally, not all consumer decisions include all five stages. Like consumers, businesses follow a buying decision process. In the first stage, one or more individuals recognize that a problem or need exists. Problem recognition may arise under a variety of circumstances for instance, when machines malfunction or a firm modifies an existing product or introduces a new one. It may be individuals in the buying center or other individuals in the firm who initially recognize that a problem exists. The second stage of the process, development of product specifications, requires that buying center participants assess the problem or need and determine what is necessary to resolve or satisfy it. During this stage, users and influencers, such as engineers, provide information and advice for developing product specifications. By assessing and describing needs, the organization should be able to establish product specifications. Searching for and evaluating potential products and suppliers is the
third stage in the decision process. Search activities may involve looking in company files and trade directories, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. The results of deliberations and assessments in the third stage are used during the fourth stage of the process to select the product to be purchased and the supplier. In some cases, the buyer selects and uses several suppliers, a process known as multiple sourcing . Firms with federal government contracts are generally required to have several sources for an item to ensure a steady supply. At times, only one supplier is selected, a situation called sole sourcing. During the fifth stage, the product’s performance is evaluated by comparing it with specifications. Sometimes the product meets the specifications, but its performance fails to adequately solve the problem or satisfy the need recognized in the first stage. In that case, product specifications must be adjusted. The supplier’s performance is also evaluated during this stage. If supplier performance is inadequate, the business purchaser seeks corrective action from the supplier or searches for a new one. Results of the evaluation become useful feedback in future business purchase decisions. This business buying decision process is used in its entirety primarily for new-task purchases. Several stages, but not necessarily all, are used for modified rebuy and straight rebuy situations.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
13. In what ways can an industrial classification system be used by business marketers to analyze target markets?
ANSWER: Business marketers have a considerable amount of information available for use in planning marketing strategies. Much of this information is based on an industrial classification system, which categorizes businesses into major industry groups, industry subgroups, and detailed industry categories. The North American Industry Classification System (NAICS) replaced the earlier Standard Industrial Classification (SIC) system and is used by the United States, Canada, and Mexico. It provides marketers with information needed to identify business customer groups. Marketers can best utilize this data in conjunction with other information. After identifying target industries, a marketer can obtain the names and locations of potential customers by using government and commercial data sources.
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.05 - LO: 08-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Industrial Classification Systems
KEYWORDS: Bloom's: Knowledge
14. What are the major advantages of the North American Industry Classification System (NAICS) compared to the Standard Industrial Classification (SIC) system?
ANSWER: The NAICS classification is based on production activities. NAICS is similar to the International Standard Industrial Classification (ISIC) system used in Europe and many other parts of the world. Whereas the older SIC system is divided industrial activity into 10 divisions, NAICS divides it into 20 sectors. NAICS contains 1,170 industry classifications, compared with 1,004 in the SIC system. NAICS is more comprehensive and up-to-date, and it provides considerably more information about service industries and high-tech products.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.05 - LO: 08-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Industrial Classification Systems
KEYWORDS: Bloom's: Knowledge
15. The three purposes for which individuals or groups can use products in order for it to be considered a business market are
a. use in daily operations, end consumption, and resale.
b. direct use in producing other products, company travel, and end consumption.
c. resale, use in daily operations, and direct use in producing other products.
d. governmental, institutional, and reseller purposes.
e. making other products, selling to other businesses, making component parts.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
16. In business markets, individuals or groups purchase products for one of three purposes. These purposes are
a. resale, wholesale, and direct use.
b. wholesale, direct use, and use in producing other products.
c. resale, wholesale, and use in producing other products.
d. resale, direct use in producing other products, and use in general daily operations.
e. use in general daily operations, wholesale, and resale.
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
17. When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire?
a. Resale
b. Wholesale
c. Customer
d. Consumer
e. Business
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
18. Business markets are typically divided into four categories. These categories are
a. retailers, wholesalers, services, and nonprofit firms.
b. producer, manufacturer, reseller, and government.
c. producer, reseller, government, and institutional.
d. manufacturer, wholesaler, retailer, and services.
e. reseller, retailer, government, and institutional.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
19. Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
20. An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) market.
a. consumer
b. producer
c. reseller
d. government
e. institutional
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
21. Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
22. buy products from manufacturers and then resell the products to other firms in the distribution system.
a. Retailers
b. Producers
c. Distributors
d. Warehouses
e. Wholesalers
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
23. Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a market.
a. consumer
b. producer
c. government
d. reseller
e. wholesaler
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
24. Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?
a. Reseller
b. Producer
c. Consumer
d. Government
e. Supply
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
25. Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a(n) market.
a. producer
b. government
c. reseller
d. construction
e. institutional
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
26. Retailers like Target and Kmart are considered to be members of which business market?
a. Reseller
b. Customer
c. Producer
d. Institutional
e. Services
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
27. Which of the following statements about reseller markets is false?
a. Resellers are concerned with the level of demand for the product.
b. Resellers are not concerned with how much space the product takes up as long as it has a high price.
c. Resellers want producers to be able to supply adequate quantities of the product.
d. Resellers are concerned with the availability of technical and promotional assistance from the producer.
e. Resellers are concerned with the markup percentage they can get on the product.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Comprehension
28. Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of
a. their markup.
b. sales per square foot of selling area.
c. how many of the product they can fit in a certain amount of space.
d. profit per dollar of selling price.
e. the reliability of the supplier.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
29. Which type of business market tends to have the most complex buying procedures?
a. Reseller
b. Institutional
c. Retailer
d. Government
e. Producer
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
30. When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered
a. a regulatory sale.
b. a reseller purchase.
c. a government purchase.
d. a producer purchase.
e. an institutional sale.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
31. The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to
a. make a presentation appointment with the state.
b. quote prices to the purchasing department.
c. advertise in the capital city.
d. negotiate with the state.
e. secure a slot on the list of qualified bidders.
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
32. About what percentage of the annual U.S. gross domestic product is government spending?
a. 2 percent
b. 10 percent
c. 20 percent
d. 40 percent
e. 50 percent
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
33. A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him
a. that he's absolutely right, the government doesn't deal with small businesses.
b. although the government will deal with small businesses, he will never make a profit off a government contract.
c. that any government, federal, state, or local would laugh at the size of his business.
d. the government rarely considers new suppliers when making purchasing decisions.
e. the government buys products from all sizes of business, but there is some red tape.
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
34. The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use?
a. The government will request bids from all companies on its qualified bidder list.
b. It will contact whatever company made the last jets and have them develop the new ones.
c. Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets.
d. The government will select a few firms and enter into negotiations with them until the contract is awarded.
e. The contract will go to the first company that submits a reasonable bid for the desired jets.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
35. Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) market.
a. producer
b. consumer
c. reseller
d. institutional
e. government
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
36. When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be buyers.
a. corporate
b. government
c. institutional
d. producer
e. nonprofit
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Comprehension
37. Institutional markets are
a. intermediaries who resell goods to make a profit.
b. federal and state government units.
c. state or local government units.
d. consumers who buy products for their own use.
e. organizations that seek nonbusiness goals.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
38. Which of the following would be considered an institutional buyer?
a. The University of Illinois
b. The Environmental Protection Agency
c. Apple Computers
d. The United Way
e. City of Greenville
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
39. What are the two ways governments make purchases?
a. Cash or credit
b. Contracting previous suppliers and bids
c. Bids and negotiated contracts
d. Lottery system and contract negotiations
e. Request for new purchases and recurring orders
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
40. What is a primary difference between business and consumer buyers?
a. Consumer buyers require more product information than business buyers.
b. Business purchases are made by one individual whereas families make consumer purchases together.
c. Repeat sales are more common with consumer buyers than business buyers.
d. Consumers primarily buy inexpensive items; businesses only buy expensive items.
e. Business buyers generally make larger orders than consumer buyers.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
41. Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects periodically. This practice is an example of
a. cost-benefit trading.
b. cooperative selling.
c. reciprocity.
d. supplier agreements.
e. modified rebuy purchase.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
42. A disadvantage of reciprocity is that it can lead to
a. a price war.
b. higher promotional costs.
c. more competitive firms entering the industry.
d. less-than-optimal purchases for the buyer.
e. longer periods of negotiation.
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
43. Jason owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Jason negotiated with Palmetto Dodge, a dealer, with the agreement that GreenScapes would be the service company Palmetto Dodge used for all of its landscaping needs. This is an example of
a. a new task purchase.
b. a straight rebuy.
c. a modified rebuy.
d. reciprocity.
e. a straight purchase.
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
44. Which of the following statements about business buying is false?
a. Business marketers prefer not to sell to customers who place small orders.
b. Business marketers must often sell their products in large quantities to make profits.
c. Most business purchases are made by committee.
d. Business purchases are usually made on the basis of contracts.
e. Orders in business markets tend to be smaller than those placed in consumer markets.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
45. Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called
a. partnerships.
b. co-ops.
c. monopolies.
d. reciprocity.
e. alliances.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
46. Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n)
a. reciprocity agreement.
b. partnership.
c. intra-organizational group.
d. alliance.
e. tying arrangement.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
47. Which of the following is true with respect to buyers in business markets?
a. Business buyers always act rationally when making purchases for their company.
b. Business customers tend to be less informed about the products they purchase than consumer buyers.
c. Business customers demand detailed information about a product's functional features and technical specifications.
d. Business customers are no different than buyers in consumer markets.
e. Business customers tend to buy products from their friends and contacts with business suppliers.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
48. When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer?
a. Does the quality of the goods meet company specifications?
b. Does the supplier consistently deliver on time?
c. Does the supplier also sell to my competitors?
d. Does the supplier offer the services required?
e. Does the price meet company budget requirements?
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
49. Product specifications are best described as
a. physical characteristics and level of quality.
b. descriptions of a product.
c. numbers of quality inspections required.
d. comparisons to similar products.
e. defective product return policies.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Comprehension
50. Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for in order to achieve their quality goals.
a. how many different suppliers they use
b. how many parts can fail
c. controlling when shipments will arrive
d. the percentage of defects allowed
e. how long the parts should last
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
51. All of the following are important concerns of business customers except
a. achieving a specific level of quality in the products offered to target markets.
b. obtaining a level of quality that meets specifications.
c. obtaining products that exceed specifications to ensure the best possible product performance.
d. obtaining products for which the quality level is consistent.
e. supporting customers with services they expect.
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Comprehension
52. Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called
a. descriptions.
b. product features.
c. criterion.
d. purchase requests.
e. specifications.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
53. Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive?
a. Develop a code of service.
b. Set service objectives.
c. Formally survey customers.
d. Specify service uniformity.
e. Stress truthfulness with employees.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
54. A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method?
a. Description
b. Inspection
c. Sampling
d. Negotiation
e. Selection
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
55. Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on of the alternative machines.
a. descriptions
b. inspections
c. a sampling
d. specifications
e. reputations
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
56. Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?
a. Homogeneous selection
b. Inspection
c. Description
d. Sampling
e. Negotiation
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
57. A representative product taken from a lot or batch, evaluated, and purchased refers to
a. homogeneous selection.
b. description.
c. trust.
d. negotiated inspection.
e. sampling.
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
58. Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?
a. Negotiation
b. Sampling
c. Description
d. Inspection
e. Homogeneous selection
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
59. St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using for a purchase decision.
a. sampling
b. negotiation
c. inspection
d. elimination
e. description
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Pricing
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
60. Which of the following products is most likely to be purchased on the basis of contract negotiation?
a. Eggs
b. Office supplies
c. Used cars
d. A custom-made bulldozer
e. Wheat
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Pricing
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
61. Most business purchases can be classified as belonging to one of three types:
a. delinquent, repetitive, or delivered.
b. repetitive, new-task, or modified rebuy.
c. modified rebuy, new-task, or straight rebuy.
d. delinquent, new-task, or reciprocal.
e. rebuy, reciprocal, or delayed.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
62. The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a
a. new-product purchase..
b. repetitive purchase.
c. straight rebuy.
d. modified rebuy.
e. standard order.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
63. When a business is making its initial purchase of an item to be used to perform a new job, it is known as a purchase.
a. straight rebuy
b. reciprocal
c. delayed
d. new-task
e. modified rebuy
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Knowledge
64. Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a purchase.
a. modified rebuy
b. straight rebuy
c. new-task
d. reevaluated
e. repetitive
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
65. Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a purchase.
a. new-task
b. repetitive
c. straight rebuy
d. repetitive order
e. modified rebuy
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
66. A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?
a. New-task
b. Modified rebuy
c. Straight rebuy
d. Bid
e. Negotiated
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
67. Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week’s purchase represent?
a New-task
b. Repetitive
c. Institutional
d. Straight rebuy
e. Modified rebuy
ANSWER: e
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
68. The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area. The owners of Eagle Pawn have recently purchased a new software system designed to better track their inventory. Now that they have had the system for a couple of months, they have decided to upgrade to a newer version. The original purchase is an example of a(an) ________, while the current purchase will be a(an) _____.
a. new task; modified rebuy
b. new task; continued new-task
c. contractual; modified rebuy
d. new task; straight rebuy
e. negotiated task; modified rebuy
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
United States - AK - DISC: Strategy
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
69. Demand for business products is also known as demand.
a. derived
b. corporate
c. business buying
d. manufacturing
e. industrial
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
70. The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
a. joint.
b. economically stable.
c. derived.
d. inelastic.
e. more fluctuating.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Comprehension
71. Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be since it depends on the demand for new cars.
a. inelastic
b. fluctuating
c. derived
d. elastic
e. nonderived
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
72. Demand for business products is characterized as derived. From what is the demand derived?
a. Industrial demand
b. Modified demand
c. Demand for consumer products
d. Future product demand
e. The business cycle
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
73. All of the following describe the demand for business products except
a. elastic.
b. derived.
c. joint.
d. inelastic.
e. fluctuating.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
74. Inelastic demand simply means that
a. buyers will not make a modified rebuy purchase.
b. demand depends on how many items are purchased.
c. a price increase or decrease will not significantly change the demand for an item.
d. when price goes up, demand goes down.
e. when supply is reduced, the price will increase.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
75. Inelastic demand in business markets refers to a situation where
a. demand for a given product fluctuates very little over time.
b. price increases or decreases will not significantly change demand for a given product.
c. demand for a given product fluctuates significantly over time.
d. demand for one product depends heavily on the demand for another product.
e. supply for a given product cannot keep pace with the demand for it.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
76. Christoff’s Lawn & Lot is a small business that provides landscaping and grass cutting services in the spring and summer. Christoff’s usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff’s was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35% causing Christoff’s to pay more for their supplies. The demand for gas despite its price represents demand for Christoff’s Lawn & Lot.
a. elastic
b. inelastic
c. derived
d. joint
e. separate
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer United States - AK - DISC: Pricing
TOPICS:
A-Head: Demand For Business Products
KEYWORDS: Bloom's: Application
77. In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Application
78. Demand for a business product is when two or more items are used in combination to produce a product.
a. inelastic
b. joint
c. fluctuating
d. derived
e. partnered
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
79. King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Application
80. When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes demand.
a. joint
b. inelastic
c. consumer
d. fluctuating
e. elastic
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Knowledge
81. Most business buying decisions are made by
a. one person.
b. a team of purchasing agents.
c. a firm's buying center.
d. inventory control personnel.
e. the sales force.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
82. In a buying center, purchasing agents or purchasing managers are also known as
a. gatekeepers.
b. deciders.
c. buyers.
d. users.
e. influencers.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
83. The group of people within a business who are involved in making business buying decisions is referred to as
a. the new-task team.
b. negotiators.
c. purchasing agents.
d. deciders.
e. the buying center.
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Comprehension
84. Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked members of the computer science department to give input on the purchase decision. In this instance, the student senate would be acting as a(n) ____, while the purchasing agent is a(an) ______.
a. user; buyer.
b. user; gatekeeper.
c. user; decider.
d. influencer; decider.
e. influencer; gatekeeper.
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
85. Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of in this purchase decision.
a. gatekeeper
b. buyer
c. decider
d. buying center captain
e. order giver
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
86. As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L’s information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often in the buying decision process.
a. gatekeepers
b. users
c. influencers
d. buyers
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
87. The stages of the business buying decision process, in order, are
a. recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.
b. recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance.
c. recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products.
d. establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance.
e. establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
88. The second stage in the business buying decision process is to
a. search for products and suppliers.
b. select the most appropriate product.
c. develop product specifications.
d. evaluate product and supplier performance.
e. recognize the problem.
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
89. In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on
units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?
a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
90. After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?
a. Problem recognition
b. Product specification
c. Product-supplier search and evaluation
d. Product-supplier selection
e. Product-supplier post-evaluation
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
91. The third stage in the business buying decision process is to
a. evaluate product specifications to solve the problem.
b. evaluate products relative to specifications.
c. select and order the most appropriate product.
d. evaluate product and supplier performance.
e. search for products and suppliers.
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
92. Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in analysis.
a. vendor
b. downsizing
c. strategic
d. value
e. profit
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
93. During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.
a. cost
b. value
c. profit
d. strategic
e. SWOT
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
94. analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.
a. Value
b. Vendor
c. Buying center
d. Strategic
e. Cost
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
95. An organization that decides to buy all of a certain part from the same company is using
a. single-supplier purchasing.
b. multiple sourcing.
c. same vendor analysis.
d. straight rebuy.
e. sole sourcing.
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
96. What are the four major factors that influence business buying decisions?
a. Environmental, organizational, interpersonal, and individual
b. Environmental, organizational, psychological, and individual
c. Environmental, psychological, individual, and technological
d. Technological, organizational, environmental, and interpersonal
e. Environmental, organizational, technological, and individual
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
97. Individual influencing factors refer to
a. relationships among those in the firm's buying center.
b. uncontrollable environmental forces.
c. the power an individual controls in the buying center.
d. personal characteristics of individuals in the buying center.
e. activities of suppliers.
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Knowledge
98. A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of influence on the business buying decision process.
a. environmental
b. organizational
c. interpersonal
d. individual
e. demographic
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
99. Compared with consumer goods, marketers aiming at business customers
a. do not need to select target markets.
b. have an enormous amount of information available concerning potential customers.
c. have more difficulty in determining where their customers are located.
d. are restricted in the types of promotion they can use.
e. have more difficulty in estimating customers' purchase potentials.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.05 - LO: 08-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Industrial Classification Systems
KEYWORDS: Bloom's: Knowledge
100. Compared with the SIC system, the North American Industry Classification System (NAICS) will
a. look at many industries at one time.
b. be used throughout the world.
c. contain the most up-to-date information for the NAFTA partners.
d. provide less information about service industries.
e. generate statistics that will not be useful in comparing countries.
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.05 - LO: 08-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Industrial Classification Systems
KEYWORDS: Bloom's: Knowledge
101. Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC?
a. Mexico
b. Canada
c. United States
d. Japan
e. All but one NAFTA country
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.05 - LO: 08-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Industrial Classification Systems
KEYWORDS: Bloom's: Knowledge
102. Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in
a. Sales & Marketing Management
b. an SIC listing.
c. the Census of Business.
d. the Census of Manufacturers
e. Standard & Poor's Register
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.05 - LO: 08-05
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Industrial Classification Systems
KEYWORDS: Bloom's: Application
103. Scenario 8.1
Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. What was the first step of the buying decision process that Samsung went through when looking for
the quasi-assembly pods?
a. Searching for products and suppliers
b. Selecting and ordering the most appropriate product
c. Recognizing the problem or need
d. Establishing product specifications
e. Evaluating the product relative to specifications
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
104. Scenario 8.1
Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. What type of business purchase is Samsung undertaking?
a. Modified rebuy
b. Straight rebuy
c. New-task
d. Straight purchase
e. New rebuy
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.02 - LO: 08-02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Dimensions Of Marketing To Business Customers
KEYWORDS: Bloom's: Application
105. Scenario 8.1
Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. Which of the following groups should Samsung not include in its buying center for the new
equipment?
a. Purchasing agents at Samsung
b. Eventual users within Samsung
c. Potential future Samsung customers
d. Gatekeepers within Samsung
e. Senior managers at Samsung
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Product
TOPICS:
A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
106. Scenario 8.1
Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not?
a. Environmental
b. Organizational
c. Interpersonal
d. Demographic
e. Individual
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
107. Scenario 8.2
Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the
Midwest.
Refer to Scenario 8.2. When Precision Brake sells to the individual dealers, they would be considered which of the following business types?
a. Producer
b. Reseller
c. Government
d. Institutional
e. Covert
ANSWER: b
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
108. Scenario 8.2
Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to?
a. Producers
b. Governments
c. Retailers
d. Consumers
e. Institutions
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Application
109. Scenario 8.2
Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It
also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. When Precision Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be ____, part of the buying center.
a. gatekeepers
b. influencers
c. users
d. buyers
e. controllers
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.04 - LO: 08-04
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Business Buying Decisions
KEYWORDS: Bloom's: Application
110. Scenario 8.2
Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states.
Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of
a. Product scarcity
b. Joint demand
c. Derived demand
d. Reciprocity demand
e. Inelastic demand
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.03 - LO: 08-03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Strategy
TOPICS: A-Head: Demand For Business Products
KEYWORDS: Bloom's: Application
111. Buyers in producer markets purchase either raw materials or semifinished products.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
112. The four categories of consumer markets are producer, reseller, government, and institutional.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
113. The owner of a trucking business, who buys gasoline from the nearby service station for the company trucks, is a part of a business market.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
114. The term business markets refers only to producer markets.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
115. An example of a business market would be farmers.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
116. Grocery stores and supermarkets are a part of producer markets.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
117. Reseller markets consist of intermediaries that buy finished goods and resell them for profit.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Product
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
118. Wholesalers sell primarily to ultimate consumers.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
119. There is little or no difference between wholesalers' customers and retailers' customers.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
120. Retailers purchase products and resell them to final consumers.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Customer
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
121. The increase in government purchases has resulted partly from the increase in the number of services provided by the government.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: MARK.PRID.16.08.01 - LO: 08-01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Marketing Plan
TOPICS: A-Head: Business Markets
KEYWORDS: Bloom's: Knowledge
122. Government markets, although complicated in their requirements, can be very lucrative.
a. True