Deck 7: Business Marketing

Question 1

While consumer and business markets differ in many ways,the volatility of demand for products is about the same for each type of market.

Answer 1

False
The demand for business products tends to be less stable than the demand for consumer products.

Question 2

Most business marketers emphasize personal selling in their promotion efforts.

Answer 2

True

Question 3

Business marketers usually have far fewer customers than consumer marketers.

Answer 3

True

Question 4

Any firm that purchases goods and services to make a profit by using them to produce other goods is part of the producer segment of the business market.

Question 5

The single largest business customer in the world is the U.S.retailer Walmart.

Question 6

If DuPont runs advertisements encouraging people to buy clothing that contains Lycra (a DuPont product),this would be an attempt to influence secondary demand.

Question 7

B-to-B marketers have found that they can use tools such as LinkedIn and YouTube to boost brand awareness.

Question 8

OEM stands for operationally efficient marketing.

Question 9

A keiretsu is a network of interlocking corporate affiliates.

Question 10

A strategic alliance exists when one party has confidence in another firm's reliability and integrity.

Question 11

NAICS is an industry classification system used by most nations of the world.

Question 12

The emergence of the Internet has made buying and selling in the business market a process that is only efficient for the largest producer to pursue.

Question 13

A decline in the availability of tungsten will slow production of light filaments,which will in turn reduce the demand for light bulbs.This is an example of fluctuating demand.

Question 14

Another commonly used term for accessory equipment is installations.

Question 15

The government sector (federal,state and local)is a minor segment of the business market

Question 16

The first two digits of a NAICS code designate a major economic sector,such as agriculture or manufacturing.

Question 17

Shimano sells the fishing and golfing equipment it manufactures to sporting goods stores,which in turn sell the equipment to anglers and golfers.Shimano is engaged in business marketing.

Question 18

For a product to be called a business product,it must be used to manufacture other products,become part of another product,or aid the normal operations of an organization.

Question 19

Stickiness is a measure of a Web site's effectiveness.

Question 20

The reseller market is the same as the retailer market.

Question 21

A product is defined as a business product rather than a consumer good on the basis of its:

A) intended use
B) physical characteristics
C) price
D) distribution method
E) tangible attributes

Question 22

The largest percentage of B-to-B social media spending goes toward creating:

A) viral videos
B) customer community
C) podcasts
D) blogs
E) webinars

Question 23

_____ relates to the fact that customers who have made a purchase lately are more likely to purchase again in the near future than customers who haven't purchased for a while.

A) External search traffic
B) Effective reach
C) Stickiness
D) Recency
E) Effective frequency

Question 24

The elimination of intermediaries such as wholesalers or distributors from a marketing channel is referred to as:

A) disintermediation
B) disassociation
C) unencumberance
D) demarketing
E) selective retention

Question 25

Since GE began accepting bids via the Internet,the length of the bidding process in GE's lighting division has been reduced from 21 days to 10.Since requesting the bids is easier,purchasing agents approach more potential vendors.The ability to locate more vendors has lowered the cost of goods by 5 to 15 percent.GE's experience illustrates:

A) how using the Internet decreases competition
B) how business marketing is becoming global
C) how business marketing is using the Internet to become more efficient
D) how the use of the Internet has influenced consumer markets to become larger and more powerful than business markets
E) how the Internet increases efficiency in data exchange

Question 26

Although customer service has in the past been an important factor in business buyer-seller relationships,its importance has been waning in the last decade.

Question 27

Business marketing does NOT include goods and services that:

A) become part of another product
B) are used to manufacture other products
C) are used for personal consumption
D) facilitate the normal operations of an organization
E) are acquired for resale

Question 28

Because formal committees are often established to purchase business products,members of buying centers can be readily identified on formal organizational charts.

Question 29

Which of the following tools is particularly effective for B-to-B marketers to use for product demonstration?

A) text messaging
B) social networking sites
C) blogs
D) mobile marketing
E) video

Question 30

Before toll-free telephone numbers and the Internet were used as commercial tools,fliers usually purchased airline tickets from travel agents.Travel agents no longer receive a commission from the airlines for selling tickets to consumers.This is an example of:

A) reintermediation
B) disassociation
C) disintermediation
D) discrimination
E) transference

Question 31

_____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.

A) Secondary marketing
B) Interactive marketing
C) Business marketing
D) High-level marketing
E) Industrial marketing

Question 32

Items that are ready for assembly and retain their identities when incorporated into another product are called component parts.

Question 33

_____ is a measure of a Web site's effectiveness and is calculated by multiplying the frequency of visits times the duration of a visit times the number of pages viewed during each visit.

A) Effective reach
B) Effective frequency
C) Gross rating points
D) Interactiveness
E) Stickiness

Question 34

The Solar Group,a Mississippi-based mailbox manufacturer,sells mailboxes to contractors who are building mega-subdivisions,to hardware stores,and directly to new homeowners.What kind of products is the Solar Group selling?

A) Business products only
B) Both business and consumer goods
C) Installations
D) Consumer goods only
E) Supplies

Question 35

Individual producers of raw materials have great flexibility in pricing their products.

Question 36

Which of the following is the best example of a sale that could only take place in the business market?

A) A professor is purchasing a Mac to use at home
B) A music store owner is ordering the newest Elvis Ultimate Live collection DVD for her mother
C) A teen is purchasing ring tones to use on her phone
D) A librarian is purchasing new books for the school's library
E) All of these are examples of business sales

Question 37

All of the following are current roles of the Internet in business marketing EXCEPT:

A) reduce costs
B) eliminate distributors
C) build partnerships and alliances
D) build and support branding
E) integrate online and traditional media

Question 38

Consumable items that do not become part of the final product are called supplies.

Question 39

If Ford purchased the same number of brakes from NUCAP on a regular basis,it would be participating in a straight rebuy.

Question 40

The role of gatekeeper may be filled by a secretary.

Question 41

Southern Fireworks Manufacture Company in Liuyang,China provides fireworks for companies in America such as Premier Pyrotechnics in Richland,Missouri.This means that Southern is a(n):

A) installer of original materials
B) demand company
C) reseller
D) government buyer
E) OEM

Question 42

Caterpillar,Inc. ,a manufacturer of earthmoving equipment,uses completed drivetrains (engines/transmissions/axles),drivetrain components,electronic controls,hydraulic and electrohydraulic components and systems,cooling systems,and undercarriage track systems produced by other organizations in its manufacturing process.Caterpillar is an example of a(n):

A) fabricator
B) installer
C) original equipment manufacturer
D) product provider
E) component network

Question 43

Ed Rodney works for the state of Minnesota as a advocate of state growth and development.He devises ways to encourage businesses to relocate to the state.In other words,Rodney is involved in business marketing.He is compiling a list of potential businesses that might be willing to move their operations to Minnesota.Which of the following possible clients should he include in his list?

A) Any family that takes an annual vacation
B) Newlyweds
C) Families that enjoy hiking
D) Companies that have growing sales
E) Students on spring break

Question 44

Corn refiners buy shelled corn and convert it into a variety of products,including high fructose corn syrup.The refiners then sell the syrup to soda and food product companies for use in foods and beverages.The corn refiners represent the _____ sector of the business market.

A) channel
B) reseller
C) producer
D) government
E) distributor

Question 45

Hensley Poultry is a wholesaler that buys poultry food and health products from Provini,Inc. ,feeding systems from Big Dutchman,Inc.and incubation systems from Copca Corp.Hensley then sells those products to poultry producers and farmers' cooperatives in Iowa.Hensley Poultry could be best classified as a(n):

A) producer
B) distribution network
C) inventory carrier
D) specialty retailer
E) reseller

Question 46

Which of the following means that a firm believes that an ongoing relationship with some other firm is so important that it warrants maximum efforts at maintaining it indefinitely?

A) Amae
B) Trust
C) Relationship quality
D) Strategic alliance
E) Relationship commitment

Question 47

The U.S.government is:

A) not a business market segment
B) the world's largest single customer
C) an organization accounting for over 50 percent of the U.S.gross national product
D) mainly a military equipment purchaser
E) using one centralized purchasing office for the entire government

Question 48

DHL maintains a strategic alliance with UPS because it has confidence in UPS's reliability and integrity.This condition is referred to as:

A) trust
B) tomo
C) commitment
D) amae
E) reciprocity

Question 49

A cooperative agreement between business firms is a:

A) shared capital contract
B) global partner development strategy
C) strategic alliance
D) joint contract
E) comarketing effort

Question 50

In the early 2000s,Levi Strauss invested millions of dollars to develop a website on which they could sell jeans directly to consumers.However,the effort was unsuccessful and the company switched course,announcing that jeans would be sold only through its retailer partners.This is an example of:

A) recency
B) reintermediation
C) keiretsu
D) disintermediation
E) reinstatement

Question 51

A particular segment of the business market includes those individuals and organizations that purchase goods and services for the purpose of making a profit.They achieve this goal by using purchased goods and services to make other goods,to become part of other goods,or to facilitate the daily operations of the organization.This group is called the _____ segment of the business market.

A) institution
B) reseller
C) wholesaler
D) producer
E) government

Question 52

In the past 24 years,Mothers Work has grown from a small,mail-order catalog business headquartered inside the founder's home,to the world's largest seller of maternity apparel,with nearly 1,600 locations.In terms of the business market,Mothers Work would be best classified as a(n):

A) reseller
B) producer
C) distribution network
D) inventory carrier
E) business facilitator

Question 53

Businesses that buy finished goods and sell them for a profit are called:

A) inventory carriers
B) producers
C) distribution networks
D) resellers
E) business facilitators

Question 54

In Japan,reciprocity and personal relationships contribute to the development of:

A) global ventures
B) amae
C) agricola
D) keiretsu
E) an independent network of small retailers

Question 55

A keiretsu is a(n):

A) type of strategic alliance commonly found in Japan
B) method of business e-commerce found in Asia
C) Internet site that offers its customers access to various languages that they can use to conduct their business
D) form of relationship marketing that is illegal in the United States
E) bribe

Question 56

According to the text,another commonly used name for producers is:

A) fabricators
B) installers
C) original equipment manufacturers
D) product providers
E) component networks

Question 57

Which of the following statements about the government business market is CORRECT?

A) Only large vendors with annual sales of more than $20 million are authorized to sell to the federal government;small vendors are restricted to the state and local government market.
B) The Office of Management and Budget is the federal agency that contracts for all the U.S.government's buying requirements.
C) Selling to states,counties,and cities can be less frustrating for both small and large vendors than selling to the federal government.
D) The president of the United States must personally authorize all federal government purchases.
E) Contracts for government purchases are rarely put out for bid.

Question 58

Sometimes a _____ is created for the purpose of sharing resources.This was why the Donnelly Corporation,a company that designs,manufactures,and markets automotive parts,joined with Applied Films Laboratory,Inc.to manufacture and supply the world market with display coated glass for liquid crystal displays (LCDs).

A) shared capital contract
B) global partner development strategy
C) strategic alliance
D) cobranding effort
E) market cooperative

Question 59

The reintroduction of an intermediary between producers and users is called:

A) disintermediation
B) reinstatement
C) selective retention
D) reestablishment
E) reintermediation

Question 60

IBM and Cisco work together to provide banks with the products and services they need to manage their multiple locations.In other words,the two companies have joined in a:

A) retail cooperative
B) direct investment venture
C) transactional relationship
D) strategic alliance
E) synergistic relationship

Question 61

One segment of the business market has primary goals that differ from the ordinary business goals such as profit,market share,or return on investment.This segment includes many schools,churches,and civic clubs.Which business market is this?

A) Institutions
B) OEMs
C) Services
D) Providers
E) Resellers

Question 62

Managers can use the NAICS data to:

A) create a more focused mission statement
B) eliminate risk
C) classify consumer behavior
D) identify potential new customers
E) determine purchase motives

Question 63

As the demand for VCR players has fallen,so has the demand for blank VHS tapes because the demand for VHS tapes is an example of a(n)_____ demand.

A) joint
B) inelastic
C) elastic
D) fluctuating
E) derived

Question 64

Which of the following is the BEST example of an institution market?

A) The federal government
B) eBay
C) Claire's Boutique
D) Hillsdale United Methodist Church
E) Starbucks

Question 65

Which of the following NAICS codes designates an economic subsector?

A) 33
B) 334
C) 3346
D) 33461
E) 334611

Question 66

Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different types and sizes of consumer magazines.Consumer magazine sales determine how much paper Inland Eastex sells.This is an example of ________ demand.

A) joint
B) inelastic
C) elastic
D) congruent
E) derived

Question 67

NAICS data are helpful for analyzing,segmenting,and targeting markets.The system was developed by:

A) large manufacturers in United States and Mexico that produce similar goods
B) the North American Free Trade Agreement partners
C) Brazil,Chile,Argentina,Canada,and the United States working together in a joint venture
D) the SIC committee
E) the U.S.government

Question 68

An acute shortage of heavy-duty tires is threatening to disrupt operations in mining and construction sites around the world.According to one mine operator,"I've got the coal and market,and I have the trucks to haul the coal,but I don't have the tires.I'd be willing to pay double the price if I could get the tires I need." The demand for heavy-duty tires is:

A) joint
B) inelastic
C) elastic
D) congruent
E) derived

Question 69

The demand for consumer goods often affects the demand for business products.This characteristic of business markets is called _____ demand.

A) elastic
B) inelastic
C) fluctuating
D) derived
E) joint

Question 70

When demand for a product is _____,an increase or decrease in the price of the product will not significantly affect demand for the product.

A) responsive
B) elastic
C) inelastic
D) derived
E) bundled

Question 71

Bàbolina Tetra is a Hungarian company that has genetically created a chicken that is guaranteed to produce uniform brown eggs with strong shells.It breeds and sells young chicks to farmers all over Europe who want to sell eggs in local markets.When consumers began to worry about cholesterol content and stopped eating as many eggs,the demand for the Tetra hen also declined.This would be an example of _____ demand.

A) derived
B) elastic
C) multiplying
D) bundled
E) inelastic

Question 72

A U.S.manufacturer of lighted signs used in amusement parks,at outdoor sports arenas,and for restaurant promotion wants to facilitate its market segmentation and targeting so data about the company are readily available and usable.The best resource for this company to use would be:

A) a large amount of marketing research,including scanner data and focus groups
B) other competing firms as a strategic alliance referral service
C) the government bidding processes
D) the North American Industry Classification System
E) derived demand

Question 73

Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford.A sudden jump in the price of rubber and its substitutes has forced Lanover and other wiper blades manufacturers to double the price of the wiper blades.This increase in price has not affected sales volume for wiper blades.The price change did not change demand for windshield wiper blades because demand for this product by business customers is:

A) inelastic
B) secure
C) bundled
D) elastic
E) resistant

Question 74

A decline in the availability of bicycle handle bars will decrease Huffy Bicycle Company's production of bicycles.Decreased production in turn reduces Huffy's demand for bicycle seats.This is because the products in this situation have _____ demand.

A) inelastic
B) joint
C) elastic
D) congruent
E) derived

Question 75

Imagine you are the research director of a major industrial marketing firm.You need to select a NAICS code that defines the most homogeneous group of companies in a particular group of highly competitive companies .Which of the following codes might you use?

A) 7432
B) 532
C) 19
D) 7
E) 999

Question 76

Apple iTunes has sold over five billion downloads.Without iTunes the demand for the Apple iPod line of products would be small.Without the musicians there would be no iTunes.A condition of _____ demand exists.

A) bundled
B) incremental
C) functional
D) developmental
E) joint

Question 77

When two or more items are used in combination to produce a final product,they are said to have _____ demand.

A) derived
B) inelastic
C) joint
D) fluctuating
E) elastic

Question 78

All of the following are demand characteristics of business markets EXCEPT:

A) inelastic demand
B) fluctuating demand
C) joint demand
D) stable demand
E) derived demand

Question 79

The government uses a system called NAICS to classify North American business establishments.NAICS stands for:

A) Non-American Industry Classification System
B) North and South American Institutional Coding Services
C) Non-American Industrial Corporation System
D) North American Institution Code System
E) North American Industry Classification System

Question 80

Organon Teknina sells inexpensive equipment to detect Escherichia coli,listeria,or salmonella bacteria in food.The company serves not-for-profit institutions that need to regularly check food quality.Organon Teknina would be LEAST likely to sell to:

A) The Montgomery County school system
B) Cincinnati Children's Hospital
C) Taco Bell
D) A chain of church-sponsored retirement homes
E) American Red Cross emergency shelter kitchens