Bus 312 ch 6 Study plan Q&A

Which of the following is a​ business-to-business market​ transaction? A. The U.S. government buying supplies for military personnel B. A person buying his or her weekly groceries C. A family vacationing at Disneyland D. A grocery store buying cereal from​ Kellogg's E. A hospital buying medical supplies

Correct. The​ business-to-business market consists of organizations that buy products and services to be used in production or for resale or renting. The grocery store will resell the cereal to consumers. A grocery store buying cereal from​ Kellogg's

Items such as technical​ specifications, quantities, delivery​ times, return​ policies, and warranties are included in the​ ________. A. ​order-routine specification B. general need description C. proposal solicitation D. supplier selection E. product specification

Correct. The​ order-routine specification includes the final order with the chosen supplier or suppliers and lists items such as technical​ specifications, quantities​ needed, expected delivery​ times, return​ policies, and warranties.

Every Monday a pizzeria places the same order with its supplier for pepperoni. Which type of buying situation does this​ represent? A. A consumer transaction B. A modified rebuy C. A straight rebuy D. Systems selling E. A new task situation

Correct. A straight rebuy is routine and product​ specifications, price,​ terms, and suppliers do not change.

What is the nature of demand in business​ markets? A. Demand in business markets fluctuates less than in consumer markets. B. Changes in consumer demand will cause changes in business demand. C. Business market demand is independent of consumer market demand. D. Demand in business markets is elastic. E. Demand in business markets does not fluctuate.

Correct. Because business market demand is derived from the demand for consumer​ goods, changes in consumer demand will cause changes in business demand. Changes in consumer demand will cause changes in business demand.

Business markets have demand that​ __________. A. does not change for services B. is inelastic C. does not change for products D. is elastic E. is rigid at all times

Correct. Business markets have inelastic and fluctuating demand. The total demand for many business products is not much affected by price changes. The demand for many business goods and services tends to change morelong dash—and more quicklylong dash—than does the demand for consumer goods and services. A small percentage increase in consumer demand can cause large increases in business demand. elastic

In which type of buying situation will a buyer usually go through all the stages of the business buying​ process? A. A new​ task-buying situation B. The purchase of raw materials C. A straight rebuy D. The purchase of a business service E. A modified rebuy

Correct. Buyers who face a new​ task-buying situation, which is​ complex, usually go through all stages of the buying process.

​__________ is the stage of the​ business-buying decision process that occurs after a problem is recognized and a general need description is developed. A. Proposal solicitation B. Product specification C. Need recognition D. Performance review E. Supplier selection

Correct. Developing a product specification is the third stage in the​ business-buying decision process and occurs after a problem is recognized and a general need description is developed.

​__________ have rapidly become the new platforms for engaging business customers. A. Social media and digital marketing B. Traditional and antiquated marketing C. ​Door-to-door and​ in-person marketing D. ​Cold-call and phone marketing E. Consumer and employee marketing

Correct. Digital and social media marketing have rapidly become the new space for engaging business customers.

In​ B-to-B marketing, digital and social media play an important role in​ __________. A. proposing new businesses B. deterring partnerships among businesses C. engaging business buyers D. deterring consumers E. attracting consumers

Correct. Digital and social media play an important role in engaging these​ always-connected business buyers in a way that personal selling alone cannot. engaging business buyers

​Motives, perceptions and preferences are​ _______ factors than can influence the​ business-buying decision process. A. individual B. economic C. cultural D. organizational E. interpersonal

Correct. Each participant in the​ business-buying decision process brings in personal​ motives, perceptions, and preferences. These individual factors are affected by personal characteristics such as​ age, income,​ education, professional​ identification, personality, and attitudes toward risk. individual

The U.S. government normally awards contracts to​ ________. A. the lowest bidder B. foreign suppliers C. the highest bidder D. the supplier with the best reputation E. the supplier with the highest quality item

Correct. Government organizations typically require suppliers to submit​ bids, and they usually award the contract to the lowest bidder. Next Question

Developing product specifications follows​ __________ in the business buyer decision process. A. supplier selection B. general need description C. supplier search D. performance review E. proposal solicitation

Correct. Having recognized a​ need, the buyer next prepares a general need description that describes the characteristics and quantity of the needed item. general need

​Business-to-business marketers are now using a wide range of digital and social media marketing approaches to​ __________. A. search for better products B. promote the use of social media C. engage business customers and manage customer relationships D. hire new employees E. attract new consumer markets

Correct. In response to business​ customers' rapid shift toward online​ buying, today's​ B-to-B marketers are using digital and social media marketing approaches to engage business customers and manage customer relationships​ anywhere, anytime. engage business customers and manage customer relationships

To do​ e-procurement, companies can conduct ​__________​, in which they put their purchasing requests online and invite suppliers to bid for the business. A. trading exchanges B. intranet link C. company buying site D. extranet link E. reverse auctions

Correct. In reverse​ auctions, companies put their purchasing requests online and invite suppliers to bid for the business. Next Question

A university is buying notebook computers for its faculty. The​ university's Information Technology department has been asked to provide specifications and recommendations for this purchase. The IT department is playing which role in the​ university's buying​ center? A. Decider B. Buyer C. User D. Influencer E. Gatekeeper

Correct. Influencers help define specifications and provide information for evaluating alternatives.

​__________ are members of the buying center who help define specifications and provide information for evaluating alternatives. A. Buyers B. Gatekeepers C. Influencers D. Deciders E. Users

Correct. Influencers often help define specifications and also provide information for evaluating alternatives. Technical personnel are particularly important influencers.

Which of the following is an example of an institutional​ buyer? A. The U.S. Navy B. Proctor​ & Gamble C. Tenet Healthcare D. Walmart E. Apple

Correct. Institutional buyers include​ schools, hospitals, nursing​ homes, prisons, and other institutions that provide goods and services for people in their care. Tenet Healthcare runs 80​ for-profit hospitals in 14 states. Tenet Healthcare

Which of the following statements regarding the institutional market is​ correct? A. Institutional markets are characterized by large budgets. B. Marketers do not recognize the special characteristics and needs of institutional buyers. C. Institutional markets are characterized by low budgets and captive patrons. D. Institutional markets are relatively small. E. Institutional buyers always seek to minimize costs.

Correct. Institutional markets are characterized by low budgets and captive patrons. Next Question

Institutional markets are​ __________. A. subject to frequent shifts in procurement personnel B. affected by organizational factors C. characterized by low​ budget, captive patrons D. characterized by considerable documentation E. carefully watched by outside publics

Correct. Institutional markets are characterized by low budgets and captive patrons. The institutional market consists of​ schools, hospitals, nursing​ homes, prisons, and other institutions that provide goods and services to people in their care. Institutions differ from one another in their sponsors and their objectives.

The rapidly expanding use of​ e-procurement in​ business-to-business deals provides several​ advantages; however, one of the disadvantages is​ __________. A. it helps finds better supply sources B. it pits suppliers against one another C. it shaves transaction costs D. it eliminates paperwork E. it reduces time between order and delivery

Correct. Many buyers now use the power of the Internet to pit suppliers against one another and search out better​ deals, products, and turnaround times on a​ purchase-by-purchase basis. it pits suppliers against one another

One problem with​ business-to-business e-procurement is that it​ ________. A. increases transaction costs B. increases the time between order and delivery C. reduces purchasing efficiency D. can erode​ long-standing customer-supplier relationships E. increases paperwork requirements

Correct. One problem with​ business-to-business e-procurement is that it can erode​ long-standing customer-supplier relationships. Many buyers now use the power of the Internet to pit suppliers against one another and search out better​ deals, products, and turnaround times on a​ purchase-by-purchase basis.

Which of the following statements is not a difference between business markets and consumer​ markets? A. The buying process is more formalized. B. Buyers face more complex buying decisions. C. The market is very small and limited. D. The buying decision involves more professionals. E. Business demand is a derived demand.

Correct. The business market is huge long dash—far larger than the consumer market.

Which of the following statements regarding the business market is​ correct? A. Business buying decisions are less complex than consumer buying decisions. B. Business marketers normally deal with far fewer but far larger buyers than the consumer marketer does. C. In the business market buying​ process, buyers and sellers are less dependent on each other than in the consumer market. D. The business market is not as large as the consumer market in terms of dollars spent and items purchased. E. The business market has more buyers than the consumer market.

Correct. The business marketer normally deals with far fewer but far larger buyers than the consumer marketer does. Even in large business​ markets, a few buyers often account for most of the purchasing.

Question Help The buying center of an organization consists of​ ________. A. economic and technical factors B. the entire buying organization C. the choice of suppliers D. all individuals and units that play a role in the buying purchase decision process E. the buying decision process

Correct. The buying center consists of all individuals and units who play a role in the business purchase​ decision-making process. This group includes the actual users of the product or​ service, those who make the buying​ decision, those who influence the buying​ decision, those who do the actual​ buying, and those who control buying information.

A business buying situation in which the buyer reorders something without any modifications is known as a​ __________ A. buying center B. systems solution C. straight rebuy D. modified rebuy E. new task

Correct. There are three major types of buying​ situations: straight​ rebuys, modified​ rebuys, and new tasks. In a straight​ rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. straight rebuy

How is the​ business-buying decision process different from the​ consumer-buying decision​ process? A. The​ business-buying decision process is shorter than the​ consumer-buying decision process. B. ​Business-to-business marketers keep customers by meeting current needs and by partnering with them to help solve their problems. C. Business buyers face less complex buying decisions than consumers do. D. ​Business-buying decisions are less formal. E. ​Business-to-business marketers do not work as closely with their customers as consumer marketers.

Correct. To keep​ customers, business-to-business marketers must do more than just meet their needs. They must also partner with customers to help solve customer problems. ​Business-to-business marketers keep customers by meeting current needs and by partnering with them to help solve their problems.

Which of the following statements regarding the U.S. government market is​ correct? A. Selling to the U.S. government requires no specific knowledge of that market. B. The U.S. government is the largest buyer of goods and services in the world. C. Government buying is not scrutinized by outside publics. D. The U.S. government market is not affected by environmental factors. E. Government buying is based solely on economic criteria.

Correct. With purchases of about​ $450 billion last​ year, the U.S. government is the​ world's largest buyer of goods and services.

When using digital​ marketing, B-to-B marketers are targeting​ __________ that affect buying decisions for​ __________. A. ​businesses; social media B. ​individuals; businesses C. ​businesses; individuals D. ​consumers; businesses E. ​individuals; social media

Correct.​ B-to-B marketers know that they​ aren't really targeting​ businesses, they are targeting individuals in those businesses who affect buying decisions. ​individuals; businesses

​__________ includes the final order with the chosen supplier or suppliers and lists other required items. A. Supplier search B. ​Vendor-managed inventory C. ​Order-routine specification D. Performance review E. Product specification

Correct.​ Order-routine specifications include the final order with the chosen supplier or suppliers and lists items such as technical​ specifications, quantity​ needed, expected delivery​ time, return​ policies, and warranties.

Hospital purchasing agents should prefer​ __________. A. food vendors with low prices and quality products B. to give contracts to the lowest bidder C. considerable documentation from suppliers D. ​open-bid purchasing E. a negotiated contract

Hospital purchasing agents should prefer​ __________. A. food vendors with low prices and quality products B. to give contracts to the lowest bidder C. considerable documentation from suppliers D. ​open-bid purchasing E. a negotiated contract