MKTG Ch.8

What are the four major factors that influence business buying decisions? a. Environmental, organizational, interpersonal, and individual b. Environmental, organizational, psychological, and individual c. Environmental, psychological, individual, and technological d. Technological, organizational, environmental, and interpersonal e. Environmental, organizational, technological, and individual

a. Environmental, organizational, interpersonal, and individual

. Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? a. Reseller b. Producer c. Consumer d. Government e. Supply

a. Reseller

Reseller markets consist of intermediaries that buy finished goods and resell them for profit. a. True b. False

a. True

The increase in government purchases has resulted partly from the increase in the number of services provided by the government. a. True b. False

a. True

All of the following describe the demand for business products except a. elastic. b. derived. c. joint. d. inelastic. e. fluctuating.

a. elastic.

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. a. gatekeeper b. buyer c. decider d. buying center captain e. order giver

a. gatekeeper

The old Standard Industrial Classification system is more comprehensive than NAICS. a. True b. False

b. False

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

e. industrial

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ____ purchase. a. new-task b. repetitive c. straight rebuy d. repetitive order e. modified rebuy

e. modified rebuy

In the buying decision process, one of the activities included in the search for products and suppliers is examining various online and print publications. a. True b. False

a. True

Industrial classification systems allow marketers to divide business customers into groups based mainly on the types of goods and services provided. a. True b. False

a. True

On-time delivery is crucial to a business customer, since a late delivery may hold up a production line or cause the firm to lose sales. a. True b. False

a. True

Raw materials are especially affected by joint demand. a. True b. False

a. True

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

a. True

When the major component of an item experiences a price increase, the demand for the item may become more elastic. a. True b. False

a. True

. It is customary for contracts for raw materials and components to be negotiated semiannually. a. True b. False

b. False

In the long run, business demand becomes totally unrelated to consumer demand. a. True b. False

b. False

Inspection refers to a purchasing method in which a representative unit is taken from a lot and evaluated, and the buying decision is based on the conclusions. a. True b. False

b. False

Institutional markets include state prisons. a. True b. False

b. False

Interpersonal dynamics are easy to observe and simple for the marketer to assess. a. True b. False

b. False

NAICS provides less information about service industries and high-tech products than did the SIC system. a. True b. False

b. False

Of the three types of business purchases, the straight rebuy purchase usually requires the most information. a. True b. False

b. False

The demand for many business products is inelastic at the industry level. a. True b. False

a. True

What are the two ways governments make purchases? a. Cash or credit b. Contracting previous suppliers and bids c. Bids and negotiated contracts d. Lottery system and contract negotiations e. Request for new purchases and recurring orders

c. Bids and negotiated contracts

Which of the following is true with respect to buyers in business markets? a. Business buyers always act rationally when making purchases for their company. b. Business customers tend to be less informed about the products they purchase than consumer buyers. c. Business customers demand detailed information about a product's functional features and technical specifications. d. Business customers are no different than buyers in consumer markets. e. Business customers tend to buy products from their friends and contacts with business suppliers.

c. Business customers demand detailed information about a product's functional features and technical specifications.

Reciprocal dealing is widespread because it is one of the few avenues not regulated by the FTC, and it facilitates optimal purchases. a. True b. False

b. False

The factors that influence business buying behavior are the same as those that influence consumer buying behavior. a. True b. False

b. False

The five-stage business buying decision process is used primarily for routine, straight rebuy purchases. a. True b. False

b. False

The fourth stage in the business buying decision process is that of searching for products and suppliers. a. True b. False

b. False

____ buy products from manufacturers and then resell the products to other firms in the distribution system. a. Retailers b. Producers c. Distributors d. Warehouses e. Wholesalers

e. Wholesalers

Retailers purchase products and resell them to final consumers. a. True b. False

a. True

Retailers like Target and Kmart are considered to be members of which business market? a. Reseller b. Customer c. Producer d. Institutional e. Services

a. Reseller

Government markets, although complicated in their requirements, can be very lucrative. a. True b. False

a. True

In some cases, the types of services offered by a supplier may constitute a competitive advantage over suppliers of similar products. a. True b. False

a. True

Industrial demand derives from consumer demand. a. True b. False

a. True

A new-task purchase is one in which the business makes an initial purchase of a new item. a. True b. False

a. True

Ultimate consumers are generally more rational than business customers. a. True b. False

b. False

Wholesalers sell primarily to ultimate consumers. a. True b. False

b. False

Buyers in producer markets purchase either raw materials or semifinished products. a. True b. False

a. True

One very important consideration for business purchases is the type of packaging used. a. True b. False

b. False

Specific details regarding terms, credit arrangements, and technical assistance are worked out during the product specification stage of the buying decision process. a. True b. False

a. False

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be ____ since it depends on the demand for new cars. a. inelastic b. fluctuating c. derived d. elastic e. nonderived

c. derived

Business customers generally seek to obtain detailed information about a product before purchasing it. a. True b. False

a. True

Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives. a. True b. False

a. True

Sometimes initial demand for a business product will drop following a price cut if buyers believe that further price reductions are forthcoming. a. True b. False

a. True

The North American Industry Classification System includes all three NAFTA partners. a. True b. False

a. True

Value analysis focuses primarily on the examination of the cost of products relative to design, quality, and materials used. a. True b. False

a. True

Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability. a. True b. False

a. True

When trying to estimate the purchases of a potential business customer, it is reasonable to suppose that there is a relationship between the size of the potential customer's purchases and a variable such as the number of personnel employed by the customer. a. True b. False

a. True

A fall in consumer demand for a product is likely to result in increased buying from suppliers as consumer goods producers replenish depleted inventories and gear up for the next surge in consumer demand. a. True b. False

b. False

After finding out which industries purchase the major portion of an industry's output, the next step is to begin production. a. True b. False

b. False

All companies, no matter what their size or market position, maintain only one buying center. a. True b. False

b. False

Business customers are forced to satisfy personal goals in pursuits that lie outside their jobs. a. True b. False

b. False

Feedback acquired during the fifth stage of the business buying decision process is kept on file but not used as a reference for future business purchase decisions. a. True b. False

b. False

For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier. a. True b. False

b. False

Grocery stores and supermarkets are a part of producer markets. a. True b. False

b. False

If a business product exceeds specifications, so much the better; the customer can then be assured of obtaining a minimum level of acceptability. a. True b. False

b. False

In industries in which price changes occur frequently, demand fluctuations have practically been eliminated since buyers have become used to these changes and have learned to ignore them. a. True b. False

b. False

Price is of concern to a business marketer primarily because of its psychological impact on purchasing agents. a. True b. False

b. False

To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method. a. True b. False

b. False

You recently raised your prices on the products you sell to your business customers. To your surprise, these customers did not change the amount of units they purchase from you. It was as if the price increase did not matter to these customers. Which of the following types of business demand most accurately describes this situation? a. Constant demand b. Inelastic demand c. Joint demand d. Elastic demand e. Derived demand

b. Inelastic demand

Which of the following entities is part of the buying center? a. Marketers b. Users c. Vendors d. Distributors e. Wholesalers

b. Users

Resellers are business intermediaries who buy finished goods and resell them for a profit. Their business model dictates that they consider several factors when deciding which products to buy. Which of the following is a factor the reseller considers when making purchase decisions? a. The sales tax that must be charged on the product. b. The number of substitutes for the product. c. The availability of financing programs for purchasing the product. d. How the product fits within the product mix of the reseller's other products. e. The perishability of the product.

d. How the product fits within the product mix of the reseller's other products.

Which of the following would be considered an institutional buyer? a. The University of Illinois b. The Environmental Protection Agency c. Apple Computers d. The United Way e. City of Greenville

d. The United Way

A marketer who starts selling to the business market, after having spent most of his career selling directly to consumers, will quickly come to realize that business customers are very demanding. Business customers place a high value on which of the following aspects of a buying relationship? a. The geographical location of the selling firm b. The long-term business strategy of the selling firm c. The size of the selling firm d. The mix of services offered by the selling firm e. The packaging of the product

d. The mix of services offered by the selling firm

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? a. Resale b. Wholesale c. Customer d. Consumer e. Business

e. Business

Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety of suppliers in the U.S. and abroad. The volume of your raw materials purchases is a function of the customer demand for your firm's motorcycles. Which of the following best describes the type of demand your firm has for these raw materials? a. Forecasted demand b. Elastic demand c. Customer-driven demand d. Joint demand e. Derived demand

e. Derived demand

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

e. the buying center.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a. that he's absolutely right, the government doesn't deal with small businesses. b. although the government will deal with small businesses, he will never make a profit off a government contract. c. that any government, federal, state, or local would laugh at the size of his business. d. the government rarely considers new suppliers when making purchasing decisions. e. the government buys products from all sizes of business, but there is some red tape.

e. the government buys products from all sizes of business, but there is some red tape.

As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process. a. gatekeepers b. users c. influencers d. buyers e. controllers

a. gatekeepers

The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area. The owners of Eagle Pawn have recently purchased a new software system designed to better track their inventory. Now that they have had the system for a couple of months, they have decided to upgrade to a newer version. The original purchase is an example of a(an) ________, while the current purchase will be a(an) _____. a. new task; modified rebuy b. new task; continued new-task c. contractual; modified rebuy d. new task; straight rebuy e. negotiated task; modified rebuy

a. new task; modified rebuy

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called a. partnerships. b. co-ops. c. monopolies. d. reciprocity. e. alliances.

a. partnerships.

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

a. physical characteristics and level of quality.

Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a(n) ____ market. a. producer b. government c. reseller d. construction e. institutional

a. producer

The stages of the business buying decision process, in order, are a. recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. b. recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. c. recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. d. establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. e. establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

a. recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.

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

b. False

There is little or no difference between wholesalers' customers and retailers' customers. a. True b. False

b. False

Which of the following statements about reseller markets is false? a. Resellers are concerned with the level of demand for the product. b. Resellers are not concerned with how much space the product takes up as long as it has a high price. c. Resellers want producers to be able to supply adequate quantities of the product. d. Resellers are concerned with the availability of technical and promotional assistance from the producer. e. Resellers are concerned with the markup percentage they can get on the product.

b. Resellers are not concerned with how much space the product takes up as long as it has a high price.

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible? a. Negotiation b. Sampling c. Description d. Inspection e. Homogeneous selection

b. Sampling

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 a. cost-benefit trading. b. cooperative selling. c. reciprocity. d. supplier agreements. e. modified rebuy purchase.

c. reciprocity.

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process? a. Searching b. Specification development c. Alternative evaluation d. Selection e. Performance evaluation

b. Specification development

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. a. Value b. Vendor c. Buying center d. Strategic e. Cost

b. Vendor

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

b. have an enormous amount of information available concerning potential customers.

Christoff's Lawn & Lot is a small business that provides landscaping and grass cutting services in the spring and summer. Christoff's usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35% causing Christoff's to pay more for their supplies. The demand for gas despite its price represents ________ demand for Christoff's Lawn & Lot. a. elastic b. inelastic c. derived d. joint e. separate

b. inelastic

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand. a. derived b. inelastic c. joint d. fluctuating e. higher

b. inelastic

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ____ of the alternative machines. a. descriptions b. inspections c. a sampling d. specifications e. reputations

b. inspections

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

b. joint

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ____ for a purchase decision. a. sampling b. negotiation c. inspection d. elimination e. description

b. negotiation

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ____ influence on the business buying decision process. a. environmental b. organizational c. interpersonal d. individual e. demographic

b. organizational

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) a. reciprocity agreement. b. partnership. c. intra-organizational group. d. alliance. e. tying arrangement.

b. partnership.

Inelastic demand in business markets refers to a situation where a. demand for a given product fluctuates very little over time. b. price increases or decreases will not significantly change demand for a given product. c. demand for a given product fluctuates significantly over time. d. demand for one product depends heavily on the demand for another product. e. supply for a given product cannot keep pace with the demand for it.

b. price increases or decreases will not significantly change demand for a given product.

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ____ market. a. consumer b. producer c. reseller d. government e. institutional

b. producer

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of a. their markup. b. sales per square foot of selling area. c. how many of the product they can fit in a certain amount of space. d. profit per dollar of selling price. e. the reliability of the supplier.

b. sales per square foot of selling area.

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. a. cost b. value c. profit d. strategic e. SWOT

b. value

Demand for business products is characterized as derived. From what is the demand derived? a. Industrial demand b. Modified demand c. Demand for consumer products d. Future product demand e. The business cycle

c. Demand for consumer product

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? a. Homogeneous selection b. Inspection c. Description d. Sampling e. Negotiation

c. Description

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a. Does the quality of the goods meet company specifications? b. Does the supplier consistently deliver on time? c. Does the supplier also sell to my competitors? d. Does the supplier offer the services required? e. Does the price meet company budget requirements?

c. Does the supplier also sell to my competitors?

Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive? a. Develop a code of service. b. Set service objectives. c. Formally survey customers. d. Specify service uniformity. e. Stress truthfulness with employees.

c. Formally survey customers.

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? a. Problem recognition b. Product specification c. Product-supplier search and evaluation d. Product-supplier selection e. Product-supplier post-evaluation

c. Product-supplier search and evaluation

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? a. Description b. Inspection c. Sampling d. Negotiation e. Selection

c. Sampling

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase? a. New-task b. Modified rebuy c. Straight rebuy d. Bid e. Negotiated

c. Straight rebuy

Most business buying decisions are made by a. one person. b. a team of purchasing agents. c. a firm's buying center. d. inventory control personnel. e. the sales force.

c. a firm's buying center.

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered a. a regulatory sale. b. a reseller purchase. c. a government purchase. d. a producer purchase. e. an institutional sale.

c. a government purchase.

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

c. a price increase or decrease will not significantly change the demand for an item.

In a buying center, purchasing agents or purchasing managers are also known as a. gatekeepers. b. deciders. c. buyers. d. users. e. influencers.

c. buyers.

Compared with the SIC system, the North American Industry Classification System (NAICS) will a. look at many industries at one time. b. be used throughout the world. c. contain the most up-to-date information for the NAFTA partners. d. provide less information about service industries. e. generate statistics that will not be useful in comparing countries.

c. contain the most up-to-date information for the NAFTA partners.

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is a. joint. b. economically stable. c. derived. d. inelastic. e. more fluctuating.

c. derived.

The second stage in the business buying decision process is to a. search for products and suppliers. b. select the most appropriate product. c. develop product specifications. d. evaluate product and supplier performance. e. recognize the problem.

c. develop product specifications.

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers. a. corporate b. government c. institutional d. producer e. nonprofit

c. institutional

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand. a. derived b. inelastic c. joint d. fluctuating e. higher

c. joint

Most business purchases can be classified as belonging to one of three types: a. delinquent, repetitive, or delivered. b. repetitive, new-task, or modified rebuy. c. modified rebuy, new-task, or straight rebuy. d. delinquent, new-task, or reciprocal. e. rebuy, reciprocal, or delayed.

c. modified rebuy, new-task, or straight rebuy.

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase. a. modified rebuy b. straight rebuy c. new-task d. reevaluated e. repetitive

c. new-task

All of the following are important concerns of business customers except a. achieving a specific level of quality in the products offered to target markets. b. obtaining a level of quality that meets specifications. c. obtaining products that exceed specifications to ensure the best possible product performance. d. obtaining products for which the quality level is consistent. e. supporting customers with services they expect.

c. obtaining products that exceed specifications to ensure the best possible product performance.

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

c. producer

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

c. producer, reseller, government, and institutional.

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

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

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 a. new-product purchase.. b. repetitive purchase. c. straight rebuy. d. modified rebuy. e. standard order.

c. straight rebuy.

About what percentage of the annual U.S. gross domestic product is government spending? a. 2 percent b. 10 percent c. 20 percent d. 40 percent e. 50 percent

d. 40 percent

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

d. A custom-made bulldozer

Which type of business market tends to have the most complex buying procedures? a. Reseller b. Institutional c. Retailer d. Government e. Producer

d. Government

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? a. Mexico b. Canada c. United States d. Japan e. All but one NAFTA country

d. Japan

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use? a. The government will request bids from all companies on its qualified bidder list. b. It will contact whatever company made the last jets and have them develop the new ones. c. Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. d. The government will select a few firms and enter into negotiations with them until the contract is awarded. e. The contract will go to the first company that submits a reasonable bid for the desired jets.

d. The government will select a few firms and enter into negotiations with them until the contract is awarded.

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes ____ demand. a. joint b. inelastic c. consumer d. fluctuating e. elastic

d. fluctuating

Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked members of the computer science department to give input on the purchase decision. In this instance, the student senate would be acting as a(n) ____, while the purchasing agent is a(an) ______. a. user; buyer. b. user; gatekeeper. c. user; decider. d. influencer; decider. e. influencer; gatekeeper.

d. influencer; decider.

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) ____ market. a. producer b. consumer c. reseller d. institutional e. government

d. institutional

A disadvantage of reciprocity is that it can lead to a. a price war. b. higher promotional costs. c. more competitive firms entering the industry. d. less-than-optimal purchases for the buyer. e. longer periods of negotiation.

d. less-than-optimal purchases for the buyer.

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase. a. straight rebuy b. reciprocal c. delayed d. new-task e. modified rebuy

d. new-task

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

d. personal characteristics of individuals in the buying center.

Jason owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Jason negotiated with Palmetto Dodge, a dealer, with the agreement that GreenScapes would be the service company Palmetto Dodge used for all of its landscaping needs. This is an example of a. a new task purchase. b. a straight rebuy. c. a modified rebuy. d. reciprocity. e. a straight purchase.

d. reciprocity.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are a. resale, wholesale, and direct use. b. wholesale, direct use, and use in producing other products. c. resale, wholesale, and use in producing other products. d. resale, direct use in producing other products, and use in general daily operations. e. use in general daily operations, wholesale, and resale.

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

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ____ market. a. consumer b. producer c. government d. reseller e. wholesaler

d. reseller

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for ____ in order to achieve their quality goals. a. how many different suppliers they use b. how many parts can fail c. controlling when shipments will arrive d. the percentage of defects allowed e. how long the parts should last

d. the percentage of defects allowed

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis. a. vendor b. downsizing c. strategic d. value e. profit

d. value

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

e. Business buyers generally make larger orders than consumer buyers.

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? a. New-task b. Repetitive c. Institutional d. Straight rebuy e. Modified rebuy

e. Modified rebuy

Which of the following statements about business buying is false? 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. Orders in business markets tend to be smaller than those placed in consumer markets.

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in a. Sales & Marketing Management. b. an SIC listing. c. the Census of Business. d. the Census of Manufacturers. e. Standard & Poor's Register.

e. Standard & Poor's Register.

Institutional markets are a. intermediaries who resell goods to make a profit. b. federal and state government units. c. state or local government units. d. consumers who buy products for their own use. e. organizations that seek nonbusiness goals.

e. organizations that seek nonbusiness goals.

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets. a. consumer b. institutional c. producer d. government e. reseller

e. reseller

A representative product taken from a lot or batch, evaluated, and purchased refers to a. homogeneous selection. b. description. c. trust. d. negotiated inspection. e. sampling.

e. sampling.

The third stage in the business buying decision process is to a. evaluate product specifications to solve the problem. b. evaluate products relative to specifications. c. select and order the most appropriate product. d. evaluate product and supplier performance. e. search for products and suppliers.

e. search for products and suppliers.

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to a. make a presentation appointment with the state. b. quote prices to the purchasing department. c. advertise in the capital city. d. negotiate with the state. e. secure a slot on the list of qualified bidders.

e. secure a slot on the list of qualified bidders.

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

e. sole sourcing.

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 a. descriptions. b. product features. c. criterion. d. purchase requests. e. specifications.

e. specifications.