Question 1

Because formal committees are often established to purchase business products,members of buying centres can be readily identified on company organizational charts.

Accepted Answer

Buying centres typically do not appear on company organizational charts.

Question 2

One useful aspect of the North American Industry Classification System (NAICS)is that it helps organizations identify potential new customers.

Accepted Answer

NAICS provides a standardized way of categorizing industries and businesses, making it easier for organizations to identify potential customers and market opportunities in specific sectors.

Question 3

Consumable items that do not become part of the final product are called supplies.

Accepted Answer

Consumable items, such as raw materials, that become part of the final product are called materials while supplies are consumable items that do not become part of the final product, such as office supplies, cleaning supplies, or packaging materials.

Question 4

A keiretsu is an example of how strategic alliances can make efficient use of relationship marketing.

Accepted Answer

A keiretsu is a Japanese business network of manufacturers, suppliers, and distributors who work closely together and rely on long-term relationships to achieve success. The keiretsu structure is an example of how strategic alliances can make efficient use of relationship marketing, as each member of the network benefits from the relationships they have built with other members.

Question 5

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

The producer segment of the business market includes firms that purchase goods and services to produce other goods for profit.

Question 6

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

Accepted Answer

DuPont is attempting to influence the demand for clothing that contains Lycra, which is a product they supply. This is an example of derived demand, where the demand for one product (Lycra) is based on the demand for another product (clothing).

Question 7

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 8

The reseller market is the same as the retailer market.

Accepted Answer

The reseller market includes both retailers and wholesalers.

Question 9

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

Accepted Answer

Channels of distribution for business products are often direct as the business customers are more likely to have a closer relationship with the manufacturer or supplier and have more specific needs and requirements. Therefore, intermediaries may not be needed in the process.

Question 10

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

Accepted Answer

According to data from the US Census Bureau, the federal government was the largest purchaser of goods and services in the United States in 2019, spending over $550 billion. Therefore, the statement is true.

Question 11

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 12

The government sector (federal,provincial,and municipal)is a major segment of the business market.

Accepted Answer

The government sector is a major segment of the business market, as it provides opportunities for businesses to sell goods and services to government agencies at various levels (federal, provincial, and municipal).

Question 13

Another commonly used term for accessory equipment is installations.

Accepted Answer

Another commonly used term for major equipment is installations.

Question 14

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 15

Improved customer loyalty was developed by United Airlines through a strategic alliance with Starbucks.Onboard its planes,United now serves Starbucks gourmet coffee in cups that bear the logos of both companies.

Accepted Answer

One of the purposes of strategic alliances is relationship marketing.

Question 16

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

Accepted Answer

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

Question 17

For a product to be called a business product,it must be used to manufacture other products,become part of another product,facilitate the normal operations of a firm,or be acquired for resale with no substantial change in form.

Accepted Answer

This statement accurately describes the definition of a business product.

Question 18

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

Accepted Answer

Personal selling allows for direct communication between the seller and potential customer, which can lead to building strong relationships and closing deals. However, depending on the industry and product/service being sold, other communication tools such as advertising, public relations, and digital marketing may also play a significant role in a business's overall marketing strategy.

Question 19

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 20

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.

Quiz 6: Business Marketing