Chapter 8 Marketing Final

Most business buying decisions are made by

a firm's buying center.

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered​

a government purchase

Inelastic demand simply means that

a price increase or decrease will not significantly change the demand for an item

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is

derived

The second stage in the business buying decision process is to

develop product specifications

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.

institutional

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ____ purchase.

modified rebuy

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?

modified rebuy

Most business purchases can be classified as belonging to one of three types:

modified rebuy, new-task, or straight rebuy

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase.

new-task

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase.

new-task

Institutional markets are

organizations that seek nonbusiness goals.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are

resale, direct use in producing other products, and use in general daily operations

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

resale, use in daily operations, and direct use in producing other products

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.

reseller

Retailers like Target and Kmart are considered to be members of which business market?

reseller

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?

reseller

An organization that decides to buy all of a certain part from the same company is using

sole sourcing

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

straight rebuy

The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a

straight rebuy