Chapter 12 Test Quizlet, Business-to-Business Marketing, Marketing Cengage

A vendor offers business customers a 2 percent discount on large orders. Peterson Manufacturing orders 50,000 widgets from the vendor at $0.27 each. How much will the order cost if the discount is applied to the order?

$13,320 or 13,320

If 100 units of a product cost $5,000 and 200 units cost $8,000, what is the incremental cost per unit of the second 100 units?

$30 or 30

Suppose 100 units of a product cost $5,000. What is the average cost per unit for this product?

$50 or 50

A publishing company sought bids from two editorial service providers to edit the manuscript of a new book. Premier Editorial Services agreed to edit the book for $5.00 per page. Premier also included a $1,500 management fee in its bid. A second supplier, Word Crunchers, agreed to edit the book for $7.50 per page but charged no management fee. If the book is 1,000 pages long, how much will the publishing company pay to get the book edited, provided it selects the lowest-cost supplier?

$6,500 or 6,500

Suppose that last year inventories averaged $1.26 for every $1 of sales. If a business had annual sales of $900,000, what would be the value of its inventory?

1.134

A business would most likely use catalogs and websites to buy

frequently purchased items.

Information about the types, assortments, prices, and quantities of products that will be stocked by a business for a specific period of time is identified in the

merchandise plan

A(n) _____________ stock list identifies the complete assortment of products a store would like to offer to customers.

model

Which of the following is the most difficult purchasing situation for a business?

new purchase

Common examples of ____________ organizations include schools, museums, and churches.

nonprofit

An itemized listing of all of the products included in a shipment is called a(n)

packing list

A(n) ___________ inventory system determines the amount of product on hand by visually inspecting and counting the items.

physical

A request for _____________ contains a specific description of the type of product or service a business needs and the criteria that are important to the buyer.

proposal

A form of bartering in which the products or services of one company are used as payment for the products or services of another company is called

reciprocal trading

The ____________ point is the level of inventory needed to meet the usage needs of the business until the product can be resupplied.

reorder

Wholesale and retail businesses are considered to be

resellers

Engineers or others with technical expertise would most likely be involved in the purchase of a very technical product or a new product by

reviewing the specifications and evaluating and testing the products of suppliers.

Purchase _______________ are detailed requirements for construction or performance of a product.

specifications

A(n) ____________ chain is the flow of products, resources, and information through all of the organizations involved in producing and marketing a company's products.

supply

The term derived demand means that

the types and quantities of products and services demanded by businesses are based on the level of demand of their customers.

Companies that offer products for sale to other businesses are known as

vendors

Business customers negotiate less with sellers than do final consumers.

False

Few vendors use salespeople to sell to retail buyers.

False

Government agencies and institutions purchase many supplies and services but rarely buy raw materials or component parts.

False

Just-in-time supply establishes specific quality standards for all procedures.

False

The basic marketing process used for businesses and organizations is very different than the marketing process used for final consumers.

False

The decision-making process used by businesses is similar but less detailed than that used by final consumers.

False

Businesses such as farms and ranches, mining companies, oil refiners, and manufacturers would typically be classified as __________

Producers

A model stock list is more extensive than a basic stock list.

True

An invoice is an itemized billing statement with terms of payment for the order.

True

Business purchasing is usually a rational rather than an emotional process.

True

Businesses do not buy products for final consumption.

True

Businesses sometimes complete the evaluation process for the products they have purchased before the products are even used.

True

Businesses that produce products for sale to final consumers often have little contact with the customer.

True

Locating products from international businesses is easier today than at any time in the past.

True

More companies in the United States produce services than produce products for resale.

True

Supplies are consumable materials used in the operation of the business.

True

The exchange of products and services between businesses is known as ________________ marketing.

business-to-business

The building and major equipment of a business are known as ____________ goods.

capital

Partially or completely processed items that become a part of the products produced by the business are called

component parts