Question 1

Dayco decreased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 3 percent. Price elasticity of demand for drive belts appears to be:

Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, the percentage change in quantity demanded (3%) is less than the percentage change in price (5%), indicating that the demand is inelastic.

Question 2

The particular skills, abilities, and processes that an organization has developed to manage close customer relationships are referred to as:

Accepted Answer

The customer-linking capability refers to the skills, abilities, and processes an organization develops to manage close customer relationships effectively.

Question 3

Market sensitivity and building relationships cannot stimulate demand for the products of the business marketer since organizations make decisions for all classifications of products based only on price.​

Accepted Answer

Organizations consider various factors, including market sensitivity and relationships, in addition to price, when making purchasing decisions.

Question 4

Market-driven firms demonstrate:

Accepted Answer

Market-driven firms exhibit all the characteristics listed: coordinated use of interfunctional resources, a customer-first value system, and the ability to effectively manage information about customers and competitors.

Question 5

Which of the following transactions fall into the business marketing domain?

Accepted Answer

All of the transactions involve business-to-business marketing, where one company sells products or services to another company for use in its own operations or to resell to its customers.

Question 6

As an industrial customer, Ford Motor Company would be classified as:

Accepted Answer

Ford Motor Company can be both a user and an OEM, depending on the products they are purchasing. They use some products in their operations and incorporate others into their vehicles as original equipment.

Question 7

Concerning the chain of suppliers involved in the creation of a Honda automobile, which of the following fall within the business marketing domain?

Accepted Answer

The answer of Concerning the chain of suppliers involved in...

Question 8

​An art gallery is an example of an institution makrket.

Accepted Answer

An art gallery is a type of institution market, which is a market where goods and services are exchanged between institutions, such as businesses, governments, and non-profit organizations.

Question 9

The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:

Accepted Answer

Market-sensing capability refers to an organization's ability to detect changes in the market and anticipate customer responses, allowing it to adapt its strategies accordingly.

Question 10

Based on the volume of their purchases, _____ are the most important commercial customers in the business or industrial market.

Accepted Answer

Manufacturers are typically the most important commercial customers in the business or industrial market due to their large volume of purchases for raw materials, components, and equipment needed for production.

Question 11

Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded. This suggests that Ford's price elasticity of demand is:

Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, a 10% decrease in price led to a 15% increase in quantity demanded, indicating that demand is elastic (elasticity greater than 1).

Question 12

​If there is a derived demand for a product which ABC Company sells to XYZ company, ABC's success is very much tied to XYZ's success.

Accepted Answer

Derived demand means that the demand for ABC's product is dependent on the demand for XYZ's product. If XYZ is successful and has high demand, it will likely increase its demand for ABC's product, leading to ABC's success.

Question 13

Market-driven firms spot market changes and react well in advance of their competitors. This illustrates:

Accepted Answer

Market-sensing capability refers to a firm's ability to continuously learn about the market and anticipate changes, allowing them to react ahead of competitors.

Question 14

Concerning manufacturing customers, the business market is:

Accepted Answer

The business market for manufacturing customers is both concentrated by size, as larger companies often dominate, and geographically concentrated, as certain regions may have a higher density of manufacturing activities.

Question 15

When purchasing a high speed packaging machine, General Foods would be classified as:

Accepted Answer

General Foods is the end user of the packaging machine, so it would be classified as a user.

Question 16

A diverse array of organizations make up the business market. These organizations can be broadly classified as:

Accepted Answer

Organizations in the business market are typically classified into commercial enterprises, governmental organizations, and institutions, which encompass the broad range of entities involved in business transactions.

Question 17

The business market consists of the following three components:

Accepted Answer

The business market is typically composed of commercial enterprises, institutions, and government entities, which are the primary buyers of goods and services for production, resale, or use in their operations.

Question 18

​The commonality of intended use make it difficult to distinguish between business and consumer markets.

Accepted Answer

The intended use of a product or service is a key factor in distinguishing between business and consumer markets. Business markets are characterized by products and services that are used in the production of other goods or services, while consumer markets are characterized by products and services that are used for personal consumption.

Question 19

When purchasing machine tools for their plants, American Honda is:

Accepted Answer

American Honda is a user because they purchase machine tools for their own use in manufacturing processes within their plants.

Question 20

Concerning the classification of customers in the business market, General Motors is a(n) ____ when purchasing a mainframe computer system from IBM, but is a(n) ____ when purchasing tires from Goodyear.

Accepted Answer

The answer of Concerning the classification of customers in the...

Quiz 1: A Business Marketing Perspective

Dayco decreased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 3 percent. Price elasticity of demand for drive belts appears to be:

The particular skills, abilities, and processes that an organization has developed to manage close customer relationships are referred to as:

Market sensitivity and building relationships cannot stimulate demand for the products of the business marketer since organizations make decisions for all classifications of products based only on price.

Market-driven firms demonstrate:

Which of the following transactions fall into the business marketing domain?

As an industrial customer, Ford Motor Company would be classified as:

Concerning the chain of suppliers involved in the creation of a Honda automobile, which of the following fall within the business marketing domain?

An art gallery is an example of an institution makrket.

The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:

Based on the volume of their purchases, _____ are the most important commercial customers in the business or industrial market.

Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded. This suggests that Ford's price elasticity of demand is:

If there is a derived demand for a product which ABC Company sells to XYZ company, ABC's success is very much tied to XYZ's success.

Market-driven firms spot market changes and react well in advance of their competitors. This illustrates:

Concerning manufacturing customers, the business market is:

When purchasing a high speed packaging machine, General Foods would be classified as:

A diverse array of organizations make up the business market. These organizations can be broadly classified as:

The business market consists of the following three components:

The commonality of intended use make it difficult to distinguish between business and consumer markets.

When purchasing machine tools for their plants, American Honda is:

Concerning the classification of customers in the business market, General Motors is a(n) when purchasing a mainframe computer system from IBM, but is a(n) when purchasing tires from Goodyear.

Quiz 1: A Business Marketing Perspective

Dayco decreased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 3 percent. Price elasticity of demand for drive belts appears to be:

The particular skills, abilities, and processes that an organization has developed to manage close customer relationships are referred to as:

Market sensitivity and building relationships cannot stimulate demand for the products of the business marketer since organizations make decisions for all classifications of products based only on price.​

Market-driven firms demonstrate:

Which of the following transactions fall into the business marketing domain?

As an industrial customer, Ford Motor Company would be classified as:

Concerning the chain of suppliers involved in the creation of a Honda automobile, which of the following fall within the business marketing domain?

​An art gallery is an example of an institution makrket.

The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:

Based on the volume of their purchases, _____ are the most important commercial customers in the business or industrial market.

Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded. This suggests that Ford's price elasticity of demand is:

​If there is a derived demand for a product which ABC Company sells to XYZ company, ABC's success is very much tied to XYZ's success.

Market-driven firms spot market changes and react well in advance of their competitors. This illustrates:

Concerning manufacturing customers, the business market is:

When purchasing a high speed packaging machine, General Foods would be classified as:

A diverse array of organizations make up the business market. These organizations can be broadly classified as:

The business market consists of the following three components:

​The commonality of intended use make it difficult to distinguish between business and consumer markets.

When purchasing machine tools for their plants, American Honda is:

Concerning the classification of customers in the business market, General Motors is a(n) ____ when purchasing a mainframe computer system from IBM, but is a(n) ____ when purchasing tires from Goodyear.

Market sensitivity and building relationships cannot stimulate demand for the products of the business marketer since organizations make decisions for all classifications of products based only on price.

An art gallery is an example of an institution makrket.

If there is a derived demand for a product which ABC Company sells to XYZ company, ABC's success is very much tied to XYZ's success.

The commonality of intended use make it difficult to distinguish between business and consumer markets.

Concerning the classification of customers in the business market, General Motors is a(n) when purchasing a mainframe computer system from IBM, but is a(n) when purchasing tires from Goodyear.