marketing ch. 8

In this example of a buying center, Michael occupies both the buyer and the decider roles. True False

True

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

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. True False

True

Glendale High School would be an example of an institutional market. True False

True (Organizations with charitable, educational, community, or other nonbusiness goals comprise institutional markets.)

An evaluation of each component of a potential purchase

Value Analysis

A formal, systematic evaluation of current and potential vendors

Vendor Analysis

Demand that is not significantly altered by a price increase or decrease

Inelastic Demand

Organizations with charitable, educational, community, or other nonbusiness goals

Institutional Markets

Government market spending has decreased over the last several decades. True False

False

In modified rebuy and straight rebuy situations, a company is likely to go through all five stages of the buying decision process. True False

False

NAICS is the industrial classification system used by the majority of countries across the world. True False

False

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

False

Online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments

B2B e-commerce sites

The purchase behavior of producers, government units, institutions, and resellers

Business (organizational) buying behavior

The people within an organization who make business purchase decisions

Buying Center

Demand for business products that stems from demand for consumer products

Derived Demand

Customer expectations about quality of service have decreased and narrowed over time. True False

False

After identifying a group of potential customers by industry and location, the next step is to begin production. True False

False (After identifying a group of potential customers by industry and location, business marketers must estimate the purchase potential of business customers or groups of customers.)

Vendor analysis takes place during the development of the product specifications stage of the business buying decision process. True False

False (Vendor analysis takes place during the searching for and evaluating potential products and suppliers stage)

Buyers of industrial equipment would most likely use sampling as their purchase method. True False

False (because of the high cost of the product and the need for it to work properly)

A traditional online auction occurs when an online buyer invites businesses to bid to supply the specified good or service in competition with each other. True False

Fasle

Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies

Government Markets

Demand involving the use of two or more items in combination to produce a product

Joint Demand

A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified

Modified Rebuy Purchase

An organization's decision to use several suppliers

Multiple Sourcing

An organization's initial purchase of an item to be used to perform a new job or solve a new problem

New-Task Purchase

An industry classification system that generates comparable statistics among the United States, Canada, and Mexico

North American Industry Classification System (NAICS)

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations

Producer Markets

Written statements describing a product's necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product

Product Specifications

An arrangement unique to business marketing in which two organizations agree to buy from each other

Reciprocity

Intermediaries that buy finished goods and resell them for a profit

Reseller Markets

An organization's decision to use only one supplier

Sole Sourcing

A routine purchase by a business buyer of the same products under approximately the same terms of sale

Straight Rebuy Purchase

FedBid is a reverse online auction site for government agencies. A reverse auction is initiated by the buyer, who invites businesses to bid to supply the specified good or service in competition with each other. True False

True

Which of the following would be classified as an institutional buyer? a. American Cancer Society b. Internal Revenue Service c. Samsung d. Walmart

a. American Cancer Society

What do industry classification systems do for the marketer? a. Categorize organizations into groups based on such factors as the types of goods and services provided b. Provide an automatic guide that will allow marketers to determine the profit potential of customers with a high degree of accuracy c. Separate various businesses into different categories based on whether they offer business or consumer goods and services d. Help marketers locate the buying center and the major influencers in organizations with high profit potential e. Manage databases of business customers with high profit potential

a. Categorize organizations into groups based on such factors as the types of goods and services provided

In the business buying decision process, what comes after problem recognition? a. Develop product specifications b. Search for and evaluating potential suppliers c. Select the product to be purchased and the supplier d. Evaluate the supplier's and product's performance by comparing it with specifications e. Contact the buying center

a. Develop product specifications

What is the second stage of the business buying decision process? a. Develop product specifications b. Recognize problem c. Evaluate possible products and suppliers d. Select product/supplier and order product

a. Develop product specifications

_______ demand involves the use of two or more items in combination to produce a product. a. Joint b. Combination c. Partnered d. Inelastic

a. Joint

Vasili owns a company that provides cleaning services to large office buildings. He regularly visits Jobbid.com to search listings for potential contracts with local businesses. He then bids his company's price, and if he offers the lowest bid, his company will win the contract. This is an example of _______. a. a reverse auction b. a private B2B exchange c. an online auction d. a B2B marketplace.

a. a reverse auction

Members of the _______ market often have fewer resources than other types of organizations, so firms use special marketing efforts to serve them. a. institutional b. government c. producer d. reseller

a. institutional

Phillip uses a secure system that allows his organization to share information with other organizations that share the same supply chain. The system he uses is most likely an example of a(n) _______. a. private B2B exchange b. independent B2B e-commerce site c. company website d. online auction site

a. private B2B exchange

The _______ method of business buying entails evaluating a portion of the product on the assumption that its characteristics represent the entire lot. a. sampling b. inspection c. negotiation d. description

a. sampling

Firms that purchase products from manufacturers and resell the products to other firms in the distribution system are known as _______. a. wholesalers b. producers c. institutions d. retailers

a. wholesalers

Kraft Foods purchases flour from Ardent Mills for use in manufacturing at their various plants. The purchasing agent for Kraft foods most likely utilizes the _______ method of business buying. a. negotiation b. description c. sampling d. inspection

c. sampling

_______ refer to the group of people within a business who are involved in making business buying decisions. a. New-task decision teams b. Buying centers c. Negotiators d. Purchasing agents

b. Buying centers

Suppose a church representative stops by looking for a coffee maker. She wants to buy the coffee maker with church funds and use it to brew fresh coffee for church visitors. The woman is a part of which market? a. Reseller b. Institutional c. Government d. Producer e. Consumer

b. Institutional

How has the internet impacted supply chains? a. It inhibits participants from taking advantage of others. b. It has streamlined supply chains. c. It has largely reduced supply chain conflict. d. It has eliminated the need for complex supply chains.

b. It has streamlined supply chains.

Levi is getting ready to order another shipment of frying pans. However, he wants to switch from cast iron to aluminum. What type of purchase is Levi using? a. Straight rebuy purchase b. Modified rebuy purchase c. New task purchase d. Differential purchase e. New rebuy purchase

b. Modified rebuy purchase

_______ and _______ are part of the reseller market. a. Warehouses; technology firms b. Retailers; wholesalers c. Retailers; nonprofits d. Retailers; manufacturing firms e. Producers; wholesalers

b. Retailers; wholesalers

Jessica is the purchasing manager at Morton Pediatrics and places orders for routine products such as office supplies and disposable medical supplies such as gloves, syringes, and cotton swabs. She purchases the medical supplies from Johnson & Johnson and utilizes its website where she has an intranet portal to easily place orders and receive a company discount. Johnson & Johnson makes it easy and convenient as well by providing a list of previously purchased items that Jessica can select and simply click "reorder." What type of purchase process does Jessica use when buying these items from Johnson & Johnson? a. New-task purchase b. Straight rebuy c. Modified rebuy d. Contracted purchase

b. Straight rebuy

Which of the following is most likely to be a benefit of reciprocity? a. More purchasing options b. Strong relationships c. Optimal purchasing d. More government subsidies e. Increased competition

b. Strong relationships

If demand for a business product is inelastic _______. a. demand will be based on the number of items purchased b. a price increase or decrease will not significantly alter demand for the item c. a price increase will cause demand to increase d. a price increase will cause demand to decrease

b. a price increase or decrease will not significantly alter demand for the item

Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Michael is the _______ in the buying center, while Phillip acts as a _______. a. gatekeeper; influencer b. buyer; influencer c. user; buyer d. decider; gatekeeper e. buyer; decider

b. buyer; influencer

Demand for business products is _______ because producers purchase products for direct or indirect use in the production of goods and services in order to satisfy consumers' needs. a. inelastic b. derived c. elastic d. joint

b. derived

Harvest Café is a farm-to-table restaurant and prides itself on offering fresh, local foods to its customers. They purchase chicken from Heart Farms which are cage-free and organic. Harvest Café typically purchases 20 pounds of chicken each week and usually pays $3 per pound. However, when placing a recent order, the chef noticed that the price had increased to $3.40 per pound. The chef placed the usual order for 20 pounds of chicken and reasoned that he could either reduce the portion size or increase the menu price in order to maintain his profitability goals. This is an example of business products having _______ demand. a. derived b. inelastic c. fluctuating d. joint

b. inelastic

Williams Tool & Die manufactures steel and aluminum parts for a variety of automobile manufacturers such as head rest standards and aluminum inserts for beverage holders. Williams Tool & Die typically contracts with the automobile manufacturers for a two-year time frame at an agreed-upon price for the parts. Recently, the price of steel and aluminum has increased, resulting in increased production costs for Williams Tool & Die. However, Williams Tool & Die cannot pass along a price increase to its customers and must absorb the increases in raw materials. The demand for steel and aluminum for Williams Tool & Die is _______. a. derived b. inelastic c. separate d. joint

b. inelastic (The demand is inelastic—a price increase or decrease does not impact the demand.)

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

b. inelastic demand

Alibaba could classify as an independent B2B e-commerce site because _______. a. it allows business buyers to bid on items that best meet the needs of its firms b. it is a neutral third party that provides a trading forum for a fee c. it allows industrial buyers to trade online independently from its businesses d. it is focused solely on trading among B2B markets

b. it is a neutral third party that provides a trading forum for a fee

A(n) _______ is created when suppliers and their customers build and maintain mutually beneficial relationships. a. reciprocity b. partnership c. advocate d. alliance

b. partnership

The four categories of business markets include _______. a. retailer, institutional, producer, and government b. producer, reseller, government, and institutional c. wholesaler, manufacturer, reseller, and government d. wholesaler, retailer, producer, and government

b. producer, reseller, government, and institutional

The North American Industry Classification System (NAICS) is based on the types of _______ performed. It divides industrial activity into _______ sectors. a. services and production activities; 50 b. production activities; 20 c. services; 30 d. manufacturing; 40

b. production activities; 20

Business customers' chief considerations when making purchasing considerations include all of the following, except _______. a. price b. promotional materials c. product quality d. service

b. promotional materials

St. Francis Hospital system purchases medical supplies from Medline Industries with whom it has done business for the last five years. The hospital and system medical offices typically reorder standard supplies such as gloves, syringes, and other disposable supplies from Medline. This is an example of the _______ type of business purchase. a. standard replacement b. straight rebuy c. modified rebuy d. new task

b. straight rebuy

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

b. the buying center

The majority (more than 90 percent) of B2B buyers use _______ to gather research before making a purchase. a. recommendations from colleagues b. the internet c. specifications d. trade manuals

b. the internet

The North American Industry Classification System (NAICS) divides industrial activity into _______ sectors and more than _______ industry classifications. a. 30; 2,000 b. 15; 1,000 c. 20; 1,000 d. 10; 2,000

c. 20; 1,000

Patagonia, the well-known outdoor enthusiast clothing manufacturer, purchases cotton and other cloth from a variety of suppliers around the world. Patagonia has crafted a set of _______, which detail the characteristics sought from suppliers regarding the attributes of the fabric. a. features b. descriptions c. specifications d. requests

c. specifications (expressed characteristics designed to maintain level of quality.)

Which of the following is an example of derived demand? a. Sales for bathing suits jump in the summer, especially in hotter regions. b. An increase in airfare prices has not had much of an effect on demand for business travelers. c. An increase in coffee drinking is prompting coffee shops to order more coffee grinders. d. An increase in windshields has led to an increase in windshield wipers. e. A decrease in the prices of oranges has led to more orders of orange juice.

c. An increase in coffee drinking is prompting coffee shops to order more coffee grinders.

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

c. B2B e-commerce sites

Commodities and raw materials are typically purchased using which method of business buying? a. Inspection b. Reciprocity c. Description d. Sampling e. Negotiation

c. Description

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Which method of buying does Levi use? a. Sampling b. Sole sourcing c. Description d. Negotiation e. Inspection

c. Description

Which of the following are most likely to face joint demand? a. Athletic shoes b. Apples c. Engine oil for cars d. Tables e. Jewelry

c. Engine oil for cars

Whitney is an account executive with Simmons Mattress Company and markets directly to hotels and the hospitality market. She enjoys the opportunity to gain a large sale of 100-200 mattresses when hotels are remodeling or building a new facility. Usually, a hotel will replace mattresses every four to five years since they receive so much use and are also monitored by the health department to ensure sanitary conditions are met. Recently, Simmons Mattress Company has unveiled a new and improved mattress for the hospitality industry and Whitney is meeting with the purchasing manager at the Hilton Hotel headquarters to discuss a large order. The Hilton Hotel Company has purchased from Simmons in the past, but the new mattress is a latex foam product and would be unique in that a box spring is not needed. What type of purchasing decision does this represent for the Hilton Hotel Company? a. New-task purchase b. Straight rebuy c. Modified rebuy d. Contracted purchase

c. Modified rebuy

Which of the following companies is the best example of a reseller? a. JPMorgan Chase & Co. b. Staples c. Priceline d. John Deere e. Apple

c. Priceline

With more business customers utilizing the internet and technology to facilitate their purchases, a typical purchase process might look like which of the following? a. Internet search, speak with salesperson, problem recognition, purchase b. Problem recognition, contact product supplier, speak with salesperson, purchase c. Problem recognition, internet search for information, speak with salesperson, purchase from e-commerce site d. Salesperson calls customer, problem recognition, purchase from e-commerce site

c. Problem recognition, internet search for information, speak with salesperson, purchase from e-commerce site

Mitsubishi Motors manufactures a line of automobiles and heavy trucks that it sells in the global marketplace. Mitsubishi Motors' manufacturing plants utilize just-in-time processes to receive delivery of raw materials such as steel, glass, and wire as well as component parts such as engines and alternators. What category or type of business market best represents Mitsubishi Motors? a. Reseller b. Government c. Producer d. Institutional

c. Producer

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. Developing product specifications b. Evaluating the supplier's and product's performance by comparing it with specifications c. Searching for and evaluating potential products and suppliers d. Selecting the product to be purchased and the supplier e. Recognizing the problem

c. Searching for and evaluating potential products and suppliers

RJ Distribution maintains a fleet of vehicles for its delivery drivers and sales representatives to utilize. It has recently expanded and now has a fleet of approximately 55 vehicles. It currently has its fleet insured through State Farm Insurance and is considering making some changes to the coverages. It now recognizes that many people are driving very expensive foreign cars such as Mercedes Benz, Audi, and BMW and that the policy limits for damage may need to be increased. What aspect of the buying decision process would the decision to modify policy limits relate to? a. Evaluate product and supplier performance b. Problem recognition c. Specification of product/service d. Evaluation of alternative suppliers

c. Specification of product/service

A source of information typically utilized by marketers to identify the identities and locations of organizations in specific groups is _______. It contains information about firms, their names, industrial classification, address, phone number, and annual sales. a. a local newspaper b. an SIC listing c. Standard & Poor's Register d. the Wall Street Journal

c. Standard & Poor's Register (A source of information typically utilized by marketers to identify the identities and locations of organizations in specific groups is Standard & Poor's Register. It contains information about firms, their names, industrial classification, address, phone number, and annual sales.)

What happens in a reverse auction? a. The sellers pay for the opportunity to sell their products to lucrative buyers in hopes of establishing strong relationships. b. The seller will accept steep discounts on major business products because it needs to get rid of unsold inventory. c. The buyer invites businesses to bid to supply the specified good or service in competition with each other. d. The seller informs online buyers that it is holding an auction and encourages them to bid in competition with each other.

c. The buyer invites businesses to bid to supply the specified good or service in competition with each other.

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. Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. b. The government will request bids from all companies on its qualified bidder list. c. The government will select a few firms and enter into negotiations with them until the contract is awarded. d. It will contact whatever company made the last jets and have them develop the new ones.

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

The buying center includes which of the following entities? a. Retailers b. Suppliers c. Users d. Wholesalers

c. Users (The buying center includes users, influencers, buyers, deciders, and gatekeepers.)

_______ analysis is sometimes utilized during the search and evaluation stage of products/suppliers. During this process, companies may examine the quality, design, materials, and item reduction or deletion to acquire products or services in the most cost-effective way. a. Profit b. Strategic c. Value d. Vendor

c. Value (Value analysis is sometimes utilized during the search and evaluation stage of products/suppliers.)

Yankee Stadium purchases food service items, cleaning supplies, and uniforms for stadium workers from other companies. In this example, Yankee Stadium is a(n) _______. a. producer market b. reseller market c. institutional market d. government market

c. institutional market

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

c. less-than-optimal purchases for the buyer

The Temple University College of Business is seeking to purchase new monitors for its classrooms, computer labs, faculty, and staff offices. They create a description of the project and ask suppliers to submit bids. The university identifies the top two to three suppliers who present the most competitive packages and will begin discussions with each supplier to determine which company will be awarded the contract. This is an example of the _______ method of business buying. a. inspection b. sampling c. negotiation d. description

c. negotiation

Carlos is the purchasing manager for beer and liquor at his restaurant/bar and enjoys purchasing from Williams Distributing because the company provides a discount of 5 percent to customers who pay when the products are delivered. Carlos appreciates the opportunity to save money and has become a loyal customer of this company because of the favorable payment terms they offer. This is an example of a(n) _______ influence on the business buying decision process. a. individual b. environmental c. organizational d. interpersonal

c. organizational (Favorable payment terms are an example of an organizational influence on business buying decision process.)

Companies like Staples and Best Buy are considered to be classified as _______ markets. a. institutional b. producer c. reseller d. government

c. reseller

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

c. reverse auction

All of the following are true of business customers, except _______. a. they demand detailed information about a product's functional features b. their purchases can influence a buying agent's personal goals c. they are less concerned about technical specifications than consumers d. they are better informed than consumers about the products they purchase

c. they are less concerned about technical specifications than consumers

An iPad is part of the _______when bought by end users, but it is part of the _______when a salesperson purchases it to take orders.

consumer market; business market

Which of the following countries is NOT included in the North American Industry Classification System (NAICS)? a. Mexico b. Canada c. United States d. China

d. China

Sylvia Turner is an account executive with GlaxoSmithKline—a pharmaceutical company—and works with physicians who prescribe the medications she represents. She is not able to make appointments with the physicians but works with the office manager to get a few minutes of the doctor's time when she visits the doctor offices. The office manager is usually able to arrange a 5- to 10-minute meeting between Sylvia and the physician. What role of the buying center does the office manager perform? a. Influencer b. Decider c. Purchaser d. Gatekeeper

d. Gatekeeper

Which of the following is true about the North American Industry Classification System (NAICS)? a. It captures information about global industries. b. It provides limited information about service industries. c. It provides limited information about high-tech product industries. d. Information is comprehensive and up-to-date.

d. Information is comprehensive and up-to-date.

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. New-rebuy purchase b. New-task purchase c. Straight rebuy purchase d. Modified rebuy purchase e. Modified-task purchase

d. Modified rebuy purchase

Alejandra is an account executive for a heavy equipment distributor and received a call from a small landscaping company who is interested in purchasing a skid steer or Bobcat machine. The landscaping company has never owned or used a skid steer and doesn't know where to begin or the types of add-ons that they should also purchase. The company has purchased other equipment such as mowers and tractors but has never purchased a skid steer and plans to spend a considerable amount of time in the purchase process since this represents a significant investment for the company. What type of business purchase does this represent? a. Straight rebuy b. Modified rebuy c. Contracted purchase d. New-task purchase

d. New-task purchase

Gorton's Seafood buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's Seafood belongs in which of the following business markets? a. Reseller market b. B2C market c. Institutional market d. Producer market e. Government market

d. Producer market

What are the three purposes for which individuals or groups utilize products in order to be considered a business-to-business or B2B market? a. Governmental, institution, and reseller purposes b. Making component parts, creating other products, and selling to other businesses c. Wholesaling, retailing, and customer service d. Resale, direct use in producing other products, or use in general daily operations

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

Sysco Foods provides a wide variety of food products—more than 12,000 different products —to customers in the restaurant, hospital, education, and hospitality industry and works with companies such as Hormel Foods to offer high-quality, nutritious, tasty, and sustainable foods. What type of business market does Sysco Foods represent? a. Institution b. Government c. Producer d. Reseller

d. Reseller

Which of the following markets includes wholesalers or retailers? a. Producer markets b. Government markets c. Institutional markets d. Reseller markets e. Buying centers

d. Reseller markets

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 4GB of RAM. As Albertson's management evaluates this purchase, it finds that 4GB 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. Alternative evaluation b. Searching c. Selection d. Specification development

d. Specification development (Specification development requires that buying center participants assess the problem or need and determine what is necessary to resolve or satisfy it. In this case, Albertson's has assessed the situation and determined that what they originally thought would work—4GB—will not and they must modify its specifications.)

In order for a marketer to access information about company locations, number of employees, and chief executives' names quickly, they can utilize _______. a. a NAFTA member list b. the Wall Street Journal c. the NAICS database d. a commercial data service

d. a commercial data service

When the County Sherriff's office purchases laptop computers for use in the deputy vehicles, the purchase would be considered _______. a. a producer purchase b. a regulatory sale c. an institutional purchase d. a government purchase

d. a government purchase

Lauren Williams is a sales representative for Otis Elevator Co. who primarily strives to market service agreements to companies who have an Otis elevator in place or a competitor's elevator that is no longer serviced by the original equipment manufacturer. Lauren enjoys her job and especially likes to take treats such as cookies or cupcakes to offices when she visits. Lauren has found that being personable and offering a nice treat to the office staff such as the secretaries or office managers enables her to make appointments with the facility managers who make decisions about the service agreements. Lauren is attempting to create positive relationships with the secretaries and office managers who serve a(n) _______ role as a member of the buying team. a. user b. decider c. influencer d. gatekeeper

d. gatekeeper

The City of Bloomington is responsible for providing police and fire protection for its residents and purchases equipment for the departments, such as vehicles, computers, weapons, and other needed items. The city receives funds through tax collection as well as from state or federal governments to support its mission of serving the residents. The city is a(n) _______ type of business market. a. reseller b. producer c. institutional d. government

d. government

A(n) _______ market is defined as individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations. a. government b. reseller c. institutional d. producer

d. producer

Sherwin-Williams Company and Zimmerman Construction have worked together for many years whereby Zimmerman Construction purchases most of its paint and paint-related supplies from Sherwin-Williams and Sherwin-Williams delivers products directly to the job site in an efficient and convenient manner. The relationship between the two companies is an example of _______. a. a tying arrangement b. a partnership c. an alliance d. reciprocity

d. reciprocity

Willamette Valley Event Center often hosts receptions for weddings and business leaders and serves local wine from the Oregon valley. It has an agreement with the Willamette Valley wine cooperative to only serve Oregon wines from the region at its events and purchase directly from members of the cooperative organization. In return, the Willamette Valley wine cooperative holds its business meetings and receptions at the Willamette Valley Event Center. This agreement is an example of _______ that is unique to business markets. a. modified rebuy b. reselling c. cooperation d. reciprocity

d. reciprocity

The search and evaluation of possible products and suppliers is the _______ step in the business buying decision process. a. second b. fourth c. fifth d. third

d. third

The formal and systematic evaluation of current and potential suppliers focusing on price, product quality, delivery service, product availability, and overall reliability is known as _______ analysis. a. value b. strategic c. cost d. vendor

d. vendor

Which of the following markets may have complex buying procedures due in part to their public accountability? a. Institutional markets b. Producer markets c. Reseller markets d. College markets e. Government markets

e. Government markets

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

e. Orders by businesses are frequently small and inexpensive.

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

e. potential customers' purchases

Online marketing efforts make the buying process far more efficient because it _______ and _______. a. saves time; increases costs b. removes emotion, reduces costs c. saves time; is more professional d. takes more time; reduces costs e. saves time; reduces costs

e. saves time; reduces costs

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

e. value analysis

Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Assume that Acer wants to reach the deciders and purchasers in Christina's organization because it would like to supply the next order of computers. Before they can reach Michael, however, they must first schedule an appointment with his secretary who has worked at the firm for 20 years. It would be wise for Acer not to underestimate the secretary as she most likely acts as a ______

gatekeeper

Companies like Target and J.C. Penney sometimes participate in a(n) _______for the retail industry, which acts as a neutral third party and charges a fee for providing a trading forum.

interdependent B2B exchange

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. ______ factors likely influenced Levi as the chief decision maker for his company to go with the supplier?

interpersonal