Question 1

The demand for business goods is ultimately derived from the demand for ________.

Accepted Answer

The demand for business goods ultimately derives from the demand for consumer goods. Businesses exist to produce goods and services that consumers want and need, so the demand for business goods is ultimately dependent on the demand for the final consumer product.

Question 2

The business buyer makes the fewest decisions in the ________.

Accepted Answer

The straight rebuy is when the buyer simply reorders something without any modifications to the purchase. As a result, very few decisions need to be made, making it the option with the fewest decisions.

Question 3

The total demand for many business goods and services is ________ -that is,not much affected by price changes.

Accepted Answer

When the demand for goods and services is relatively insensitive to changes in price, it is said to be inelastic. This implies that even if the price of the good or service goes up, the quantity demanded will remain nearly unchanged or even increase. Technical products, such as software programs, often have inelastic demand because customers are more concerned with the usefulness of the product than the price.

Question 4

All of the following would be among the major industries that make up the business market EXCEPT ________.

Accepted Answer

While the Internet may be a platform for conducting business, it is not an industry in itself that makes up the business market. The other options listed (agriculture, forestry, and fisheries; manufacturing; construction; banking, finance, and insurance) are all major industries that play a big role in the business market.

Question 5

The business buyer faces many decisions in making a purchase.The number of decisions depends on the buying situation.All of the following contribute to the number of decisions required EXCEPT the ________.

Accepted Answer

The applicability of the situation to the mission statement is not a factor in determining the number of decisions required for a business purchase. The other choices all contribute to the complexity and number of decisions required.

Question 6

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output.Economists refer to this as the ________.

Accepted Answer

The answer of A given percentage increase in consumer demand...

Question 7

The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold,rented,or supplied to others.

Accepted Answer

The description matches the definition of the business market, which includes all organizations that purchase goods and services for the purpose of producing other goods and services that will be sold, rented, or supplied to others. The other options are not a good fit because they refer to other types of markets: 
- B: the consumer market includes individuals or households who purchase goods and services for personal consumption
- C: the e-commerce market refers to the buying and selling of goods and services online 
- D: the global market refers to the exchange of goods and services among countries 
- E: the supplier market refers to the market for suppliers who provide goods and services to businesses, which is a subset of the larger business market.

Question 8

In a ________ purchasing situation,the buyer wants to make some change to existing product specifications,prices,delivery requirements,or other terms.

Accepted Answer

In a modified rebuy, the buyer wants to make some changes to the existing product specifications, prices, delivery requirements, or other terms. This is different from a straight rebuy where the buyer simply replenishes the existing stock without any modifications or changes.

Question 9

In order to successfully develop customer reference stories,firms should ________.

Accepted Answer

In order to successfully develop customer reference stories, firms should state the customer's needs in compelling terms. This helps to create a clear and powerful message about the benefits of the company's products or services for potential customers. Using direct customer quotes and focusing on qualitative results can also be effective in building a persuasive story. However, avoiding referencing the barriers to satisfying customer needs and describing the company's solution in terms of products and services may limit the impact of the story.

Question 10

There are a series of guidelines for selling to small businesses.Which of the following should NOT be among those guidelines?

Accepted Answer

Lump small and midsize businesses together for efficiency sake may not be a good guideline as their needs, budgets, and preferences may differ significantly. It is important to treat each business as an individual and tailor your approach to their specific needs.

Question 11

Webster and Wind define ________ as the decision-making process by which formal organizations establish the need for purchased products and services and identify,evaluate,and choose among alternative brands and suppliers.

Accepted Answer

The definition provided describes the process of organizational buying, which involves formal organizations acquiring goods and services for their operations. The other options mentioned are not directly relevant to the definition provided.

Question 12

Trained purchasing agents,who must follow their organization's ________,often purchase business goods.

Accepted Answer

Trained purchasing agents must follow their organization's purchasing policies, constraints, and requirements when purchasing business goods. This ensures that the purchases are in line with the organization's strategic goals and objectives. Culture, past purchasing history, needs, and financial budgets may also influence purchasing decisions, but the purchasing policies and requirements are the primary considerations.

Question 13

The business marketer normally deals with ________ buyers than the consumer marketer does.

Accepted Answer

Business marketers typically deal with fewer but larger buyers than consumer marketers because their target audience is composed of other businesses rather than individual consumers.

Question 14

Business markets differ significantly consumer markets in that business markets possess all of the following characteristics EXCEPT ________.

Accepted Answer

Inverted demand is a characteristic of consumer markets, where consumers have a high demand for a product at a lower price. Business markets, on the other hand, often have a professional purchasing process, a close supplier-customer relationship, and fewer, larger buyers. Multiple sales calls are also common in business markets as purchases often involve negotiation and customization.

Question 15

To create and capture value,sellers need to understand business organizations' needs,resources,policies,and ________.

Accepted Answer

Understanding buying procedures is crucial for sellers to effectively create and capture value. They need to know the steps involved in a company's purchasing process, decision-makers involved, and any specific requirements or protocols that need to be followed. This ensures that the seller meets the organization's needs and can effectively close the deal. While understanding demands, strategies, and personnel policies is also important, buying procedures have a more direct impact on the seller's ability to create and capture value.

Question 16

The purchasing department buys office supplies on a routine basis.This type of purchase is classified as a ________.

Accepted Answer

A routine purchase of office supplies is considered a straight rebuy, which is a purchasing situation where the purchasing department simply reorders items that have been purchased before without any significant changes or modifications to the purchase.

Question 17

Purchasing a new security system or renting a new office building is best characterized as a ________.

Accepted Answer

Purchasing a new security system or renting a new office building involves a new task, since it is a completely new purchase decision and requires extensive research, evaluation of alternatives and involvement of multiple decision-makers.

Question 18

Many business buyers prefer to buy a total solution to a problem from one seller.________ is the correct term for this process.

Accepted Answer

Systems buying refers to the process of purchasing a complete solution from one supplier instead of sourcing individual components from multiple suppliers. This approach saves time and effort in coordinating with multiple vendors and ensures seamless integration of different components of the solution. Thus, many business buyers prefer systems buying for efficiency and convenience.

Question 19

Xerox offers a ________ approach to prospective clients when it offers a complete turnkey solution,including the operation and management of the client's information and communication need.

Accepted Answer

A systems buying approach involves a complete turnkey solution and management of a client's information and communication needs, which is exactly what Xerox is offering in this scenario. Supply buying, primary buying, and direct buying are not specific to information and communication needs, and the term "co-op buying system" is not a recognized term in purchasing or business.

Question 20

Ultimately,the amount of steel sold to General Motors depends on the consumer's demand for GM cars and trucks.From the standpoint of the steel manufacturer,which of the following demand forms is most pertinent?

Accepted Answer

Derived demand is the demand for a product that is derived from the demand for another product. In this case, the demand for steel is derived from the demand for GM cars and trucks. Therefore, from the standpoint of the steel manufacturer, understanding the derived demand for steel is the most pertinent in predicting how much steel will be sold to General Motors.

Quiz 7: Analyzing Business Markets