Marketing Ch. 7
Management at More Hands Maid Service 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?
Formally survey customers.
Which type of business market tends to have the most complex buying procedures?
Government
Which of the following would be considered an institutional buyer?
The United Way
Institutional markets are
organizations that seek nonbusiness goals.
Which of the following is true with respect to buyers in business markets?
Business customers demand detailed information about a product's functional features and technical specifications.
Which of the following is not an example of a producer market member?
Buyers of finished products that intend to resell them for a profit
Which of the following is true about characteristics of business buying?
Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort.
When buying materials to use in mattress manufacturing, the purchasing agent for Casper Sleep Company considers a variety of factors. Which one of the following is least likely to concern this buyer?
Does the supplier also sell to my competitors?
Wegmans recently placed an order with the Applegate Corporation for hotdogs. The typical weekly order is for 10 cases; however, because the upcoming weekend includes a holiday, this time Wegmans is ordering 100 cases of hotdogs. Wegmans orders this product on a regular basis. What type of purchase does this week's purchase represent?
Modified rebuy
Which of the following statements about business buying is false?
Orders in business markets tend to be smaller than those placed in consumer markets.
Which of the following statements about reseller markets is false?
Resellers are not concerned with how much space the product takes up as long as it has a high price.
When the city of Portland buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered
a government purchase
The fact that business customers purchase products to be used directly or indirectly in the production of consumer goods and services means that demand for business products is
derived
Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?
description
Marketers aiming at business customers, rather than at ultimate consumers,
have an enormous amount of information available concerning potential customers.
Philip Beeman of Beeman 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.
inspections
When charitable organizations such as the American Cancer Society, Second Harvest Food Bank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.
institutional
Most business purchases can be classified as belonging to one of three types:
modified rebuy, new-task, or straight rebuy.
Product specifications are best described as
necessary characteristics and level of quality.
Seattle Grace Hospital administrators decide 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 which will get the contract. This is an example of using ____ for a purchase decision.
negotiation
The Quick Cash Pawn Company is a regional business that owns seven pawn stores in Tennessee. The owners of Quick Cash 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) _____.
new task; modified rebuy
Capitol 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 Capitol Supply, these vehicles would represent a ____ purchase.
new-task
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.
new-task
All of the following are important concerns of business customers except
obtaining products that exceed specifications to ensure the best possible product performance.
AMD buys silicone, which is used in its chip-making process. AMD produces microchips for use within a wide variety of products for other firms, such as Motorola, LG, and Samsung. AMD is a buyer in a(n) ____ market.
producer
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.
producer
When Bahama Breeze Fans buys electrical wire for use in producing its ceiling fans, Bahama Breeze is part of what type of market for electrical wire?
producer
Business markets are typically divided into four categories. These categories are
producer, reseller, government, and institutional.
The NAICS classification is based on
production activities.
Henry Jennings of Jennings Pest Control buys equipment from Total Tools because Total Tools hires him to spray its warehouse for insects periodically. This practice is an example of
reciprocity
Stan owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Stan negotiated with Capitol Dodge, a dealer, with the agreement that GreenScapes would be the service company Capitol Dodge used for all of its landscaping needs. This is an example of
reciprocity
In business markets, individuals or groups purchase products for one of three purposes. These purposes are
resale, direct use in producing other products, and use in general daily business operations.
The three purposes for which individuals or groups can use products in order for it to be considered a business market are
resale, use in daily operations, and direct use in producing other products.
Amos's Produce Stand buys produce from area farmers, marks the merchandise up to a price that includes some profit, and then sells the fruit and vegetables to the people in and around Plum Creek. Amos's would be classified as part of a ____ market.
reseller
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.
reseller
Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of
sales per square foot of selling area.
A representative product taken from a lot or batch, evaluated, and purchased refers to
sampling
Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?
sampling
Kia Motors purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of necessary characteristics, standards of quality, and other information that is expressed by Kia Motors. This set is called
specifications
A representative from Maine Root 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?
straight rebuy
The United States Air Force purchases uniforms from a single supplier. For the last 25 years, the trousers purchased from this supplier have not changed and have been bought every six months, in multiple sizes. This example is called a
straight rebuy
______ is(are) an essential consideration for business customers because it influences operating costs and costs of goods sold.
price
