Question 1

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

Accepted Answer

When the demand for a product is not very responsive to changes in price, it is said to be inelastic. In other words, even if the price of the product increases or decreases, the total demand for it remains relatively stable. This is often the case with business goods and services, which are often essential for the operation of a company and cannot easily be substituted with other products. Therefore, the best choice in this case is E) inelastic.

Question 2

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period.This is an example of ________.

Accepted Answer

C

Question 3

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

Accepted Answer

The demand for business goods is ultimately derived from the demand for consumer goods, as businesses produce goods and services to meet consumer demand.

Question 4

Ultimately,the amount of steel sold to General Motors depends on the consumers' 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 occurs when the demand for one product is a result of 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, derived demand is the most pertinent form of demand in this scenario.

Question 5

Many business buyers prefer to buy a total solution to a problem from one seller.This process is also known as ________.

Accepted Answer

Systems buying refers to the process of purchasing a total solution to a problem from one seller. This can include products, services, and support all from the same vendor. Channel consolidation refers to reducing the number of channels through which a product is sold, vertical buying refers to buying companies in the same industry at different stages of production or distribution, horizontal buying refers to buying companies in similar industries to expand the buyer's offerings, and supply buying refers to the process of purchasing raw materials or components for production.

Question 6

________ refer(s)to 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

Organizational buying refers to 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. Marketing channels refer to the path through which products and services flow from the product/service provider to the consumer. Corporate retailing refers to the process of selling products or services directly to consumers through company-owned stores. Brand auditing involves evaluating the performance and health of a brand. Inventory control refers to the process of managing and monitoring the inventory levels of a company's products or materials.

Question 7

If you decided to go into the systems contracting business,which of the following categories would constitute your main area of expertise,the service you provide for customers?

Accepted Answer

The answer of If you decided to go into the...

Question 8

In the purchasing decision process,the ________ are those who request that something be purchased.They may be users or others in the organization.

Accepted Answer

Initiators are the ones who first suggest or request for a purchase. They may be users or others in the organization who identify a need for a product or service. The other options do not fit the description of those who request a purchase.

Question 9

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 business market, also known as the B2B market, 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. This includes businesses purchasing raw materials, equipment, and other supplies from other businesses.

Question 10

Kenilworth Inc.is shifting from its rented four-room office to a standalone office building owned by the company itself.This can be classified as a ________.

Accepted Answer

This situation is a new task because Kenilworth Inc. is making a significant change by moving from a rented office to a standalone office building they own, which involves a decision-making process they have not encountered before.

Question 11

Which of the following is true for business marketers?

Accepted Answer

Business marketers typically deal with a smaller number of larger buyers, such as corporations or government agencies, whereas consumer marketers typically deal with a larger number of smaller buyers, such as individual consumers.

Question 12

The business buyer has to make the fewest decisions when involved in a ________.

Accepted Answer

In a straight rebuy, the business buyer simply reorders a product that it has purchased before. Therefore, there are very few decisions involved in the buying process. In contrast, a modified rebuy involves some changes to the previous purchase, a new rebuy is a completely new product or service, and a new task is a purchase that a business has never made before, all of which require more decisions by the buyer.

Question 13

If Ampex Support Systems is the single supplier for a local manufacturing company's MRO (maintenance,repair,operating)supplies and needs,Ampex Support Systems is considered as providing ________ for the manufacturer.

Accepted Answer

Systems contracting refers to an arrangement where a single supplier provides a comprehensive package of goods and services to the customer, such as maintenance, repair, and operating supplies, under a contract. This is what Ampex Support Systems is doing for the local manufacturing company.

Question 14

Which of the following is a challenge in which business marketers differ from the consumer marketers?

Accepted Answer

Geographically concentrated buyers are a challenge unique to business marketers as their target audience is often limited to specific regions or industries, whereas consumer marketers can have a broader and more dispersed target audience. The other options listed are challenges faced by both business and consumer marketers.

Question 15

________ is a key industrial marketing strategy in bidding to build large-scale industrial products such as dams,pipelines,etc.

Accepted Answer

Systems selling is a strategy often used in industrial marketing where the seller offers a comprehensive solution, including all necessary products and services, to build large-scale projects. This approach is particularly relevant for complex projects such as dams, pipelines, etc., where the buyer benefits from a single point of responsibility for the delivery of the entire project.

Question 16

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

Xerox is providing a comprehensive solution that includes both the product and the service aspect of managing the client's needs, which is referred to as "systems buying." This approach involves offering a complete package or system solution rather than just a product.

Question 17

Orica Inc.competes in the market for commercial explosives.The company recently changed its business model from just selling explosives to managing an entire blast in a quarry.This customer-solution-based approach to the sale of explosives is an example of ________.

Accepted Answer

Orica Inc.'s shift to managing entire blasts in a quarry to provide a customer-solution-based approach is an example of systems selling. Systems selling involves offering a complete solution to customers' needs rather than just a product.

Question 18

In the purchasing decision process,the ________ are those who have the power to prevent sellers or information from reaching members of the buying center.

Accepted Answer

Gatekeepers are those individuals in the purchasing decision process who have the power to prevent sellers or information from reaching members of the buying center. They control the flow of information and can be secretaries, receptionists, or any other person who has the power to limit access to the decision-makers. The approvers, buyers, initiators, and deciders are all members of the buying center who play different roles in the decision-making process.

Question 19

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 situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms. This makes it different from a straight rebuy where the buyer simply reorders the same product without any changes. A modified rebuy involves some level of decision-making and evaluation.

Question 20

Shoe manufacturers are not going to buy much more leather if the price of leather falls,nor will they buy much less leather if the price rises,unless they can find satisfactory substitutes.This is an example of ________.

Accepted Answer

Inelastic demand refers to situations where the quantity demanded does not change much in response to a change in price. In this case, the demand for leather by shoe manufacturers is not very responsive to changes in price, indicating that it has an inelastic demand.

Quiz 6: Analyzing Business Markets