chapter 7
____ is the primary promotional method for the sale of all business products. a. Direct mail b. Advertising c. Personal selling d. Public relations e. Trade promotions
c
For a product to be called a business product, it must be used to manufacture other products, become part of another product, or aid the normal operations of an organization. a. True b. False
a
Harold works as a new business manager for a manufacturer of marine lubricants. He often talks to several different people before he locates someone who can give him a purchase order or a refusal. In terms of the buying center, he has the most trouble identifying the for his services. a. decider b. influencer c. purchaser d. gatekeeper e. user
a
A keiretsu is a network of interlocking corporate affiliates. a. True b. False
a
A keiretsu is a(n): a. type of strategic alliance commonly found in Japan. b. method of business e-commerce found in Asia. c. Internet site that offers its customers access to various languages that they can use to conduct their business. d. form of relationship marketing that is illegal in the United States. e. Bribe.
a
A product is defined as a business product rather than a consumer good on the basis of its: a. intended use. b. physical characteristics. c. price. d. distribution method. e. tangible attributes.
a
Any firm that purchases goods and services to make a profit by using them to produce other goods is part of the producer segment of the business market. a. True b. False
a
B-to-B marketers have found that they can use social media tools like Facebook to boost brand awareness. a. True b. False
a
Business marketers usually have far fewer customers than consumer marketers. a. True b. False
a
Bàbolina Tetra is a Hungarian company that has genetically created a chicken that is guaranteed to produce uniform brown eggs with strong shells. It breeds and sells young chicks to farmers all over Europe who want to sell eggs in local markets. When consumers began to worry about cholesterol content and stopped eating as many eggs, the demand for the Tetra hen also declined. This would be an example of ____ demand. a. derived b. elastic c. multiplying d. bundled e. inelastic
a
Claas is Europe's largest manufacturer of combine harvesters. As farming becomes more professional and more intensive, farmers are buying more sophisticated machines, which Claas can supply. The expensive machines sold by Claas would be examples of: a. Installations. b. component parts. c. accessory equipment. d. processed materials. e. minor equipment.
a
Consumable items that do not become part of the final product are called supplies. a. True b. False
a
Copying machines, personal computers, and fax machines are typically classified as ____ because they are not expensive, have short useful lives, and are frequently purchased from local distributors. a. accessory equipment b. mobile equipment c. component parts d. processed materials e. supplies
a
DHL maintains a strategic alliance with UPS because it has confidence in UPS's reliability and integrity. This condition is referred to as: a. Trust. b. tomo. c. commitment. d. Amae. e. reciprocity.
a
Imagine that you are the research director of a major industrial marketing firm. You need to select an NAICS code that defines the most homogeneous group of companies in a particular group of highly competitive companies. Which of the following codes might you use? a. 7432 b. 532 c. 19 d. 7 e. 999
a
In the past 24 years, Mothers Work has grown from a small, mail-order catalog business headquartered inside the founder's home to the world's largest seller of maternity apparel, with nearly 1,600 locations. In terms of the business market, Mothers Work would be best classified as a(n): a. reseller. b. producer. c. distribution network. d. inventory carrier. e. business facilitator.
a
Items that are ready for assembly and retain their identities when incorporated into another product are called component parts. a. True b. False
a
Jif is the best-selling brand of peanut butter in the country. The manufacturer purchases large quantities of peanuts every year to manufacturer its product. This order size is an example of ____ and would give Jif an advantage over other buyers of peanuts. a. purchase volume b. joint demand c. fluctuating demand d. sales volume e. multiplier effect
a
Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford. A sudden jump in the price of rubber and its substitutes has forced Lanover and other wiper blades manufacturers to double the price of the blades. This increase in price has not affected sales volume for wiper blades. The price change did not change demand for the blades because demand for this product by business customers is: a. inelastic. b. secure. c. bundled. d. elastic. e. resistant.
a
Most business marketers emphasize personal selling in their promotion efforts. a. True b. False
a
One segment of the business market has primary goals that differ from the ordinary business goals such as profit, market share, or return on investment. This segment includes many schools, churches, and civic clubs. Which business market is this? a. Institutions b. OEMs c. Services d. Providers e. Resellers
a
One way processed materials differ from component parts is that processed materials: a. do not retain their identity in final products. b. are always much cheaper than component parts. c. have had some processing. d. do not become part of a final product. e. are usually unseen by the final user.
a
Stickiness is a measure of a Web site's effectiveness. a. True b. False
a
The Beaumont Homeowner's Association had to replace its pool pump. They asked two local companies— Thompson Pools and Southern Pool and Spa Company—for quotes on replacing the pump. Beaumont negotiated with both companies and quickly decided to buy from Thompson Pools because its quote was $200 cheaper in its labor estimate. Which evaluative criterion appears to have been most important in making this purchase decision? a. Price b. Familiarity with the product c. Reliability d. The availability of replacement parts e. Buyer/seller relationship
a
The ____ is the set of all persons in an organization who become involved in the purchasing process. a. buying center b. stakeholder committee c. ad hoc purchasing staff d. board of directors e. comptroller's staff
a
The role of gatekeeper may be filled by a secretary. a. True b. False
a
There are two important markets for many component parts: the original equipment market and the market. a. replacement b. processed materials c. accessory d. raw materials e. integrated parts
a
TruColor Printers has purchased a Heidelberg printing press with auto-blanket wash and chilled rollers for $2.2 million. The company will depreciate the value of the printing press over several years. The printing press would be considered: a. major equipment. b. a component part. c. processed material. d. a fabricating item. e. accessory equipment.
a
Which of the following is becoming increasingly more important in business marketing strategies? a. Customer service b. Price collusion c. Ethnocentrism d. The divider effect e. Competitive advertising
a
Which of the following is the BEST example of an installation? a. A baseball stadium b. A checkout counter c. A lifeguard stand d. A file cabinet e. Original artwork
a
Which of the following statements does NOT describe the business market? a. Business buying decisions are usually made independently by a purchasing agent, while consumer buying decisions are made jointly. b. Business customers tend to be more geographically concentrated, and customers in consumer markets tend to be more geographically dispersed. c. The channel of distribution is more often direct for business markets than for consumer markets. d. Purchasing by businesses is a more formal process than it is in consumer markets. e. Business marketers tend to have far fewer customers than consumer marketers.
a
Which type of business product includes such capital goods as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings? a. Major equipment b. Raw materials c. Component parts d. Accessory equipment e. Investment goods
a
Which type of business product represents goods, such as portable tools and office equipment that are less expensive and shorter-lived than major equipment? a. Accessory equipment b. Component parts c. Processed goods d. Supplies e. Intermediate goods
a
____ is commonplace in business marketing and can sometimes occur over several months. a. Negotiation b. Need mediation c. Customerization d. Purchase arbitration e. Trust
a
____ occurs when a deli decides to buy its office supplies from a company that regularly buys sandwiches for its employees. a. Reciprocity b. Joint demand c. Elastic demand d. Derived demand e. Bidding conformity
a
All of the following are roles found within a buying center EXCEPT: a. influencers. b. gatekeepers. c. suppliers. d. users. e. initiators.
c
A decline in the availability of bicycle handle bars will decrease Huffy Bicycle Company's production of bicycles. Decreased production in turn reduces Huffy's demand for bicycle seats. This is because the products in this situation have ____ demand. a. inelastic b. joint c. elastic d. congruent e. derived
b
A decline in the availability of tungsten will slow production of light filaments, which will in turn reduce the demand for light bulbs. This is an example of fluctuating demand. a. True b. False
b
A dentist hired a janitorial service to clean her office every evening. The original contract called for the janitorial service to dust, mop all floors, and vacuum the rugs. After six months, the dentist decided to renegotiate the contract with the janitorial service to include cleaning the office bathroom and washing the office windows as well as the original tasks. The renegotiated contract is an example of a: a. contingency buy. b. modified rebuy. c. negotiated buying system. d. straight rebuy. e. new buy situation.
b
A strategic alliance exists when one party has confidence in another firm's reliability and integrity. a. True b. False
b
According to BtoB magazine, B-to-B marketers' favorite social media tool is: a. Facebook b. LinkedIn c. Twitter d. YouTube e. SnapChat
b
All of the following are considered types of business products EXCEPT: a. raw materials. b. convenience goods. c. major equipment. d. accessory equipment. e. component parts.
b
Although customer service has in the past been an important factor in business buyer-seller relationships, its importance has been waning in the last decade. a. True b. False
b
Another commonly used term for accessory equipment is installations. a. True b. False
b
Apple, Inc. wants a faster microprocessor for its new Macs. Apple most likely engaged in a: a. value engineering task. b. modified rebuy. c. straight rebuy. d. new process. e. new buy.
b
Because formal committees are often established to purchase business products, members of buying centers can be readily identified on formal organizational charts. a. True b. False
b
Business buyers use a variety of criteria to evaluate alternative products and suppliers. The three most important criteria, in order of importance, are: a. price, sales support, and service. b. quality, service, and price. c. reputation, price, and capability. d. price, delivery time, and product reliability. e. service, quality, and reputation.
b
Due to rapidly rising overhead costs and increases in raw material prices, Framarx Corporation was forced to raise the price of its waxed and coated paper by 35 percent. (The paper is used between frozen hamburger patties to keep the patties from freezing together.) Framarx is the leading manufacturer in this industry, and its competitors will follow suit. While the sales force for Framarx believes the price increase will result in a drop in sales, its marketing manager disagrees because the demand for the waxed and coated paper is more than likely: a. resistant. b. inelastic. c. derived. d. elastic. e. bundled.
b
If DuPont runs advertisements encouraging people to buy clothing that contains Lycra (a DuPont product), this would be an attempt to influence secondary demand. a. True b. False
b
If Ford purchased the same number of brakes from NUCAP on a regular basis, it would be participating in a straight rebuy. a. True b. False
b
In Japan, reciprocity and personal relationships contribute to the development of: a. global ventures. b. amae. c. agricola. d. keiretsu. e. an independent network of small retailers.
b
Individual producers of raw materials have great flexibility in pricing their products. a. True b. False
b
NAICS data are helpful for analyzing, segmenting, and targeting markets. The system was developed by: a. large manufacturers in United States and Mexico that produce similar goods. b. the North American Free Trade Agreement partners. c. Brazil, Chile, Argentina, Canada, and the United States working together in a joint venture. d. the SIC committee. e. the U.S. government.
b
NAICS is an industry classification system used by most nations of the world. a. True b. False
b
OEM stands for operationally efficient marketing. a. True b. False
b
One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. The fresh tomatoes it buys from growers are examples of: a. OEM parts. b. raw materials. c. component parts. d. processed materials. e. supplies.
b
PAS Systems has developed an unobtrusive flashlight-alcohol detector. The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test. Each one costs $600. The manufacturer assembles a breathalyzer from one supplier with a slightly modified flashlight case from another supplier to make the new product. The breathalyzer and the flashlight case are examples of: a. major equipment. b. component parts. c. processed materials. d. integrated parts. e. accessory equipment.
b
Purchasing contracts are commonly used in which type of buying situations? a. Reciprocal b. Straight rebuy c. New buy d. Extended rebuy e. Modified rebuy
b
Salt is an important ingredient in many soups produced by Campbell's. If the price of salt rises, Campbell's will not likely reduce the amount of salt it purchases from salt suppliers, because salt is such a crucial ingredient. Therefore, you know the demand for salt is: a. resistant. b. inelastic. c. derived. d. elastic. e. bundled.
b
Shimano sells the fishing and golfing equipment it manufactures to sporting goods stores, which in turn sell the equipment to anglers and golfers. Shimano is engaged in business marketing. a. True b. False
b
____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. a. Secondary marketing b. Interactive marketing c. Business marketing d. High-level marketing e. Industrial marketing
c
The Solar Group, a Mississippi-based mailbox manufacturer, sells mailboxes to contractors who are building mega- subdivisions, to hardware stores, and directly to new homeowners. What kind of products is Solar Group selling? a. Business products only b. Both business and consumer goods c. Installations d. Consumer goods only e. Supplies
b
The U.S. government is: a. not a business market segment. b. the world's largest single customer. c. an organization accounting for over 50 percent of the U.S. gross national product. d. mainly a military equipment purchaser. e. using one centralized purchasing office for the entire government.
b
The distribution structure in business marketing typically: a. includes at least one wholesaler. b. is direct. c. is complex and multistage. d. uses a three-step channel. e. uses retail distributors.
b
The government sector (federal, state, and local) is a minor segment of the business market. a. True b. False
b
The reseller market is the same as the retailer market. a. True b. False
b
The single largest business customer in the world is the U.S. retailer Walmart. a. True b. False
b
The three most important evaluative criteria for business-to-business purchases are quality, price, and: a. competitive offers. b. service. c. reliability. d. assurance. e. existing relationships.
b
Which of the following NAICS codes designates an economic subsector? a.33 b. 334 c. 3346 d. 33461 e. 334611
b
Which of the following is the BEST example of accessory equipment? a. A parking lot b. A store display rack c. Accounting services d. A river barge e. Light bulbs
b
While consumer and business markets differ in many ways, the stability of demand for products is about the same for each type of market. a. True b. False
b
____ are consumable, inexpensive, and often standardized items that do not become part of the final product. a. Processed materials b. Supplies c. Provisions d. Accessory equipment e. Replacement parts
b
A cooperative agreement between business firms is called a: a. shared capital contract. b. global partner development strategy. c. strategic alliance. d. joint contract. e. co-marketing effort.
c
A dentist hired a janitorial service to clean her office every evening. The janitorial service provided the dentist with: a. OEMs. b. processed services. c. business services. d. accessory services. e. service supplies.
c
A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a dry dog food. These processed meat by-products are examples of: a. raw materials. b. OEM products. c. processed materials. d. component parts. e. replacement parts.
c
A small police department wants to buy a machine with which it can perform alcohol breath tests. It has never had this capability before but feels it is an essential tool as the community grows. The machine costs about $5,000, which is almost 75 percent of the department's entire supply budget. This purchase would be an example of a(n) ____ situation. a. extensive buying b. low-involvement buying c. new buy d. modified rebuy e. straight rebuy
c
According to the text, another commonly used name for producers is: a. fabricators. b. installers. c. original equipment manufacturers. d. product providers. e. component networks.
c
Bob works for the Zinn Plumbing Company. After struggling with a particularly difficult job one day, he tells his supervisor, Miguel, that if he'd had a special type of wrench he could have finished the job much more quickly. Bob asks Miguel if the company would be willing to purchase the wrench. Miguel agrees that the wrench would be a good purchase, so the next day he approaches the company owner, Phyllis Zinn, and lays out for her all the reasons why the new wrench should be purchased. After listening to Miguel's presentation, Phyllis agrees that the wrench should be purchased and authorizes Miguel to pick one up from the plumbing parts distributor that afternoon. In this scenario: a. Miguel is both the buyer and the decider. b. Bob is both the influencer and the user. c. Miguel is both the gatekeeper and the influencer. d. Phyllis is both the initiator and the decider. e. Both Bob and Miguel are initiators, and Phyllis is the influencer.
c
Business marketing does NOT include goods and services that: a. become part of another product. b. are used to manufacture other products. c. are used for personal consumption. d. facilitate the normal operations of an organization. e. are acquired for resale.
c
Caterpillar, Inc., a manufacturer of earthmoving equipment, uses completed drivetrains (engines/transmissions/axles), drivetrain components, electronic controls, hydraulic and electrohydraulic components and systems, cooling systems, and undercarriage track systems produced by other organizations in its manufacturing process. Caterpillar is an example of a(n): a. fabricator. b. installer. c. original equipment manufacturer. d. product provider. e. component network.
c
Corn refiners buy shelled corn and convert it into a variety of products, including high-fructose corn syrup. The refiners then sell the syrup to soda and food product companies for use in foods and beverages. The corn refiners represent the sector of the business market. a. channel b. reseller c. producer d. government e. distributor
c
General Motors buys engines for use in its vehicles from BorgWarner, which in turn buys many of the vehicles it needs from GM. This is an example of: a. nested demand. b. derived demand. c. reciprocity. d. elastic demand. e. circular buying.
c
Hazelwood Farms provides local restaurants with organic fruits and vegetables that have been grown without the use of pesticides or chemical fertilizers. Hazelfield Farms is a supplier of: a. accessory parts. b. supplies. c. raw materials. d. unprocessed extractive products. e. processed materials.
c
Leo buys coffee weekly for his espresso shop. This purchase is most likely an example of a(n) ____ situation. a. need-related buy b. limited rebuy c. straight rebuy d. rebuy sourcing e. institution buy
c
Organon Teknina sells inexpensive equipment to detect Escherichia coli, listeria, or salmonella bacteria in food. The company serves not-for-profit institutions that need to regularly check food quality. Organon Teknina would be LEAST likely to sell to: a. The Montgomery County school system. b. Cincinnati Children's Hospital. c. Taco Bell. d. A chain of church-sponsored retirement homes. e. American Red Cross emergency shelter kitchens.
c
Products such as parking garages, mainframe computers, privately owned office buildings, and street-cleaning equipment are depreciated over time rather than expensed in the year they are purchased. These are classified as: a. processed materials. b. accessory equipment. c. major equipment. d. supplies. e. component parts.
c
Products that have had some processing are used directly in the production of other products, and do not retain their identity in the final product are called: a. raw materials. b. supplies. c. processed materials. d. component parts. e. replacement parts.
c
Sometimes a ____ is created for the purpose of sharing resources. This was why the Donnelly Corporation, a company that designs, manufactures, and markets automotive parts, joined with Applied Films Laboratory, Inc. to manufacture and supply the world market with coated glass for liquid crystal displays (LCDs). a. shared capital contract b. global partner development strategy c. strategic alliance d. cobranding effort e. market cooperative
c
The Barter Company, (TBC), located in Kennesaw, Georgia, acts as a broker between companies that want to trade products or services. Companies must be a TBC member, and there is a one-time fee to join. TBC charges a brokerage fee on each transaction facilitated. This company is an example of a(n): a. service integrator. b. job source. c. business service. d. extended service. e. component service.
c
When demand for a product is ____, an increase or decrease in the price of the product will not significantly affect demand for the product. a. responsive b. elastic c. inelastic d. derived e. bundled
c
When two or more items are used in combination to produce a final product, they are said to have ____ demand. a. derived b. inelastic c. joint d. fluctuating e. elastic
c
Which of the following is the best example of a modified rebuy situation? a. The purchase of a replacement hamster as the class mascot b. Bidding on a new high school multipurpose gymnasium to replace one built in 1963 c. The purchase of three large-screen computer monitors to replace smaller monitors d. The annual purchase of calendar refills for the desks of all company executives e. The monthly updating of computer virus protection
c
Which of the following statements about the government business market is CORRECT? a. Only large vendors with annual sales of more than $20 million are authorized to sell to the federal government; small vendors are restricted to the state and local government market. b. The Office of Management and Budget is the federal agency that contracts for all the U.S. government's buying requirements. c. Selling to states, counties, and cities can be less frustrating for both small and large vendors than selling to the federal government. d. The president of the United States must personally authorize all federal government purchases. e. Contracts for government purchases are rarely put out for bid.
c
You have started raising your first litter of AKC-registered Chihuahuas. You want to sell your puppies to Pets and People, the locally owned and operated pet store. How do you find the buyer? a. Look at the formal organization chart of the company. b. Get a copy of Pets and People's phone directory, where all buying center members are listed. c. Contact the store and probe to see who is in charge of buying. d. Locate the decider at Pets and People. e. Wait for Pets and People to call you when they hear about your new breeding program.
c
A ____ is a situation requiring the purchase of a product for the first time. a. straight rebuy b. value buy c. modified rebuy d. new buy e. make-or-buy
d
A ____ situation is normally less critical and less time-consuming than a new buy situation but does require some change in the original good or service. a. synergistic rebuy b. value buy c. negotiated rebuy d. modified rebuy e. make-or-buy
d
A particular segment of the business market includes those individuals and organizations that purchase goods and services for the purpose of making a profit. They achieve this goal by using purchased goods and services to make other goods, to become part of other goods, or to facilitate the daily operations of the organization. This group is called the ____segment of the business market. a. institution b. reseller c. wholesaler d. producer e. government
d
A routine purchasing situation in which the purchaser is not looking for new information or other suppliers is called a: a. modified rebuy. b. value buy. c. synergistic buy. d. straight rebuy. e. make-or-buy.
d
A university is considering the purchase of a Web-based course delivery system due to increased demand for online courses and degrees. Since the school has not offered online courses before, what type of buying situation does this represent for the school? a. Value engineering task b. Modified rebuy c. Straight rebuy d. New buy e. Derived rebuy
d
All of the following are demand characteristics of business markets EXCEPT: a. inelastic demand. b. fluctuating demand. c. joint demand. d. stable demand. e. derived demand.
d
Although the price of a chemical added to paint to protect surfaces from mold and mildew has almost doubled, the price of paint has risen an average of only 5 percent, and the demand for both paint and the chemical that eliminates mold and mildew has remained stable. The demand for this chemical is: a. elastic. b. derived. c. bundled. d. inelastic. e. change resistant.
d
Another name for business supplies like pens, paper, and file folders is: a. processing goods. b. components. c. OEM parts. d. MRO items. e. accessories.
d
As a result of the ____, a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product. a. demand fluctuation principle b. joint demand principle or division effect c. inelastic demand effect d. multiplier effect e. derived force effect
d
Axel Spring AG, one of Europe's largest newspaper publishers, with 10,000 employees and more than 150 papers in 30 countries, announced it would switch its entire operation from PCs to Macs. Axel decided to make a switch to Apple because the company's layout work was already being done by Macs and the Macs were more user friendly, more elegant, and cheaper to maintain than they had been in the past. This is an example of a: a. new buy. b. value buy. c. straight rebuy. d. modified rebuy. e. make-or-buy.
d
Businesses that buy finished goods and sell them for a profit are called: a. inventory carriers. b. producers. c. distribution networks. d. resellers. e. business facilitators.
d
IBM and Cisco work together to provide banks with the products and services they need to manage their multiple locations. In other words, the two companies have joined in a: a. retail cooperative. b. direct investment venture. c. transactional relationship. d. strategic alliance. e. synergistic relationship.
d
Kaplan Construction needs a backhoe for a job, so Donna Kaplan decides to lease the equipment from Premier Leasing Services. In this case: a. Kaplan is the licensee. b. Premier is the lessee. c. Kaplan is the licensor. d. Premier is the lessor. e. Kaplan is the lessor.
d
Managers can use the NAICS data to: a. create a more focused mission statement. b. eliminate risk. c. classify consumer behavior. d. identify potential new customers. e. determine purchase motives.
d
The ____ is the member of the buying center who regulates the flow of information. a. decider b. influencer c. purchaser d. gatekeeper e. user
d
The buying center: a. will be composed of the same decision makers as long as the purchasing process lasts. b. is typically on the formal organizational chart under the VP for operations. c. requires all purchasing participants to be employed by the purchasing department. d. refers to all those organizational members who become involved in the purchasing process. e. regularly generates formal announcements of who is in the buying center.
d
The demand for consumer goods often affects the demand for business products. This characteristic of business markets is called ____ demand. a. elastic b. inelastic c. fluctuating d. derived e. joint
d
What would a U.S. company that manufactures the lighted signs used in amusement parks, at outdoor sports arenas, for restaurant promotion, and by state departments of transportation on the sides of roads use to facilitate its market segmentation and targeting if it wanted data that were readily available and usable? a. A large amount of marketing research, including scanner data and focus groups b. Other competing firms as a strategic alliance referral service c. Government bidding processes d. The North American Industry Classification System e. Derived demand
d
Which of the following is the BEST example of an institution market? a. The federal government b. eBay c. Claire's Boutique d. Hillsdale United Methodist Church e. Starbucks
d
Which of the following is the best example of a sale that could only take place in the business market? a. A professor is purchasing a Mac to use at home b. A music store owner is ordering the newest Elvis Ultimate Live collection DVD for her mother c. A teen is purchasing ringtones to use on her phone d. A librarian is purchasing new books for the school's library e. A librarian purchasing a new book for her nephew
d
____ relates to the fact that customers who have made a purchase lately are more likely to purchase again in the near future than customers who haven't purchased for a while. a. External search traffic b. Effective reach c. Stickiness d. Recency e. Effective frequency
d
A new buy situation refers to the: a. setting of new standards for current vendors. b. establishment of a new buying center. c. resolution of new conflict between buyer and seller. d. search for replacement vendors for standard, currently used parts. e. purchase of a product or service when a new demand arises.
e
A professor sent the following memo to his department chair for his authorization: Glen: I need to purchase a camera, Mac computer, and microphone for the selling center lab #2 just like we did for lab #1. This buying situation should be described as a: a. make-or-buy. b. value buy. c. new buy. d. modified rebuy. e. straight rebuy.
e
Apple iTunes has sold billions of downloads. Without iTunes, the demand for the Apple iPod line of products would be small. Without the musicians, there would be no iTunes. In this situation, a condition of ____ demand exists. a. bundled b. incremental c. functional d. developmental e. joint
e
As the demand for portable CD players fell, so did the demand for blank CD-Rs because the demand for CD-Rs is an example of a(n) ____ demand. a. joint b. inelastic c. elastic d. fluctuating e. derived
e
At an accounting firm, the secretary orders printer cartridges, cases of paper, paper clips, and other small items. These items would be classified as: a. replacement parts. b. provisions. c. OEM parts. d. accessory equipment. e. supplies.
e
Business services: a. are capital items. b. are never outsourced. c. are not used in reciprocity arrangements. d. typically become part of the finished product. e. are expense items.
e
Buyers in the business market tend to ____ than buyers in the consumer market. a. use reciprocity less b. purchase in much smaller quantities c. buy more products that have a reduced probability of being affected by derived demand d. generate more stable demand trends e. be much more geographically concentrated
e
Electric cars will increase the demand for electricity, which will then dramatically increase demand for the equipment needed to provide consumers with the electricity. This dramatic increase is due to the: a. demand fluctuator principle. b. joint demand principle or division effect. c. inelastic demand effect. d. circumlocution effect. e. accelerator principle.
e
Finished items ready for assembly, or products that need very little processing before they become a part of some other product, are called: a. supplies. b. raw materials. c. accessory equipment. d. processed materials. e. component parts.
e
For Renovation Remodeling Company, wrenches, drills, and circular saws are all examples of ____ because they are shown as expenses on the yearly accounting statements. a. mobile installation b. component part c. processed material d. supply e. accessory equipment
e
Hensley Poultry is a wholesaler that buys poultry food and health products from Provini, Inc., feeding systems from Big Dutchman, Inc., and incubation systems from Copca Corp. Hensley then sells those products to poultry producers and farmers' cooperatives in Iowa. Hensley Poultry could be best classified as a(n): a. producer. b. distribution network. c. inventory carrier. d. specialty retailer. e. reseller.
e
If a business needs a particular good or service and decides to look among its own customers for a provider of that good or service, the business is: a. working to create purchase arbitration. b. opening itself up to prosecution for illegal activities. c. acting unethically. d. trying to eliminate derived demand barriers. e. practicing reciprocity.
e
Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different types and sizes of consumer magazines. Consumer magazine sales determine how much paper Inland Eastex sells. This is an example of ____ demand. a. joint b. inelastic c. elastic d. congruent e. derived
e
Major equipment goods such as machines, mainframe computers, and buildings are also referred to as: a. investment goods b. necessity goods c. capital components d. strategic goods e. installations
e
No-Glut is a small company that manufactures several gluten-free products for consumers who cannot digest this substance. For this manufacturer, rice flour, which will be used in its manufacturing process, is: a. accessory equipment. b. fabricating material. c. a component part. d. an integrated material. e. processed material.
e
Southern Fireworks Manufacture Company in Liuyang, China, provides fireworks for companies in America such as Premier Pyrotechnics in Richland, Missouri. This means that Southern is a(n): a. installer of original materials. b. demand company. c. reseller. d. government buyer. e. OEM.
e
The government uses a system called NAICS to classify North American business establishments. NAICS stands for: a. Non-American Industry Classification System. b. North and South American Institutional Coding Services. c. Non-American Industrial Corporation System. d. North American Institution Code System. e. North American Industry Classification System.
e
This is important because big spenders can be the most profitable customers for a business: a. The conversion task b. The conversion rate c. The frequency of sales d. The recency of sales e. The monetary value of sales
e
Unprocessed extractive or agricultural products, such as copper, peanuts, soybean, bauxite, fruits, ore, and so on, that become part of finished products are examples of: a. supplies. b. OEM parts. c. component parts. d. processed materials. e. raw materials.
e
Which of the following means that a firm believes an ongoing relationship with some other firm is so important that it warrants maximum efforts at maintaining it indefinitely? a. Amae b. Trust c. Relationship quality d. Strategic alliance e. Relationship commitment
e
Which of the following statements about buying centers is true? a. The most efficient buying centers have no more than five members. b. No one individual should assume more than two buying center roles. c. Buying centers are clearly labeled on all organizational charts. d. Complex purchase situations usually have fewer people involved in the buying center than less complex purchases. e. Membership and influence in a buying center vary from company to company.
e
Within the business market, roller belts that are purchased by vacuum manufacturers are examples of: a. supplies. b. raw materials. c. accessory equipment. d. processed materials. e. component parts.
e
is a measure of a Web site's effectiveness and is calculated by multiplying the frequency of visits times the duration of a visit times the number of pages viewed during each visit. a. Effective reach b. Effective frequency c. Gross rating points d. Interactiveness e. Stickiness
e
