Question 1

Which of the following can be categorized as a capital item purchased by organizational buyers?

Accepted Answer

A production plant is a large, expensive item that is used to produce goods or services, which makes it a capital item. Office supplies, copy papers, and machine lubricants are considered as operational items and are not classified as capital items.

Question 2

Which of the following inventory practices seeks to boost efficiency by cutting inventories to absolute minimum levels?

Accepted Answer

The just-in-time policy seeks to boost efficiency by cutting inventories to absolute minimum levels. This approach ensures that inventory is delivered only when needed, thereby saving on storage costs and reducing the risk of inventory becoming obsolete or expired. The other options do not align with this objective.

Question 3

Cotton and polyester are used in the production of permanent press clothing.If the supply of cotton is reduced,there will be an immediate effect on the demand for polyester.This relationship represents a(n):

Accepted Answer

Cotton and polyester are examples of complementary goods that are used together in the production of permanent press clothing. Therefore, a reduction in the supply of cotton would immediately affect the demand for polyester, resulting in joint demand.

Question 4

The demand for gold has remained the same in the market irrespective of the rise in the price,as there is no other replacement for the product.This type of demand experienced by gold is referred to as a(n)_____.

Accepted Answer

The situation described in the question is an example of inelastic demand. Inelastic demand refers to a situation where the demand for a product remains the same even if there is a change in its price. This type of demand is usually seen in products that are essential or have no close substitutes, as is the case with gold.

Question 5

_____ is a combination of strategies and tools that drives relationship programs,reorienting the entire organization to a concentrated focus on satisfying buyers.

Accepted Answer

Customer relationship management (CRM) is a strategy that focuses on building relationships with customers. It involves using tools and techniques to manage and analyze customer interactions and data throughout the customer lifecycle, with the aim of improving customer retention and profitability. CRM requires the organization to be customer-centric and to focus on customer satisfaction as a key goal.

Question 6

A manufacturer who produces glass for microwave oven doors,shower enclosures,and patio tabletops is likely to segment his business customers on the basis of:

Accepted Answer

End-use application is the most relevant basis for segmenting business customers in this scenario. Customers purchasing glass for microwave oven doors, shower enclosures, and patio tabletops have different needs and usage requirements, and therefore would be segmented based on the end-use application. Geographic, demographic, and psychographic characteristics are not as relevant in this situation.

Question 7

Which of the following factors is considered by marketers while segmenting business markets by purchase categories?

Accepted Answer

The answer of Which of the following factors is considered...

Question 8

Which of the following is most likely to help marketers to segment organizational buyers by purchase categories?

Accepted Answer

The answer of Which of the following is most likely...

Question 9

Dell Computer purchases parts and resources for its computers from multiple suppliers that are spread across the world.This practice is known as:

Accepted Answer

Global sourcing refers to the practice of purchasing parts and resources from suppliers located all around the world. This allows companies to take advantage of lower costs, improved quality, and access to specialized resources. Offshoring specifically refers to relocating business processes to a foreign country, while outsourcing refers to contracting out a business process to a third-party provider, which may or may not be located in a different country. Reciprocity refers to an informal agreement between two parties to exchange goods or services without a formal contract or payment.

Question 10

If the demand for a product stays almost constant throughout an industry regardless of the change in the price of the product,it can be said that the product is experiencing a(n)_____ demand.

Accepted Answer

An inelastic demand means that regardless of the changes in price, demand for the product remains almost constant. Therefore, this best fits the scenario described in the question.

Question 11

The organizational buying process differs from the consumer purchase process as the organizational buying process:

Accepted Answer

The organizational buying process involves a longer time frame because of the complexity of decisions. Unlike the consumer purchase process which is often quick and simple, the organizational buying process typically involves multiple decision makers and a range of complex factors to consider, such as budget, quality, and long-term strategy. The other options are not accurate, as organizational buying can involve many decision makers, is formal and professional, and may involve the purchase of highly customized or unique products.

Question 12

The linkage between demand for a company's output and its purchases of resources such as machinery,components,supplies,and raw materials is referred to as a(n)_____.

Accepted Answer

The linkage between demand for a company's output and its purchases of resources such as machinery, components, supplies, and raw materials is referred to as a derived demand. This means that the demand for these resources is derived from the demand for the final product or output of the company. For example, if a company produces cars, the demand for steel, tires, and other components necessary for car production will be directly related to the demand for cars.

Question 13

Which is the largest single source of statistical information on the sizes and characteristics of business markets?

Accepted Answer

The federal government, through the Department of Commerce, Census Bureau, and other agencies, is responsible for collecting and publishing a wide range of data on businesses, including their size, industry, location, and other characteristics. The Census Bureau's Economic Census is the largest and most comprehensive source of statistical information on business markets in the United States.

Question 14

Horch is the biggest manufacturer of consumer goods in Germany.The company segments its business customers into new and existing customer groups based on the stage of relationship between the company and the customer.This helps the company to develop different strategies for newly acquired customers and the existing customers,who are interested in making repeat purchases.Which of the following segmentation approaches is being used by Horch in the above scenario?

Accepted Answer

The answer of Horch is the biggest manufacturer of consumer...

Question 15

Purchasing a firm's entire stock of an item from just one vendor is termed as:

Accepted Answer

Sole sourcing refers to purchasing from only one vendor. Multiple sourcing involves purchasing from multiple vendors, outsourcing involves contracting work to external sources, and inverted sourcing is not a commonly used term in supply chain management.

Question 16

Which of the following is true regarding leasing needed products from other organizations?

Accepted Answer

Leasing needed products from other organizations provides flexibility for a growing business allowing it to easily upgrade when needed. It does not necessarily require a high level of capital commitment and it does not increase sunk costs. However, it may make it difficult for a firm to customize the product according to their needs.

Question 17

The demand for computer microprocessor chips depends on the demand for personal computers.This is an example of a(n):

Accepted Answer

This question describes a situation where the demand for one product (computer microprocessor chips) is derived from the demand for another product (personal computers). This is an example of derived demand.

Question 18

When a business pays for the use of an equipment owned by an outside supplier for a specified period of time,the process is known as:

Accepted Answer

Leasing refers to paying for the use of equipment owned by an outside supplier for a specific period of time. Outsourcing involves contracting out business processes to an external company or supplier. Supply inversion is not a commonly used term in business, and nearshoring refers specifically to outsourcing to a company in a nearby country.

Question 19

_____ is an accounting term that refers to charging a portion of a capital item's cost as a deduction against the company's annual revenue for purposes of determining its net income.

Accepted Answer

Depreciation is an accounting practice of allocating the cost of a tangible or physical asset (such as building or machinery) over its useful life. It allows companies to reflect the wear and tear, as well as the obsolescence of the asset, in their financial statements. By expensing a portion of the asset's cost each year, companies reduce their taxable income and improve their cash flow.

Question 20

Which of the following is true of expense items purchased by organizational buyers?

Accepted Answer

Expense items purchased by organizational buyers are typically charged against the income of the company in the year of purchase. These expenses are not considered long-lived business assets that require depreciation over time, and they are not included in determining the net income of the company. Major expenses such as setting up new plants, equipment, and machinery may be classified as capital expenditures rather than expense items.

Quiz 7: Business-to-Business (B2B)Marketing