Chapter 8 - Concept Check Quiz,

What do industry classification systems do for the marketer? a. Categorize organizations into groups based on such factors as the types of goods and services provided b. Separate various businesses into different categories based on whether they offer business or consumer goods and services c. Manage databases of business customers with high profit potential d. Help marketers locate the buying center and the major influencers in organizations with high profit potential e. Provide an automatic guide that will allow marketers to determine the profit potential of customers with a high degree of accuracy

a. Categorize organizations into groups based on such factors as the types of goods and services provided

Scenario 8.2 Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Refer to Scenario 8.2. In this example of a buying center, Michael occupies both the buyer and the decider roles. a. True b. False

a. true

In the business buying decision process, what comes after problem recognition? a. Search for and evaluating potential suppliers b. Develop product specifications c. Evaluate the supplier's and product's performance by comparing it with specifications d. Contact the buying center e. Select the product to be purchased and the supplier

b. Develop product specifications

Buyers of industrial equipment would most likely use sampling as their purchase method. a. True b. False

b. False

NAICS is the industrial classification system used by the majority of countries across the world. a. True b. False

b. False

Vendor analysis takes place during the development of the product specifications stage of the business buying decision process. a. True b. False

b. False

Which of the following markets may have complex buying procedures due in part to their public accountability? a. Reseller markets b. Government markets c. College markets d. Institutional markets e. Producer markets

b. Government markets

ACME Corp. has ordered widgets from Wiley Widgets several times before, but now it would like Wiley Widgets to offer a lower per-unit price in exchange for a larger order. ACME is using which of the following types of business purchases? a. New-task purchase b. Modified rebuy purchase c. New-rebuy purchase d. Modified-task purchase e. Straight rebuy purchase

b. Modified rebuy purchase

To estimate the purchase potential of business customers, a marketer must find a relationship between a variable available in industrial classification data, such as number of employees, and the size of _______. a. potential customers' products b. potential customers' purchases c. potential customers' sales d. current customers' sales e. potential customers

b. potential customers' purchases

When a business buyer invites vendors to bid to supply a specified good or service in competition with each other, with the lowest bidder winning the right to sell to the buyer, this is best described as _______. a. online auction b. reverse auction c. B2B exchange d. buying center e. B2B e-commerce site

b. reverse auction

The group of people within an organization who make business buying decisions are best described as _______. a. vendors b. the buying center c. the purchasing unit d. influencers e. gatekeepers

b. the buying center

When a retailer initially chooses to make Apple Pay available for its customers, it will use which of the following types of business purchases? a.Modified rebuy purchase b.New-task purchase c.Inspection d.Sampling e.Straight rebuy purchase

b.New-task purchase

When large corporations like McDonald's evaluate digital payment systems for potential use and purchase, the buying decision process will usually be made by _______. a.influencers b.buying centers c.deciders d.gatekeepers e.users

b.buying centers

Scenario 8.1 Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. Suppose a church representative stops by looking for a coffee maker. She wants to buy the coffee maker with church funds and use it to brew fresh coffee for church visitors. The woman is a part of which market? a. Consumer b. Government c. Institutional d. Producer e. Reseller

c. Institutional

A janitorial services organization purchases Clorox supplies to use in cleaning places like schools and office buildings. This type of customer would be an example of what type of market for Clorox? a. Reseller b. Institutional c. Producer d. Consumer e. Government

c. Producer

Scenario 8.2 Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Refer to Scenario 8.2. Michael is the _______ in the buying center, while Phillip acts as a _______. a. decider; gatekeeper b. user; buyer c. buyer; influencer d. gatekeeper; influencer e. buyer; decider

c. buyer; influencer

A price increase or decrease does not significantly alter demand for a product with _______. a. elastic demand b. joint demand c. inelastic demand d. derived demand e. reciprocity

c. inelastic demand

An iPad is part of the ____________ when bought by end users, but it is part of the____________ when a salesperson purchases it to take orders.

consumer market; business market

Commodities and raw materials are typically purchased using which method of business buying? a. Sampling b. Reciprocity c. Negotiation d. Description e. Inspection

d. Description

Scenario 8.1 Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. Which method of buying does Levi use? a. Negotiation b. Sampling c. Inspection d. Description e. Sole sourcing

d. Description

Which of the following are most likely to face joint demand? a. Jewelry b. Apples c. Tables d. Engine oil for cars e. Athletic shoes

d. Engine oil for cars

The sales department of a consumer products organization realized that its rivals were adopting new customer relationship management software to keep better track of their prospects. The director of the sales department decided it would also purchase the CRM software to keep up with its rivals. This is an example of what type of force affecting business buying behavior? a. Organizational forces b. Consumer forces c. Interdependent forces d. Environmental forces e. Individual forces

d. Environmental forces

_______ and _______ are part of the reseller market. a. Warehouses; technology firms b. Producers; wholesalers c. Retailers; nonprofits d. Retailers; wholesalers e. Retailers; manufacturing firms

d. Retailers; wholesalers

Purchasing agents at ACME Corp. are looking in company files and trade directories, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. They are in which of the following stages of the buying decision process? a. Developing product specifications b. Selecting the product to be purchased and the supplier c. Recognizing the problem d. Searching for and evaluating potential products and suppliers e. Evaluating the supplier's and product's performance by comparing it with specifications

d. Searching for and evaluating potential products and suppliers

Which of the following is most likely to be a benefit of reciprocity? a. More government subsidies b. Optimal purchasing c. Increased competition d. Strong relationships e. More purchasing options

d. Strong relationships

Online marketing efforts make the buying process far more efficient because it _______ and _______. a. saves time; increases costs b. removes emotion, reduces costs c. saves time; is more professional d. saves time; reduces costs e. takes more time; reduces costs

d. saves time; reduces costs

Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as _______. a. multiple sourcing b. specification analysis c. sole sourcing d. value analysis e. vendor analysis

d. value analysis

Which of the following is an example of derived demand? a. Sales for bathing suits jump in the summer, especially in hotter regions. b. A decrease in the prices of oranges has led to more orders of orange juice. c. An increase in airfare prices has not had much of an effect on demand for business travelers. d. An increase in windshields has led to an increase in windshield wipers. e. An increase in coffee drinking is prompting coffee shops to order more coffee grinders.

e. An increase in coffee drinking is prompting coffee shops to order more coffee grinders.

Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as _______. a. online auction sites b. corporate websites c. buying centers d. B2C e-commerce sites e. B2B e-commerce sites

e. B2B e-commerce sites

Retailers that choose to adopt Apple Pay's digital payment service are likely to use which of the following methods of business buying? a.Straight rebuy b.Inspection c.Sampling d.Negotiation e.Description Skip

e. Description

Scenario 8.1 Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. Levi is getting ready to order another shipment of frying pans. However, he wants to switch from cast iron to aluminum. What type of purchase is Levi using? a. New task purchase b. New rebuy purchase c. Straight rebuy purchase d. Differential purchase e. Modified rebuy purchase`

e. Modified rebuy purchase

Scenario 8.1 Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified.Refer to Scenario 8.1. Levi is operating in which type of market? a. Institutional b. Government c. Producer d. Consumer e. Reseller

e. Reseller

Walmart developed an infrastructure for its supply chain called SupplierLink that it placed on the internet. SupplierLink combines information on purchasing, inventory, negotiating, and more. It also allows its suppliers to get information on inventory levels and sales from different Walmart stores. This is an example of a(n) _______. a. electronic supply chain b. public B2B exchange c. independent B2B exchange d. online auction e. private B2B exchange

e. private B2B exchange

The North American Industry Classification System (NAICS) is a(n) _______. a. commercial database b. single industry classification system used in Europe to generate comparable statistics c. state directory of businesses d. single industry classification system used globally to generate comparable statistics e. single industry classification system used by the United States, Canada, and Mexico to generate comparable statistics

e. single industry classification system used by the United States, Canada, and Mexico to generate comparable statistics

Scenario 8.2 Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Refer to Scenario 8.2. Assume that Acer wants to reach the deciders and purchasers in Christina's organization because it would like to supply the next order of computers. Before they can reach Michael, however, they must first schedule an appointment with his secretary who has worked at the firm for 20 years. It would be wise for Acer not to underestimate the secretary as she most likely acts as a ______________

gatekeeper

Companies like Target and J.C. Penney sometimes participate in a(n) _________ B2B exchangeItem 1 for the retail industry, which acts as a neutral third party and charges a fee for providing a trading forum.

independent B2B exchange

Scenario 8.1 Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. __________ factors likely influenced Levi as the chief decision maker for his company to go with the supplier?

interpersonal

Suppose the government wants to hire a firm to build a new road. What method of business buying will it most likely use? a. Negotiation b. Sampling c. Description d. Inspection e. Sole sourcing

a. Negotiation

Which of the following companies is the best example of a reseller? a. Priceline b. JPMorgan Chase & Co. c. Staples d. Apple e. John Deere

a. Priceline

Apple Pay is targeted at both consumers and retailers who choose to accept it for payment. Retailers represent which type of business market? a.Reseller markets b.Government markets c.Institutional markets d.Producer markets e.Consumer markets

a. Reseller markets

FedBid is a reverse online auction site for government agencies. A reverse auction is initiated by the buyer, who invites businesses to bid to supply the specified good or service in competition with each other. a. True b. False

a. True

Which of the following is NOT one of the ways that business transactions differ from consumer transactions? a. Suppliers of large, expensive, or complex goods often must sell products in large quantities to make profits. b. Orders by businesses are frequently small and inexpensive. c. Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort. d. Orders by business customers tend to be much larger than individual consumer sales. e. Purchasing decisions are often made by a committee.

b. Orders by businesses are frequently small and inexpensive.

Gorton's Seafood buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's Seafood belongs in which of the following business markets? a. Reseller market b. Producer market c. Government market d. B2C market e. Institutional market

b. Producer market

Which of the following markets includes wholesalers or retailers? a. Producer markets b. Government markets c. Institutional markets d. Reseller markets e. Buying centers

d. Reseller Markets