Question 1

Important market characteristics in organizational buying behavior include derived demand for industrial products and services and

Accepted Answer

Organizational buying behavior is characterized by a smaller number of customers but larger orders. This is because industrial products and services are typically purchased in bulk and used in the production process or other business operations. The demand is therefore derived from consumer demand for the final product, and the buying decisions are guided by factors such as price, quality, and supplier reliability.

Question 2

Firms selling consumer goods or services often try to reach thousands or millions of individuals or households.Firms selling to organizations are often

Accepted Answer

Firms selling to organizations are often restricted to far fewer buyers as they typically sell to businesses, government agencies, or other institutions that have a specific need for their products or services. This is in contrast to firms selling consumer goods or services who may aim to reach a much broader audience.

Question 3

Which of the following statements about organizational buying compared to consumer buying is most accurate?

Accepted Answer

Brand loyalty exists in both organizational and consumer buying. While perceived risk and involvement levels may differ between the two types of buying, brand loyalty is a key factor in both.

Question 4

Derived demand refers to

Accepted Answer

Derived demand refers to the demand for industrial products and services that is driven by demand for consumer products and services. In other words, the demand for a product or service is derived from the demand for another product or service that uses it in production. For example, the demand for steel is derived from the demand for automobiles, construction, and other industries that use steel as a raw material.

Question 5

Important marketing mix characteristics in organizational buying behavior include: advertising and other forms of promotion are technical in nature; price is often negotiated, evaluated as part of broader seller and product or service qualities, and frequently affected by quantity discounts; and

Accepted Answer

Direct selling to organizational buyers is common, and distribution plays a crucial role in organizational buying behavior.

Question 6

Unfortunately, the NAICS system will not allow marketing managers to gather information about

Accepted Answer

The NAICS system provides information on industries and their codes, but it does not distinguish between industries that are oligopolies or those with a high degree of market concentration. This information would need to be obtained through other sources such as market research or industry reports. The NAICS system does provide information about the size and structure of industries, their geographic distribution, and their economic activity, but it does not provide information on market share in a pure competition environment or import competition in domestic markets. It can provide data on demand for goods and services indirectly through measures such as employment and revenue.

Question 7

Derived demand means the demand for industrial products and services is driven by, or derived, from

Accepted Answer

Derived demand refers to the demand for industrial products and services that arise from the demand for consumer goods and services. In other words, producers of industrial products and services respond to the demand created by consumers for finished goods. Therefore, the demand for industrial products and services stems from the demand for consumer goods and services.

Question 8

Important buying process characteristics in organizational buying behavior include: technically qualified and professional buyers who follow established purchasing policies and procedures; buying objectives and criteria are typically spelled out, there are multiple buying influences and parties participating the purchase decision, and

Accepted Answer

Organizational buying behavior often involves reciprocal arrangements and negotiations between buyers and sellers, as both parties seek to maximize their benefits from the transaction. This is different from consumer buying behavior, which typically involves a one-time transaction with no ongoing relationship between the buyer and seller. The other options are not accurate descriptions of important characteristics of organizational buying behavior.

Question 9

How might a marketing manager, for a manufacturer of turboprop engines used in private jet planes, use the North American Industry Classification (NAICS) system to help with his or her marketing planning?

Accepted Answer

By recording the NAICS numbers of the firm's best customers, the marketing manager can obtain lists of companies with the same NAICS numbers, which can help in identifying potential new customers and markets. This can aid in the development of targeted marketing strategies and tactics aimed at these specific audiences. Additionally, by comparing NAICS numbers to previous SIC codes, the company can analyze changes and trends in their customer base, and adjust their marketing efforts accordingly. Thus, using the NAICS system can be a valuable tool in the marketing planning process.

Question 10

You are the research director of a major marketing-research consulting firm.You need to select an NAICS (North American Industry Classification System) code that gives you the most detail about the competitors in a client's industry.Which of the following levels of classification would provide the greatest detail?

Accepted Answer

The more digits a NAICS code has, the greater the detail it provides. Code 517212 has the most digits among the given options and will provide the greatest detail about the competitors in the client's industry.

Question 11

If there is a downturn in U.S.passenger air travel, a number of U.S.airlines would very likely cancel some of their orders for new planes.The relationship between passenger air travel and the need for new planes is referred to as

Accepted Answer

Derived demand refers to the relationship between demand for a product and the demand for the inputs used to produce that product. In this case, the demand for new planes is derived from the demand for air travel. If there is a downturn in air travel, airlines will not need as many planes and will likely cancel some of their orders. Therefore, the relationship between passenger air travel and the need for new planes can be described as derived demand.

Question 12

Concert Staging Company provides the stage, the roof system, and lighting and sound for outdoor concerts and theaters.It is typically hired by the organization sponsoring the event.When the economy slows down, consumers are more likely to save their money for a rainy day than buy a concert or theater ticket.The number of concert and theater events determines how many times the company gets to provide its services.Demand for the services provided by Concert Staging Company is __________ demand.

Accepted Answer

The demand for the services provided by Concert Staging Company is derived demand because it is dependent on the demand for the concerts and theater events that the company is hired to service. As the number of events increases, the demand for Concert Staging Company's services also increases.

Question 13

Which of the following possible aspects of consumer buying decisions is least likely to enter into an organizational buying decision?

Accepted Answer

Problem recognition triggered by self-actualization motives is a personal factor and is not likely to be a consideration in organizational buying decisions. Organizational buying decisions are typically based on rational and objective criteria such as product performance, cost, and supplier capabilities.

Question 14

Which of the following statements accurately characterizes buying behavior in organizational markets?

Accepted Answer

The answer of Which of the following statements accurately characterizes...

Question 15

FIGURE 6-2 
-According to Figure 6-2 above, what is the industry represented by NAICS code 51?

Accepted Answer

NAICS code 51 represents the Information industry, which includes sectors like publishing, broadcasting, telecommunications, and data processing services.

Question 16

Important product or service characteristics in organizational buying behavior include: products or services of a technical nature, purchased on the basis of specifications; a large portion of goods are purchased in a raw or semi-finished state, and

Accepted Answer

Organizational buying behavior places a heavy emphasis on factors such as delivery time, technical assistance, and postsale service. This is particularly important for products or services that are technical in nature and purchased based on specifications. In addition, a large portion of goods are purchased in a raw or semi-finished state, requiring additional technical support during the manufacturing process. Quantity price discounts and extended contracts are also important, but not as critical as factors related to technical assistance and service.

Question 17

The demand for industrial products and services that is driven by demand for consumer products and services is

Accepted Answer

Derived demand is the demand for industrial products and services that is driven by the demand for consumer products and services. It means that the demand for a particular product or service is derived from the demand for another product or service. For example, the demand for steel used in the construction of buildings is derived from the demand for new construction projects.

Question 18

Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.

Accepted Answer

The demand for sodium fluoride by Procter & Gamble is derived demand because it depends on the demand for Crest toothpaste. Derived demand occurs when the demand for one good or service occurs as a result of the demand for another related good or service.

Question 19

FIGURE 6-2 
-According to Figure 6-2 above, what is the NAICS code for cable and other subscription programming?

Accepted Answer

The answer of FIGURE 6-2 
-According to Figure 6-2 above,...

Question 20

Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators.The demand for Spruceland pallets would be classified as

Accepted Answer

The answer of Spruceland Millworks in Canada makes wooden pallets...

Quiz 6: Understanding Organizations As Customers