Bus 312 ch 6 Study plan Q&A
Which of the following is a business-to-business market transaction? A. The U.S. government buying supplies for military personnel B. A person buying his or her weekly groceries C. A family vacationing at Disneyland D. A grocery store buying cereal from Kellogg's E. A hospital buying medical supplies
Correct. The business-to-business market consists of organizations that buy products and services to be used in production or for resale or renting. The grocery store will resell the cereal to consumers. A grocery store buying cereal from Kellogg's
Items such as technical specifications, quantities, delivery times, return policies, and warranties are included in the ________. A. order-routine specification B. general need description C. proposal solicitation D. supplier selection E. product specification
Correct. The order-routine specification includes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantities needed, expected delivery times, return policies, and warranties.
Every Monday a pizzeria places the same order with its supplier for pepperoni. Which type of buying situation does this represent? A. A consumer transaction B. A modified rebuy C. A straight rebuy D. Systems selling E. A new task situation
Correct. A straight rebuy is routine and product specifications, price, terms, and suppliers do not change.
What is the nature of demand in business markets? A. Demand in business markets fluctuates less than in consumer markets. B. Changes in consumer demand will cause changes in business demand. C. Business market demand is independent of consumer market demand. D. Demand in business markets is elastic. E. Demand in business markets does not fluctuate.
Correct. Because business market demand is derived from the demand for consumer goods, changes in consumer demand will cause changes in business demand. Changes in consumer demand will cause changes in business demand.
Business markets have demand that __________. A. does not change for services B. is inelastic C. does not change for products D. is elastic E. is rigid at all times
Correct. Business markets have inelastic and fluctuating demand. The total demand for many business products is not much affected by price changes. The demand for many business goods and services tends to change morelong dash—and more quicklylong dash—than does the demand for consumer goods and services. A small percentage increase in consumer demand can cause large increases in business demand. elastic
In which type of buying situation will a buyer usually go through all the stages of the business buying process? A. A new task-buying situation B. The purchase of raw materials C. A straight rebuy D. The purchase of a business service E. A modified rebuy
Correct. Buyers who face a new task-buying situation, which is complex, usually go through all stages of the buying process.
__________ is the stage of the business-buying decision process that occurs after a problem is recognized and a general need description is developed. A. Proposal solicitation B. Product specification C. Need recognition D. Performance review E. Supplier selection
Correct. Developing a product specification is the third stage in the business-buying decision process and occurs after a problem is recognized and a general need description is developed.
__________ have rapidly become the new platforms for engaging business customers. A. Social media and digital marketing B. Traditional and antiquated marketing C. Door-to-door and in-person marketing D. Cold-call and phone marketing E. Consumer and employee marketing
Correct. Digital and social media marketing have rapidly become the new space for engaging business customers.
In B-to-B marketing, digital and social media play an important role in __________. A. proposing new businesses B. deterring partnerships among businesses C. engaging business buyers D. deterring consumers E. attracting consumers
Correct. Digital and social media play an important role in engaging these always-connected business buyers in a way that personal selling alone cannot. engaging business buyers
Motives, perceptions and preferences are _______ factors than can influence the business-buying decision process. A. individual B. economic C. cultural D. organizational E. interpersonal
Correct. Each participant in the business-buying decision process brings in personal motives, perceptions, and preferences. These individual factors are affected by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk. individual
The U.S. government normally awards contracts to ________. A. the lowest bidder B. foreign suppliers C. the highest bidder D. the supplier with the best reputation E. the supplier with the highest quality item
Correct. Government organizations typically require suppliers to submit bids, and they usually award the contract to the lowest bidder. Next Question
Developing product specifications follows __________ in the business buyer decision process. A. supplier selection B. general need description C. supplier search D. performance review E. proposal solicitation
Correct. Having recognized a need, the buyer next prepares a general need description that describes the characteristics and quantity of the needed item. general need
Business-to-business marketers are now using a wide range of digital and social media marketing approaches to __________. A. search for better products B. promote the use of social media C. engage business customers and manage customer relationships D. hire new employees E. attract new consumer markets
Correct. In response to business customers' rapid shift toward online buying, today's B-to-B marketers are using digital and social media marketing approaches to engage business customers and manage customer relationships anywhere, anytime. engage business customers and manage customer relationships
To do e-procurement, companies can conduct __________, in which they put their purchasing requests online and invite suppliers to bid for the business. A. trading exchanges B. intranet link C. company buying site D. extranet link E. reverse auctions
Correct. In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for the business. Next Question
A university is buying notebook computers for its faculty. The university's Information Technology department has been asked to provide specifications and recommendations for this purchase. The IT department is playing which role in the university's buying center? A. Decider B. Buyer C. User D. Influencer E. Gatekeeper
Correct. Influencers help define specifications and provide information for evaluating alternatives.
__________ are members of the buying center who help define specifications and provide information for evaluating alternatives. A. Buyers B. Gatekeepers C. Influencers D. Deciders E. Users
Correct. Influencers often help define specifications and also provide information for evaluating alternatives. Technical personnel are particularly important influencers.
Which of the following is an example of an institutional buyer? A. The U.S. Navy B. Proctor & Gamble C. Tenet Healthcare D. Walmart E. Apple
Correct. Institutional buyers include schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services for people in their care. Tenet Healthcare runs 80 for-profit hospitals in 14 states. Tenet Healthcare
Which of the following statements regarding the institutional market is correct? A. Institutional markets are characterized by large budgets. B. Marketers do not recognize the special characteristics and needs of institutional buyers. C. Institutional markets are characterized by low budgets and captive patrons. D. Institutional markets are relatively small. E. Institutional buyers always seek to minimize costs.
Correct. Institutional markets are characterized by low budgets and captive patrons. Next Question
Institutional markets are __________. A. subject to frequent shifts in procurement personnel B. affected by organizational factors C. characterized by low budget, captive patrons D. characterized by considerable documentation E. carefully watched by outside publics
Correct. Institutional markets are characterized by low budgets and captive patrons. The institutional market consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care. Institutions differ from one another in their sponsors and their objectives.
The rapidly expanding use of e-procurement in business-to-business deals provides several advantages; however, one of the disadvantages is __________. A. it helps finds better supply sources B. it pits suppliers against one another C. it shaves transaction costs D. it eliminates paperwork E. it reduces time between order and delivery
Correct. Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis. it pits suppliers against one another
One problem with business-to-business e-procurement is that it ________. A. increases transaction costs B. increases the time between order and delivery C. reduces purchasing efficiency D. can erode long-standing customer-supplier relationships E. increases paperwork requirements
Correct. One problem with business-to-business e-procurement is that it can erode long-standing customer-supplier relationships. Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis.
Which of the following statements is not a difference between business markets and consumer markets? A. The buying process is more formalized. B. Buyers face more complex buying decisions. C. The market is very small and limited. D. The buying decision involves more professionals. E. Business demand is a derived demand.
Correct. The business market is huge long dash—far larger than the consumer market.
Which of the following statements regarding the business market is correct? A. Business buying decisions are less complex than consumer buying decisions. B. Business marketers normally deal with far fewer but far larger buyers than the consumer marketer does. C. In the business market buying process, buyers and sellers are less dependent on each other than in the consumer market. D. The business market is not as large as the consumer market in terms of dollars spent and items purchased. E. The business market has more buyers than the consumer market.
Correct. The business marketer normally deals with far fewer but far larger buyers than the consumer marketer does. Even in large business markets, a few buyers often account for most of the purchasing.
Question Help The buying center of an organization consists of ________. A. economic and technical factors B. the entire buying organization C. the choice of suppliers D. all individuals and units that play a role in the buying purchase decision process E. the buying decision process
Correct. The buying center consists of all individuals and units who play a role in the business purchase decision-making process. This group includes the actual users of the product or service, those who make the buying decision, those who influence the buying decision, those who do the actual buying, and those who control buying information.
A business buying situation in which the buyer reorders something without any modifications is known as a __________ A. buying center B. systems solution C. straight rebuy D. modified rebuy E. new task
Correct. There are three major types of buying situations: straight rebuys, modified rebuys, and new tasks. In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. straight rebuy
How is the business-buying decision process different from the consumer-buying decision process? A. The business-buying decision process is shorter than the consumer-buying decision process. B. Business-to-business marketers keep customers by meeting current needs and by partnering with them to help solve their problems. C. Business buyers face less complex buying decisions than consumers do. D. Business-buying decisions are less formal. E. Business-to-business marketers do not work as closely with their customers as consumer marketers.
Correct. To keep customers, business-to-business marketers must do more than just meet their needs. They must also partner with customers to help solve customer problems. Business-to-business marketers keep customers by meeting current needs and by partnering with them to help solve their problems.
Which of the following statements regarding the U.S. government market is correct? A. Selling to the U.S. government requires no specific knowledge of that market. B. The U.S. government is the largest buyer of goods and services in the world. C. Government buying is not scrutinized by outside publics. D. The U.S. government market is not affected by environmental factors. E. Government buying is based solely on economic criteria.
Correct. With purchases of about $450 billion last year, the U.S. government is the world's largest buyer of goods and services.
When using digital marketing, B-to-B marketers are targeting __________ that affect buying decisions for __________. A. businesses; social media B. individuals; businesses C. businesses; individuals D. consumers; businesses E. individuals; social media
Correct. B-to-B marketers know that they aren't really targeting businesses, they are targeting individuals in those businesses who affect buying decisions. individuals; businesses
__________ includes the final order with the chosen supplier or suppliers and lists other required items. A. Supplier search B. Vendor-managed inventory C. Order-routine specification D. Performance review E. Product specification
Correct. Order-routine specifications include the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected delivery time, return policies, and warranties.
Hospital purchasing agents should prefer __________. A. food vendors with low prices and quality products B. to give contracts to the lowest bidder C. considerable documentation from suppliers D. open-bid purchasing E. a negotiated contract
Hospital purchasing agents should prefer __________. A. food vendors with low prices and quality products B. to give contracts to the lowest bidder C. considerable documentation from suppliers D. open-bid purchasing E. a negotiated contract