Question 1

The business buyer makes the fewest decisions in the ________.

Accepted Answer

In a straight rebuy, the buyer simply reorders a previously purchased product or service without any modifications or reconsideration of alternative options. As a result, the buyer makes the fewest decisions in this type of buying situation.

Question 2

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 alterations to the existing product specifications, prices, delivery requirements, or other terms. This type of purchasing situation occurs when the buyer is not completely satisfied with the existing vendor or product and wants to make some changes to fulfill the organization's needs. The buyer might explore multiple vendors or suppliers to compare the price and other terms with the current supplier.

Question 3

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

Systems buying refers to the purchase of a complete solution that includes not only the physical products but also the services and management needed to operate them. Xerox's approach to offering a turnkey solution suggests that they are offering this type of systems buying approach to their clients.

Question 4

There are a series of guidelines for selling to small businesses.Which of the following should NOT be among those guidelines

Accepted Answer

It is not recommended to lump small and midsize businesses together as they have varying needs and requirements, and treating them the same may lead to missed opportunities or dissatisfaction with the products or services offered. It is necessary to tailor sales and marketing strategies to the specific needs of each business segment.

Question 5

Ultimately,the amount of steel sold to General Motors depends on the consumer's 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 refers to the demand for a product that is based on the demand for another related product or service. In this case, the demand for steel by General Motors is derived from the demand for GM cars and trucks by consumers. Therefore, derived demand is the most pertinent demand form for the steel manufacturer.

Question 6

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

Accepted Answer

Systems buying refers to the practice of purchasing a complete solution to a problem from a single seller instead of buying individual components from multiple sources. This approach simplifies the procurement process, reduces the overall cost of ownership, and provides a guarantee that all the components will work seamlessly together. Hence, option B is the correct choice for this question.

Option A, Channel consolidation, refers to the process of reducing the number of intermediaries in a distribution channel to eliminate redundancies, improve efficiency, and increase profitability. This term is not related to the concept described in the question.

Option C, Vertical buying, refers to the practice of purchasing goods and services from suppliers and vendors who are involved in the same industry or value chain as the buyer. While this approach can provide benefits such as cost savings, quality assurance, and innovation, it is not the same as systems buying.

Option D, Horizontal buying, refers to the practice of purchasing goods and services from suppliers and vendors who are not directly involved in the buyer's industry or value chain. This approach can provide benefits such as diversification, risk reduction, and access to new markets or technologies, but it is not relevant to the concept described in the question.

Option E, Supply buying, is not a standard business term, and it does not accurately describe the practice of buying a total solution from one seller. Therefore, it is not the correct choice for this question.

Question 7

All of the following would be among the major industries that make up the business market EXCEPT ________.

Accepted Answer

The Internet is not an industry, but rather a platform or tool used by various industries to conduct business. The other options (agriculture, forestry, and fisheries; manufacturing; construction; banking, finance, and insurance) are all major industries that make up the business market.

Question 8

The business buyer faces many decisions in making a purchase.The number of decisions depends on the buying situation.All of the following contribute to the number of decisions required EXCEPT the ________.

Accepted Answer

The applicability of situation to the mission statement is not related to the number of decisions required in the business buying process. The complexity of the problem being solved, newness of the buying requirement, number of people involved, and time required are all factors that contribute to the number of decisions required.

Question 9

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output.Economists refer to this as the ________.

Accepted Answer

The acceleration effect refers to the phenomenon where a small change in consumer demand can lead to a larger change in the demand for capital goods, like plant and equipment, as businesses adjust to meet the increased demand for their products.

Question 10

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 exist to produce, distribute, and/or sell goods and services to consumers.

Question 11

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 definition provided in the question perfectly fits the description of the business market, which is a market comprised of organizations that purchase goods and services for the purpose of producing other products or services that will be sold, rented, or supplied to others. The other options are incorrect: B) consumer market is comprised of individuals or households buying goods and services for personal consumption, C) e-commerce market refers to the buying and selling of goods and services online, D) global market encompasses all the markets in the world, and E) supplier market refers to the market of companies that supply goods and services to other companies.

Question 12

In order to successfully develop customer reference stories,firms should ________.

Accepted Answer

In order to successfully develop customer reference stories, firms should state the customer's needs in compelling terms. This helps to create a story that resonates with potential customers and highlights the benefits of the company's solution. The use of direct customer quotes can also be effective, but they should be used sparingly and only if they add value to the story. Referencing the barriers to satisfying customer needs can show how the company overcame challenges to deliver a successful solution. Describing the company's solution in terms of products and services is important, but it should be done in a way that focuses on the customer's needs and how the solution solved their specific problems. Focusing on both qualitative and quantitative results can provide a complete picture of the value provided by the company's solution.

Question 13

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

Accepted Answer

The routine purchase of office supplies is a familiar purchase for the purchasing department, and they have a preexisting relationship with the suppliers. This type of purchase is classified as a straight rebuy. A straight rebuy is a routine purchase of a product or service that organizations have bought many times before.

Question 14

Purchasing a new security system or renting a new office building is best characterized as a ________.

Accepted Answer

Purchasing a new security system or renting a new office building involves a significant investment of resources, and likely requires a considerable amount of research and evaluation before making a decision. This is indicative of a new task buying situation, where the buyer is facing a complex and unfamiliar purchase that requires a significant amount of effort and information gathering.

Question 15

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.

Accepted Answer

The description matches with the definition of organizational buying. Marketing channels refer to ways of distributing products to the consumers. Demand-oriented buying refers to buying based on the demand in the market. Purchasing refers to the process of acquiring goods and services. Inventory control refers to managing the level of inventory in an organization.

Question 16

The business marketer normally deals with ________ buyers than the consumer marketer does.

Accepted Answer

Business marketers typically deal with fewer but larger buyers than consumer marketers. Business buyers are often organizations or companies who purchase in bulk, whereas consumer marketers target individuals who purchase in small quantities.

Question 17

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

Accepted Answer

Inelastic demand refers to a situation where a change in price has little impact on the demand for a good or service. Therefore, when the total demand for many business goods and services is inelastic, it means that price changes have little effect on the demand for these products or services.

Question 18

Trained purchasing agents,who must follow their organization's ________,often purchase business goods.

Accepted Answer

Trained purchasing agents must follow their organization's purchasing policies, constraints, and requirements when buying business goods. Culture, past purchasing history, needs, and financial budgets may also influence purchasing decisions, but they are not necessarily the primary factors that purchasing agents must adhere to.

Question 19

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

Accepted Answer

The sentence is talking about how sellers can create and capture value, which means they are selling to business organizations. To understand how to create value, sellers need to understand the buying procedures of the organization. Therefore, choice D, buying procedures, is the best option. The other choices may also be important for sellers to understand, but they are not explicitly mentioned in the sentence.

Question 20

Business markets differ significantly consumer markets in that business markets possess all of the following characteristics EXCEPT ________.

Accepted Answer

Inverted demand is a characteristic of the consumer market, not the business market. The other characteristics listed (fewer, larger buyers; close supplier-customer relationship; professional purchasing; and multiple sales calls) are all typical of the business market.

Quiz 7: Analyzing Business Markets