MKTG 409 Chapter 8

__________ are more consumer-driven than traditional media.

Digital media

A price increase or decrease does not significantly alter demand for a product with_________.

inelastic demand

Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as _______.

B2B e-commerce sites

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?

Business

_______________ usually constitute a smaller part of the online population than the other groups.

Collectors

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?

Consumers

Commodities and raw materials are typically purchased using which method of business buying?

Description

True or False: Orders placed by business customers are usually smaller and more numerous than consumer sales.

False

True or False: Ultimate consumers are generally more rational than business customers.

False

Which of the following markets may have complex buying procedures due in part to their public accountability?

Government Markets

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

Modifies rebuy purchase

Which of the following is NOT one of the ways that business transactions differ from consumer transactions?

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?

Producer market

Which of the following markets includes wholesalers or retailers?

Reseller markets

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?

Searching for and evaluating potential products and suppliers

True or False: An example of a business market would be farmers.

True

True or False: When purchasing products, business customers are especially concerned about quality, service, price, and supplier relationships.

True

___________ buy products from manufacturers and then resell the products to other firms in the distribution system.

Wholesalers

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

description

All of the following describe the demand for business products except:

elastic

Institutional markets are:

organizations that seek nonbusiness goals.

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 _______.

potential customers purchases

Business markets are typically divided into four categories. These categories are

producer, reseller, government, and institution

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.

producer.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are

resale, direct use in producing other products, and use in general daily operations.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are:

resale, use in daily operations, and direct use in producing other products.

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 _______.

reverse auction

Online marketing efforts make the buying process far more efficient because it________ and __________.

saves time; reduces cost

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

select specific target markets

The North American Industry Classification System (NAICS) is a(n)_____________.

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

Dave is an owner and manager of three apartment buildings in northern Minnesota. During an exceptionally hot summer the temperatures soared and the toll on the window air conditioners was too much. Seventeen of them have broken down already, and more are probably going to have to be replaced. He has a total of seventy-five apartment units. Dave is now in the process of deciding how to repair the air conditioning. Should he buy new window units for all the buildings, or should he install central air conditioning? What type of decision is Dave facing?

situational involvement and extended decision making

The group of people within an organization who make business buying decisions are best describes as____________.

the buying center

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

use a positively viewed characteristic they assume much of their target market has or would like to have.

Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as___________.

value analysis