Chapter 8

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

Description

____ buy products from manufacturers and then resell the products to other firms in the distribution system. A) Retailers B) Distributors C) Producers D) Wholesalers

Wholesalers

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

B2B e-commerce sites.

In the long run, business demand becomes totally unrelated to consumer demand. A) True B) False

False

Orders placed by business customers are usually smaller and more numerous than consumer sales. A) True B) False

False

Ultimate consumers are generally more rational than business customers. A) True B) False

False

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

Government markets

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

Inelastic demand.

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. straight rebuy purchase b. new-rebuy purchase c. modified rebuy purchase d. modified-task purchase e. new-task purchase

Modified rebuy purchase

Which of the following is NOT one of the ways that business transactions differ from consumer transactions? a. Purchasing decisions are often made by a committee. b. Orders by business customers tend to be much larger than individual consumer sales. c. Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort. d. Orders are frequently small and inexpensive. e. Suppliers of large, expensive, or complex goods often must sell products in large quantities to make profits.

Orders are frequently small and inexpensive.

Institutional markets are A) federal and state government units. B) organizations that seek nonbusiness goals. C) consumers who buy products for their own use. D) intermediaries who resell goods to make a profit.

Organizations that seek nonbusiness goals.

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' purchases. b. potential customers. c. potential customers' products. d. current customers' sales. e. potential customers' sales.

Potential customers' purchases.

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. institutional market b. government market c. producer market d. B2C market e. reseller market

Producer market

Business markets are typically divided into four categories. These categories are A) producer, reseller, government, and institutional. B) manufacturer, wholesaler, retailer, and services. C) retailers, wholesalers, services, and nonprofit firms. D) producer, manufacturer, reseller, and government.

Producer, reseller, government, and institutional.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are A) resale, wholesale, and direct use. B) resale, wholesale, and use in producing other products. C) wholesale, direct use, and use in producing other products. D) resale, direct use in producing other products, and use in general daily operations.

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

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

Reseller markets

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

Reverse auction.

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

Saves time; reduces costs

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

Searching for and evaluating potential products and suppliers

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

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

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

The buying center.

An example of a business market would be farmers. A) True B) False

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

True

When purchasing products, business customers are especially concerned about quality, service, price, and supplier relationships. A) True B) False

True

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

Value analysis.