Question 1

Institutional markets are
A) intermediaries who resell goods to make a profit.
B) federal and state government units.
C) state or local government units.
D) consumers who buy products for their own use.
E) organizations that seek nonbusiness goals.

Accepted Answer

The answer of Institutional markets are
A) intermediaries who resell goods...

Question 2

Mike's Roadside Market buys produce from area farmers,marks the merchandise at a price that includes some profit,and then sells the fruit and vegetables to the people in and around Centerville.Mike's would be classified as part of a ____ market.
A) consumer
B) producer
C) government
D) reseller
E) wholesaler

Accepted Answer

Mike's Roadside Market buys and resells produce, making it a reseller in the market. It is not a producer, government, wholesaler, or consumer market.

Question 3

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house.This means it is part of a(n)____ market.
A) producer
B) consumer
C) reseller
D) institutional
E) government

Accepted Answer

The fact that Pi Delta Mu sorority is purchasing in bulk to feed its members living in the house suggests that it is an institutional market. Institutional markets include organizations that seek to provide goods and services to their members, such as universities, hospitals, and prisons. This differs from a consumer market, which is made up of individuals purchasing goods for personal use, and a reseller market, which includes retailers who purchase goods to sell to consumers. A producer market involves businesses purchasing goods and services to use in their production process, while a government market includes government agencies purchasing goods and services for public use.

Question 4

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district.Citrus Sweet,Inc.is in the citrus juice business but has never sold to the government market.To have a chance at getting this order,Citrus Sweet's first step must be to get her firm to
A) make a presentation appointment with the state.
B) quote prices to the purchasing department.
C) advertise in the capital city.
D) negotiate with the state.
E) secure a slot on the list of qualified bidders.

Accepted Answer

The best first step for Citrus Sweet, Inc. to have a chance at getting the order is to secure a slot on the list of qualified bidders. This would allow the company to be considered for the order and potentially receive a request for a quote from the purchasing department. Without being on the list of qualified bidders, the company would not be able to participate in the procurement process. Making a presentation appointment, advertising, or negotiating cannot happen until the company is able to participate in the procurement process.

Question 5

____ buy products from manufacturers and then resell the products to other firms in the distribution system.
A) Retailers
B) Producers
C) Distributors
D) Warehouses
E) Wholesalers

Accepted Answer

Wholesalers buy products in bulk from manufacturers and then sell those products to retailers or other distributors in the supply chain.

Question 6

About what percentage of the annual U.S.gross domestic product is government spending?
A) 2 percent
B) 10 percent
C) 20 percent
D) 30 percent
E) 50 percent

Accepted Answer

According to data from the Bureau of Economic Analysis, government spending as a percentage of GDP in 2019 was around 20 percent.

Question 7

Kroger Grocery Store is an example of a reseller.Which of the following factors concerning reseller purchase decisions is false?
A) Resellers are concerned with the level of demand for the product.
B) Resellers are not concerned with how much space the product takes up as long as it has a high price.
C) Resellers want producers to be able to supply adequate quantities of the product.
D) Resellers are concerned with the availability of technical and promotional assistance from the producer.
E) Resellers are concerned with the markup percentage they can get on the product.

Accepted Answer

Resellers are always concerned with how much space a product takes up, as it impacts their profitability and logistical concerns. A high price may not necessarily offset negative space considerations.

Question 8

Retailers like Target and Kmart are considered to be members of which business market?
A) Reseller
B) Customer
C) Producer
D) Institutional
E) Services

Accepted Answer

Target and Kmart are resellers, which means they purchase products from manufacturers and then sell them to customers. Therefore, they belong to the reseller business market.

Question 9

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.
A) consumer
B) institutional
C) producer
D) government
E) reseller

Accepted Answer

Reseller markets are composed of individuals and business organizations that purchase finished goods and resell them without changing the physical characteristics of the product. This includes wholesalers, retailers, and distributors who buy in bulk from producers and then break down the product into smaller units for resale to the end consumer. The other options listed (consumer, institutional, producer, and government markets) all involve different types of customers and/or buyers with specific purchasing behaviors and motivations.

Question 10

Business markets are typically divided into four categories.These categories are
A) retailers,wholesalers,services,and nonprofit firms.
B) producer,manufacturer,reseller,and government.
C) producer,reseller,government,and institutional.
D) manufacturer,wholesaler,retailer,and services.
E) reseller,retailer,government,and institutional.

Accepted Answer

The four categories of business markets are producer, reseller, government, and institutional. These categories are defined based on the types of organizations that make up each market segment. Producer markets include businesses that create products or components that are then sold to other businesses or consumers. Reseller markets are made up of businesses that purchase products from producers or other resellers and then sell them to consumers. Government markets refer to businesses that supply goods or services to government agencies, while institutional markets include organizations like universities, hospitals, and other non-profit organizations that purchase goods and services for their own use.

Question 11

Motorola buys silicone which is used in its chip-making process.Motorola produces microchips for use within a wide variety of products for other firms,such as Ford,GM and Samsung.Motorola is a buyer in a(n)____ market.
A) producer
B) government
C) reseller
D) construction
E) institutional

Accepted Answer

Motorola is purchasing silicone to produce microchips, which are components used in the manufacturing of products for other companies. This activity places Motorola in the producer market, as it is buying raw materials (silicone) to produce goods (microchips) for other businesses.

Question 12

Snappy Tools,Inc.,purchases hammers,bolts,and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools,Inc.The company would be part of what type of business market?
A) Reseller
B) Producer
C) Consumer
D) Government
E) Supply

Accepted Answer

Snappy Tools, Inc. purchases products from manufacturers and sells them to hardware stores, indicating that they are a reseller-type business.

Question 13

The recently created Department of Homeland Defense is a member of the ____ market.
A) regulatory
B) reseller
C) government
D) producer
E) institutional

Accepted Answer

The Department of Homeland Defense is a government agency, and therefore belongs to the government market.

Question 14

Churches,charitable organizations,and private colleges are considered ____ buyers.
A) corporate
B) government
C) institutional
D) producer
E) nonprofit

Accepted Answer

Churches, charitable organizations, and private colleges are not corporate or government entities. They are institutional buyers because they are organizations that purchase goods and services for their own use rather than for resale. They are also nonprofit buyers, as their primary goal is not to generate profit but rather to fulfill their mission or serve their community.

Question 15

The government decides to purchase a new fleet of fighter jets for the U.S.Air Force.What type of buying procedure is the government most likely to use?
A) The government will request bids from all companies on its qualified bidder list.
B) It will contact whatever company made the last jets and have them develop the new ones.
C) Ads will be placed in the top five circulated U.S.newspapers for a company to produce the jets.
D) The government will select a few firms and enter into negotiations with them until the contract is awarded.
E) The contract will go to the first company that submits a reasonable bid for the desired jets.

Accepted Answer

The government will likely use a negotiated procurement procedure in which they will select a few firms and enter into negotiations with them until the contract is awarded. This is because purchasing fighter jets is a complex and specialized process that requires careful evaluation and negotiation with qualified bidders. The government will want to ensure that they are receiving the best value for their money and that the jets meet their specific requirements. A competitive bidding process (A and E) may be used initially to narrow down the list of potential bidders, but ultimately negotiations will be necessary to finalize the contract. Option B is not a viable option as the government will want to consider all qualified bidders, not just the company that made the previous jets. Option C is also not a viable option as it does not provide a comprehensive evaluation of qualified bidders.

Question 16

Which type of business market tends to have the most complex buying procedures?
A) Reseller
B) Institutional
C) Retailer
D) Government
E) Producer

Accepted Answer

Government markets tend to have the most complex buying procedures due to strict regulations, formal procedures, and extensive documentation requirements. Decision making involves multiple levels of authority and lengthy bidding processes.

Question 17

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n)____ market.
A) consumer
B) producer
C) reseller
D) government
E) institutional

Accepted Answer

The answer of An accountant who purchases software for maintaining...

Question 18

Because retailers have to be concerned with product selection,price,and space,they often evaluate products on the basis of
A) their markup.
B) sales per square foot of selling area.
C) how many of the product they can fit in a certain amount of space.
D) profit per dollar of selling price.
E) the reliability of the supplier.

Accepted Answer

Retailers evaluate products based on sales per square foot of selling area to ensure that they are maximizing their profitability and effectively utilizing their retail space.

Question 19

A friend of yours starts his own business.He would like to expand his client base to include the government,but he believes his small business would be ignored.Based on your knowledge from the text,you tell him
A) that he's absolutely right,the government doesn't deal with small businesses.
B) although the government will deal with small businesses,he will never make a profit off a government contract.
C) that any government,federal,state,or local would laugh at the size of his business.
D) the government rarely considers new suppliers when making purchasing decisions.
E) the government buys products from all sizes of business,but there is some red tape.

Accepted Answer

The text suggests that the government buys products from all sizes of business, but there is some red tape involved. Therefore, choice E is the best answer. Choices A, B, and C are incorrect as they make overly negative and generalized statements without any supporting evidence. Choice D is also incorrect as there is evidence in the text that the government does consider new suppliers.

Question 20

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ____ markets.
A) consumer
B) institutional
C) producer
D) government
E) reseller

Accepted Answer

Producer markets (also known as industrial markets) refer to the B2B market segment in which businesses buy products for the purpose of producing other products or for using them in their operations. This is different from consumer markets, in which products are purchased for personal use, and reseller markets, in which products are purchased for the purpose of selling them to others. Institutional markets may also refer to B2B markets, but this term is broader and includes organizations such as hospitals and schools, in addition to businesses. Government markets refer specifically to the B2B market segment in which government agencies purchase products.

Quiz 7: Business Buying Behavior

Institutional markets are

Mike's Roadside Market buys produce from area farmers,marks the merchandise at a price that includes some profit,and then sells the fruit and vegetables to the people in and around Centerville.Mike's would be classified as part of a ____ market.

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house.This means it is part of a(n) ____ market.

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district.Citrus Sweet,Inc.is in the citrus juice business but has never sold to the government market.To have a chance at getting this order,Citrus Sweet's first step must be to get her firm to

____ buy products from manufacturers and then resell the products to other firms in the distribution system.

About what percentage of the annual U.S.gross domestic product is government spending?

Kroger Grocery Store is an example of a reseller.Which of the following factors concerning reseller purchase decisions is false?

Retailers like Target and Kmart are considered to be members of which business market?

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.

Business markets are typically divided into four categories.These categories are

Motorola buys silicone which is used in its chip-making process.Motorola produces microchips for use within a wide variety of products for other firms,such as Ford,GM and Samsung.Motorola is a buyer in a(n) ____ market.

Snappy Tools,Inc.,purchases hammers,bolts,and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools,Inc.The company would be part of what type of business market?

The recently created Department of Homeland Defense is a member of the ____ market.

Churches,charitable organizations,and private colleges are considered ____ buyers.

The government decides to purchase a new fleet of fighter jets for the U.S.Air Force.What type of buying procedure is the government most likely to use?

Which type of business market tends to have the most complex buying procedures?

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ____ market.

Because retailers have to be concerned with product selection,price,and space,they often evaluate products on the basis of

A friend of yours starts his own business.He would like to expand his client base to include the government,but he believes his small business would be ignored.Based on your knowledge from the text,you tell him

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ____ markets.