Chapter 5 Questions

In the buying process there is one group that can play a critical role. This group is often the first to recognize the problem based on a need and they help define the product specifications. This group is called ___________. A. Deciders B. Gatekeepers C. Users D. Influencers E. Buyers

C. Users

B2C markets can be characterized as being more ________ than B2B markets. A. Indirect B. Direct C. Impersonal D. Personal E. Simple

C. Impersonal

It is said that B2B demand is more _____________ in general than B2C demand for products or services. A. Elastic B. Bimodal C. Inelastic D. Systemic E. Variable

C. Inelastic

Maryanne has noticed that one of the manufacturing teams has lost productivity over a six-month period. She puts together a document that describes the productivity loss and does a study to determine the cause. She finds that one of the key machines in the process breaks down often. Maryanne asks several machine manufacturers to come in to make proposals for new machines. Maryanne is playing the role of ________. A. Influencer B. Gatekeeper C. Initiator D. User E. Decider

C. Initiator

Sellers are well aware that industrial buyers of products __________________. A. Need only the highest-quality products B. Need a high and a low level of quality products C. Need a selection of products with different qualities and price levels D. Need only low-priced products E. None of these

C. Need a selection of products with different qualities and price levels

The business market purchase decision process is triggered by someone inside the company who _____________. A. Seeks sales proposals B. Defines the need and product specifications C. Recognizes a need D. Makes the purchase decision E. Searches for suppliers

C. Recognizes a need

A fundamental criterion in vendor selection is the vendor's ability to meet contractual obligations including delivery times and service schedules. This concept is called ______. A. Supplier choice B. Dependability C. Reliability D. Sustainability E. None of these

C. Reliability

The most fundamental criterion in vendor selection is ____________. A. Serviceability B. Price C. Reliability D. Location E. Intangibility

C. Reliability

A straight rebuy __________________. A. Reorders products that are rarely used B. Gets new products from an approved vendor C. Reorders products that are used on a consistent basis D. Gets new products from a new vendor E. Purchases products that are new and improved but essentially the same

C. Reorders products that are used on a consistent basis

Problem recognition for the business market consumer is triggered by ________. A. Meeting a new supplier at a trade show B. Seeing a new product on television C. Someone inside or outside the company identifying a problem D. Accepting a cold call by a salesperson E. Surfing the web

C. Someone inside or outside the company identifying a problem

_________ is the synchronized movement of goods through the channel. A. Intermodal transportation B. CRM C. The supply chain D. Containerization E. Shipping

C. The supply chain

A big industrial firm is interested in evaluating the potential purchase of a machine. In order to do this, managers should look at ___________. A. True cost B. Total purchase price C. Total costs over the life of the machine D. Cost plus insurance on the machine E. Cost plus the service contract on the machine

C. Total costs over the life of the machine

The single largest buyer of goods and services in the world is ____________. A. General Electric B. Walmart C. U.S. government D. Chinese government E. None of these

C. U.S. government

NAICS codes now include __________. A. United States B. United States and Canada C. United States, Canada, and Mexico D. Both of the Americas, North and South E. Both of the Americas and the Caribbean Basin

C. United States, Canada, and Mexico

Financial criteria in the purchase of a complex product for the business market include __________________. A. All costs evaluated against the stated life of the product B. All costs evaluated for one year C. All costs evaluated for five years D. The time it takes to pay off the loan E. None of these

A. All costs evaluated against the stated life of the product

A characteristic of B2B companies is that they often make products that end up as ___________ in a finished product. A. Components B. Labels C. Minor features D. Major features E. Factoids

A. Components

One of the benefits of EDI is ________. A. Customer computers communicate directly with supplier computers B. Suppliers can listen in on buyers C. Buyers get better prices than ever before D. Late deliveries are less common E. Technology linkages are more plentiful

A. Customer computers communicate directly with supplier computers

Once a sale is made and the product delivered in the B2B market, the buyer _____. A. Evaluates the product and supplier in a post-purchase process B. Considers the sale complete C. Looks for rapid installation of the product D. Uses pert charts to evaluate time efficiencies E. None of these

A. Evaluates the product and supplier in a post-purchase process

Office Depot has a number of direct relationships using EDI with thousands of companies. This relationship is done through a concept called ____________. A. Extranet B. Intranet C. Electronic impact analysis D. Utility functionality E. Quick response program

A. Extranet

When a company solicits RFPs from suppliers with an open vendor search, the goal is to __________________. A. Get several proposals to help with negotiations B. Get one good response from a preferred vendor C. Get as many responses so the firm can focus only on price D. Get proposals to get competitive intelligence E. All of these

A. Get several proposals to help with negotiations

Mark is trying to sell machine tools like metal bending machines to a manufacturing firm. After running it by the secretary, he decides to talk to people inside the firm to identify people that he considers to be important in the buying center process. The people he is targeting are known as __________. A. Influencers B. Users C. Gatekeepers D. Initiators E. Product engineers

A. Influencers

Industrial sellers often include with the RFP a ________. A. Strong financial analysis of the purchase B. Strong request to be the sole source for the contract C. Financial incentive to make the purchase in the form of discounts D. Financial incentive to make the purchase in the form of free service E. None of these

A. Strong financial analysis of the purchase

In the buying process the "user" is characterized as __________________. A. The actual consumer of the product B. The actual leader of the buying group C. The actual evaluator of the product D. The consultant to the buying group E. the one who starts the buying process

A. The actual consumer of the product

Deciders are an important group for the salesperson to be able to identify because ________. A. They make the ultimate purchase decision B. They decide what characteristics the product should possess C. They decide what price the company should pay D. They have control over who is allowed to be a vendor E. They are users who choose the products they want

A. They make the ultimate purchase decision

When responding to an RFP the B2B marketer may __________. A. Use CRM or custom software to make all proposals look uniform B. Assign it to one person in the organization C. Give the same proposal to all prospective clients D. Let only the sales team read the proposal E. None of these

A. Use CRM or custom software to make all proposals look uniform

Technology plays ____________ in connecting buyers and sellers together in the B2B market. A. The same role as B2C markets B. A critical role C. A lower-level role than B2C markets D. A decreasing role E. No role

B. A critical role

Business-to-business demand is said to be relatively inelastic. This means that _________. A. As the price increases, demand goes up B. Changes in demand are not significantly affected by the price C. As demand goes down, price goes down with it D. Demand and supply are independent of each other E. Supply and demand are highly correlated

B. Changes in demand are not significantly affected by the price

Electronic data interchange (EDI) allows _________. A. Companies to talk to each other daily B. Customer computers to communicate directly with supplier computers C. Computers to fulfill the buying center function D. Computers to do complex product evaluation with limited human involvement E. All of these

B. Customer computers to communicate directly with supplier computers

Business markets are characterized by having ___________________. A. Thousands of customers B. Few but larger customers C. Any number of customers D. Few but smaller customers E. Many smaller customers

B. Few but larger customers

Business-to-business markets are ________. A. Identical to business-to-consumer markets B. Similar in most ways to business-to-consumer markets C. Different in several ways to business-to-consumer markets D. Different in every way from business-to-consumer markets E. All of these

C. Different in several ways to business-to-consumer markets

Mike Myers is the production manager in a company that makes components for the automobile industry. He has been concerned about the age of the equipment and decides to do a study to evaluate the time and money lost due to equipment failure. He decides to bring his research to the monthly board meeting. In this way Mike is playing the role of ___________ in the buying process. A. Gatekeeper B. Initiator C. User D. Decider E. None of these

B. Initiator

A request for proposal (RFP) ____________________. A. Is the end point for vendors in the B2B market B. Is the starting point from which vendors put together their product solution C. Is irrelevant if companies cannot meet all of the RFP guidelines D. Is not a very time-consuming part of the sales process E. Is always a good learning situation

B. Is the starting point from which vendors put together their product solution

When Ford Motor Co. is familiar with a product and supplier, but still seeks additional information in the marketplace, it is called a(n) ________. A. Straight rebuy B. Modified rebuy C. New purchase D. Adapted rebuy E. None of these

B. Modified rebuy

Accountants, purchasing agents, engineers, and other players in a buying center perceive the evaluation of products in different ways, which makes a buying center ______________. A. Less effective than a center handled only by purchasing B. More effective since individuals with different perspectives gives a well-rounded view of the purchase decision C. Chaotic since there are so many different view points for a product evaluation D. All of these E. None of these

B. More effective since individuals with different perspectives gives a well-rounded view of the purchase decision

Intel demonstrated its commitment to China by ____________. A. Making China a key supplier of chips B. Opening a new plant in China C. Giving China the product specifications for the most advanced chips D. Giving China the best price on the latest chips E. All of these

B. Opening a new plant in China

Companies like Home Depot sell to the B2B market and B2C market out of the same store. This puts the company in the category of businesses called _________. A. Mixed use enterprise B. Reseller C. Value added enterprise D. Retail merchandiser E. End seller

B. Reseller

The three main types of buying situations can be characterized as ___________. A. Straight rebuy, mid-level rebuy, and planned purchase B. Straight rebuy, modified rebuy, and new purchase C. Adapted rebuy, modified rebuy, and new purchase D. Buy, rebuy, and adapted rebuy E. Adapted rebuy, straight rebuy, and expected rebuy

B. Straight rebuy, modified rebuy, and new purchase

Resellers are important to marketers because ______________. A. They have their own buying centers that service customers B. They buy equipment, supplies, and technology to run their own businesses C. They serve as an early warning system to OEMs D. They carry excessive amounts of inventory E. They order months and years in advance

B. They buy equipment, supplies, and technology to run their own businesses

There are at least two methods to build a list of potential suppliers once product specifications have been outlined. One of the methods is to use the cumulative experience of the company over time. The second method is to _______. A. Buy a list from a list broker B. Use supplier search websites like Thomas Global Register C. Ask all salespeople to respond to the RFP D. Create a list from the Yellow Pages E. Go to several trade shows and find suitable suppliers

B. Use supplier search websites like Thomas Global Register

Paul is the groundskeeper for a golf course. He not only mows the greens and fairways but is also an expert on the grass that is used and how to care for it. The golf pro and club manager consult with him about what new equipment the club needs to maintain the greens. Paul plays the role of __________ in the buying process. A. Influencer B. User C. Decider D. Operator E. Key holder

B. User

All companies lose customers periodically. Losing a customer can be difficult or it can ________________. A. Be an epiphany B. Be an episode of self-reflection C. Be an opportunity to reacquire customers D. Be an excuse to let people go E. Lead to lower prices because of pressure from the sales force

C. Be an opportunity to reacquire customers

Gatekeepers are important to the buying process because they _________. A. Control the e-mail in the buying center B. Control the final decision C. Control access to key participants in the buying center D. Control access to the building site of the buying center E. All of these

C. Control access to key participants in the buying center

The relationship between consumer demand for products and demand for B2B products is said to be _______________. A. Upward sloping demand B. Downward sloping demand C. Derived demand D. Equal demand E. Inelastic demand

C. Derived demand

The process of business purchasing online is called _____________. A. Fast procurement B. Channel management C. E-procurement D. Team procurement E. Effective procurement

C. E-procurement

B2B transactions have been growing at a phenomenal rate. Online B2B sales worldwide is now in excess of ______________. A. $100 million B. $500 million C. $1 billion D. $1 trillion E. None of these

D. $1 trillion

GE spends _____ a year buying products and services of other companies. A. $500 million B. $2 billion C. $20 billion D. $60 billion E. $200 billion

D. $60 billion

Small changes in consumer demand can lead to considerable shifts in business product demand and it referred to as the ____________. A. Deceleration effect B. Transverse effect C. Modified effect D. Acceleration effect E. Steady state effect

D. Acceleration effect

An initiator is ____________. A. Any person who starts the purchase process B. A senior executive who makes a decision that requires new resources C. A person who reorders when supplies run low D. All of these E. None of these

D. All of these

Companies that sell to other companies ____________. A. Offer products that end up as components in finished products B. Help companies improve their businesses C. None of these D. All of these

D. All of these

Gatekeepers are important in the B2B buying process because ____________. A. They limit the number of vendors in a given buying process B. Engineering and quality control create product specifications that block vendors C. They control access to key people D. All of these E. None of these

D. All of these

The nature of business-to-business markets requires _____________. A. A more personal relationship between the buyer and seller B. Investment of more resources to foster and maintain personal contact C. Businesses to invest in their suppliers to strengthen the relationship D. All of these E. None of these

D. All of these

When a marketing company responds to an RFP, _____________. A. It presents clearly how the marketing company's products will meet the product specifications detailed in the RFP B. It makes a case for selecting the marketing company by presenting any additional information such as unique product features it possesses C. It succinctly presents the superior service of the marketing company D. All of these E. None of these

D. All of these

Johnson & Marshall, a growing producer of organic tea, decides to create a group that is made up of people from the purchasing department, senior management with financial knowledge, and engineers with design expertise. It is common for this group to be called _________. A. Ad hoc group B. Party planners C. Selling partners D. Buying center E. Post hoc group

D. Buying center

Coca-Cola's customers are its bottling plants. However, it sponsors many television ads to entice the end user to purchase the product. This is an example of stimulating ________. A. Inelastic demand B. Elastic demand C. Codependent demand D. Derived demand E. Fluctuating demand

D. Derived demand

Boris Jankowski is a salesperson for a manufacturer of equipment used in beer-making. He discovers that a regional microbrewery is going to expand into another state. It has created a buying center to purchase the needed equipment. Boris's first job is to _______________. A. Discover the budget for the purchase B. Develop criteria for the purchase C. Discover the most important influencer D. Discover who is part of the buying center E. Develop a presentation for the buying center

D. Discover who is part of the buying center

Many companies have set up direct links to approved suppliers to make purchases easier and move them closer to the frontline decision makers. These direct links are called _________________. A. Internet connections B. Google B2B C. Intranet D. Extranet E. T-lines of connection

D. Extranet

Complex product choice (Did we make the best selection?) in the B2B market depends on ________, __________, and ___________. A. Price, product, distribution criteria B. Financial, subjective, objective criteria C. Objective, subliminal, price criteria D. Financial, value, service criteria E. None of these

D. Financial, value, service criteria

Southwest Airlines is a good example of the concept of service criteria because ______. A. It flies a variety of planes made only by Boeing B. It minimize service costs by having untrained employees performing routine maintenance C. Its service terminals are in low-cost parts of the country D. It flies only Boeing 737s so maintenance crews need to know only one plane E. None of these

D. It flies only Boeing 737s so maintenance crews need to know only one plane

The primary difference between selling to the profit-oriented market and the nonprofit market is ______________________. A. Nonprofits use a buying triad instead of a buying center B. The SBA publishes a list of needs for small businesses C. The vendor list is shorter in the nonprofit sector D. Nonprofits have a limited number of resources compared to their for-profit counterparts E. All of these

D. Nonprofits have a limited number of resources compared to their for-profit counterparts

Once a purchase decision is made, the sales process continues and is called _____________. A. Cognitive dissonance B. Purchase evaluation process C. Post mortem analysis D. Post-purchase evaluation E. None of these

D. Post-purchase evaluation

Request for proposal (RFP) is the process of ___________. A. Getting sellers to lower the price B. Asking for new business C. Enticing suppliers to join the supply chain D. Putting product specifications into a document for distribution E. Your mother telling you it is time to get married

D. Putting product specifications into a document for distribution

Today's NAICS codes are based on the _____ codes of the 1990s. A. CIS B. BCS C. BSC D. SIC E. SCC

D. SIC

MRO supplies, materials, repairs, and operational supplies and services are generally purchased through a ______________. A. Modified rebuy B. New purchase C. Bid at time of need D. Straight rebuy E. Contractual rebuy

D. Straight rebuy

Many manufacturers, such as Sharp Electronics, focus on the B2C market but have a significant level of sales in __________. A. The music market B. The supply chain market C. The quick sale market D. The B2B market E. None of these

D. The B2B market

Scotty wants to have his company's products used in the construction of a new building. The best time for Scotty to make a sales call is ______________. A. When the RFP is released B. When the architect releases the plans C. When the builder breaks ground D. When the customer defines the product specifications E. When the customer meets with the architect

D. When the customer defines the product specifications

Many companies use environmental scanning to identify things that may have __________. A. A long-term effect on consumer demand B. A short-term effect on consumer demand C. A negative effect on consumer demand D. A positive effect on consumer demand E. All of these

E. All of these

NAICS codes ___________. A. List the primary output of the business B. Give each business only one code C. Are used across the United States, Mexico, and Canada D. Define 20 major business sectors E. All of these

E. All of these

When Anne, an architect, specifies which products, like plumbing fixtures, will be used in the building she has designed, she is playing the role of ______________. A. Gatekeeper B. User C. Influencer D. Nonuser E. Decider

E. Decider

Any influence on the product and supplier choice is an organizational factor. The primary organizational factor is _________. A. Needs and desires of those involved B. Opportunity for promotion of the buying center manager C. Product specifications D. Financial considerations E. Risk tolerance

E. Risk tolerance

Reordering products that are used on a consistent basis is called a(n) ________. A. Purchase B. Order on demand C. Two-bin inventory system D. Modified order on demand E. Straight rebuy

E. Straight rebuy

Consumer product companies purchase small amounts of goods and services. After all, they are the producers of goods.

FALSE

Demand for products in the B2B marketplace is relatively stable and constant.

FALSE

Initiators are any individuals, both inside and outside the organization, with relevant expertise in a particular area that is used by the buying center in making the final decision.

FALSE

OEM companies sell replacement parts to the customer that are at a better price than the original manufacturer can supply.

FALSE

The NAICS defines 50 major business sectors that covers all of North America.

FALSE

The consumer buying process takes longer and generally involves more people than the B2B buying process.

FALSE

The people in a company blocking access to key personnel in the buying process are called goalkeepers.

FALSE

buying center is a permanent group of people at a B2B company that decides on each new purchasing decision. It is most common for only one buying center to exist at any time in a company.

FALSE

A modified rebuy may occur when a buyer is familiar with the existing product and supplier but may be looking for additional information. Perhaps new competitors or products have entered the market or the current supplier is not meeting expectations.

TRUE

A straight rebuy is a routine purchase that is often given to a preferred supplier.

TRUE

B2B companies often have a few companies that represent a large portion of their sales. This means that losing one larger customer has striking implications for the company.

TRUE

B2B sales worldwide are in excess of $1 trillion.

TRUE

Business markets tend to concentrate in certain locations in the United States as a result of suppliers wanting to be located near their buyers.

TRUE

Dealing with complaints, resolving customer problems, and making sure the company is meeting customer expectations are critical to ensuring customer satisfaction in the B2B market.

TRUE

It is best for a company looking for or maintaining a strategic relationship with a client if it can get its sales team involved with the creation of an RFP with the client.

TRUE

One of the toughest challenges facing salespeople in a new or modified rebuy situation is getting access to the right people.

TRUE

The sales proposal gives the company an opportunity to showcase its unique products, service, and pricing.

TRUE

There are over 20 million small businesses in the United States. The B2B market is huge when you add in governments, large corporations, and nonprofit organizations.

TRUE

When companies seek suppliers, they create lists in-house of qualified suppliers or use resources like the Internet to identify potential candidates.

TRUE

While many companies operate in the business-to-consumer markets, all companies operate in a business-to-business market.

TRUE