BUS 312 Chapter 6 Practice Sets
Which of the following is a business-to-business market transaction?
A grocery store buying cereal from Kellogg's 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.
In which type of buying situation will a buyer usually go through all the stages of the business buying process?
A new task-buying situation
Which of the following statements regarding the business market is correct?
Business marketers normally deal with far fewer but far larger buyers than the consumer marketer does.
How is the business-buying decision process different from the consumer-buying decision process?
Business-to-business marketers keep customers by meeting current needs and by partnering with them to help solve their problems.
__________ have rapidly become the new platforms for engaging business customers.
Social media and digital marketing
Which of the following is an example of an institutional buyer?
Tenet Healthcare 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.
Which of the following statements regarding the U.S. government market is correct?
The U.S. government is the largest buyer of goods and services in the world. With purchases of about $450 billion last year, the U.S. government is the world's largest buyer of goods and services.
Which of the following statements is not a difference between business markets and consumer markets?
The market is very small and limited.
The buying center of an organization consists of ________.
all individuals and units that play a role in the buying purchase decision 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.
To do e-procurement, companies can conduct __________, in which they put their purchasing requests online and invite suppliers to bid for the business.
reverse auctions
A business buying situation in which the buyer reorders something without any modifications is known as a __________
straight rebuy 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.
The U.S. government normally awards contracts to ________.
the lowest bidder Government organizations typically require suppliers to submit bids, and they usually award the contract to the lowest bidder.
Every Monday a pizzeria places the same order with its supplier for pepperoni. Which type of buying situation does this represent?
A straight rebuy
What is the nature of demand in business markets?
Changes in consumer demand will cause changes in business demand. Because business market demand is derived from the demand for consumer goods, changes in consumer demand will cause changes in business demand.
__________ includes the final order with the chosen supplier or suppliers and lists other required items.
DOrder-routine specification 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.
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?
Influencer
__________ are members of the buying center who help define specifications and provide information for evaluating alternatives.
Influencers Technical personnel are particularly important influencers.
Which of the following statements regarding the institutional market is correct?
Institutional markets are characterized by low budgets and captive patrons.
__________ is the stage of the business-buying decision process that occurs after a problem is recognized and a general need description is developed.
Product specification 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.
One problem with business-to-business e-procurement is that it ________. This question was included in MyLab Study Plan 6.3, but discussed in section 6.4 in textbook.
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.
Institutional markets are __________.
characterized by low budget, 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.
Business-to-business marketers are now using a wide range of digital and social media marketing approaches to __________.
engage business customers and manage customer relationships 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.
In B-to-B marketing, digital and social media play an important role in __________.
engaging business buyers Digital and social media play an important role in engaging these always-connected business buyers in a way that personal selling alone cannot.
Hospital purchasing agents should prefer __________.
food vendors with low prices and quality products The hospital purchasing agent must search for institutional food vendors whose quality meets or exceeds a certain minimum standard and whose prices are low.
Developing product specifications follows __________ in the business buyer decision process.
general need description
Motives, perceptions and preferences are _______ factors than can influence the business-buying decision process.
individual 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.
When using digital marketing, B-to-B marketers are targeting __________ that affect buying decisions for __________.
individuals; businesses
Business markets have demand that __________.
is inelastic 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. Next Question
The rapidly expanding use of e-procurement in business-to-business deals provides several advantages; however, one of the disadvantages is __________.
it pits suppliers against one another 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.
Items such as technical specifications, quantities, delivery times, return policies, and warranties are included in the ________.
order-routine specification
