Question 1

The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:

Accepted Answer

The ability to quickly recognize changes and anticipate customer responses is referred to as market-sensing capability. This involves gathering market intelligence, monitoring customer behavior, and applying insights to develop effective marketing strategies. Option A, market research capability, refers to the systematic gathering and analysis of data related to a particular market. Option B, customer-linking capability, refers to a company's ability to connect with customers on a personal level and establish strong relationships. Option C, competitive intelligence, involves gathering and analyzing information about competitors to gain a strategic advantage. Option E, derived demand, refers to the demand for a product or service that is driven by the demand for another product or service.

Question 2

When purchasing microprocessors from Intel Corporation to be incorporated into Dell's line of personal computers,IBM would be classified as:

Accepted Answer

IBM is an original equipment manufacturer (OEM) because they use Intel's microprocessors to incorporate into their own products.

Question 3

When Armco Steel realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles,this illustrates the concept of:

Accepted Answer

Derived demand refers to the demand for a product or service that arises from the demand for another product or service. In this case, the demand for steel is derived from the demand for automobiles. As the demand for automobiles declines, the demand for steel used in automobile production also declines.

Question 4

A diverse array of organizations make up the business market.These organizations can be broadly classified as:

Accepted Answer

The three broad categories of organizations that make up the business market are commercial enterprises (including producers and resellers), governmental organizations (including federal, state, and local government agencies), and institutions (including hospitals, universities, and charitable organizations).

Question 5

Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded.This suggests that Ford's price elasticity of demand is:

Accepted Answer

When a 10% reduction in price leads to a 15% increase in quantity demanded, it suggests that the demand for the product is responsive to price changes, making it elastic. This means that customers are more likely to change their purchasing behavior in response to price changes.

Question 6

Which of the following transactions fall into the business marketing domain?

Accepted Answer

The answer of Which of the following transactions fall into...

Question 7

Concerning manufacturing customers,the business market is:

Accepted Answer

Manufacturing customers tend to be concentrated by size, meaning that there is a small number of large companies that make up a significant portion of the market. They also tend to be geographically concentrated in industrial centers or areas with a strong manufacturing presence. However, there is no evidence to suggest that these markets are experiencing declining growth in large metropolitan areas, so option C can be eliminated. Therefore, the best choice is E, which encompasses the first two characteristics.

Question 8

The method of classifying industrial goods into meaningful categories in the business market centers on this question:

Accepted Answer

Classifying industrial goods into categories is based on how the goods enter the production process and the cost structure of the firm. This is known as the "buying center" approach, which focuses on how the decision-making process and the needs of different groups in the organization affect the purchase of industrial goods. Therefore, option A is the best choice.

Question 9

Concerning the chain of suppliers involved in the creation of a Honda automobile,which of the following fall within the business marketing domain?

Accepted Answer

All three options fall within the domain of business marketing. Option A involves Honda's purchasing of components from direct suppliers, which is a typical business-to-business transaction. Option B involves the direct suppliers of power steering systems purchasing sheet metal from upstream suppliers, which is also a business-to-business transaction. Option C involves organizations purchasing Honda automobiles for their fleets, which is a business-to-business transaction between Honda and the fleet customers. Therefore, all three options fall within the domain of business marketing.

Question 10

The particular skills,abilities,and processes that an organization has developed to manage close customer relationships are referred to as:

Accepted Answer

The term "customer-linking capability" specifically refers to the skills, abilities, and processes a company has developed to manage close relationships with their customers. Channel management refers to the management of distribution channels, derived demand refers to the demand for a product or service resulting from the demand for another product or service, the market-sensing capability refers to a company's ability to gather and analyze market information, and the extended enterprise refers to a company's networks of suppliers, manufacturers, and partners.

Question 11

Based on the volume of their purchases,_____ are the most important commercial customers in the business or industrial market.

Accepted Answer

Manufacturers typically make large purchases of raw materials and equipment, making them the most important commercial customers in the business or industrial market. Construction companies and transportation companies may also make significant purchases, but not necessarily at the same volume as manufacturers. Service firms (e.g., hotels) and health care facilities are part of the institutional market, not the business or industrial market.

Question 12

Market-driven firms demonstrate:

Accepted Answer

Market-driven firms exhibit all of the characteristics mentioned in the options - coordinated use of interfunctional resources, a focus on customer interests, and the ability to obtain and use superior information about customers and competitors. Thus, all the options are correct, making option D the best choice.

Question 13

As an industrial customer,Ford Motor Company would be classified as:

Accepted Answer

The answer of As an industrial customer,Ford Motor Company would...

Question 14

When purchasing a high speed packaging machine,General Foods would be classified as:

Accepted Answer

The answer of When purchasing a high speed packaging machine,General...

Question 15

Dayco increased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 9 percent.Price elasticity of demand for drive belts appears to be:

Accepted Answer

The fact that sales increased by a greater percentage than the price increase indicates that the demand for drive belts is relatively insensitive to price changes, making it inelastic.

Question 16

Market-driven firms spot market changes and react well in advance of their competitors.This illustrates:

Accepted Answer

The ability to spot market changes and react quickly is a demonstration of market-sensing capability, which is a key characteristic of market-driven firms. Option A is partially correct but does not cover the entire scope of what makes a firm market-driven. Option B is incorrect because it refers to the overall value a firm provides, while the question is specifically asking about market-driven firms. Option D is also incorrect as it is not related to the topic of the question. Option E is partially correct but option C is a more accurate answer.

Question 17

Concerning the classification of customers in the business market,General Motors is a(n)____ when purchasing a mainframe computer system from IBM,but is a(n)____ when purchasing tires from Goodyear.

Accepted Answer

The answer of Concerning the classification of customers in the...

Question 18

The business market consists of the following three components:

Accepted Answer

The answer of The business market consists of the following...

Question 19

When purchasing manufacturing equipment from General Electric,Chrysler would be classified as:

Accepted Answer

The answer of When purchasing manufacturing equipment from General Electric,Chrysler...

Question 20

When purchasing machine tools for their plants,American Honda is:

Accepted Answer

The answer of When purchasing machine tools for their plants,American...

Quiz 1: A Business Marketing Perspective

The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:

When purchasing microprocessors from Intel Corporation to be incorporated into Dell's line of personal computers,IBM would be classified as:

When Armco Steel realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles,this illustrates the concept of:

A diverse array of organizations make up the business market.These organizations can be broadly classified as:

Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded.This suggests that Ford's price elasticity of demand is:

Which of the following transactions fall into the business marketing domain?

Concerning manufacturing customers,the business market is:

The method of classifying industrial goods into meaningful categories in the business market centers on this question:

Concerning the chain of suppliers involved in the creation of a Honda automobile,which of the following fall within the business marketing domain?

The particular skills,abilities,and processes that an organization has developed to manage close customer relationships are referred to as:

Based on the volume of their purchases,_____ are the most important commercial customers in the business or industrial market.

Market-driven firms demonstrate:

As an industrial customer,Ford Motor Company would be classified as:

When purchasing a high speed packaging machine,General Foods would be classified as:

Dayco increased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 9 percent.Price elasticity of demand for drive belts appears to be:

Market-driven firms spot market changes and react well in advance of their competitors.This illustrates:

Concerning the classification of customers in the business market,General Motors is a(n) when purchasing a mainframe computer system from IBM,but is a(n) when purchasing tires from Goodyear.

The business market consists of the following three components:

When purchasing manufacturing equipment from General Electric,Chrysler would be classified as:

When purchasing machine tools for their plants,American Honda is:

Quiz 1: A Business Marketing Perspective

The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as:

When purchasing microprocessors from Intel Corporation to be incorporated into Dell's line of personal computers,IBM would be classified as:

When Armco Steel realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles,this illustrates the concept of:

A diverse array of organizations make up the business market.These organizations can be broadly classified as:

Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded.This suggests that Ford's price elasticity of demand is:

Which of the following transactions fall into the business marketing domain?

Concerning manufacturing customers,the business market is:

The method of classifying industrial goods into meaningful categories in the business market centers on this question:

Concerning the chain of suppliers involved in the creation of a Honda automobile,which of the following fall within the business marketing domain?

The particular skills,abilities,and processes that an organization has developed to manage close customer relationships are referred to as:

Based on the volume of their purchases,_____ are the most important commercial customers in the business or industrial market.

Market-driven firms demonstrate:

As an industrial customer,Ford Motor Company would be classified as:

When purchasing a high speed packaging machine,General Foods would be classified as:

Dayco increased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 9 percent.Price elasticity of demand for drive belts appears to be:

Market-driven firms spot market changes and react well in advance of their competitors.This illustrates:

Concerning the classification of customers in the business market,General Motors is a(n) ____ when purchasing a mainframe computer system from IBM,but is a(n) ____ when purchasing tires from Goodyear.

The business market consists of the following three components:

When purchasing manufacturing equipment from General Electric,Chrysler would be classified as:

When purchasing machine tools for their plants,American Honda is:

Concerning the classification of customers in the business market,General Motors is a(n) when purchasing a mainframe computer system from IBM,but is a(n) when purchasing tires from Goodyear.