Question 1

Which of the following is true for business marketers?
A) They deal with more and larger buyers than consumer marketers.
B) They deal with more and smaller buyers than consumer marketers.
C) They deal with fewer and larger buyers than consumer marketers.
D) They deal with fewer and smaller buyers than consumer marketers.
E) They deal with the same kind of buyers as consumer marketers.

Accepted Answer

Business marketers typically deal with fewer and larger buyers than consumer marketers. This is because the purchases made by businesses are usually larger and involve more complex negotiations, which require a smaller number of decision-makers to be involved in the purchasing process. In contrast, consumer marketers deal with a larger number of buyers who make smaller purchases.

Question 2

One guideline for selling to small business recommends assigning one point of contact for all service problems. This relates to the suggestion to
A) provide support after the sale.
B) not lump small and midsize business together.
C) keep it simple.
D) do your homework.
E) use the Internet

Accepted Answer

Having one point of contact simplifies the process for the customer, aligning with the principle of keeping interactions and solutions as straightforward as possible.

Question 3

When the DeWitt Company purchased a large piece of machinery from Moeller, the company's president paid a personal visit and stayed until the machine was up and running properly. This is an example of which guideline for selling to small business?
A) do provide after-sale support
B) do keep it simple
C) don't lump small and midsize businesses together
D) don't forget about direct contact
E) don't waste their time

Accepted Answer

Providing after-sale support, such as staying until the machine is up and running properly, is an important guideline for selling to small businesses. This helps build trust and loyalty with customers and can lead to repeat business and referrals.

Question 4

The demand for business goods is ultimately derived from the demand for
A) e-commerce.
B) business solutions.
C) electronics.
D) consumer goods.
E) raw materials.

Accepted Answer

The demand for business goods is derived from the demand for consumer goods. Businesses produce goods and services that are ultimately used by consumers. Therefore, the demand for business goods is dependent on the demand for consumer goods.

Question 5

Trained purchasing agents must follow their organization's
A) culture.
B) purchasing policies, constraints, and requirements.
C) past purchasing history.
D) needs.
E) financial budgets.

Accepted Answer

Trained purchasing agents must follow their organization's purchasing policies, constraints, and requirements as this ensures that purchases are made in compliance with regulations and that the organization's interests are safeguarded. While culture, past purchasing history, needs, and financial budgets may be considered, they are secondary to organizational policies and requirements.

Question 6

To create and capture value, sellers need to understand business organizations' needs, resources, policies, and
A) strategies.
B) demands protocols.
C) personnel policies.
D) buying procedures.

Accepted Answer

To create and capture value, sellers need to understand the buying procedures of the business organizations. Understanding the buying procedures will help the sellers to align their sales strategies and proposals with the organizational procurement policies, procedures, and budgets. It will also help them to know how to negotiate and close deals efficiently. Therefore, option D - buying procedures - is the best choice. Options A, B, and C are also important factors in understanding business organizations' needs and resources; however, they do not directly relate to creating and capturing value.

Question 7

The business buyer faces many decisions in making a purchase. The number of decisions depends on
A) the end consumer.
B) the size of the company.
C) the buying situation.
D) geographic restraints.
E) upper management.

Accepted Answer

The number of decisions that a business buyer faces in making a purchase depends on the buying situation. The buying situation can vary depending on the complexity of the product or service being purchased, the level of risk involved, and the number of people involved in the decision-making process. Factors such as the end consumer, size of the company, geographic restraints, and upper management may also play a role, but they are not the primary determinant of the number of decisions a business buyer faces.

Question 8

Many business buyers prefer to buy a total solution to a problem from one seller. ________ is the correct term for this process.
A) Vertical buying
B) Channel consolidation
C) Horizontal buying
D) Systems buying
E) Supply buying

Accepted Answer

Systems buying refers to the process of purchasing a total solution to a problem from one seller. This approach can save time and resources by consolidating the buying process into one transaction.

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.
A) consumer market
B) global market
C) business market
D) supplier market
E) e-commerce market

Accepted Answer

The business market consists of organizations that buy goods and services for production purposes or for their own use (such as office equipment or supplies). This is different from the consumer market (A), which consists of individuals and households who buy goods for their personal use, and the global market (B), which refers to the exchange of goods and services between countries. The supplier market (D) refers to the network of suppliers that provide raw materials and other inputs to organizations in the business market. E-commerce market (E) refers to the buying and selling of goods and services online, which can be part of either the business market or the consumer market.

Question 10

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.
A) inventory control
B) organizational buying
C) marketing channels
D) demand-oriented buying
E) purchasing

Accepted Answer

Webster and Wind define organizational buying 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. Therefore, option B is the correct answer to this question.

Question 11

How can a marketer overcome the negative effects of commoditization?
A) convince target consumers that the firm's products are as good as those of competitors
B) convince target consumers that price is irrelevant in determining quality
C) convince target customers that all the products in the market are equivalent
D) convince target consumers that the firm's products are different from those of competitors
E) convince target customers that buying the highest-priced product is no guarantee of quality

Accepted Answer

A marketer can overcome the negative effects of commoditization by convincing target consumers that the firm's products are different from those of competitors. This can involve highlighting unique features, emphasizing the brand's values or mission, or creating a strong emotional connection with the target audience. By differentiating the product from others on the market, the marketer can communicate the value of the brand and justify a higher price point.

Question 12

Jason Riggs's company is considered to be an in-supplier for a lawn mower manufacturer. However, recently the lawn mower company has put out a memo to in- and out-suppliers indicating that it would like to modify product specifications and delivery schedules. Which of the following buying situations is most likely to be in operation given the data above?
A) elastic rebuy
B) flatten rebuy
C) modified rebuy
D) straight rebuy
E) fluctuating rebuy

Accepted Answer

The lawn mower company's desire to modify product specifications and delivery schedules suggests that a modified rebuy situation is in operation. In a modified rebuy situation, the buyer wants to modify an existing product or service or wants to buy a similar product/service from a new supplier, suggesting that there may be changes to product specifications and delivery schedules.

Question 13

In new task buying, a purchaser buys a product or service
A) with automatic reordering systems.
B) for the first time.
C) on a routine basis from approved suppliers.
D) based on existing satisfaction.
E) with modified specifications.

Accepted Answer

New task buying refers to purchasing a product or service for the first time.

Question 14

The purchasing department buys office supplies on a routine basis. This type of purchase is classified as a
A) straight rebuy.
B) new task.
C) preordained purchase.
D) modified rebuy.
E) secondary purchase.

Accepted Answer

The routine purchase of office supplies is a familiar, recurring purchase, indicating a straight rebuy situation. In a straight rebuy, the buyer simply reorders a product with no significant changes to the buying process or evaluation criteria.

Question 15

The fate of Goodyear Tire Company depends on getting contracts from a few major automakers. This illustrates which characteristic of the business market?
A) fewer larger buyers
B) geographically concentrated buyers
C) multiple sales calls
D) close supplier-customer relationship
E) professional purchasing

Accepted Answer

The fact that Goodyear Tire Company depends on contracts from a few major automakers suggests that there are fewer larger buyers in the business market. This characteristic is typical of many business markets, as a small number of large buyers can have a significant impact on the sales and profits of suppliers.

Question 16

Aging of the Canadian population has been leading to an increased demand for condominiums. From the standpoint of the construction material suppliers, which of the following demand forms is most pertinent?
A) derived demand
B) inelastic demand
C) geographic demand
D) static demand
E) relational demand

Accepted Answer

Derived demand refers to the demand for a product that results from the demand for another product or service. In this case, the increased demand for condominiums is leading to an increased demand for construction materials needed to build them, making derived demand the most pertinent demand form for construction material suppliers.

Question 17

Business markets have several characteristics that contrast sharply with those of consumer markets. Which of the following characteristics describes a scenario where suppliers are expected to customize their offerings to individual business customer needs?
A) professional purchasing
B) fluctuating demand
C) fewer, larger buyers
D) multiple sales calls
E) close supplier-customer relationship

Accepted Answer

The characteristic that describes a scenario where suppliers are expected to customize their offerings to individual business customer needs is a close supplier-customer relationship. In business markets, customers usually demand customized solutions to meet their specific needs, and suppliers are expected to work closely with them to develop such solutions. This requires a close collaboration between the supplier and customer, where the supplier gains a deep understanding of the customer's needs and requirements.

Question 18

The business buyer makes the fewest decisions in the ________ buying situation.
A) new rebuy
B) new task buy
C) regular buy
D) straight rebuy
E) modified rebuy

Accepted Answer

In a straight rebuy situation, the buyer is simply reordering a previously purchased product with no modifications or changes to the original order. Therefore, they make the fewest decisions compared to the other buying situations.

Question 19

When Magna International developed an automated after-market roof rack for the Hummer H2, they had to buy some of the materials for the first time and seek an appropriate supplier. This represents a ________ buying situation.
A) new task
B) modified rebuy
C) straight rebuy
D) pioneering purchase
E) direct purchase

Accepted Answer

A new task buying situation occurs when a company is buying a product or service for the first time, and therefore they have to undertake an extensive decision-making process to evaluate different options and select the best one. In this case, Magna International had to develop a new product (an automated after-market roof rack) for a specific model (the Hummer H2), which required purchasing new materials that they had not used before and finding an appropriate supplier. This process involves a significant amount of research, analysis, and negotiation, which is typical of a new task buying situation.

Question 20

Shoe manufacturers are not going to buy much more leather if the price falls, nor will they buy much less leather if the price rises. This illustrates the business market characteristic of
A) several buying influences.
B) derived demand.
C) inelastic demand.
D) direct purchasing.
E) fluctuating demand.

Accepted Answer

The statement "Shoe manufacturers are not going to buy much more leather if the price falls, nor will they buy much less leather if the price rises" indicates that the demand for leather by shoe manufacturers is inelastic, meaning that a change in price does not significantly affect the quantity demanded.

Quiz 7: Analyzing Business Markets

Which of the following is true for business marketers?

One guideline for selling to small business recommends assigning one point of contact for all service problems. This relates to the suggestion to

When the DeWitt Company purchased a large piece of machinery from Moeller, the company's president paid a personal visit and stayed until the machine was up and running properly. This is an example of which guideline for selling to small business?

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

Trained purchasing agents must follow their organization's

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

The business buyer faces many decisions in making a purchase. The number of decisions depends on

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

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.

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.

How can a marketer overcome the negative effects of commoditization?

In new task buying, a purchaser buys a product or service

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

The fate of Goodyear Tire Company depends on getting contracts from a few major automakers. This illustrates which characteristic of the business market?

Aging of the Canadian population has been leading to an increased demand for condominiums. From the standpoint of the construction material suppliers, which of the following demand forms is most pertinent?

Business markets have several characteristics that contrast sharply with those of consumer markets. Which of the following characteristics describes a scenario where suppliers are expected to customize their offerings to individual business customer needs?

The business buyer makes the fewest decisions in the ________ buying situation.

When Magna International developed an automated after-market roof rack for the Hummer H2, they had to buy some of the materials for the first time and seek an appropriate supplier. This represents a ________ buying situation.

Shoe manufacturers are not going to buy much more leather if the price falls, nor will they buy much less leather if the price rises. This illustrates the business market characteristic of