Deck 5: Business-to-Business (B2B) Marketing

Question 1

Why do marketing strategies designed to reach consumers differ from strategies designed to reach businesses?

A) consumers expect a higher level of customer service than do businesses
B) businesses respond better to advertising than do consumers
C) consumers act in groups but business buyers act alone
D) business buying often involves more technical issues

Answer 1

D

Question 2

What is the basis for market segmentation for a manufacturer that produces glass for microwave-oven doors, shower enclosures, and patio tabletops?

A) cost-plus considerations
B) end-use application
C) benefits offered
D) design factors

Answer 2

B

Question 3

How does the purchasing process for business products differ from the purchasing process for consumer products?

A) distribution channels for business products are significantly longer
B) customer relationships for business products tend to be short term and transaction based
C) personal selling plays a much larger role in business product markets
D) customer service plays a smaller role in the distribution of business products

Answer 3

C

Question 4

Which of the following is NOT found in e-commerce serving the business market?

A) private portals that allow customers access to products and vendors
B) service pages accessed using passwords provided by B2B marketers
C) online auctions where business goods may be purchased
D) chat rooms dedicated to opinions of new products

Question 5

What is the name of the component of the business market that consists of individuals and firms that acquire goods and services to be used, directly or indirectly, in producing other goods and services?

A) wholesaling and retailing
B) government
C) the commercial market
D) an institution

Question 6

What type of segmentation are customer relationship management systems MOST useful in?

A) end use
B) demographic
C) customer type
D) purchase category

Question 7

In the B2B marketplace, what type of segmentation is based on the precise way in which the business will use the product?

A) segmentation by purchasing situation
B) segmentation by customer type
C) segmentation by end-use application
D) segmentation by demographic characteristics

Question 8

Which of the following statements best describes the business market compared to the consumer market?

A) Customization tends to be less.
B) Negotiations are shorter.
C) Distribution channels are shorter.
D) Customer relations are less enduring.

Question 9

Why does the government segment of the B2B market MOST commonly buy products?

A) to resell to the public
B) to provide public benefits
C) to acquire customized items
D) to use domestic sources only

Question 10

Which of the following is NOT a characteristic that distinguishes B2B markets from consumer markets?

A) Organizational markets are more geographically concentrated.
B) More people exert influence on the organizational buying decision.
C) The organizational market tends to have a greater number of buyers.
D) Organizations often engage in multiple sourcing and vendor analysis.

Question 11

Which of the following is NOT included in the four segments of the B2B marketplace?

A) the entertainment industry
B) government
C) the commercial market
D) trade industries

Question 12

Which of the following is NOT a commonly used basis for segmenting the business market?

A) educational attainments of buyers
B) customer type
C) demographics using the size of the firm
D) product end-use application

Question 13

What is the largest segment of the business market?

A) trade industries
B) institutions
C) government organizations
D) commercial markets

Question 14

What is the system for grouping businesses that grew out of the North American Free Trade Agreement known as?

A) the Standard Industrial Classification System
B) the Industrial Data Recording System
C) the Standard Industrial Census System
D) the North American Industry Classification System

Question 15

Zardo Inc.divides its customers into the following categories: small business, large business, government, and not-for-profit institutions.Which type of segmentation is Zardo practising?

A) end use
B) customer type
C) demographic
D) purchase category

Question 16

What do MOST businesses expect when they enter the marketplace to buy goods and services?

A) to enjoy a high level of customer service
B) to locate vendors through the Yellow Pages
C) to find standard items that will fill their needs
D) to make quick purchasing decisions

Question 17

What do the trade industries consist of?

A) manufacturers
B) wholesalers and retailers
C) farmers
D) transportation

Question 18

What market has the primary motivation of providing some form of public benefit when making a purchase?

A) the industrial market
B) the global market
C) the government market
D) the trade industries

Question 19

When the B2B market is segmented on the basis of product specifications issued by organizational buyers, what type of segmentation is it known as?

A) customer-based segmentation
B) profit-generating segmentation
C) benefits segmentation
D) engineering and design segmentation

Question 20

Which of the following characteristics best describes the institution segment of a B2B market?

A) It may have rigid purchasing procedures.
B) It provides business services to the other members of the market.
C) It tends to have greater financial resources than industrial customers.
D) It is accountable to their clients and shareholders.

Question 21

What is an employee participating in when he/she recognizes that the use of a new product can potentially improve the company's market performance?

A) need or opportunity recognition
B) identification of suppliers
C) word-of-mouth exploration
D) information search

Question 22

What is the price negotiation process commonly experienced by government and institutional entities known as?

A) competitive bidding
B) decentralized buying
C) collective bargaining
D) systems integration

Question 23

Why is outsourcing often chosen as an alternative to making goods in-house or providing in-house services?

A) outsourcing solves customer pressure for firms to diversify production
B) outsourcing guarantees that the highest-quality product will be produced
C) outsourcing solves security problems when proprietary technology is involved
D) outsourcing allows firms to concentrate their resources on their core businesses

Question 24

How do unions generally view outsourcing?

A) as a threat to union jobs
B) as a bargaining tool for higher wages
C) as a good idea to stay competitive and preserve jobs
D) as a means of saving money and putting the savings into wages and benefits

Question 25

The Fairchild Company decides to defer purchasing new production equipment for its factory due to slowing economic activity.What type of factor has influenced the company's buying decision?

A) a product-specific factor
B) an environmental factor
C) an organizational factor
D) an interpersonal factor

Question 26

What type of delivery reduces inventories to absolute minimum levels and requires vendors to deliver the items as they are needed in the production process?

A) in-real-time (IRT) delivery
B) just-in-time (JIT) delivery
C) on-time (OT) delivery
D) next-time-in (NTI) delivery

Question 27

What step in the business buying process involves establishing specifications for a required product?

A) recognizing a need
B) describing product characteristics
C) qualifying potential vendors
D) selecting an order routine

Question 28

When a firm undertakes systems integration and designates a major trade industry supplier as the systems integrator, what is that supplier known as?

A) the category captain
B) the purchasing coordinator
C) the division leader
D) the supply-chain manager

Question 29

If the demand for product A stays constant regardless of the increase or decrease in demand for product B, what kind of demand is product A experiencing?

A) derived
B) joint
C) volatile
D) inelastic

Question 30

The demand for computer microprocessor chips is based on the demand for personal computers.What is this an example of?

A) joint demand
B) derived demand
C) volatile demand
D) demand variability

Question 31

Which of the following will generally NOT be affected by the location of a business supplier compared to its customers?

A) end-use applications of products
B) ability of the supplier to render better service
C) supplier costs
D) supplier parts inventories

Question 32

What is turning to outsiders to provide goods and services that were formerly produced or handled internally known as?

A) outsourcing
B) supplier sourcing
C) supply-chain management
D) external buying

Question 33

Dell Computer purchases parts and resources for its computers from suppliers worldwide.What is this practice known as?

A) outsourcing
B) global sourcing
C) joint demand
D) derived demand

Question 34

Which of the following is NOT an important product factor in the buying decision?

A) replacement cost
B) purchase price
C) operating and maintenance costs
D) vendor service

Question 35

What contributes to the need for more steps in the organizational buying process than the consumer buying process?

A) the limited number of suppliers in the B2B marketplace
B) the importance of integrating the responsibilities of the wholesalers or retailers
C) interpersonal and environmental influences not seen in consumer buying decisions
D) business purchasing introduces new complexities that do not affect consumers

Question 36

Adam, a purchasing agent for the American Heart Association, has made a list of suppliers that may be considered for payroll services.What step in the organizational buying process is Adam currently at?

A) recognizing a problem or opportunity
B) determining the characteristics and quantity of the needed product
C) describing the characteristics of the needed product
D) searching for and qualifying potential sources

Question 37

Which of the following questions would NOT likely be considered when deciding whether to manufacture needed parts and equipment in-house?

A) Do we have the needed capability to manufacture this equipment?
B) Can someone else do this job better than we can?
C) Can someone else do this work cheaper than we can?
D) Do we create new distribution systems by manufacturing this equipment?

Question 38

Once a search for suppliers is completed and the company makes the suppliers aware of its needs, what will the company do next?

A) evaluate proposals
B) notify the distribution channels of the new product introduction
C) acquire and analyze proposals
D) select an order routine

Question 39

Which of the following is NOT a drawback of outsourcing?

A) lower-than-anticipated cost savings
B) concerns over proprietary technology
C) poor customer service
D) higher risk of losing touch with customers

Question 40

Cotton and polyester are used in the production of permanent press clothing.If the supply of cotton is reduced, there will be an immediate effect on the demand for polyester.What does this relationship represent?

A) derived demand
B) demand variability
C) inventory adjustments
D) joint demand

Question 41

Who controls the information that enters the company's buying centre?

A) the buyer
B) the influencer
C) the gatekeeper
D) the user

Question 42

What is the final step in the business buying process?

A) selecting an order routine
B) obtaining feedback and evaluating performance
C) evaluating proposals and selecting suppliers
D) acquiring and analyzing proposals

Question 43

What is the practice of buying from suppliers that are also customers known as?

A) a modified rebuy
B) a straight rebuy
C) vendor analysis
D) reciprocity

Question 44

Reciprocity has been MOST common in industries featuring what type of products?

A) homogeneous products with different prices
B) diverse products with different prices
C) diverse products with similar prices
D) homogeneous products with similar prices

Question 45

What kind of buying situation is it when a business purchaser accepts the terms of sale of an item that has performed satisfactorily in the past and requires no new information to decide to purchase it again?

A) straight rebuy
B) service purchase
C) contract purchase
D) modified rebuy

Question 46

What is a buying situation in which business purchasers are willing to re-evaluate their available options known as?

A) a straight rebuy
B) a modified rebuy
C) new-task buying
D) routinized response behaviour

Question 47

What term refers to the business buying situation in which a company buys component parts never before purchased?

A) complex rebuying
B) new-task buying
C) technical buying
D) modified rebuying

Question 48

What step in the organizational buying process would involve procedures that measure characteristics such as a supplier's reliability, price, and order accuracy?

A) searching for potential sources
B) analyzing proposals
C) recognizing a need
D) evaluating proposals and selecting suppliers

Question 49

Which of the following is one type of buying centre role?

A) the influencer, who supplies information to guide evaluation of alternatives
B) the contractor, who has the formal authority to select a supplier
C) the distributor, who controls the information that all buying centre members will review
D) the technician, who presents technical requirements

Question 50

What does a company's buying centre encompass?

A) a representative from each department within an organization
B) a gatekeeper and a buyer
C) everyone who is involved in any aspect of the buying process
D) a top-notch buying department

Question 51

In a business buying centre situation, who are the people that sometimes initially request the product, utilize the purchased product, and may assist in developing the product specifications?

A) users
B) consumers
C) influencers
D) gatekeepers

Question 52

What is the function performed by the gatekeeper in the company buying centre?

A) to supply information to guide evaluation of alternatives
B) to select a supplier and implement the procedures for securing the goods and services
C) to choose which goods and services will actually be bought
D) to control the information that all buying centre members will review

Question 53

What is the ongoing evaluation of a supplier's performance in categories such as price, Electronic Data Interchange capability, delivery times, and attention to special requests known as?

A) product-substitution analysis
B) component redesign
C) vendor analysis
D) costs-benefits analysis

Question 54

The buying centre concept explains how groups of people participate informally in business purchase decisions.What else does the buying centre concept explain?

A) the methods to break through group perceptions
B) the roles group members play in making the decisions
C) the formation dynamics of new groups of decision makers
D) the way family units operate as buying centres

Question 55

Who does much of the purchasing for the federal government of Canada?

A) the City of Toronto
B) Public Works and Government Services Canada
C) MERX
D) independent merchandisers

Question 56

What is a unique purchase situation in the business market called that requires considerable effort on the decision maker's part?

A) a straight rebuy
B) a modified rebuy
C) new-task buying
D) a selective rebuy

Question 57

What is often the cause when business purchasers shift from straight rebuy to modified rebuy behaviour?

A) a change in the accelerator principle
B) the routine buying format being outdated
C) corporate expansion
D) a deterioration in supplier service or delivery

Question 58

How are institutional markets characterized?

A) by similar buying practices
B) by widely diverse buying practices
C) by few group purchasing arrangements
D) by little negotiation to secure volume discounts

Question 59

Janet works in distribution management at a winery and has formal authority to select a bottle supplier, although many people have provided her with input regarding the decision.What role does Janet play in the buying centre?

A) the influencer
B) the gatekeeper
C) the buyer
D) the user

Question 60

Which of the following is NOT a challenge ordinarily encountered in marketing to government entities?

A) handling retail sales contracts using credit cards
B) fixed-price contracts based on a bid process
C) cost-reimbursement contracts providing for allowable costs and profits
D) a standing offer

Question 61

A car tire supplier is noticing an 5% increase in sales in tires it sells to car manufacturers.What is this an example of?

A) joint demand
B) derived demand
C) volatile demand
D) demand variability

Question 62

The primary purchasing need of an organization is meeting the demands of its own customers.

Question 63

Which of the following BEST describes the challenge of identifying participants in international buying centres, compared to domestic buying centres?

A) Quite easier to identify
B) Slightly easier to identify
C) Same level of difficulty to identify
D) More difficult to identify

Question 64

The biggest distinction between B2B marketing and consumer marketing is the lack of advertising and visibility in the marketplace the business company services.

Question 65

Business needs are so varied that businesses that sell to other businesses must be ready to customize products when necessary.

Question 66

Organizational buyers tend to purchase standardized products, unlike the consumer market in which customization is more prevalent.

Question 67

B2B relationships tend to last longer than those in the consumer market.

Question 68

Members of the trade industries acquire goods and services primarily for use in production.

Question 69

A marketing strategy comprising of trade advertising, participation in trade shows, representation in trade organizations, and customer trips would MOST be found in B2B marketplace.

Question 70

The B2B marketplace is significantly larger in sales dollars and volume of transactions than the consumer marketplace.

Question 71

A rail service company has a special "2 for 1 seat sale" and requires an additional 100 railcars to meet the forecasted demand in the next 10 months.After the 10 months, demand is anticipated to fall to previous levels. Which of the following is the MOST LIKELY option for the company to choose?

A) Manufacturing the product in-house
B) Purchasing the product from an outside vendor
C) Leasing the product
D) Outsourcing

Question 72

What do many institutions choose to do in order to receive quantity discounts on needed purchases?

A) purchase products they do not need
B) put off purchases for as long as possible
C) join cooperative associations to pool purchases
D) rely on their independence and future growth

Question 73

ACME Inc., a small and growing computer animation business, requires laptops for 10 new employees. Which of the following is the MOST LIKELY option for the company to choose?

A) Manufacturing the product in-house
B) Purchasing the product from an outside vendor
C) Leasing the product
D) Outsourcing

Question 74

The commercial market consists of retailers and wholesalers that purchase finished goods primarily for resale to other businesses and to the consumer.

Question 75

Which of the following types of organizations would NOT ordinarily be considered a part of the institutional market?

A) public libraries
B) department stores
C) educational foundations
D) churches

Question 76

Personal selling and customer service are more important in business markets than in consumer markets.

Question 77

Due to the complexity of the buying process and potential need for technical assistance, the distribution channels in the B2B marketplace tend to be longer than those in the consumer market.

Question 78

Since Home Depot markets to consumers and business customers, the company would MOST likely use television and print media to reach both marketplaces.

Question 79

Personal selling is less important in business markets than in consumer markets because of the longer distribution channels involved.

Question 80

Purchasing decisions in the B2B sectors are more complex and often include many levels of decision making.