Deck 6: Marketing Research

Question 1

The buying process of private sector companies, such as manufacturers and resellers, differs from the buying process of institutional organizations since companies:

A)have low budgets and seek the best value when buying products.
B)are likely to engage in reciprocal buying.
C)always opt for the supplier with the lowest price.
D)must disclose their buying criteria and buying process to the public.
E)make purchases that comply with the policy guidelines set by WTO.

Answer 1

B

Question 2

Business-to-business marketing involves transactions between:

A)firms that market goods and services and the ultimate consumers.
B)local and federal governments and the commercial business sector.
C)firms that market goods and services and other businesses.
D)firms that provide products and services and their employees.
E)consumers who offer products and services and the companies that buy these services.

Answer 2

C

Question 3

Hospitals, schools, and religious organizations are examples of involved in B2B transactions.

A)manufacturers
B)retailers
C)institutions
D)agencies
E)resellers

Answer 3

C

Question 4

Which of the following is the most complete source of Canadian public tenders, private tenders, U.S.tenders, and private sector construction news available in Canada?

A)Statistics Canada
B)Business Exchange Magazine
C)NAFTA
D)MERX
E)Business Access Canada

Question 5

Companies that resell manufactured products without significantly altering their form are called:

A)manufacturers.
B)retailers.
C)initiators.
D)producers.
E)influencers.

Question 6

The biggest buyers in B2B markets are:

A)resellers.
B)hospitals.
C)manufacturers.
D)educational organizations.
E)consumers.

Question 7

The linkage between consumers' demand for a company's output and its purchase of necessary inputs to manufacture or assemble that particular output is called:

A)induced demand.
B)derived demand.
C)latent demand.
D)reduced demand.
E)negative demand.

Question 8

Government purchases differ from the purchases made by institutional organizations, as institutions:

A)make large purchases and consider a wide range of factors in their purchases.
B)may not always purchase from the vendor with the lowest price.
C)make purchases that always comply with the policy guidelines and trade rules set by the
World Trade Organization.
D)tend to have relatively small budgets and therefore seek the best value when buying products and services.
E)have to disclose their purchase decisions and practices to the public.

Question 9

Manufacturers involved in B2B transactions:

A)resell manufactured products without significantly altering their form.
B)are market intermediaries involved in the distribution of goods.
C)purchase goods and services for the people they serve.
D)buy goods in bulk and sell them for a profit to the end users.
E)buy raw materials, components, and parts that allow them to produce their own goods.

Question 10

The largest group of purchasers of goods and services in most countries is:

A)the central government.
B)manufacturers.
C)wholesalers.
D)distributors.
E)retailers.

Question 11

Diesel jeans are very popular among North American teenagers.To meet increasing demand, Diesel must purchase more raw materials from various suppliers to make its jeans.This increased demand for raw materials caused by the demand for jeans is referred to as:

A)joint demand.
B)ultimate demand.
C)derived demand.
D)consumer demand.
E)B2B demand.

Question 12

Which of the following companies is an example of a manufacturer?

A)Amazon
B)Revlon
C)Sears
D)Walmart
E)eBay

Question 13

Which of the following is an example of B2B marketing?

A)a travel agency offering services such as booking tickets and hotel accommodations to clients
B)eBay offering various online auction and other services to consumers
C)an Internet services company that offers access to software applications and other services and charges on a usage basis
D)Intel selling micro processors to Dell
E)a newsstand that sells newspapers, magazines, and other items of interest to the locals

Question 14

Verdun Windows is the Canadian supplier of high-quality, energy-efficient windows for homes and offices.The housing boom in Canada in the late 1990s through the early 2000s resulted in a 500 percent increase in the amount of windows Verdun sold when compared to the period from 1990 to 1993, when the housing market was sluggish.This is an example of:

A)derived demand.
B)low interest rates that make mortgages affordable.
C)the acceleration principle.
D)cross elasticity of demand for new homes.
E)joint demand for new homes.

Question 15

Terrance buys defective clothes that are stockpiled in warehouses of factories and sells them to retailers for a discount.Terrance is a:

A)manufacturer.
B)producer.
C)consumer.
D)factory agent.
E)reseller.

Question 16

What type of organization involved in B2B transactions buys goods and services for the people it serves?

A)manufacturers
B)wholesalers
C)distributors
D)resellers
E)institutions

Question 17

Autoparts Inc.is a firm involved in producing various electrical components used in the production of cars.The demand for its products is dependent on the demand for new cars.The type of demand that Autoparts Inc.deals with is known as:

A)latent demand.
B)reduced demand.
C)consumers' demand.
D)induced demand.
E)derived demand.

Question 18

Marketing intermediaries that resell manufactured products without significantly altering their form are called:

A)manufacturers.
B)producers.
C)consumers.
D)wholesalers.
E)initiators.

Question 19

Which of the following is NOT true for B2C markets?

A)Consumers buy goods to satisfy their own individual or household needs.
B)Consumers are heavily influenced by price and personal tastes.
C)The number of business buyers is substantially higher.
D)Consumers buy finished goods for their own personal consumption.
E)The demand for goods and services is derived.

Question 20

Unlike manufacturers, the type of company that buys products from other businesses but does not significantly alter the form of the products it buys is called a(n):

A)producer.
B)consumer.
C)distributor.
D)auctioneer.
E)gatekeeper.

Question 21

A construction firm realizes that its steel suppliers have increased the prices of steel it uses, after doing a market analysis for the prices quoted by various suppliers for the same type of steel.Also, the firm is not satisfied with the performance of the supplier and decides to replace it.The firm is in the stage of the B2B buying process.

A)proposal analysis and supplier selection
B)RFP process
C)need recognition
D)order specification
E)product specification

Question 22

The demand for raw materials and semifinished goods purchased by business firms in B2B markets is:

A)derived.
B)unaffected by retail sales.
C)steady.
D)unaffected by price changes.
E)elastic.

Question 23

CAMO Inc., a firm that assembles desktop computers, buys components from various suppliers.The firm is not happy with the quality of one of the components and decides to replace it with a component that can improve the quality of its final product.The R&D department formulates the requirements for the desired component and posts it on the firm's website.CAMO Inc.is in the stage of the B2B buying process.

A)order specification
B)product specification
C)RFP process
D)need recognition
E)proposal analysis

Question 24

Which of the following statements is true regarding the nature of the buying process in B2B markets?

A)There are no negotiations and reciprocal arrangements between the buyers and sellers.
B)The buying process seldom involves qualified professionals.
C)The buying process is routine and only one person is responsible for the buying decision.
D)The buying effort in these markets are less structured and formalized.
E)The buying process in these markets involves competitive bidding, negotiated pricing, and
Complex financial arrangements.

Question 25

The buying processes in both B2B and B2C markets begin with:

A)central planning.
B)need recognition.
C)postpurchase dissonance.
D)alternative evaluation.
E)order specification.

Question 26

The third digit in an NAICS code represents:

A)the industry group.
B)the subsector.
C)the subgroup within the industry.
D)the sector in the economy.
E)the country-level industry.

Question 27

The stage of the B2B buying process in which companies invite alternative suppliers to bid on supplying their required components is referred to as:

A)product specification.
B)proposal analysis.
C)supplier selection.
D)order specification.
E)the RFP process.

Question 28

A mining corporation is negotiating the terms of sale with one of the vendors that has responded to its RFP.This negotiation is an activity of which of the following stages of the B2B buying process?

A)purchase
B)need recognition
C)RFP process
D)proposal analysis and supplier selection
E)vendor performance assessment

Question 29

The first stage of the B2B buying process involves:

A)consideration of alternative solutions to derive potential specifications.
B)posting of RFP needs on the company website to invite alternative suppliers.
C)analysis of RFP proposals.
D)vendor negotiation and selection.
E)need recognition through either internal or external sources.

Question 30

Rafael works as a sales representative for a firm which processes leather that can be used to make bags, shoes, and seat covers.Rafael promotes these products to various car companies and bag manufacturers.He is involved in sales.

A)C2B
B)retail
C)B2B
D)B2C
E)institutional

Question 31

Which of the following phrases describes the nature of products in B2B markets?

A)The products sold in these markets are mainly finished goods assembled by firms.
B)The products are technical and sophisticated in nature and must conform to technical standards specified by the buyer.
C)There is no time bound delivery of products in B2B markets.
D)Consumers buy the products from B2B markets for their own personal consumption.
E)Technical assistance and after-sale service is not mandatory for products in B2B markets.

Question 32

After posting an RFP for telecommunication equipment, the Department of National Defence received six proposals from qualified vendors.With reference to the B2B buying process, in the next step, the Department of National Defence will:

A)recognize proposal obstacles that the firm must comply with.
B)revise need recognition through external sources.
C)invite alternative suppliers to bid on supplying what is requested.
D)proceed to vendor performance assessment.
E)evaluate the proposals and likely narrow the choice to a few suppliers.

Question 33

Which of the following phrases describes a market characteristic of B2B buying?

A)Demand for goods is elastic and is affected by the price changes in the short run.
B)The number of business buyers is higher than the number of buyers in B2C markets.
C)Consumers buy goods to satisfy their own individual or household needs.
D)Buyers are heavily influenced by personal tastes and brand reputation.
E)The size of the orders is substantially larger than consumer purchases.

Question 34

After need recognition and product specification, many firms using the B2B buying process:

A)identify product specification assessed through cultural determinism.
B)issue a request for proposals from invited suppliers.
C)proceed to proposal analysis.
D)enter vendor negotiation and selection.
E)revise need recognition through either internal or external sources.

Question 35

Which stages in the B2B buying process are more formal and structured compared to the B2C buying process?

A)central planning and product specification
B)customer value creation and government regulation
C)information search and alternative evaluation
D)need recognition and alternative evaluation
E)order specification and performance analysis

Question 36

In B2B marketing, is an integral component of the transaction.

A)the government
B)personal consumption
C)brand reputation
D)the salesperson
E)personal tastes

Question 37

A manufacturing firm that has developed a new product can use the NAICS codes to:

A)identify the type of firms that constitute its target market.
B)establish final consumer destinations.
C)foster long-term relations with buyers.
D)devise a market strategy for its product.
E)test the quality of its new product.

Question 38

Observing the after-effects of Hurricane Katrina, many states re-evaluated the requirements for constructing in coastal areas.The vendors of construction materials will have to familiarize themselves with the changes in construction material requirements and use those when they develop new products.

A)derived demands
B)initiator instructions
C)democratic ideals
D)product specifications
E)consensus classifications

Question 39

In B2B markets, firms engage in reciprocal buying arrangements, as it:

A)ensures the buying of products and services of the best quality.
B)ensures that all vendors are considered in the purchase process.
C)ensures similar performances compared to previous purchases.
D)helps to build long-term relationships between buyers and sellers.
E)offers a wide range of products to choose from.

Question 40

NAICS codes can be used by marketers in B2B markets for:

A)establishing final consumer destinations.
B)consultative buying centre simulations.
C)straight rebuy marketing.
D)segmenting and targeting markets.
E)identifying retail customers.

Question 41

A group of people typically responsible for the buying decisions in large organizations is called a:

A)sales team.
B)expert committee.
C)buying centre.
D)group of business experts.
E)core committee.

Question 42

The buying centre participant who first suggests buying the particular product or service is called a(n):

A)influencer.
B)decider.
C)initiator.
D)gatekeeper.
E)buyer.

Question 43

Reassure Inc.is an insurance firm that focuses on health insurance.Customers must submit all personal details related to their health when taking out an insurance policy.The firm marks all these details as confidential and only a few people within the firm have access to them.The role played by the insurance firm in restricting access to client information is similar to the role of a(n) in a buying centre.

A)decider
B)gatekeeper
C)influencer
D)initiator
E)user

Question 44

A car company invites bids from suppliers for leather to make seat covers.They receive several proposals, out of which three of the bids comply with their requirements.Kim, who heads the selection panel, finalizes a particular supplier after the negotiations.Kim is a(n):

A)initiator.
B)decider.
C)buyer.
D)influencer.
E)mediator.

Question 45

A visitor to an ice cream parlour is interested in the Choco-sundae that the parlour specializes in, which contains nuts and honey procured from the best suppliers in town.However, the visitor does not like nuts in ice cream and decides to try another ice cream.With reference to the roles in a buying centre, the visitor can be regarded as the:

A)gatekeeper.
B)buyer.
C)user.
D)initiator.
E)influencer.

Question 46

A technical firm that assembles computers decides to buy LCD monitors from a supplier that specializes in LCD monitors and batteries.The materials manager at the firm decides to place an order for both monitors and batteries at the same time so that he can save on transportation costs and also get a discount for bulk purchase.The role played by the manager is that of a(n) in a buying centre.

A)influencer
B)user
C)decider
D)buyer
E)agent

Question 47

A buying centre in which one person makes the decision alone, though there may be multiple participants is known as a(n):

A)democratic buying centre.
B)consensus buying centre.
C)autocratic buying centre.
D)autonomous buying centre.
E)consultative buying centre.

Question 48

Michael works in an insurance firm.He handles all the formalities of insurance policies bought by the clients.Michael's role is similar to that of a(n) in a buying centre.

A)buyer
B)user
C)decider
D)influencer
E)agent

Question 49

A car sales showroom specifies a particular brand of mag wheels to be used for the car it sells.The company considers the request made by the showroom and decides to use the wheels in its cars.The role played by the showroom is similar to that of a(n):

A)decider.
B)gatekeeper.
C)moderator.
D)buyer.
E)initiator.

Question 50

A construction firm decides to buy heavy-duty equipment to install a new pipeline in the city.The engineers of the firm specify the equipment requirements and recommend a particular supplier whose product meets these requirements.The engineers are playing the role of a(n)
In a buying centre.

A)influencer
B)decider
C)buyer
D)gatekeeper
E)moderator

Question 51

Arthur, an executive who works for a pizza chain, decides that the cheese used in the company's pizzas should be bought from a particular vendor because the cheese has good taste and texture, and improves the shelf life for the product.The role played by Arthur is that of a(n):

A)influencer.
B)buyer.
C)mediator.
D)decider.
E)user.

Question 52

An influencer is a buying centre participant:

A)who handles the paperwork of the actual purchase.
B)who ultimately determines the entire buying process.
C)who controls information or access, or both, to decision makers.
D)who consumes or uses the product or service.
E)whose views influence other members in making the final decision.

Question 53

Which of the following phrases defines the role of a buyer in a buying centre?

A)a person who consumes the product or service purchased by the buying centre
B)a person who controls information or access to decision makers and influencers
C)a person who handles the paperwork of the actual purchase
D)a person who suggests buying a particular product
E)a person who ultimately determines what product to buy

Question 54

Frank is an administrative assistant at a university.He has access to all records and information pertaining to students, such as race, social class, family connections, and athletic ability.He restricts administrators from accessing this information, so that the admission process is not affected by these factors and is fair to students.Frank's role is similar to the role of a(n) in a buying centre.

A)influencer
B)decider
C)initiator
D)user
E)gatekeeper

Question 55

The role of a decider in a buying centre is to:

A)influence the other members in making the final decision.
B)determine how to buy a product.
C)suggest buying a particular product.
D)control information.
E)handle the paperwork of the purchase.

Question 56

An automobile firm has received its order placed with a supplier firm.The company associates are assessing the quality of the product and the other issues associated with the deal.The automobile company is in the stage of the B2B buying process.

A)need recognition
B)order specification
C)vendor performance analysis
D)product specification
E)RFP process

Question 57

A corporate office decides to replace the windows in its building after an employee explains to the authorities that high-end custom windows block excess sunlight and heat.The role of the employee is similar to that of a(n) in a buying centre.

A)moderator
B)decider
C)buyer
D)gatekeeper
E)influencer

Question 58

Mary is admitted to a hospital and the nurse administers a dextrose solution, bought from a particular pharmaceutical supplier, to improve Mary's blood glucose level.Mary is the:

A)buyer.
B)decider.
C)user.
D)initiator.
E)influencer.

Question 59

The University of Washington had obtained grants from the government to improve the facilities for students.The faculty members at the university recommended the purchase of books of some authors to be stored in the library.The faculty members are playing the role of:

A)decider.
B)influencer.
C)gatekeeper.
D)initiator.
E)user.

Question 60

In a buying centre, the role of controlling information or access to decision makers is called the:

A)decider.
B)initiator.
C)influencer.
D)gatekeeper.
E)buyer.

Question 61

The role played by Wright in the buying process is similar to that of a(n) in a buying centre.

A)decider
B)influencer
C)user
D)gatekeeper
E)buyer

Question 62

The buyer is often the only member of the buying centre involved in the process in a:

A)modified rebuy.
B)supplier buy.
C)straight rebuy.
D)new buy.
E)discount buy.

Question 63

Which of the following buying situations requires the buying centre to proceed through all the steps of a buying process and involve many people in the buying decision?

A)a modified rebuy
B)a straight rebuy
C)a specific rebuy
D)a new buy
E)a discount buy

Question 64

Majority rules while making the decisions in a buying centre.

A)autocratic
B)consensus
C)monocratic
D)consultative
E)democratic

Question 65

The role played by Arthur in the decision making is that of a(n):

A)influencer.
B)initiator.
C)buyer.
D)decider.
E)user.

Question 66

A shoe manufacturing company requires high-quality leather to make shoes that can be used for trekking.It provides a detailed list of specifications to a group of vendors who supply the leather in bulk.After a series of discussions and bids by the suppliers, the company accepts a specific bid for a supply of a large quantity of processed leather.This is an example of a(n):

A)English auction.
B)Dutch auction.
C)reverse auction.
D)private exchange.
E)new buy.

Question 67

A cloth manufacturing company requires raw materials such as cotton and jute for its range of products.To procure the raw materials, the company participates in an auction where raw cotton is sold to the highest bidder.This type of auction is an example of a(n):

A)Dutch auction.
B)reverse auction.
C)Vickrey auction.
D)informal auction.
E)English auction.

Question 68

Which of the following is true regarding a straight buy?

A)The buyer orders a previously purchased product with some modifications.
B)The buyer is often the only member of the buying centre involved in the process.
C)The buying centre is likely to proceed through all six steps of the buying process.
D)The buying organization does not have any experience with the ordered product.
E)The buying process involves many people in the buying decision.

Question 69

The evaluation and decision-making process being carried out by the committee at Kid's World is an activity at which stage of the B2B buying process?

A)order specification
B)vendor performance assessment
C)proposal analysis and supplier selection
D)product specification
E)RFP process

Question 70

All the members of the expert committee at an automobile firm reached a collective agreement and supported the proposal submitted by a vendor.This is an example of a(n):

A)autocratic buying centre.
B)consensus buying centre.
C)consultative buying centre.
D)democratic buying centre.
E)monocratic buying centre.

Question 71

The goal of white papers used by marketers in a B2B marketplace is to:

A)promote a product or solution from a specific company in the market.
B)help companies manage their followers, track analytics, and update their posts.
C)encourage companies to set up goals and put up their own money to increase their accountability.
D)provide valuable information that will help the company address its problems with new solutions.
E)help companies gain from expert advice.

Question 72

The decision taken by the design team is similar to the decision-making process of a(n):

A)autocratic buying centre.
B)democratic buying centre.
C)autonomous buying centre.
D)consensus buying centre.
E)consultative buying centre.

Question 73

Companies such as Dell, HP, and Motorola have lowered their procurement and component costs by using:

A)English auctions.
B)reverse auctions.
C)Dutch auctions.
D)Chinese wall auctions.
E)tax sale auctions.

Question 74

The buying situation that occurs most commonly in B2B markets is a:

A)new buy.
B)discount buy.
C)specific buy.
D)straight rebuy.
E)modified rebuy.

Question 75

In which of the following buying centre cultures must all members of the team reach a collective agreement that they can support a particular purchase?

A)consultative buying centre
B)consensus buying centre
C)autocratic buying centre
D)autonomous buying centre
E)democratic buying centre

Question 76

A modified rebuy refers to a buying situation in which:

A)a product is being purchased for the first time.
B)a similar product has been purchased in the past.
C)the buying decision is likely to be quite involved.
D)the buying centre does not have any previous experience with the product.
E)the buying centre buys additional units of a product.

Question 77

Which of the following social networking sites is mainly used for professional networking in the B2B marketplace?

A)Facebook
B)Biznik
C)LinkedIn
D)Entrepreneur Connect
E)ProBlogger

Question 78

In a consultative buying centre, there are multiple participants:

A)but one person makes the decision alone without taking inputs from others.
B)and all the participants must reach a collective agreement in making the final decision.
C)but the majority rules in making the final decision.
D)but one person makes the decision after receiving valuable input from others.
E)and one person influences the views of other participants in making the final decision.

Question 79

A private exchange occurs when a specific firm:

A)provides specifications to a group of sellers, who then bid down the price until the buyer accepts a specific bid.
B)simply buys additional units of products that have previously been purchased.
C)buys a previously purchased product with the same specifications.
D)purchases a product or service for the first time.
E)invites others to participate in online information exchanges and transactions.

Question 80

The decision-making process by the expert committee is indicative of a(n):

A)autocratic buying centre.
B)democratic buying centre.
C)consultative buying centre.
D)consensus buying centre.
E)monocratic buying centre.