MKT Chapter 7

Which of the following markets may have complex buying procedures due in part to their public accountability? a. producer markets b. government markets c. college markets d. institutional markets e. reseller markets

b. Government markets

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

Independent B2B exchange

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

a. B2B e-commerce sites

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

Commodities and raw materials are typically purchased using which method of business buying? a. sampling b. description c. inspection d. negotiation e. reciprocity

b. description

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

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

Which of the following companies would be most likely to target government markets? a. John Deere b. Staples c. Apple d. JP Morgan e. Lockheed Martin

e. Lockheed Martin

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

e. Retailers and wholesalers

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 7.1. Which method of buying does Levi use? a. sampling b. inspection c. sole sourcing d. negotiation e. description

e. description

Which of the following markets includes wholesalers or retailers? a. buying centers b. producer markets c. government markets d. institutional markets e. reseller markets

e. reseller markets

Which of the following is most likely to be a benefit of reciprocity? a. increased competition b. optimal purchasing c. more government subsidies d. more purchasing options e. strong relationships

e. strong relationships

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

e. the buying center

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

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. environmental forces b. consumer forces c. interdependent forces d. individual forces e. organizational forces

a. environmental forces

y 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 7.1. 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. modified rebuy purchase b. differential purchase c. new task purchase d. straight rebuy purchase e. new rebuy purchase

a. modified rebuy purchase

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. private B2B exchange b. online auction c. electronic supply chain d. independent B2B exchange e. public B2B exchange

a. private B2B exchange

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 7.2. In this example of a buying center, Michael occupies both the buyer and the decider roles. a. True b. False

a. true

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 7.1. 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. producer b. institutional c. reseller d. government e. consumer

b. Institutional

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

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-rebuy purchase b. modified rebuy purchase c. straight rebuy purchase d. new-task purchase e. modified-task 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 b. potential customers' purchases c. potential customers' products d. potential customers' sales e. current customers' sales

b. potential customers' purchases

A janitorial service firm 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. government b. producer c. reseller d. consumer e. institutional

b. producer

Purchasing agents at ACME Corp. are looking in company files and trade directories, websites, 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. searching for and evaluating potential products and suppliers c. selecting the product to be purchased and the supplier d. recognizing the problem e. evaluating the supplier's and product's performance by comparing it with specifications

b. searching for and evaluating potential products and suppliers

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 7.2. Michael is the ____________ in the buying center, while Phillip acts as a ________________. a. gatekeeper, influencer b. decider, gatekeeper c. buyer, influencer d. user, buyer e. buyer, decider

c. buyer, influencer

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

c. inelastic demand

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

c. saves time; reduces costs

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

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

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. vendor analysis b. multiple sourcing c. value analysis d. sole sourcing e. specification analysis

c. value analysis

Gorton's buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's belongs in which of the following markets? a. B2C market b. reseller market c. institutional market d. producer market e. government market

d. producer marker

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. buying center c. B2B e-commerce site d. reverse auction e. B2B exchange

d. reverse auction

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 7.2. Assume that Lenovo 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 Lenovo not to underestimate the secretary as she most likely acts as a ______?

gatekeeper

Scenario 7.1. 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 7.1. What type of factors likely influenced Levi as the chief decision maker for his company to go with the supplier?

interpersonal factors