Deck 6: Business Marketing

Question 1

The Solar Group,a 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 products
C)installation goods
D)consumer goods only

Answer 1

B
Products are classified as either business or consumer goods,based on the intended use of the product.Obviously,some of the mailboxes are sold for business use and some for personal use.

Question 2

Caterpillar,the manufacturer of earthmoving equipment,uses completed drivetrains (engines-transmissions-axles),drive train components,electronic controls,hydraulic and electrohydraulic components and systems,cooling systems,and undercarriage track systems produced by other organizations in its manufacturing process.What is Caterpillar an example of?

A)a fabricator
B)an installer
C)an original equipment manufacturer
D)a product provider

Answer 2

C
An original equipment manufacturer is an organization that buys business goods and incorporates them into the products it produces and sells.

Question 3

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.Which segment of the business market is this group?

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

Answer 3

D

Question 4

In Japan,what do reciprocity and personal relationships contribute to the development of?

A)global ventures
B)amae
C)agricola
D)keiretsu

Question 5

What is the term for businesses that buy finished goods and sell and distribute them for a profit?

A)inventory carriers
B)producers
C)distribution networks
D)resellers

Question 6

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 coated glass for liquid crystal displays (LCDs).For the purpose of sharing resources,which of the following is sometimes created?

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

Question 7

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

A)A park ranger is purchasing an azalea bush for her garden.
B)A music store owner is ordering the newest Celine Dion CD for her mother.
C)A dentist is buying postage stamps to mail invitations to his son's birthday party.
D)A university controller is ordering more computers for classroom labs.

Question 8

Which type of customer do business marketers NOT serve?

A)institutions and nonprofits
B)producers
C)resellers and wholesalers
D)private consumers

Question 9

Kinko's Service Corporation (copy centres)and Xerox Engineering Systems have worked together to establish a nationwide network for faxing large-format documents.What have the two companies have joined in?

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

Question 10

Berry Radiateurs SA buys components from other manufactures to construct its radiators,which are used by several European car manufacturers.Of which sector of the business market would Berry be part?

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

Question 11

What is a keiretsu?

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

Question 12

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.How would Hensley Poultry best be classified?

A)as a producer
B)as a distribution network
C)as a inventory carrier
D)as a reseller

Question 13

Business marketing does NOT include goods and services that are used for which of the following?

A)to become part of another product.
B)to manufacture other products.
C)personal consumption.
D)to facilitate the normal operations of an organization.

Question 14

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

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

Question 15

Which of the following is a benefit businesses experience from buying and selling their goods and services on the Internet?

A)access to nine-to-five ordering
B)increase of the need for distributors
C)a smaller selection of products and vendors
D)lower prices due to increased competition

Question 16

What is the term for a cooperative agreement between business firms?

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

Question 17

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.What does GE's experience illustrate?

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 Internet increases efficiency in data exchange

Question 18

A product is defined as a business product rather than consumer good on the basis of which of the following?

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

Question 19

In the past 24 years,Mothers Work has grown from a small,mail-order catalogue 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,how would Mothers Work best be classified?

A)as a reseller
B)as a producer
C)as a distribution network
D)as a business facilitator

Question 20

Nissan Motor and Mazda Motor announced that the companies have signed an agreement under which Nissan will continue to supply Mazda with light commercial vehicles (LCVs)on an OEM basis.What does this mean?

A)Nissan is an installer of original materials.
B)Mazda is a fabricator.
C)Nissan is an OEM.
D)Mazda will be the producer.

Question 21

When the demand for packaged beer fell by 8 percent in one year,the demand for aluminum beer cans and glass beer bottles also fell.The demand for beer containers is an example of which type of demand?

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

Question 22

When two or more items are used in combination to produce a final product,which type of demand are they said to have?

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

Question 23

What would a Canadian company that manufactures the lighted signs used in amusement parks,at outdoor sports arenas,for restaurant promotion,and by provincial departments of transportation on the sides of roads use to facilitate its market segmentation and targeting if it wanted data that were readily available and usable?

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

Question 24

Which of the following statements best describes the differences between the business market and the consumer market?

A)Organizational buying decisions are usually made independently by a purchasing agent while consumer buying decisions are made jointly.
B)Business customers tend to be more geographically concentrated whereas customers in consumer markets tend to be more geographically dispersed.
C)The channel of distribution is less often direct for business markets than for consumer markets.
D)Purchasing by businesses is a less formal process than it is in consumer markets.

Question 25

The government uses a system called NAICS to classify North American business establishments.What does NAICS stand for?

A)North American Innovation Classification System
B)North and South American Institutional Coding Services
C)North American Industrial Corporation System
D)North American Industry Classification System

Question 26

Grote manufactures a slicing machine for any boneless food.The machine will cut up to 1,200 slices per minute and is portable.The wheels are especially made to meet government safety requirements.A decline in the availability of the specialized wheels will slow the production of the slicing machines and in turn reduce the sales of the blades that fit in the machine.Which type of demand exists?

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

Question 27

During the first years of this century,the number of packages arriving at households has more than doubled.An increase in the price of the cardboard boxes in which these packages are shipped will have little effect on the amount of shipping done;the demand for the boxes will continue to increase.What is the demand for the cardboard boxes?

A)resistant
B)inelastic
C)derived
D)elastic

Question 28

Organon Teknina sells inexpensive equipment to detect E.coli,listeria,and salmonella bacteria in food.The company serves not-for-profit institutions that need to regularly check food quality.Which of the following would Organon Teknina be least likely to sell to?

A)Halton Regional School Board
B)a large pediatric hospital
C)a chain of Mexican restaurants
D)a chain of church-sponsored retirement homes

Question 29

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 which type of demand?

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

Question 30

Imagine you are the research director of a major industrial marketing firm.You need to select an 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

Question 31

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.What is the name for this type of business market?

A)institution
B)OEM
C)service
D)provider

Question 32

NAICS data are helpful for analyzing,segmenting,and targeting markets.Who developed the system?

A)large manufacturers in United States and Mexico that produce similar goods
B)the North American Free Trade Agreement partners
C)the Canadian government
D)the SIC committee

Question 33

The demand for polyethylene film used to wrap meat prepared for sale in supermarkets is dependent on consumers' demand for meat.This is an example of which type of demand?

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

Question 34

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." What is the demand for heavy-duty tires?

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

Question 35

What can managers use the NAICS data to do?

A)create a more focused mission statement
B)eliminate risk
C)classify consumer behaviour
D)identify potential new customers

Question 36

Which of the following best describes the U.S.government?

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.

Question 37

Although the price of a chemical added to paint to protect surfaces from mould and mildew has almost doubled,the price of paint only rose an average of 5 percent,and the demand for both paint and the chemical that eliminates mould and mildew remained stable.What is the demand for this chemical?

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

Question 38

When an increase or decrease in the price of the product will not significantly affect demand for the product,what is the demand for the product?

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

Question 39

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.Which type of demand is this an example of?

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

Question 40

The demand for consumer goods often affects the demand for business products.What type of demand is this characteristic of business markets?

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

Question 41

What is the term for the bargaining between buyers and sellers on product specifications,delivery dates,payment terms,and other pricing matters,and is commonplace in business marketing?

A)negotiation
B)need mediation
C)customerization
D)purchase arbitration

Question 42

Ty Pruitt sells embroidery machines used to embroider logos,names,and other designs on shirts,caps,umbrellas,etc.to people in the personalization business.The machines range in price from $39,000 to $75,000.He wants to stimulate business among some of his customers who cannot afford to buy his embroidery machines,but whose business would benefit from the use of one.Which of the following actions is most appropriate in this example?

A)Develop leasing options for business customers.
B)Create full and complete reciprocity to ensure customer cash flow.
C)Manage derived demand to keep the customers' demand at the highest possible levels.
D)Set up a straight-rebuy ordering system.

Question 43

Which of the following pairs of products best illustrates the concept of joint demand?

A)a pumpkin and the set of tools used to carve it
B)a thermometer and a barometer
C)a grandfather clock pendulum and a grandfather clock case
D)canola oil and sunflower oil

Question 44

Which of the following is the best example of an installation?

A)a baseball stadium
B)a checkout counter
C)a lifeguard stand
D)a file cabinet

Question 45

Paula Yoder and Fran Katz created several gluten-free bread and dessert mixes when Yoder's husband developed a severe allergy to wheat.The mixes were initially sold to friends and friends of friends,but Yoder and Katz have gradually changed their customer base.Their mixes are now sold to a catalogue retailer that markets the mixes nationwide under the brand name Delicious.With this change in customers,what should Yoder and Katz expect?

A)derived demand issues to emerge
B)a more formal purchasing process
C)to have to deal in smaller order sizes
D)a greater reliance on advertising to gain new customers

Question 46

What is the business doing if it needs a particular good or service and decides to look among its own customers for a provider of that good or service?

A)working to create purchase arbitration
B)opening itself up to prosecution for illegal activities
C)practising reciprocity
D)trying to eliminate derived demand barriers

Question 47

Compared to buyers in the consumer market,buyers in the business market do which of the following?

A)use reciprocity less
B)purchase in much smaller quantities
C)buy more products that have a reduced probability of being affected by derived demand
D)be much more geographically concentrated

Question 48

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.Which type of demand do the products in this situation have?

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

Question 49

A small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product.What is this a result of?

A)the demand fluctuation principle
B)the joint demand principle
C)the inelastic demand effect
D)the multiplier effect

Question 50

White Wave is a small company that manufactures several flavours of soy milk coffee creamers for people who are lactose intolerant.White Wave typically places large orders for the soy it uses to manufacture its creamers.This order size would give White Wave an advantage over other buyers of soy.What is the order size an example of?

A)purchase volume
B)joint demand
C)fluctuating demand
D)sales volume

Question 51

Which of the following questions would be the least important to answer prior to visiting the farm owner?

A)What are the buying objectives of the farm owner?
B)Who are the major people involved in making the decision within the farm?
C)What kind of reciprocity will be demanded by the farm owner?
D)At what stage of the buying decision process is the farm owner?

Question 52

A company that installs and maintains signs along major highways has a truck equipped with a 50-metre crane that is capable of lifting up to 15 tonnes.The company's accountant depreciated the value of the vehicle over several years.What type of business product is the truck with crane?

A)major equipment
B)component part
C)processed material
D)fabricating item

Question 53

Why is personal selling pervasive in organizational markets?

A)Most of the situations involve fairly low-cost items.
B)There are few avenues for effective advertising of organizational goods.
C)Most buyers prefer meeting face to face with salespeople.
D)Many organizational products are complex and require expertise on the salesperson's part.

Question 54

Parking garages,$500,000 printing presses,privately owned warehouses,and oil-well drilling platforms are depreciated over time rather than expensed in the year they are purchased.How are these classified?

A)as processed materials
B)as accessory equipment
C)as installations
D)as supplies

Question 55

Metal Supermarkets sells small quantities and responds to specialized metal requests that bigger suppliers will not handle.Michael Anderson,the marketing manager for a Metal Supermarket franchise,must develop a marketing strategy for the upcoming year.Which of the following marketing actions is Anderson least likely to employ as part of his marketing strategy for the upcoming year?

A)Delete products that are requested less than six times per year.
B)Lower the prices of his metal to keep competitors from entering the field.
C)Emphasize advertising in the company's promotion strategy to ensure he persuades potential buyers of the quality of his company and its products.
D)Make sure his product lines include enough different items to meet every demand.

Question 56

Creative Graphics is a small printing company that has just moved into a building in a new industrial park.The owner of the company believes everyone should do his or her part to keep the earth green.He wants to landscape the front of the building and build an employee picnic area on the side.When looking for a landscaper,the company owner looked no further than his own customer list.He chose to buy the services of a landscaper that had hired Creative Graphics to print a recent promotional brochure.The purchase by Creative Graphics is which of the following?

A)an example of nested demand.
B)an example of an illegal influence.
C)a normal business practice called reciprocity.
D)unethical by all standards.

Question 57

Claas is Europe's largest manufacturer of combine harvesters.Its marketing manager discovered a prospect for his company's product in Russia by looking for large farm owners from the former Soviet Union where its products had not been sold.
Refer to Claas.As farming becomes more professional and more intensive,farmers are buying more sophisticated machines,which Claas can supply.What would the expensive machines sold by Claas be examples of?

A)installations
B)component parts
C)accessory equipment
D)processed materials

Question 58

What is the term for the primary promotional method for the sale of all business products?

A)direct mail
B)advertising
C)personal selling
D)public relations

Question 59

Which of the following occurs when a bakery decides to buy its office supplies from a company that regularly buys muffins and pastries for its employees?

A)reciprocity
B)joint demand
C)elastic demand
D)disintermediation

Question 60

Which of the following is typical of business marketing in a distribution structure?

A)it's indirect
B)it's direct
C)it's complex and multistage.
D)it's a three-step channel.

Question 61

PAS Systems has developed an unobtrusive flashlight-alcohol detector.The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test.Each one costs $600.
Refer to PAS Systems.What would the decision of the Ontario Provincial Police to equip every RIDE officer with one be an example of?

A)a new buy
B)a limited rebuy
C)an institutional buy
D)rebuy sourcing

Question 62

Farmer Pat Stein provides local restaurants with organic fruits and vegetables that have been grown without the use of pesticides or chemical fertilizers.What does Pat Stein supply?

A)accessory parts
B)supplies
C)raw materials
D)processed materials

Question 63

What is the name for products that have had some processing,are used directly in the production of other products,and do not retain their identity in the final product?

A)raw materials
B)supplies
C)processed materials
D)component parts

Question 64

Within the business market,what are drawer handles that are purchased by cabinet manufacturers examples of?

A)supplies
B)raw materials
C)accessory equipment
D)component parts

Question 65

Inland Eastex manufactures a heavy paper stock that is used as magazine covers.When a publisher of several consumer magazines orders heavy paper stock from Inland Eastex,what is the paper an example of?

A)business supplies
B)OEM parts
C)component parts
D)processed materials

Question 66

At Garbino Metalware Welding,the shop foreman orders cutting oil,special hand cleaner,and sanding paper almost every month.How are these items classified?

A)as replacement parts
B)as provisions
C)as supplies
D)as accessory equipment

Question 67

PAS Systems has developed an unobtrusive flashlight-alcohol detector.The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test.Each one costs $600.
Refer to PAS Systems.After seeing a prototype brought back by one of its employees from a highway safety convention,the Ontario Provincial Police decided to equip every RIDE officer with one.In this example,what was the role in the buying centre who attended the convention?

A)buyer and decider
B)decider and user
C)gatekeeper and influencer
D)initiator and decider

Question 68

A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a dry dog food.What are these processed meat by-products examples of?

A)raw materials
B)OEM products
C)processed materials
D)component parts

Question 69

What would batteries for the flashlights be an example of?

A)major equipment
B)component parts
C)processed materials
D)supplies

Question 70

PAS Systems has developed an unobtrusive flashlight-alcohol detector.The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test.Each one costs $600.
Refer to PAS Systems.The manufacturer assembles a breathalyzer from one supplier with a slightly modified flashlight case from another supplier to make the new product.What are the breathalyzer and the flashlight case examples of?

A)major equipment parts
B)component parts
C)processed materials parts
D)integrated parts

Question 71

What are products such as copper,peanuts,soybean,and bauxite that become part of finished products examples of?

A)supplies
B)raw materials
C)component parts
D)processed materials

Question 72

One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness.What are the fresh tomatoes it buys from growers examples of?

A)OEM parts.
B)raw materials
C)component parts
D)processed materials

Question 73

Delicious is a small company that manufactures several wheat-free products for consumers who cannot digest gluten.For this manufacturer,what is rice flour,which will be used in its manufacturing process?

A)accessory equipment
B)fabricating material
C)component part
D)processed material

Question 74

Which of the following are consumable,inexpensive,and often standardized items that do not become part of the final product?

A)processed materials
B)supplies
C)provisions
D)accessory equipment

Question 75

Because they are not expensive,have short useful lives,and are frequently purchased from local distributors,how are store mannequins,notebook computers,fax machine,and grocery carts typically classified?

A)as accessory equipment
B)as mobile equipment
C)as component parts
D)as supplies

Question 76

Because they are shown as expenses on the yearly accounting statements,what are firearms,computers,printers,fax machines,and patrol vehicles for a police department? .

A)mobile installation
B)component part
C)accessory equipment
D)supply

Question 77

Metalcrafter Enterprise manufactures stamped brass door plates,brass numbers,and other decorative brass trim for homes.Every month Metalcrafter purchases sheets of brass.How are the sheets classified?

A)as processed materials
B)as fabricating supplies
C)as raw materials
D)as replacement parts

Question 78

Which of the following is the best example of accessory equipment?

A)a parking lot
B)a store display rack
C)car batteries
D)a river barge

Question 79

What is the term for finished items ready for assembly or products that need very little processing before they become a part of some other product?

A)supplies
B)raw materials
C)accessory equipment
D)component parts

Question 80

Why is it important that marketers understand the classification of the business product they are selling?

A)OEM markets often act just like the consumer markets.
B)Promotion and distribution strategies tend to vary depending upon the classification.
C)Distribution channels are almost always direct for all business selling.
D)Raw materials demonstrate extreme flexibility in pricing.