Question 1

A keiretsu is an example of how companies can develop into a network of interlocking corporate affiliates.

Accepted Answer

A keiretsu is a type of business network in Japan that consists of a group of affiliated companies that are interlocked through ownership or business relationships. This allows for coordination and collaboration among the companies within the keiretsu.

Question 2

The emergence of the Internet has made buying and selling in the business market a process that is only efficient for the largest producer to pursue.

Accepted Answer

Even the smallest businesses are finding they are able to compete successfully with their largest competitors as a result of the Internet.

Question 3

NAICS is an industry classification system used by most nations of the world.

Accepted Answer

As its name indicates,NAICS (North American Industry Classification System)has been adopted only by Mexico,Canada,and the United States.

Question 4

If DuPont runs advertisements encouraging people to buy clothing that contains Lycra (a DuPont product),this would be an attempt to influence secondary demand.

Accepted Answer

This is an attempt to influence derived demand.

Question 5

OEM stands for operationally efficient marketing.

Accepted Answer

OEM stands for original equipment manufacturer.

Question 6

While consumer and business markets differ in many ways,the volatility of demand for products is about the same for each type of market.

Accepted Answer

The demand for business products tends to be more unstable than the demand for consumer products.

Question 7

Another commonly used term for accessory equipment is installations.

Accepted Answer

Another commonly used term for major equipment is installations.

Question 8

The reseller market is the same as the retailer market.

Accepted Answer

The reseller market includes both retailers and wholesalers.

Question 9

The first two digits of a NAICS code designate an industry group,such as fiber,yarn,and thread mills.

Accepted Answer

The first two digits designate a major economic sector such as agriculture or manufacturing.

Question 10

The Internet has eliminated the need for distributors.

Accepted Answer

This has not occurred although many experts thought it would.Relationships with knowledgeable distributors have remained important.

Question 11

The government sector (federal,state and local)is a minor segment of the business market

Accepted Answer

The government is a major segment of the business market.

Question 12

The single largest customer in the world is the U.S.federal government.

Accepted Answer

The U.S. federal government is indeed the single largest customer in the world, with annual expenditures of over $4 trillion.

Question 13

Individual producers of raw materials have great flexibility in pricing their products.

Accepted Answer

Prices of raw materials are set by the market,and individual producers have little pricing flexibility.

Question 14

Any firm that purchases goods and services to make a profit by using them to produce other goods is part of the producer segment of the business market.

Accepted Answer

This statement describes the definition of a producer in the business market, so it is true.

Question 15

Shimano sells the fishing and golfing equipment it manufactures to sporting goods stores,which in turn sell the equipment to anglers and golfers.Shimano is engaged in business marketing.

Accepted Answer

Business marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.Shimano sells to a reseller that is not purchasing for its personal consumption.

Question 16

A decline in the availability of tungsten will slow production of light filaments,which will in turn reduce the demand for light bulbs.This is an example of fluctuating demand.

Accepted Answer

This question describes joint demand.Joint demand occurs when two or more items are used together in a final product.

Question 17

Unlike consumer product channels of distribution,which usually have one or more intermediaries,channels of distribution for business products are often direct.

Accepted Answer

This is because business-to-business transactions typically involve larger orders and more complex products and services, so the manufacturers or suppliers often have dedicated sales teams that work directly with the buyers or end-users. This allows for more personalized and efficient communication and helps to minimize misunderstandings or errors that could arise when dealing with intermediaries.

Question 18

Most business marketers emphasize personal selling as their primary communications tool.

Accepted Answer

Personal selling is often seen as an effective way to build relationships with customers and persuade them to make a purchase. It allows for personalized communication and the ability to address specific customer needs and concerns. However, this does not mean that other communications tools such as advertising or public relations are not also important for a successful marketing strategy.

Question 19

For a product to be called a business product,it must be used to manufacture other products,become part of another product,or facilitate the normal operations of a firm.

Accepted Answer

The answer of For a product to be called a...

Question 20

Items that are ready for assembly and that retain their identities when incorporated into another product are called component parts.

Accepted Answer

This is the correct definition of component parts.

Quiz 7: Business Marketing