Deck 7: Business-To-Business Marketing

Question 1

The final step of the business-to-business buying process is a formal vendor analysis.

Answer 1

True

Question 2

Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process.

Answer 2

False

Question 3

Organizational culture may vary by geography.

Answer 3

True

Question 4

Naperville School District realized it needed to upgrade the computers in the school libraries. This represents the product specification stage of the B2B buying process.

Question 5

In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision.

Question 6

The B2B buying process tends to be more formal than B2C buying.

Question 7

Once a vendor receives an order from a firm, it responds by immediately filling the order.

Question 8

Resellers differ from producers in that resellers significantly alter the form of goods they sell.

Question 9

The RFP process is used by buyers to allow customer input into value creation.

Question 10

A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order.

Question 11

An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.

Question 12

As the owner of a small business with 60 employees that makes custom floor mats, Paul makes all of the buying decisions. Paul is most likely the user.

Question 13

Fabricworld buys fabric from China and sells it to clothing manufacturers in the U.S. Fabricworld is a retailer.

Question 14

A small business may use a web portal as a means of forming a supply chain that can respond to its needs.

Question 15

Most B2B buying situations can be categorized into three categories: new buys, structured rebuys, and automatic rebuys.

Question 16

When the Toyota Prius first came out, dealers kept waiting lists of people wanting one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.

Question 17

Public institutions do not engage in B2B relationships.

Question 18

Business-to-business marketing refers to buying and selling goods or services to consumers.

Question 19

B2B marketing involves manufacturers, wholesalers, and service firms.

Question 20

A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center.

Question 21

Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always ordered. This is a straight rebuy.

Question 22

Sales of electric components manufactured by Rick's company depend on sales of new cars. Rick's company faces __________ demand.

A) synthetic
B) situational
C) monopolistic
D) contrived
E) derived

Question 23

Business-to-business marketing involves buying and selling goods or services by all of the following EXCEPT

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

Question 24

Which of the following is an example of a government buyer?

A) Mayo Clinic Hospital
B) Procter & Gamble
C) U.S. Marine Corps
D) Nucor Steel Corporation
E) Walmart

Question 25

As Daphne's business grew, she needed to find a new way to manage payroll for her employees, so she researched payroll companies to see which one would best meet her needs. Daphne was involved in a new buy situation.

Question 26

Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are

A) decentralized.
B) less focused on customer value creation.
C) identical.
D) more formal and structured.
E) based on derived supply analysis.

Question 27

Whether targeting consumers or resellers, marketers need to focus on

A) creating value for their customers.
B) buying center synergy.
C) private exchange efficiency.
D) corporate profit sharing.
E) reducing derived demand.

Question 28

Consultative buying centers use one person to make a decision but solicit input from others before doing so.

Question 29

In most countries, __________ is one of the largest purchasers of goods and services.

A) the largest retailer
B) the central government
C) the national airline
D) the intelligence agency
E) a consumer buying center

Question 30

Linkedin is useful for networking in the B2B marketplace, but Twitter is not typically used.

Question 31

Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

A) producers
B) consumers
C) resellers
D) raw materials suppliers
E) gatekeepers

Question 32

Which of the following is an example of an institutional buyer?

A) Mayo Clinic Hospital
B) Procter & Gamble
C) U.S. Marine Corps
D) Nucor Steel Corporation
E) Walmart

Question 33

Hospitals, schools, and religious organizations are examples of __________ buyers.

A) manufacturing
B) retail
C) institutional
D) factory agent
E) reseller

Question 34

When you go to the hospital for an operation, you are the decider in the buying process.

Question 35

Malcolm buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Malcolm is a

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

Question 36

Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a trailer for his lawn maintenance business. His purchases were

A) both B2C purchases since he is the user in both situations.
B) both B2B purchases since he is the user in both situations.
C) neither B2C nor B2B since he is the consumer and his uses might be mixed.
D) B2C and B2B, respectively.
E) B2B and B2C, respectively.

Question 37

Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in __________ sales.

A) G2B
B) B2C
C) B2B
D) C2C
E) G2G

Question 38

Both the B2B and B2C buying processes begin with

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

Question 39

A __________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys.

A) manufacturer
B) producer
C) consumer
D) wholesaler
E) factory

Question 40

Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy to supply her customers. Paula is concerned with __________ demand.

A) modified
B) secondary
C) rebuy
D) derived
E) delayed

Question 41

When Goodwish Marketing decided to upgrade its network, many people were involved in the decision. In B2B buying systems, decisions are often made

A) quickly.
B) by a single expert.
C) at auction sites.
D) by a committee after considerable deliberation.
E) through community debating organizations.

Question 42

Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as one of the first to hear about and use new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center?

A) Leader
B) Initiator
C) Influencer
D) Decider
E) Gatekeeper

Question 43

After Hurricane Katrina, many states reevaluated their coastal area building requirements. These new building codes represented __________ that building materials companies used to develop new products.

A) derived demand
B) initiator instructions
C) determinant products
D) product specifications
E) focal alternatives

Question 44

In most large organizations, several people are responsible for making a purchase decision. This group is called the

A) derived demand cohort.
B) reselling team.
C) decider group.
D) buying center.
E) expediters.

Question 45

Typically, B2B buyers ask potential suppliers to

A) write the RFP for the buyer.
B) submit formal proposals.
C) sponsor interviews with final customers to determine product needs.
D) always be involved in reselling.
E) organize themselves into selling cooperatives.

Question 46

B2B buying decisions are often made by

A) governors.
B) influencers.
C) committees.
D) resellers.
E) consumers.

Question 47

After need recognition, a business develops __________ that suppliers might use to develop their proposals.

A) derived demand
B) initiator instructions
C) determinant attributes
D) product specifications
E) focal alternatives

Question 48

Frieda has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment. After reviewing the order information, Frieda will

A) send an acknowledgement that the order has been received.
B) rewrite her firm's proposal.
C) submit a competitive bid.
D) proceed to vendor analysis.
E) evaluate performance.

Question 49

The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process.

A) vendor negotiation
B) product specification
C) need recognition
D) vendor performance assessment
E) RFP

Question 50

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

A) identify contract specifications.
B) issue a request for proposals from invited suppliers.
C) proceed to proposal analysis.
D) enter vendor negotiation and selection.
E) revise their need recognition analysis.

Question 51

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company's buying center.

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

Question 52

Charlie is hoping to get a chance to bid on supplying key components to Ned's business. He is eager to move forward, but he must wait until

A) Ned completes vendor negotiations.
B) Ned develops a list of product specifications.
C) Ned's buying center has an opening.
D) Ned agrees to move Charlie's firm from the evoked set to the retrieval set.
E) Ned completes the order specification process.

Question 53

Which of the following is NOT one of the roles typically played by one of the members of a buying center?

A) Leader
B) Initiator
C) Influencer
D) Decider
E) Gatekeeper

Question 54

During the RFP stage, B2B buyers

A) recognize obstacles that the firm must work around.
B) revise their need recognition analysis.
C) invite suppliers to bid on supplying what is requested.
D) proceed to vendor analysis.
E) negotiate contract terms.

Question 55

Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying process. She stays in touch with her customers, hoping to find out when they are going through

A) need recognition.
B) the RFP process.
C) proposal analysis.
D) vendor negotiation and selection.
E) product specification.

Question 56

When reviewing her firm's business buying process, Carla noticed a company requirement that it must have at least three qualified bids from suppliers for any purchase over $50,000. This requirement is designed to

A) minimize competitive pressure.
B) efficiently organize resellers.
C) encourage the bidders to offer their best terms.
D) foster democratic buying centers.
E) slow down the purchase process.

Question 57

While consumers evaluate their decisions and sometimes experience postpurchase dissonance, business buyers

A) file lawsuits.
B) evaluate organizational culture.
C) conduct vendor analysis.
D) prepare RFPs.
E) remain dissatisfied.

Question 58

As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will probably

A) interview vendors and seek their feedback.
B) specify and weight performance factors and score the vendors.
C) develop an RFP for vendor analysis.
D) recruit new suppliers.
E) use a modified rebuy vendor form.

Question 59

Frequently a B2B buyer will post its RFP

A) on Linkedin.
B) in Commerce Business Daily.
C) in the legal section of a local newspaper.
D) on its website.
E) in the employee human resources office.

Question 60

After posting an RFP for telecommunications equipment, USF Corporation received six proposals from qualified vendors. Next, USF will

A) recognize obstacles that must be circumvented.
B) reevaluate the firm's needs.
C) give one vendor a purchase order.
D) conduct vendor analysis.
E) evaluate the proposals and narrow the choice to a few suppliers.

Question 61

While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this reflected part of the pharmaceutical firm's

A) buying center.
B) culture.
C) mission statement.
D) corporate social responsibility.
E) RFP process.

Question 62

Fordham3 Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham3 Hardware should

A) focus exclusively on the head of the buying center.
B) address the concerns of all members of the buying center with particular attention to the decision maker.
C) focus on providing information to and making the sales approach to the one decision maker.
D) attempt to facilitate the collective agreement of all members of the buying center.
E) attempt to get one friend on the committee to support his products.

Question 63

Not knowing the roles of key players in the buying process could cause a sales representative to

A) bid too high a quantity.
B) fail the vendor analysis.
C) respond to an RFP too quickly.
D) waste time and alienate people.
E) misdirect his or her product.

Question 64

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. After a vendor is chosen, Reginald will handle the paperwork and send out the purchase order. Reginald plays the role of __________ in the buying center.

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

Question 65

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, she also tries to meet with several students to get their feedback on textbooks. She passes this feedback to her managers to guide the development of the publisher's future textbooks. The students are the __________ in the buying center.

A) deciders
B) initiators
C) influencers
D) users
E) gatekeepers

Question 66

The customer Carlotta is calling on today has a(n) __________ buying center culture. This means that the decision process will involve reaching agreement among all members of the buying center.

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

Question 67

An organization's culture reflects the __________ that guide(s) its employees' behavior.

A) B2C dynamics
B) RFP process
C) buying center philosophy
D) set of values, traditions, and customs
E) derived set of influences

Question 68

Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a __________ for the purchase of these medical services.

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

Question 69

At many universities, education faculty members were among the first to ask for personal computers. These faculty members were __________ in the buying center.

A) buyers
B) initiators
C) influencers
D) deciders
E) gatekeepers

Question 70

Unlike a firm's mission statement or employee handbook, a firm's organizational culture often

A) forces customers to look elsewhere for value.
B) is of no importance to purchase decisions.
C) exists as a set of unspoken guidelines.
D) is defined by a straight rebuy philosophy.
E) determines the order specification process.

Question 71

Jenny was feeling frustrated. "What's taking them so long to make a decision? It's been weeks since I first met with them, and they all seem interested in the product. I've also jumped through all their paperwork hoops." Jenny is likely selling to a firm in what kind of buying situation?

A) new buy
B) modified rebuy
C) straight rebuy
D) generic buy
E) adapted buy

Question 72

Markham Publishing is known for its consultative buying center culture. Recognizing this corporate culture, someone attempting to sell to Markham Publishing should

A) treat all members of the buying center as equally important.
B) address the concerns of all members of the buying center with particular attention to the decision maker.
C) focus on providing information to and making the sales approach to the one decision maker.
D) attempt to facilitate the collective agreement of all members of the buying center.
E) focus attention on the gatekeeper in the buying center's team.

Question 73

While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on Fridays during the summer. Brad is observing part of his firm's

A) organizational culture.
B) governing principles.
C) human resources policy.
D) employee obligations.
E) code of ethics.

Question 74

The buying decision is likely to be most complex and take longest to complete in a(n) __________ B2B buying situation.

A) new buy
B) modified rebuy
C) straight rebuy
D) adapted buy
E) generic buy

Question 75

When Leanne gave her presentation to the BigDeal buying center team, she treated each member's question seriously and gave equal time to addressing each. Leanne did not realize BigDeal has an autocratic buying center culture and she needed to focus on answering Beverly's questions, since she is the decision maker. In addition to wasting time by not understanding BigDeal's culture, Leanne may have also hurt her chances because she

A) bid too many products.
B) failed the vendor analysis.
C) responded to the RFP too quickly.
D) alienated Beverly, the real decision maker.
E) offended the nondecision makers by assuming they had more power than they did.

Question 76

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, her first stop is to chat with Frank, the business department secretary. From Frank, Kim learns which professors have left the university or are newly arrived. Frank also helps Kim to make appointments to see professors to discuss textbook choices. Frank acts as the __________ in the business department buying center.

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

Question 77

Most B2B buying situations can be categorized as new buys, modified rebuys, and

A) generic buys.
B) straight rebuys.
C) ordinary rebuys.
D) adapted buys.
E) minor buys.

Question 78

At the main campus of a large university, faculty always refer to each other as doctor, wear suits, and guard their academic domains against each other. This leads to frequent name-calling and strenuous debates. Meanwhile, at the various branch campuses, faculty members call each other by their first names, dress casually, and support each other's scholarly efforts. This example illustrates the differences in __________ that can exist within an organization.

A) supply chain communication
B) autocratic buying center culture
C) organizational culture
D) business missions
E) corporate social responsibility

Question 79

Which of the following is NOT one of the four general types of organizational cultures?

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

Question 80

The RFP stage of the B2B buying process is NOT required for

A) a new buy.
B) a modified rebuy.
C) a straight rebuy.
D) either a new buy or a modified rebuy.
E) an adapted buy.