Marketing 304 Exam 1
Which statements are true of a buying center?
1. For most large, multistore chain resellers, the buying center is highly formalized and is called a buying committee. 2. It consists of several individuals with common goals and knowledge pertaining to purchase decisions.
What three industries are well-known global competitors
1. pharmaceutical 2. aerospace 3. automobile
Monopoly
A single seller of a product exists. for example: water, electricity, gas
Business marketing fundamentally differs from consumer marketing in which way?
Business marketing involves buyers who intend to resell the product or use it in the creation of other products.
______ development involves conducting business in a way that protects the natural environment while making economic progress.
Sustainable
Which of the following environmental forces is most likely to result in replacement of existing products or companies?
Technology
Which best describes the European Union?
a group of European countries that signed a trade agreement for the purpose of promoting free trade within their countries
Consumerism is ______.
a movement to increase the power and rights of consumers in dealing with institutions
Both consumers and organizational buyers purchase products online but ______.
a much larger percentage of the total dollars sold online are organizational transactions
How much of the global dollar value is attributed to organizational buyers conducting transactions online?
about 70 percent
Gross domestic product is the monetary value of ______.
all products and services produced in a country during one year
When an organization buys raw materials that are reprocessed and sold as finished goods, or if it buys a good it will then sell, then it is considered to be ______.
an organizational buyer
Barriers to entry ______.
are impediments to competition
Which three countries are among the leaders in world trade for manufactured products and commodities?
china, USA, japan
When a firm either produces or markets its products worldwide it is participating in what is known as Blank______.
global competition
Social responsibility includes the concepts of ______ responsibility, stakeholder responsibility, and societal responsibility.
profit
Tariffs and quotas are the tools of ____ used by governments to shield local industries from foreign competition.
protectionism
Sustainable development involves conducting business in a way that ______.
protects the natural environment while making economic progress
Significant declines in travel and tourism as a result of the COVID-19 pandemic led to depressed world trade in ______.
services
The act that makes it unlawful to discriminate in prices charged to different purchasers of the same product is called ______.
the Robinson-Patman Act
Which of the following are included in culture?
values, attitudes, and ideas
Online trading communities that bring together buyers and supplier organizations go by what three names?
1. B2B exchanges 2. e-marketplaces 3. e-hubs
Which of the following are reasons for organizational buyers to buy goods and services?
1. For resale 2. For their own use in a business function
Which of the following is the responsibility of the buying function of a business?
1. Formal solicitation of bids 2. Selection and purchase of goods 3. Gathering and screening information about vendors
Which of the following are among the goals of environmental scanning?
1. Interpreting and identifying trends 2. Continually acquiring information on external events
Which two laws forbid monopolies or other actions that cause restraint in trade?
1. The Clayton Act 2. The Sherman Antitrust Act
Which of the following are ways by which businesses might use NAICS coded information?
1. To determine the classification of current customers 2. To study the demand for products 3. To study market share
Which of the following are examples of barriers to entry?
1. advertising expenditures 2. distribution access 3. capital requirements
What two trends in the past decade have significantly influenced global marketing?
1. economic integration among countries 2. presence of a networked global marketspace
Place each stage in the most typical order of the buying process.
1. problem recognition 2. information search 3. alternative evaluation 4. purchase decision 5. post purchase behavior
Select the three concepts of social responsibility
1. profit responsibility 2. societal responsibility 3. stakeholder responsibility
What are three primary reasons for the popularity of online buying in all three kinds of organizational markets?
1. reduced buyer order processing costs 2. reduced marketing costs 3. timely supplier information
To create computer-generated environments for gamers, medical specialists, and retailers, extended reality will combine which three of the following?
1. virtual reality 2. augmented reality 3. mixed reality
What are the newest forms of technological changes that are occurring now?
1. wearable technology 2. artificial intelligence based on natural language processing
Oligopoly
A few companies control the majority of industry sales. for example: phone carriers
Which of the following is a task considered to be part of the buying function in a business?
Awarding contracts to vendors
How does the size of the order impact organizational buying?
Because many organizational purchases involve a lot of money, a competitive bidding process is used.
______ is a movement to increase the influence, power, and rights of consumers in dealing with institutions.
Consumerism
Kellogg's purchases large quantities of whole grain in order to produce its cereal products. Consumers' desire for cereal affects the size and frequency of Kellogg's purchases, which is an example of what characteristic of organizational buying?
Derived demand
Because of its broad reach, the ______ is a promising tool for companies that wish to market globally, even though they must adapt their language or messages.
Internet
Pure competition
Many sellers offering similar products in a marketplace in which they have little control of marketing elements. for example: Wheat, grains, and rice
Monopolistic competition
Many sellers offering substitutable products within a price range. for example: coffee, tea, sports drinks
What does NAICS stand for?
North American Industry Classification System
Which of the following environmental forces refers to inventions or innovations from applied science or engineering research?
Technology
Which legislation makes the theft of trade secrets by foreign entities a federal crime in the United States?
The Economic Espionage Act
Which trend affects world trade by facilitating the exchange of not only goods and services but also information?
The increased reach of the Internet
What is the main reason that business organizations buy products?
To increase profitability
Online buying is favored by organizational markets because of the cost savings associated with the timely information that comes from buying online.
True
When several people in an organization participate in purchase decisions, often for more important or expensive contracts, it is called ______.
a buying center
The fact that in India cows are considered sacred and not to be eaten by 85 percent of the population is an example of ______.
a societal value
In a traditional auction, the winner is the ______.
buyer with the highest bid
Large chain resellers may have a highly formalized ______ called a buying committee to make purchasing decisions, whereas most industrial firms and government units use informal groups.
buying center
Which country is the top exporter globally?
china
Which is not a stage in the organizational purchase decision process?
commercialization
The Sherman Antitrust Act and the Clayton Act were passed to protect ______.
competition
Which environmental force refers to the alternative firms that could provide a product to satisfy a specific market's needs?
competition
What is more likely to occur in organizational buying than in consumer buying?
complex negotiations
Gross, disposable, and discretionary are three components related to ______.
consumer income
Even when a product is well-suited for its intended targets, it won't be sold if ______.
consumers don't have the necessary income
______ incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group.
culture
Organizational buying behavior revolves around a ______ that has similarities to consumer buying behaviors.
decision-making process
Derived demand refers to the concept that demand for industrial products is driven by ______.
demand for consumer products
Social forces include ______ characteristics of the population and its culture.
demographic
Assessing the political and regulatory climate for marketing in a country or region of the world involves not only identifying the current climate but also ______.
determining how long a favorable or unfavorable climate will last
Online trading communities that bring together buyers and supplier organizations are known as ______.
e-marketplaces.
The clandestine collection of trade secrets or proprietary information about competitors is known as ______.
economic espionage
The performance of the ______ can be measured using the GDP, the rate of unemployment, or price changes.
economy
After firms have completed a global ______, they are better able to make informed decisions about a potential country market.
environmental scan
A currency _____ rate is the price of one country's currency expressed in terms of another country's currency.
exchange
he global market-entry strategy in which products are produced in one country and sold in another is called ______
exporting
The best thing about the organizational buying process is the ease with which it can be conducted.
false
Firms selling to organizational buyers have ______ potential customers compared to firms selling to consumers.
far fewer
Compared to marketing to consumers, organizational buying is characterized by ______.
far fewer buyers
A good marketer can identify potential opportunities by paying close attention to environmental ______; it is important to continuously monitor the business environment in which a company operates.
forces
In addition to industrial and reseller markets, organizational markets include ______ ones.
government
The underlying reason that Nissan Motor Company, an organizational buyer, switched its advertising agency was to ______.
increase revenues
NAICS provides common _____.
industry definitions for Canada, Mexico, and the United States
Which two of the following are macroeconomic factors?
inflation, gross domestic product (GDP)
Environmental scanning is necessary for an organization to ______.
interpret trends that may be a source of opportunity
Organizational buying behavior ______ the consumer purchase decision process.
is similar to
The typical purchase involved in an organizational buying exchange is _____ that in consumer buying.
larger in size than
Culture incorporates the set of values, ideas, and attitudes that are ______ and shared among the members of a group.
learned
A firm can choose a global market entry strategy from among four choices: exporting, ______, joint venture, and direct investment
licensing
General Mills has a(n) Blank______ arrangement with French cooperative Sodima to produce and sell its Yoplait yogurt in the United States
licensing
Which industry accounts for about 85 percent of world trade?
manufactured goods and commodities
Industrial, reseller, and government markets are the three categories of ______ buyers.
organizational
In organizational buying, objective attributes of a supplier's products and the capabilities of the supplier itself are known as ______.
organizational buying criteria
Evaluative criteria in the consumer decision process are most similar to ______.
organizational buying criteria for business buyers
Social responsibility means that organizations are ______.
part of a society and accountable to it for their actions
The practice of shielding one or more industries within a country's economy from foreign competitions through the use of tariffs and quotas is known as ______.
protectionism
To get a comprehensive look at your competition, you should consider firms that
provide a product that satisfies the same specific need as yours does.
The demographic characteristics of a population and its culture are the basis of the ______ forces of the environment.
social
The fact that organizations are part of a larger society and are accountable to that society for their actions is the essence of ______.
social responsibility
When the European countries signed a trade agreement creating a free trading zone between the countries, they formed a transnational trading group called Blank______.
the European Union
When people from the United States travel to countries in Europe, they might check to see how the U.S. dollar compares to the euro. In doing so, they are checking ______.
the currency exchange rate
One important trend of the past decade on global marketing is ______.
the growth of global competition and global consumers
In an environmental scan, cultural, economic, and political-regulatory factors are most important for the firm operating globally because ______.
these factors can have the most striking differences from the domestic market
Business-to-business marketing involves the marketing of goods and services to organizations for use in the creation of goods and services that ______.
they produce and market to others
An example of a societal ______ is Germans' lack of interest in using credit cards like Visa and MasterCard, perhaps in part because the German word for "debt" is the same as the word "guilt."
value
