Marketing Ch.8 Practice

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

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

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

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 _______. - B2B e-commerce sites - online auction sites - corporate websites - B2C e-commerce sites

B2B e-commerce sites

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts the supplier completely. Whenever Levi needs to order new inventory from his supplier, he sends them 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 they are. Finding defective products is 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? - Negotiation - Description - Sampling - Inspection - Sole sourcing

Description

In the business buying decision process, what comes after problem recognition? - Developing product specifications - Searching for and evaluating potential suppliers - Selecting the product to be purchased and the supplier - Evaluating the supplier's and product's performance by comparing it with specifications

Developing product specifications

In the business buying decision process, what comes after problem recognition? - Evaluating the supplier's and product's performance by comparing it with specifications - Searching for and evaluating potential suppliers - Selecting the product to be purchased and the supplier - Contacting the buying center - Developing product specifications

Developing product specifications

What purpose would an individual in a business market have for purchasing a specific kind of product? (Select three) - Personal use - Direct use in producing other products - Use in daily operations - Resale

Direct use in producing other products Use in daily operations Resale

Which of the following are most likely to face joint demand? - Jewelry - Apples - Tables - Athletic shoes - Engine oil for cars

Engine oil for cars

Which business buying decision factor would include political forces, economic factors, and technological changes? - Individual - Organizational - Environmental - Interpersonal

Environmental

The sales department of a consumer products organization realized that its rivals were adopting new customer relationship management software to keep better track of their prospects. The director of the sales department decided it would also purchase CRM software to keep up with its rivals. This is an example of what type of force affecting business buying behavior? - Environmental forces - Individual forces - Organizational forces - Consumer forces - Interdependent forces

Environmental forces

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's 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? - Purchaser - Gatekeeper - Influencer - Decider

Gatekeeper

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

Information is comprehensive and up to date.

Suppose a church representative stops by looking for a coffee maker. They want to buy the coffee maker with church funds and use it to brew fresh coffee for church visitors. They are a part of which market? - Reseller - Producer - Government - Institutional - Consumer

Institutional

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

It has streamlined supply chains.

Which of the following represents a limitation of the North American Industry Classification System (NAICS)? - Data include the United States, Canada, Mexico, and Europe. - It is best used with other types of data to determine how many and which customers a marketer can reach. - All industries are included in the classification system. - Data are only available on a quarterly basis.

It is best used with other types of data to determine how many and which customers a marketer can reach.

Central State University purchases projectors for use in its classrooms and typically purchases 20 new projectors each year. Central State wonders if any improvements have been made in bulb life or brightness of projectors and anticipate reviewing the various brands of projectors before placing an order. What type of purchase will Central State utilize for the projector purchase this year? - New-task purchase - Straight rebuy purchase - Modified rebuy purchase - Repetitive purchase

Modified rebuy purchase

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? - Differential purchase - New-rebuy purchase - Modified rebuy purchase - New-task purchase - Straight rebuy purchase

Modified rebuy purchase

Suppose the government wants to hire a firm to build a new road. What method of business buying will it most likely use? - Inspection - Sampling - Sole sourcing - Description - Negotiation

Negotiation

Jeckel Mowing & Maintenance provides lawn, garden maintenance, and snow removal services and is considering offering landscaping services to its customers. The company owner, Prescott Jeckel, is considering the purchase of a skid-steer loader or Bobcat machine. While Prescott has purchased many different varieties of mowers and lawn tractors, he does not have any experience with skid-steer machines. What type of purchase will the skid-steer loader decision be for Prescott? - Modified rebuy purchase - New-task purchase - Straight rebuy purchase - Repetitive purchase

New-task purchase

Which of the following is often used for liquidating unsold, returned, or used merchandise? - B2B e-commerce sites - B2C e-commerce sites - Corporate websites - Online auctions

Online auctions

Which of the following companies is the best example of a reseller? - Apple - Staples - Priceline.com - JPMorgan Chase & Co. - John Deere

Priceline.com

A janitorial services organization purchases Clorox supplies to use in cleaning places like schools and office buildings. This type of customer would be an example of what type of market for Clorox? - Institutional - Government - Consumer - Reseller - Producer

Producer

Which category of business customers includes individuals and business organizations that purchase products to profit by using them to produce other products or using them in their operations? - Producer market - Reseller market - Government market - Institutional market

Producer market

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 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? - Specification of product/service - Problem recognition - Evaluate product and supplier performance - Evaluation of alternative suppliers

Specification of product/service

Which of the following is most likely to be a benefit of reciprocity? - Increased competition - Strong relationships - More purchasing options - Optimal purchasing - More government subsidies

Strong relationships

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

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

_______ 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. - Profit - Vendor - Value - Strategic

Value

Inelastic demand means _______. - there is a linkage between the demand for a company's output and its purchases of resources - demand will fluctuate because demand for business products is derived from consumer demand - the demand for one business product is related to the demand for another business product used in combination with the first item - an increase or decrease in the price of a product will not significantly affect demand for the product

an increase or decrease in the price of a product will not significantly affect demand for the product

U.S. Foods provides food products to institutions such as hospitals, nursing homes, schools, and large companies that offer food services. The director of food service is the only person at St. Joseph hospital who has the authority to sign contracts and is meeting with the account executive from U.S. Foods, who is providing some information about new products that could be added to the hospital menu for patients and guests. The director of food service recommends that the account executive meet with the chef to discuss which new products the chef would like added to the order. The director of food service believes that the chef should have the ability to determine what food products he would like to offer. In this case, the director of food service is acting as a _______, while the chef is a(n) _______ member of the buying team. - buyer; influencer - gatekeeper; decider - decider; buyer - buyer; decider

buyer; decider

Isabella 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(n) _______. - buyer; decider - gatekeeper; influencer - buyer; influencer - user; buyer - decider; gatekeeper

buyer; influencer

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

derived

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

false

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

false

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

false

The _______ business market is characterized as having the most complex procedures when purchasing products or services. - institutional - government - producer - reseller

government

The NAICS is a system for classifying businesses _______. - in Europe, the United States, and Asia - in North America - that are members of the World Trade Organization - worldwide

in North America

Hospitals, colleges and universities, and museums fall into the ______ category of business customers. - institutional market - reseller market - government market - producer market

institutional market

When the demand for one business product is related to the demand for another business product used in combination with the first item, _______ occurs. - inelastic demand - derived demand - joint demand - fluctuating demand

joint demand

The Temple University College of Business is seeking to purchase new monitors for its classrooms, computer labs, faculty, and staff offices. It creates a description of the project and asks suppliers to submit bids. The university identifies the top two or 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. - sampling - inspection - negotiation - description

negotiation

To estimate the purchase potential of business customers, a marketer must find a relationship between a variable available in industrial classification data, such as the number of employees, and the size of _______. - potential customers' products - potential customers' purchases - potential customers - current customers' sales

potential customers' purchases

Walmart implemented an online system for its supply chain called RetailLink. RetailLink is a secure system that permits all suppliers and others to facilitate exchanges and share information on purchasing, inventory, negotiating, and more. It also allows its suppliers to get information on inventory levels and sales from different Walmart stores. This is an example of a(n) _______. - electronic supply chain - private B2B exchange - independent B2B exchange - public B2B exchange - online auction

private B2B exchange

The four categories of business markets include _______. - producer, reseller, government, and institutional - wholesaler, retailer, producer, and government - retailer, institutional, producer, and government - wholesaler, manufacturer, reseller, and government

producer, reseller, government, and institutional

Business Systems, a reseller of office machines such as photocopiers, service, and maintenance, uses Speedy Cleaning Services to maintain its office facilities. Speedy Cleaning Services uses Business Systems to service its photocopier. The businesses have a _______ relationship. - governmental - reciprocal - contractual - maintenance

reciprocal

Companies like Staples and Best Buy are classified as _______ markets. - government - institutional - reseller - producer

reseller

Retailers and wholesalers are part of the _______ category. - producer market - reseller market - institutional market - government market

reseller market

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

sampling

The first two digits of a NAICS code designate the _______. - subsector - industry group - sector - industry

sector

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. - specifications - features - descriptions - requests

specifications

St. Francis Hospital system purchases medical supplies from Medline Industries, with which 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. - new task - modified rebuy - standard replacement - straight rebuy

straight rebuy

In a _______, the business buyer reorders the same goods or services without looking for new information or investigating other suppliers. - straight rebuy purchase - new-task purchase - varied rebuy purchase - modified rebuy purchase

straight rebuy purchase

The group of people within an organization who make business buying decisions are best described as _______. - the buying center - gatekeepers - the purchasing unit - influencers

the buying center

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

Which of the following are primary concerns when it comes to business customers making purchasing decisions? (Select three) - Supplier relationships - Product specifications - Price - Reciprocity - Product Quality

Product quality Price Supplier relationships

Which of the following is an arrangement unique to business in which two businesses agree to buy from each other? - Producer market - Reciprocity - Institutional market - Product specifications

Reciprocity

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts the supplier completely. Whenever Levi needs to order new inventory from his supplier, he sends them 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 they are. Finding defective products is so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Levi is operating in which type of market? - Institutional - Consumer - Reseller - Producer - Government

Reseller

_______ and _______ are part of the reseller market. - Producers; wholesalers - Retailers; wholesalers - Warehouses; technology firms - Retailers; nonprofits - Retailers; manufacturing firms

Retailers; wholesalers