Question 1

Demand for a business product is when two or more items are used in combination to produce a product.

Accepted Answer

Joint demand refers to the demand for two or more items used together to produce a final product. For example, the demand for sugar and flour is dependent on the demand for baked goods like cakes and cookies. Joint demand is different from derived demand, which refers to the demand for a product based on the demand for its related goods or services.

Question 2

In a buying center, purchasing agents or purchasing managers are also known as the:

Accepted Answer

Purchasing agents or purchasing managers are primarily responsible for executing the purchase transactions, hence they are referred to as buyers in a buying center.

Question 3

Inelastic demand in business markets refers to a situation where:

Accepted Answer

Inelastic demand means that changes in price have little effect on the quantity demanded.

Question 4

A university decides to purchase new computers for the computer labs on campus. Usually, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked the university's IT technicians to give input on the purchase decision. In this instance, the IT technicians would be acting as influencers, while the purchasing agent is a(n) .

Accepted Answer

The answer of A university decides to purchase new computers...

Question 5

Which of the following is a major threat to the sales success of jointly demanded products?

Accepted Answer

Shortages can disrupt the supply chain and availability of jointly demanded products, directly affecting sales success.

Question 6

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes a(n) demand.

Accepted Answer

This describes a fluctuating demand, where the demand for products varies significantly over time, leading producers to adjust their material purchases accordingly.

Question 7

The group of people within a business who are involved in making business purchasing decisions is referred to as the:

Accepted Answer

The buying center is the group of individuals within an organization responsible for making purchasing decisions.

Question 8

Christoff's Lawn & Lot is a small business that provides landscaping and grass cutting services during spring and summer. Christoff's usually sign contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now increased by 35% causing Christoff's to pay more for their supplies. The demand for gas despite its price represents demand for Christoff's Lawn & Lot.

Accepted Answer

The answer of Christoff's Lawn & Lot is a small...

Question 9

The stages of the business buying decision process, in order, are:

Accepted Answer

The correct sequence for the business buying decision process is: recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. This order reflects the logical progression from identifying a need through to assessing how well the chosen solution met that need.

Question 10

While planning a purchase of business desktop computers, Albertson Inc. asked potential suppliers to provide information only on units with 8GB memory. As the firm's management evaluates this purchase, it finds that 8GB is inadequate for the software programs used at the firm. In this instance, which of the following aspects of the buying decision process does the firm needs to modify?

Accepted Answer

The firm needs to modify the specification development aspect because the initial specification of 8GB memory is inadequate for their needs.

Question 11

After deciding to order replacement parts for their aging machinery, a buyer from a construction company examines catalogs and trade publications looking for these parts. The buyer is in the stage of the business buying decision process.

Accepted Answer

The buyer is actively searching for and evaluating potential suppliers and products, which corresponds to the product-supplier search and evaluation stage.

Question 12

analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall reliability.

Accepted Answer

Vendor analysis is the systematic evaluation of current and potential suppliers focusing on various dimensions such as price, product quality, delivery service, product dependability, and overall reliability.

Question 13

Everglide is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Everglide's tire products is said to be , since it depends on the demand for new cars.

Accepted Answer

The demand for Everglide's tire products is derived because it depends on the demand for new cars.

Question 14

As the new sales representative for Livsafe Healthcare, Sophie is responsible for calling hospital management and selling medical equipment, such as blood pressure monitors, scales, and heart rate monitors. Sophie knows that she needs to communicate effectively with the administrative assistants in the management offices in order to make sure that Livsafe Healthcare's information brochures and new product diagrams reach the management staff. In this situation, the administrative assistants are the in the buying decision process.

Accepted Answer

Administrative assistants act as gatekeepers by controlling the flow of information and access to decision-makers within the organization.

Question 15

Inelastic demand simply means that:

Accepted Answer

Inelastic demand means that changes in price have little to no effect on the quantity demanded.

Question 16

In placing an order with the tire manufacturing company Cratus, South Side Industrial Supply finds that the price for the truck tires it is ordering has increased by $37.50, since its last order. South Side places the order with the confident that it can pass on the price increase to its future customers. This is an example of business products having a(n) demand.

Accepted Answer

The answer of In placing an order with the tire...

Question 17

Apollo Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As Apollo Auto Supply places its order for truck tires with the tire manufacturing company Cratus, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having a(n) demand.

Accepted Answer

The answer of Apollo Auto Supply sells car and truck...

Question 18

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK Inc to fix an appointment. The secretary sets up the appointment to discuss the upcoming purchase of software from WP International. The secretary plays the role of a in this purchase decision.

Accepted Answer

The secretary acts as a gatekeeper by controlling access to the decision-maker, in this case, Renee Dorchette, and facilitating the scheduling of the appointment.

Question 19

Christy Bridgman is planning to buy a new fax machine for her real estate office. She is considering to buy a machine that does not have as many functions but is available at a considerably lower price than her current machine. She is engaging in analysis.

Accepted Answer

Christy is considering the value of the new fax machine by weighing its lower price against the fewer functions it offers, which is an analysis of value.

Question 20

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

Accepted Answer

Value analysis is used to evaluate the quality, design, materials, and other factors to ensure the product is acquired in the most cost-effective way.

Quiz 7: Business Markets and Buying Behavior