Deck 7: Business Marketing

Question 1

Fournotts Printing Inc.manufactures and sells photocopiers,printers,and scanners to various corporate offices.This is an example of _____.

A)​contract manufacturing
B)business marketing
C)licensing
D)​franchising

Answer 1

 B

Question 2

Ethics refers to a firm's belief that an ongoing relationship with another firm is so important that it warrants maximum efforts at maintaining it indefinitely.

Answer 2

 False

Question 3

By pressurizing a supplier to sell products at very low prices,a buyer may,in effect,force the supplier to compromise on the quality of the product.

Answer 3

 True

Question 4

The more digits in a North American Industry Classification System code,the less homogeneous a group will be.

Question 5

Price is one of the criteria against which business buyers evaluate products and suppliers.

Question 6

In social media marketing,awareness occurs when action is taken and includes everything from downloading a piece of content (like a white paper)to actually making a purchase.

Question 7

Providing superior service to a firm's most valuable customers is likely to result in a maximization of the total business value generated over time.

Question 8

A product can be sold both as a consumer good and business product.

Question 9

A practice whereby business purchasers choose to buy from customers of their competitors is called reciprocity.

Question 10

The use of direct channels in business marketing has increased dramatically in the past decade with the introduction of various Internet buying and selling schemes.

Question 11

Many companies offer ethics training to employees and have codes of ethics that help guide buyers and sellers in business.

Question 12

In a buying center,the decider is the person who actually negotiates a purchase.

Question 13

The goal of business-to-business exchanges is to simplify business purchasing and to make it more efficient.

Question 14

Processed materials include capital goods such as large or expensive machines,mainframe computers,blast furnaces,generators,airplanes,and buildings.

Question 15

Businesses contract outside providers to perform janitorial,advertising,and legal services as it costs less than hiring an employee to perform the particular task.

Question 16

Derived demand means that an increase or decrease in the price of the product will significantly affect demand for the product.

Question 17

Items such as forklifts are more commonly sold as consumer goods than as business products.

Question 18

Fluctuating demand is the demand for two or more items used together in a final product.

Question 19

Federal,state,and local buying units account for the greatest volume of purchases of any customer category in the United States.

Question 20

Which of the following statements is true of business marketing?

A)​It refers to the sale of goods and services for the purpose of personal consumption.
B)It deals with products that are used to facilitate an organization's operations.
C)It has long and indirect channels of distribution.
D)​It sets the price and other conditions of sale without chances for negotiations.

Question 21

Which of the following is true of a firm that acts as a consumer marketer?

A)​The firm can also be a business marketer. 
B)It has fewer customers than a business marketer. 
C)The firm excludes the sale of goods that are sold in business markets.
D)​Its customers are less geographically concentrated than business markets.

Question 22

The segment of the business market that seeks to achieve goals other than the standard business goals of profit,market share,and return on investment consists of _____.

A)​institutions
B)resellers
C)producers
D)​manufacturers

Question 23

Which of the following statements is true of relationship marketing?

A)​For many suppliers, retaining their current customers has become a secondary focus in relationship marketing.
B)Business suppliers use social networking sites sparingly as these sites discourage businesses from shopping for all their needs.
C)Loyal customers are less profitable than those who are price sensitive and perceive no difference among brands or suppliers.
D)​Relationship marketing has become more important than before because competition is becoming more intense.

Question 24

Seth,an administrative manager at Seal Inc.,is asked to purchase ten printers for the firm's office.He contacts a sales representative at Myro Distributors and places an order for ten printers.Myro Distributors purchases the printers from Ink Corp.,a wholesaler,and delivers them to Seth at his office.In this scenario,Myro Distributors is most likely to be a(n)_____.

A)​producer
B)retailer
C)institution
D)​manufacturer

Question 25

Vactin Corp.,a construction company,buys ten truckloads of cement for its new construction project.
Given this information,the cement bought is an example of a(n)_____.

A)consumer product​
B)service product
C)industrial product
D)​unsought product

Question 26

Which of the following statements is true of the North American Industry Classification System (NAICS)?

A)​Each classification group in NAICS is heterogeneous in terms of the components used.
B)The geographic dispersion of firms cannot be identified with the help of NAICS.
C)The more the digits in a NAICS code, the more homogeneous the group.
D)​Goods- or service-producing firms grouped under NAICS use different production processes.

Question 27

Fresnas Inc.,an oil refinery,buys crude oil and converts it into various products such as gasoline,kerosene,and diesel fuel.Fresnas Inc.,then,sells these products to other companies or retailers.Based on this information,which segment of the business market is most likely represented by Fresnas Inc.?

A)​Resellers
B)Producers
C)Distributors
D)​Governments

Question 28

C-Through,an optics-manufacturing company,wants to focus on relationship marketing.In this case,which of the following strategies can be adopted by C-Through?

A)​It can use social networking sites to advertise itself to businesses.
B)It can market its products through dealers.
C)It can set the price and other conditions of sale without negotiation.
D)​It can use accessory equipment and major equipment.

Question 29

 E-books are an example of:

A)​content marketing.
B)inbound marketing.
C)relationship marketing.
D)​database marketing.

Question 30

In the context of business relationships in Japan,which of the following best defines the term amae?

A)​It is the feeling of nurturing concern for, and dependence upon, another.
B)It is the lack of motivation among employees in businesses.
C)It is a legal consolidation and collaboration of companies into a single entity.
D)​It is the lack of economic competition in the market.

Question 31

Casca Paints Inc.,a manufacturer of paints and emulsions,owns a user-friendly Web site.The Web site allows customers to upload pictures of their house and select the colors that best match their expectations.Donnel Designs Inc.,an interior decoration firm,enters into a partnership with Casca Paints Inc.As a result,customers can now get a complete interior design solution for their houses.This is an example of a _____.

A)​straight rebuy
B)golden handshake
C)negative inventory
D)​strategic alliance

Question 32

Which of the following characteristics distinguishes business products from consumer products?

A)​Physical form
B)Intended use
C)Distribution method
D)​Price

Question 33

In the business market,_____.

A)​products or services are sold for personal consumption
B)goods that are sold in consumer markets are not sold
C)a single customer can account for a huge volume of purchases
D)​relationship marketing is given least importance

Question 34

Line Twists Inc.is a start-up dance company.On its Web site,it conducts an online competition for amateur dancers.It asks people to post one sentence on why they love to dance.Thousands of people participate and comment on the Web site.In the context of business-to-business social media marketing,this step taken by Line Twists Inc.is an example of the marketing metric of _____.

A)​product adaptation
B)engagement
C)conversion
D)​review

Question 35

Inland Eastex Inc.manufactures toothpastes.Even when the company increased the price of its toothpastes last year,the sales did not drop.This is an example of _____.

A)​elastic demand
B)inelastic demand
C)derived demand
D)​joint demand

Question 36

A _____ is used to manufacture other goods or services,to facilitate an organization's operations,or to resell to other customers.

A)​consumer product
B)shopping product
C)business product
D)​convenience product

Question 37

Unlike wholesalers,retailers:

A)​sell mainly to final consumers at the end of the distribution channel.
B)sell mostly to other retailers and other organizational customers.
C)buy business goods and incorporate them into the products they produce.
D)​seek to achieve goals other than the standard business goals of profit.

Question 38

Tamery Corp.is engaged in marketing various goods and services.It buys goods from various manufacturers and sells them to businesses and end consumers.Given this information,Tamery Corp.is said to be selling consumer products if:

A)​it sells books to students.
B)it sells spare parts to automobile manufacturers.
C)it sells laptops to a hotel.
D)​it sells printers to a partnership firm.

Question 39

The North American Industry Classification System data can be used to:

A)​identify scope for new product lines.
B)classify firms according to their heterogeneity.
C)classify business establishments all over the world.
D)​identify potential new customers.

Question 40

_____ exists when one party has confidence in an exchange partner's reliability and integrity.

A)​Obeya
B)Trust
C)Keiretsu
D)​Commitment

Question 41

In a buying center,gatekeepers are the people who:

A)​initiate the buying process.
B)have the formal power to approve a brand.
C)regulate the flow of information.
D)​negotiate a purchase.

Question 42

At Magnira Corp.,a company that manufactures fruit preserves,fruits of excellent quality are used to make jams,jellies,and marmalades.In this scenario,the fruits are examples of _____.

A)​raw materials
B)component parts
C)MRO items
D)​business services

Question 43

_____ are goods,such as portable drills and computer software,which are less expensive and shorter-lived than installations.

A)​Component parts
B)Major equipment
C)Raw materials
D)​Accessory equipment

Question 44

Which of the following statements is true of raw materials used as business products?

A)​Promotion of raw materials is almost always promoted via mass advertising.
B)They are usually sold in large quantities.
C)Individual producers have great flexibility in the pricing of raw materials.
D)​They are finished items ready for assembly.

Question 45

Identify a true statement about MRO (maintenance,repair,or operating)supplies.

A)​They become part of a final product.
B)They are intangible business products.
C)They are relatively expensive when compared to other business products.
D)​They are normally standardized items that purchasing agents routinely buy.

Question 46

Having fewer customers in business markets in comparison with consumer markets:

A)​reduces the attention required to be given to customers.
B)makes it easy to identify prospective buyers.
C)reduces the dependency on distributors for product delivery.
D)​increases product diversity.

Question 47

Which of the following is a difference between component parts and supplies?

A)​Component parts require extensive processing before they become part of another product, whereas supplies do not.
B)Component parts are consumable items, whereas supplies are finished items.
C)Component parts become part of a final product, whereas supplies do not.
D)​Component parts are inexpensive when compared to other business products, whereas supplies are expensive.

Question 48

According to the categories of business products,_____ are expense items that do not become part of a final product.

A)​raw materials
B)MRO supplies
C)component parts
D)​business services

Question 49

In a buying center,the person who has the formal or informal power to choose or approve the selection of a supplier or brand is known as the _____.

A)​decider
B)purchaser
C)gatekeeper
D)​initiator

Question 50

Which of the following is a similarity between raw materials and component parts?

A)​Both fail to retain their identity in final products.
B)Both become part of a final product.
C)Both are unprocessed extractive products.
D)​Both are more expensive than major equipment.

Question 51

Unlike buyers in business markets,buyers in consumer markets tend to:

A)​be insensitive to price.
B)generate less stable demand trends.
C)approach purchasing more informally.
D)​involve more people in a single purchase decision.

Question 52

Which of the following scenarios illustrates the use of processed materials in manufacturing?

A)​No-Glut Inc. uses rice flour in the manufacture of its gluten-free products. 
B)Zintec Hardware uses nails to hold its ladders together.
C)Pace Corp., an automobile company, uses magnesium alloy wheels for its high-end cars.
D)​Reldex Steel Corp. uses blast furnaces in its manufacturing process.

Question 53

In the context of consumer markets,which of the following is true of consumers?

A)​They often follow the practice of reciprocity.
B)They tend to buy in larger quantities than business consumers.
C)They approach purchasing more formally than business buyers.
D)​They normally buy products rather than lease them.

Question 54

The manager of TruColor Printers Inc.has purchased a sophisticated printing press for $1 million.Which of the following statements is most likely to be true about the printing press?

A)​It will be depreciated over its useful life.
B)It will be charged as an expense in the year it is bought.
C)It will undergo processing before it is used.
D)​It will be bought through retailers.

Question 55

In the context of business products,major equipment:

A)​is marketed by local industrial distributors.
B)is sold through a longer distribution channel than accessory equipment.
C)is often custom designed for each customer according to requirements.
D)​is less expensive and shorter-lived than accessory equipment.

Question 56

Which of the following is a difference between supplies and business services?

A)​Supplies are consumable items, whereas business services are expense items.
B)Supplies are more expensive compared to other business goods, whereas business services are economical.
C)Supplies are part of a final product, whereas business services do not become part of a final product.
D)​Supplies are custom designed for each customer, whereas business services are normally standardized.

Question 57

_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

A)​The multiplier effect
B)Reciprocity
C)The conversion rate
D)​Frequency

Question 58

Nutrimax Cookies Inc.buys around three tons of raw materials every year.If the demand for its cookies increases next year,the company might need to buy more raw materials to meet the demand.This illustrates _____.

A)​inelastic demand
B)joint demand
C)elastic demand
D)​fluctuating demand

Question 59

Items such as sheet metal,treated lumber,corn syrup,and plastics are examples of _____.

A)​raw materials
B)processed materials
C)major equipment
D)​MRO supplies

Question 60

In the context of business products,which of the following is a difference between major equipment and accessory equipment?

A)​Major equipment is often standardized, whereas accessory equipment is often custom designed for each customer.
B)Major equipment is depreciated over time, whereas accessory equipment is charged as an expense in the year it is purchased.
C)Major equipment has a short life, whereas accessory equipment has a long life.
D)​Major equipment is marketed more through advertising, whereas accessory equipment is marketed and distributed via personal selling.

Question 61

A _____ is a situation requiring the purchase of a product for the first time.

A)​modified rebuy
B)straight rebuy
C)conditional buy
D)​new buy

Question 62

Explain how business establishments are classified under the North American Industry Classification System (NAICS.)

Question 63

Differentiate between major equipment and accessory equipment.

Question 64

Discuss the ways in which business-to-business (B-to-B)companies use the Internet for business marketing.

Question 65

Discuss the importance of customer service in business marketing.

Question 66

In the context of categories of business customers,describe the role of resellers.

Question 67

Leo buys 500 sheets of paper from a vendor for his printing firm.He is satisfied with the product,and he orders the same quantity from the same vendor every week.This is most likely an example of a(n)_____.

A)​initiation buy
B)straight rebuy
C)new buy
D)​modified rebuy

Question 68

In a(n)_____ situation,a purchaser wants some change in the original good or service.

A)​initiation buy
B)straight rebuy
C)new buy
D)​modified rebuy

Question 69

Explain strategic alliance and the factors that contribute to its long-term survival.

Question 70

Explain the distribution structure followed in business markets.