MKTG 409 Ch. 8 Questions

Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as _______.

B2B e-commerce sites

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.

vendor

Which of the following are most likely to face joint demand?

Engine oil for cars

The North American Industry Classification System (NAICS) divides industrial activity into _______ sectors and more than _______ industry classifications.

10; 2,000

Which of the following is an example of derived demand?

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

What do industry classification systems do for the marketer?

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

Commodities and raw materials are typically purchased using which method of business buying?

Description

Which of the following markets may have complex buying procedures due in part to their public accountability?

Government markets

Industry classification systems provide a consistent means of categorizing organizations into groups based on factors such as size and location.

Incorrect. Industry classification systems provide a consistent means of categorizing organizations into groups based on factors such as the types of goods and services provided, not size and location.

Which of the following is true about the North American Industry Classification System (NAICS)?

Information is comprehensive and up-to-date.

Which of the following represents a limitation of the North American Industry Classification System (NAICS)?

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 anticipates reviewing the various brands of projectors before placing an order. What type of purchase will Central State utilize for the projector purchase this year?

Modified rebuy

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?

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?

Negotiation

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?

New-task purchase

Which of the following companies is the best example of a reseller?

Priceline

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?

Producer

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?

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?

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

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method?

Sampling

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.

Standard & Poor's Register

The account manager with Gordon Food Service (GFS) visits with Olde Towne restaurant's chef to review her orders for the week. The restaurant typically places orders weekly and the account manager likes to visit with the chef at least once a month. GFS typically delivers frozen food items such as chicken and meat to the restaurant. What type of business purchase is likely utilized by the restaurant when purchasing from GFS?

Straight rebuy

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?

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

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

True

When looking at the NAICS Hierarchy, as the classification code numbers get longer, the categories become more detailed.

True

The buying center includes which of the following entities?

Users

In order for a marketer to access information about company locations, number of employees, and chief executives' names quickly, they can utilize _______.

a commercial data service

Business purchasing decisions are typically made by _______.

a firm's buying center

When the County Sherriff's office purchases laptop computers for use in the deputy vehicles, the purchase would be considered _______.

a government purchase

Individuals who are members of the buying center and serve in a purchasing agent capacity are also called _______.

buyers

The four major factors influencing business buying decisions are _______.

environmental, organizational, interpersonal, and individual

Alibaba could classify as an independent B2B e-commerce site because _______.

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

Demand for business products is derived from consumer demand which may change over time. When consumer products are in high demand, producers buy large quantities of raw materials to meet demand. On the other hand, a decline in demand for certain consumer products reduces demand for business products. This is known as _______ demand.

fluctuating

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.

independent B2B exchange

Four major factors influence business buying decisions. The _______ factors refer to personal characteristics of participants in the buying center, such as age, level of education, personality, and position.

individual

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 _______.

inelastic

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) _______ market.

institutional

The Wisconsin Avenue Church purchases office supplies and printing services from businesses in the area to use when creating newsletters to send members or create weekly bulletins for church services. These purchases would qualify the Wisconsin Avenue Church as a(n) _______ market.

institutional

Buffalo Trace is a distiller of several brands of Kentucky bourbon. One brand, Blanton, a single barrel bourbon, is placed in a silky cloth bag and packaged in a gold and green gift box to make an appealing display on retail shelves and make purchasers equate the elaborate packaging to the quality and taste profile of the bourbon. The demand for the gift boxes and silky cloth bags is an example of _______ demand.

joint

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.

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.

organizational

A(n) _______ is created when suppliers and their customers build and maintain mutually beneficial relationships.

partnership

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 _______.

potential customers' purchases

Walmart developed an infrastructure for its supply chain called SupplierLink that it placed on the internet. SupplierLink combines 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) _______.

private B2B exchange

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) _______ market.

producer

An electrician who purchases light switches for installation in a client's new construction project is an example of a(n) _______ market.

producer

The four categories of business markets include _______.

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.

production activities; 20

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.

sampling

The North American Industry Classification System (NAICS) is a(n) _______.

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 _______.

the buying center

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _______ in order to achieve their quality goals.

the percentage of defects allowed

The business buying decision process includes five steps or stages. One stage, the _______, is characterized by the business conducting an evaluation of each component of a potential purchase by examining the quality, design, materials, or item reduction in order to purchase the needed items in the most cost-effective manner.

third stage—search and evaluation of potential products and suppliers

Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as _______.

value analysis