MKT230 - Ch. 8

Which of the following products is most likely to be purchased on the basis of contract negotiation? Select one: a. A custom-made bulldozer b. Office supplies c. Wheat d. Eggs e. Used cars

A

Business markets are typically divided into four categories. These categories are Select one: a. manufacturer, wholesaler, retailer, and services. b. producer, reseller, government, and institutional. c. producer, manufacturer, reseller, and government. d. retailers, wholesalers, services, and nonprofit firms. e. reseller, retailer, government, and institutional.

B

Demand for business products is also known as ______________ demand. Select one: a. derived b. industrial c. business buying d. corporate e. manufacturing

B

Individual influencing factors refer to Select one: a. the power an individual controls in the buying center. b. personal characteristics of individuals in the buying center. c. uncontrollable environmental forces. d. activities of suppliers. e. relationships among those in the firm's buying center.

B

The three purposes for which individuals or groups can use products in order for it to be considered a business market are Select one: a. making other products, selling to other businesses, making component parts. b. use in daily operations, end consumption, and resale. c. resale, use in daily operations, and direct use in producing other products. d. governmental, institutional, and reseller purposes. e. direct use in producing other products, company travel, and end consumption.

C

Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects periodically. This practice is an example of Select one: a. modified rebuy purchase. b. cooperative selling. c. supplier agreements. d. cost-benefit trading. e. reciprocity.

E

Which of the following statements about business buying is false? Select one: a. Business marketers prefer not to sell to customers who place small orders. b. Business marketers must often sell their products in large quantities to make profits. c. Most business purchases are made by committee. d. Business purchases are usually made on the basis of contracts. e. Orders in business markets tend to be smaller than those placed in consumer markets.

E

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use __________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. Select one: a. value b. profit c. SWOT d. cost e. strategic

A

The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a Select one: a. straight rebuy. b. modified rebuy. c. standard order. d. new-product purchase. e. repetitive purchase

A

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____________ in this purchase decision. Select one: a. buyer b. decider c. gatekeeper d. buying center captain e. order giver

C

Demand for a business product is _______ when two or more items are used in combination to produce a product. Select one: a. fluctuating b. derived c. joint d. inelastic e. partnered

C

Inelastic demand simply means that Select one: a. buyers will not make a modified rebuy purchase. b. when supply is reduced, the price will increase. c. a price increase or decrease will not significantly change the demand for an item. d. when price goes up, demand goes down. e. demand depends on how many items are purchased.

C

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called Select one: a. product features. b. descriptions. c. specifications. d. criterion. e. purchase requests.

C

Compared with consumer goods, marketers aiming at business customers Select one: a. have more difficulty in determining where their customers are located. b. are restricted in the types of promotion they can use. c. have more difficulty in estimating customers' purchase potentials. d. have an enormous amount of information available concerning potential customers. e. do not need to select target markets.

D

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC? Select one: a. All but one NAFTA country b. Mexico c. United States d. Japan e. Canada

D

An organization that decides to buy all of a certain part from the same company is using Select one: a. straight rebuy b. multiple sourcing. c. single-supplier purchasing. d. same vendor analysis. e. sole sourcing.

E

Product specifications are best described as Select one: a. comparisons to similar products. b. physical characteristics and level of quality. c. descriptions of a product. d. numbers of quality inspections required. e. defective product return policies.

B

The group of people within a business who are involved in making business buying decisions is referred to as Select one: a. deciders. b. the buying center. c. the new-task team. d. purchasing agents. e. negotiators.

B

What is a primary difference between business and consumer buyers? Select one: a. Consumers primarily buy inexpensive items; businesses only buy expensive items. b. Business buyers generally make larger orders than consumer buyers. c. Consumer buyers require more product information than business buyers. d. Repeat sales are more common with consumer buyers than business buyers. e. Business purchases are made by one individual whereas families make consumer purchases together.

B

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent? Select one: a. standard order. b. Repetitive c. modified rebuy. d. Institutional e. New-tas

C