Chpt 7

An industrial product is bought for the purpose of a. being given as a gift to people. b. manufacturing other goods or services. c. satisfying an individual's personal wants or needs. d. being consumed by family and friends.

b. manufacturing other goods or services.

With the introduction of the internet, many people thought that all B-to-B shopping would be completed online and the need for distributors would be eliminated. However, distributors perform important functions for business customers including all of the following except: a. providing information and advice. b. selling items at wholesale costs. c. processing returns. d. providing credit and delivery for purchases.

b. selling items at wholesale costs.

In the context of evaluative criteria, installing equipment and training its users is an example of _____. a. modified rebuy b. service c. technical suitability d. product quality

b. service

In thinking about the NAICS, companies at the ______ level have more in common than companies at the _____ level. a. sector; industry group b. subsector; industry subdivision c. industry; industry subdivision d. industry; subsector

d. industry; subsector

_____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. a. Content marketing b. Media marketing c. Business marketing d. Consumer marketing

c. Business marketing

NAICS is a valuable tool because: (Check all that apply) a. the codes can help firms identify potential users of their products and services. b. companies within the same classification group likely use different types of raw materials and production processes. c. information from the codes can help project market potential estimates. d. it can help business marketers tailor their messages to similar target markets

c. information from the codes can help project market potential estimates. d. it can help business marketers tailor their messages to similar target markets. a. the codes can help firms identify potential users of their products and services

According to the North American Industry Classification System (NAICS), which of the following goods- or service-producing firms are grouped together? a. Firms that share identical capital investment b. Firms that use identical production processes c. Firms that use identical marketing strategies d. Firms that are located in identical geographical locations

b. Firms that use identical production processes

Which of the following statements is true of direct channel distribution? a. Business products pass through the producer, wholesaler, and retailer. b. Direct channels of distribution are uncommon. c. Channels of distribution for business marketing are typically short. d. Direct channels have decreased in their usefulness dramatically in the past decade.

c. Channels of distribution for business marketing are typically short

The standard of behavior by which conduct is judged is known as _____. a. personality b. trust c. ethics d. cognitive ability

c. ethics

In the context of business marketing, which of the following statements is true of customer service? a. It places higher priority on acquiring new customers over existing customers. b. It is limited to presale services offered to customers. c. It requires equal treatment to be given to all customers. d. It involves evaluation of customer satisfaction and loyalty.

d. It involves evaluation of customer satisfaction and loyalty

Which of the following statements is true of producers? a. They buy business products and resell them to business customers. b. They seek to achieve goals other than the standard business goals of profit. c. They account for the greatest volume of purchases of any business category. d. They use purchased goods and services to incorporate into other products

d. They use purchased goods and services to incorporate into other products.

Which of the following statements is true of business markets? a. Business customers tend to buy products in large quantities. b. Business marketers usually approach purchasing rather informally. c. Business customers tend to buy products for personal consumption. d. Business marketers require long channels of distribution.

a. Business customers tend to buy products in large quantities

In the context of business relationships in Japan, which of the following best describes a keiretsu? a. It is a network of interlocking corporate affiliates. b. It is a group of companies that only use natural resources as their primary source of energy. c. It is a group of companies that do not have subsidiaries in foreign countries. d. It is a legal consolidation of companies into a single entity

a. It is a network of interlocking corporate affiliates.

In the context of online campaigns, which of the following statements is true of awareness? a. It is the attention that social media attracts, like the number of fans. b. It is generally used as the second step in the marketing funnel. c. It includes everything from downloading a piece of content to actually making a purchase. d. It refers to the interactions between the brand and the audience

a. It is the attention that social media attracts, like the number of fans

Which of the following statements is true of the multiplier effect? a. It produces highly fluctuating demand for business products. b. It happens because business demand is more stable than the demand for consumer products. c. It happens when there is inelastic demand. d. It leads to little or no change in facilities and equipment of businesses that produce consumer products.

a. It produces highly fluctuating demand for business products

_____ demand occurs when two or more items are used together in a final product. a. Joint b. Elastic c. Inelastic d. Fluctuating

a. Joint

Which of the following statements is true of relationship marketing? a. Maintaining a steady dialogue between a supplier and a customer is a proven way to gain repeat business. b. It has become less important than before because competition is becoming less intense. c. Business suppliers use social networking sites sparingly. d. For most suppliers, retaining their current customers has become a secondary focus

a. Maintaining a steady dialogue between a supplier and a customer is a proven way to gain repeat business.

In the context of business products, which of the following statements is true of raw materials? a. Promotion of raw materials is usually done via personal selling. b. Raw materials are finished items ready for assembly. c. Individual producers greatly influence the pricing and supply of raw materials. d. Raw materials are usually sold in small quantities.

a. Promotion of raw materials is usually done via personal selling.

Milestones, a start-up job consultancy, takes the first step in the marketing funnel and decides to create a page on a social networking website that describes its services. Through this, it hopes to attract as many followers as possible. In the context of business-to-business (B-to-B) social media marketing, this first step is an example of the marketing metric of _____. a. awareness b. engagement c. review d. conversion

a. awareness

When considering interaction between companies and customers online, _______ is the attention that social media attracts while ______ is the interactions between the brand and the audience, such as retweets or comments. a. awareness; engagement b. awareness; conversions c. engagement; awareness d. conversions; engagement

a. awareness; engagement

Laelle Corp., a multinational company conducts a session on workplace issues such as gender discrimination, sexual harassment, and racism. Given this information, the session will most likely train the employees on _____. a. business ethics b. pricing decision c. expansion criteria d. quality improvement

a. business ethics

In the context of business products, unprocessed extractive or agricultural products are called _____. a. raw materials b. component parts c. major equipment d. accessory equipment

a. raw materials

_____ is defined as a cooperative agreement between business firms. a. A relationship marketing contract b. A strategic alliance c. A straight rebuy d. The content marketing statute

b. A strategic alliance

In the context of business products, which of the following statements is true of major equipment? a. Local industrial distributors play an important role in the marketing of major equipment. b. Personal selling is an important part of the marketing strategy for major equipment. c. Portable drills, power tools, and computer software are examples of major equipment. d. Major equipment is less expensive and shorter-lived than accessory equipment.

b. Personal selling is an important part of the marketing strategy for major equipment.

Which of the following statements is true of the business market in the United States? a. The key characteristic distinguishing business products from cosumer products is physical form. b. The size of the business market exceeds the size of consumer markets. c. Business markets sell goods and services for personal consumption. d. In the business market, a single customer cannot account for a huge volume of purchases.

b. The size of the business market exceeds the size of consumer markets.

In the context of relationship marketing, _____ is the feeling of nurturing concern for, and dependence upon, another. a. inelasticity b. amae c. multiplicity d. nakes

b. amae

Finished items ready for assembly or items that need very little processing to become part of another product are called _____. a. raw materials b. component parts c. processed materials d. supplies

b. component parts

A product that is purchased to fulfill an individual's personal wants and needs is known as a(n) _____. a. business product b. consumer product c. intermediate product d. industrial product

b. consumer product

Which of the following statements is true of business markets? a. In business markets, products are sold for the purpose of personal consumption. b. The key characteristic distinguishing business products from consumer products is physical form. c. In business markets, a single customer can account for a huge volume of purchases. d. Business markets are typically smaller than consumer markets in most countries.

c. In business markets, a single customer can account for a huge volume of purchases.

Which of the following statements is true of the North American Industry Classification System (NAICS)? a. The more the digits in a NAICS code, the less homogeneous a group will be. b. The geographic dispersion of firms cannot be identified with the help of NAICS. c. Information collected through NAICS can be converted to sales forecasts. d. Each classification group in NAICS is heterogeneous in terms of the components used

c. Information collected through NAICS can be converted to sales forecasts

Which of the following statements is true of major equipment? a. It includes materials such as mineral ore, timber, wheat, corn, fruits, vegetables, and fish. b. It includes materials such as sheet metal, chemicals, specialty steel, treated lumber, and plastic. c. It includes capital goods such as expensive machines, mainframe computers, and blast furnaces. d. It includes goods such as portable drills, power tools, microcomputers, and computer software

c. It includes capital goods such as expensive machines, mainframe computers, and blast furnaces.

In the context of a straight rebuy, which of the following statements is true of the purchasing contract? a. It is used with products that are bought in low volume. b. It tends to increase the level of competition during sales. c. It tends to make the buyer's decision making routine. d. It is used with products that are seldom bought.

c. It tends to make the buyer's decision making routine.

Which of the following statements is not true of strategic alliances? a. Companies often form strategic alliances to strengthen operations and better compete. b. They can be formed between two manufacturers, manufacturers and suppliers, or manufacturers and channel intermediaries. c. Strategic alliances are formed between companies within in the same industry. d. Strategic alliances require commitment and trust in order to be successful.

c. Strategic alliances are formed between companies within in the same industry

In the context of business customers, which of the following statements is true of institutional purchasers? a. They carry thousands of items in stock and employ sales forces to contact business customers. b. They buy business goods and incorporate them into products they produce. c. They seek to achieve goals other than the standard business goals of profit. d. They buy finished goods and resell them for a profit.

c. They seek to achieve goals other than the standard business goals of profit.

Ben, a working professional, buys a car to travel to work every day. In this case, the car is an example of a(n) _____. a. intermediate product b. industrial product c. consumer product d. business product

c. consumer product

The category of business customers that accounts for the greatest volume of purchases in the in United States is: a. institutions. b. resellers. c. governments. d. producers.

c. governments

Luis, a supply manager at Benson Corp., calls a sales representative at OffPro Distributors to place an order for 50 reams of copy paper for official purposes. OffPro Distributors purchases the required goods from Ranson Inc. and delivers the goods to Luis the next day. In this scenario, OffPro Distributors is an example of a(n) _____. a. manufacturer b. institution c. reseller d. producer

c. reseller

Laelle Corp. is a supplier of various goods. It is engaged in business marketing if it sells a. chocolates to a school girl. b. electrical appliances to a newly married couple. c. wood to a boat manufacturing company. d. a laptop to a college student.

c. wood to a boat manufacturing company.

_____ demand means that an increase or decrease in the price of a product will not significantly affect demand for the product. a. Joint b. Derived c. Fluctuating d. Inelastic

d. Inelastic

Gears, a motorcycle manufacturer, assembles 20 motorcycles each day. As the motorcycles roll down the assembly line, power tools are used by factory workers to tighten bolts wherever necessary on the product. In this scenario, power tools are examples of _____. a. major equipment b. raw materials c. component parts d. accessory equipment

d. accessory equipment

The amount of ink a printing firm needs is based on the demand for materials that will be printed using that ink. This is an example of _____. a. consumer demand b. joint demand c. elastic demand d. derived demand

d. derived demand

Ralone Corp. manufactures printers. When it launched a new line of laser printers, it also introduced laser toners. None of the other laser toners in the market were compatible with its laser printers. So, as long as its laser printers are in demand, its laser toners will also be in demand. In this scenario, Ralone Corp.'s laser printers and laser toners are products that exhibit _____. a. fluctuating demand b. elastic demand c. inelastic demand d. joint demand

d. joint demand

Single Grain's online content marketing successfully attracted customers such as Amazon and Uber. This illustrates the two most important goals for B-to-B content marketers: a. customer targeting and increasing usage of hashtags. b. increasing engagement and targeting the right audience. c. creating and distributing valuable and consistent content. d. lead generation and sales

d. lead generation and sales.

The four major categories of business customers are: a. manufacturers, suppliers, industries, and schools. b. producers, manufacturers, governments, and industries. c. manufacturers, resellers, industries, and institutions. d. producers, resellers, governments, and institutions.

d. producers, resellers, governments, and institutions.

Cakes and Flowers, a local café, sends out hand-written greeting cards along with a box of cupcakes to all its loyal customers during Christmas week. In this case, Cakes and Flowers is evidently implementing _____. a. content marketing b. alliance marketing c. cloud marketing d. relationship marketing

d. relationship marketing