Deck 7: Business Marketing

Question 1

Which of the following statements is true of business marketing?

A) It refers to the sale of goods and services for the purpose of personal consumption.
B) It deals with products that are used to facilitate an organization's operations.
C) It has long and indirect channels of distribution.
D) It includes selling stationeries to students.

Answer 1

B

Question 2

A product bought to satisfy an individual's personal wants or needs is a ________ product.

A) retail
B) business
C) consumer
D) distributor

Answer 2

C

Question 3

Which statement is true of business markets?

A) Products or services are sold for personal consumption.
B) Goods sold in consumer markets are not sold in business markets.
C) One customer can account for a huge volume of purchases.
D) Relationship marketing is given the least importance.

Answer 3

C

Question 4

Items such as forklifts are more commonly sold as consumer goods than as business products.

Question 5

Fournotts Printing Inc.manufactures and sells photocopiers,printers,and scanners to various corporate offices.This is an example of _____.

A) contract manufacturing
B) business marketing
C) licensing
D) franchising

Question 6

Tamery Corp.is engaged in marketing various goods and services.It buys products from various manufacturers and sells them to businesses and end consumers.Given this information,Tamery Corp.is said to be selling consumer products if:

A) it sells books to students.
B) it sells spare parts to automobile manufacturers.
C) it sells laptops to an IT company.
D) it sells printers to a partnership firm.

Question 7

A consumer product is also known as an industrial product.

Question 8

A Panasonic product comes into a market segment which includes various solutions like visual system,professional camera,computer products,communications and security since the company caters to__________ market.

A) a business
B) a consumer
C) both a business and a consumer
D) an institutional

Question 9

The key characteristic distinguishing business products from consumer products is their intended use,not their physical form.

Question 10

Which of the following characteristics distinguishes business products from consumer products?

A) Physical form
B) Intended use
C) Distribution method
D) Price

Question 11

GE's instagram account shares behind-the-scenes looks at their business and employees.One post about the first female wind technician in Western Canada received over 1,00 likes.With regard to business-to-business social media marketing,these efforts by GE is an example of the __________ marketing metric.

A) product adaptation
B) engagement
C) conversion
D) review

Question 12

B-to-B companies use digital marketing to position their businesses as thought leaders and generate sales leads,primarily in the form of ______.

A) communication and orders
B) banners
C) content marketing
D) promotional mix

Question 13

Vactin Corp.,a construction company,buys ten truckloads of cement for its new project.Given this information,the cement bought is an example of a(n)_____.

A) consumer product
B) service product
C) industrial product
D) manufacture product

Question 14

Which of the following is true of a firm that acts as a consumer marketer?

A) It can also be a business marketer.
B) It has fewer customers than a business marketer.
C) It excludes the sale of goods that are sold in business markets.
D) Its customers are less geographically concentrated than business markets.

Question 15

A _____ is used to manufacture other goods or services,to facilitate an organization's operations,or to resell to other customers.

A) consumer product
B) retail product
C) business product
D) convenience product

Question 16

Which of the following statements is true of content marketing?

A) It includes media such as videos,podcasts,webinars,and blog posts.
B) It includes materials such as steel or lumber mills and food canners.
C) It includes components such as spark plugs and electric motors.
D) It includes equipment such as portable drills and microcomputers.

Question 17

L&T,an international manufacturer of electrical and electronic products and systems,also manufactures custom-engineered switchboards for industrial sectors such as power,refineries,petrochemicals,and cement.In the electronic segment,L&T offers a range of meters and provides control and automation systems for industries.The company manufactures __________ and markets exclusively to _________.

A) business products,business customers
B) industrial products,final consumers
C) consumer products,businesses
D) consumer products,business customers

Question 18

The size of the business market in the United States and most other countries substantially exceeds that of the consumer market.

Question 19

The important functions of providing credit,aggregating supplies from multiple sources,making deliveries,and processing returns often are all carried out by ___________.

A) resellers
B) distributors
C) marketers
D) businessmen

Question 20

Companies selling to business buyers face the same challenges as all marketers of goods and services,including determining __________.

A) the target market and deciding how best to reach it
B) supply chain efficiency
C) the activity of organizing the movement to reach end customers
D) the attractive offers of the products to buyers

Question 21

A business relationship in which executives sit on the boards of their customers or suppliers; trade with each other whenever possible; and often engage in joint product development,finance,and marketing activity.The following affirmation represents____________.

A) amae
B) keiretsu
C) trust
D) commitment

Question 22

Discuss the significance of content marketing as a trend in B-to-B Internet Marketing.

Question 23

Some metrics like awareness,engagement,and conversion are useful for _____.

A) increasing the success of a social media campaign
B) just building visibility on social media
C) gauging the pulse of the end customer
D) attracting traffic of suppliers to the website

Question 24

_____ exists when one party has confidence in an exchange partner's reliability and integrity.

A) Obeya
B) Trust
C) Keiretsu
D) Commitment

Question 25

The producers,resellers,governments,and institutions are categories of customers of a ________ market.

A) primary
B) secondary
C) business
D) consumer

Question 26

A firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely,is _________.

A) trust
B) relationship commitment
C) a strategic alliance
D) engagement

Question 27

Fresnas Inc.,an oil refinery,buys crude oil and converts it into various products such as gasoline,kerosene,and diesel.Fresnas Inc.then sells these products to other companies or retailers.Based on this information,which segment of the business market is most likely represented by Fresnas Inc.?

A) Resellers
B) Producers
C) Distributors
D) Marketers

Question 28

GoPro is arguably one of the top non-celebrity brands on Instagram.A lot of the content they share is from customers using their products.The GoPro page has over 10 million followers,gets hundreds of thousands of tweets,comments,and shares on every post.This exemplifies the metric of ____________.

A) promotional mix
B) marketing
C) engagement
D) strategy

Question 29

The aphorism "hurry up and wait" is often cited as a characteristic of marketing to __________.

A) government agencies
B) producers
C) resellers
D) institutions

Question 30

The firms belonging to construction,manufacturing,transportation,finance,real estate,and food service industries,fall under the category of _____________.

A) resellers
B) producers
C) distributors
D) governments

Question 31

C-Through,an optics manufacturing company,wants to focus on relationship marketing.In this case,which of the following strategies is the best for C-Through to market its products?

A) It can use social networking sites to advertise itself to businesses.
B) It can market its products through dealers.
C) It can set the price and other conditions of sale without negotiation.
D) It can use accessory equipment and major equipment.It can enhance satisfactory services.

Question 32

Which statement is true of new software applications being developed every year that provide customer information?

A) These apps can help lower costs,increase supply chain efficiency,or enhance customer retention,loyalty,and trust.
B) Many business customers do not depend on these applications for marketing.
C) Business marketing does not require vigilant adjustment to keep track of new applications and platforms.
D) New applications are rarely developed for providing additional details of customers.

Question 33

This category of the business market often carries thousands of items in stock and employs sales forces to call on business customers.Who are they?

A) Resellers
B) Producers
C) Distributors
D) Governments

Question 34

The attention that social media attracts,such as the number of followers or fans and which is generally used as the first step in the marketing funnel,and when social media is often paired with paid digital media like display advertising and text-based ads to increase its effectiveness,is often referred to as ___________.

A) awareness
B) conversion
C) engagement
D) optimization

Question 35

Explain strategic alliance and the factors that contribute to its long-term survival.

Question 36

Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in-house coffee shops,benefiting both retailers.What kind of partnership does it represent?

A) Collaboration
B) Strategic alliance
C) Commitment
D) Trust

Question 37

In social media marketing,awareness occurs when action is taken by a business or individual consumer that includes everything from downloading a piece of content (like a white paper)to actually making a purchase.

Question 38

Taking into consideration to business relationships in Japan,which of the following best defines the term amae?

A) It is the feeling of nurturing concern for,and dependence upon,another.
B) It is the lack of motivation among employees in businesses.
C) It is a legal consolidation and collaboration of companies into a single entity.
D) It is the lack of economic competition in the market.

Question 39

Which of the following statements is true of relationship marketing?

A) For many suppliers,retaining their current customers has become a secondary focus in relationship marketing.
B) Business suppliers use social networking sites sparingly as these sites discourage businesses from shopping for all their needs.
C) Loyal customers are less profitable than those who are price sensitive and perceive no difference among brands or suppliers.
D) Relationship marketing has become more important than before because competition has become more intense.

Question 40

Casca Paints Inc.,a manufacturer of paints and emulsions,owns a user-friendly website.The website allows customers to upload pictures of their house to help in selecting their color choices.Donnel Designs Inc.,an interior decoration firm,enters into a partnership with Casca Paints Inc.As a result,customers can now get a complete design solution for their houses.This is an example of a _____.

A) straight rebuy
B) golden handshake
C) relationship commitment
D) strategic alliance

Question 41

Federal,state,and local buying units account for the greatest volume of purchases of any customer category in the United States.

Question 42

Which of the following statements is true about the federal government?

A) Not many goods and services are used by the federal government.
B) Much of the federal government's buying is decentralized.
C) No single federal agency contracts for all the government's requirements,and no single buyer in any agency purchases all that the agency needs.
D) The U.S.federal government buys goods and services worth less than $875 million per year.

Question 43

The NAICS (North American Industry Classification System)is a valuable tool for business marketers engaged in analyzing,segmenting,and targeting markets in which each classification group is relatively homogenous in terms of _______.

A) location,type of product manufactured and problems faced
B) raw materials required,components used,manufacturing process employed,and problems faced
C) location of the firm,suppliers of raw materials,output of the company,problems faced
D) raw materials,location,product manufactured,manufacturing process applied

Question 44

NAICS codes can help identify firms that may be prospective users of a supplier's goods and services and the more identical digits in sequence in a code,the more homogeneous the group.

Question 45

The more identical digits in the sequence of a North American Industry Classification System code among companies,the less homogeneous that group of companies' main manufacturing processes are.

Question 46

For both small and large vendors,paperwork is typically simpler and manageable than if selling at a federal level.

Question 47

Explain how business establishments are classified under the North American Industry Classification System (NAICS).

Question 48

The North American Industry Classification System data can be used to:

A) identify opportunities for new product lines.
B) classify firms according to their number of customers.
C) classify business establishments all over the world.
D) identify potential new customers.

Question 49

The most popular source of information about government procurement is ____________.

A) FedBizOpps
B) Commerce Business Daily
C) NAICS
D) AFTA

Question 50

As long as smartphones are manufactured and are in demand,the demand for new apps will never die.This exemplifies ___________ demand.

A) fluctuating
B) joint
C) derived
D) inelastic

Question 51

James,an administrative manager at Seal Inc.,is asked to purchase 100 printers for the firm's office.He contacts a sales representative at Myro Distributors Inc.and places an order for 100 printers.Myro Distributors Inc.purchases the printers from Ink Corp.,a wholesaler,and delivers them to James at his office.In this scenario,Myron Distributors Inc.is most likely to be a(n)_____.

A) producer
B) retailer
C) institution
D) manufacturer

Question 52

Two types of institutional purchasers exist: one type operates similarly to governments,in that the purchasing process is influenced,determined,or administered by government units.The other type of purchasers ____________.

A) are organized more like corporations
B) behave more like producers
C) operate like resellers
D) are organized like retailer firms

Question 53

The U.S.federal government buys goods and services valued at more than $875 billion per year,making it the world's largest customer.

Question 54

A detailed numbering system developed by the United States,Canada,and Mexico to classify North American business establishments by their main production processes is the NAKES system.See 7-5: The North American Industry Classification System.

Question 55

Schools,hospitals,colleges and universities,churches,labor unions,fraternal organizations,civic clubs,foundations,and other so-called nonbusiness organizations are the components of which business market segment?

A) Federal government
B) Producers
C) Institutions
D) State,county,and city government

Question 56

Which of the following statements is a difference between wholesalers and retailers?

A) Wholesalers use purchased goods to incorporate into other products,while retailers seek to achieve goals other than the standard business goals of profit.
B) Wholesalers account for the greatest volume of purchases of any customer category,while retailers buy business products and resell them to business customers.
C) Wholesalers sell mostly to retailers and other organizational customers,while retailers sell mainly to final consumers.
D) Wholesalers are often known as original equipment manufacturers,or OEMs,while retailers are often known as buying centers.

Question 57

Original equipment manufacturers or OEMs include all individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers.

Question 58

Describe the role of resellers who comprise one the major categories of business customers.

Question 59

With regard to business customers,which statement is true of institutions?

A) They are profit-oriented companies that use purchased goods to incorporate into other products.
B) They are organizations that buy finished goods and resell them for a profit.
C) They are buying units that account for the greatest volume of purchases of any customer category.
D) They are nonbusinesses in the business markets that seek to achieve goals other than the standard business goals of profit.

Question 60

Which of the following statements is true of the North American Industry Classification System (NAICS)?

A) The system developed jointly by United states,Russia,and Mexico,provides a common industry classification system .
B) The geographic dispersion of firms cannot be identified with the help of NAICS.
C) The more digits in an NAICS code,the more homogeneous the group.
D) Each classification is relatively heterogeneous in terms of raw material required,components used,and manufacturing processes employed.

Question 61

Fluctuating demand is the demand for two or more items used together in a final product.

Question 62

Inland Eastex,Inc.manufactures toothpaste.Even when the company increased the price of its toothpaste last year,the sales did not drop.This is an example of _____.

A) elastic demand
B) inelastic demand
C) derived demand
D) joint demand

Question 63

Wonder Coffee is a chain of coffee serving outlets and specializes in selling different flavors of coffee.The increase in the price of sugar does not affect Wonder Coffee's coffee prices very much and sales continue at their usual level.Identify the type of demand in this scenario.

A) Inelastic demand
B) Fluctuating demand
C) Joint demand
D) Elastic demand

Question 64

Derived demand means that an increase or decrease in the price of the product will significantly affect demand for the product.

Question 65

Which of the following statements is true of buyers in consumer markets versus buyers in business markets?

A) Buyers in consumer markets tend to be insensitive to price,while buyers in business markets are very particular about price.
B) Buyer demand for consumer products in consumer markets is less stable than buyer demand for business products in business markets.
C) Buyers in consumer markets approach purchasing more informally,while buyers in business markets approach purchasing more formally.
D) Buyers in consumer markets involve more people in a single purchase decision,while buyers in business markets involve less people in a single purchase decision.

Question 66

Explain the distribution structure followed in business markets.

Question 67

Which of the following is true regarding the number of customers in business markets?

A) Business marketers have many more customers than consumer marketers.
B) It is lot easier for business marketers to identify prospective buyers,monitor current customers' needs and levels of satisfaction.
C) It becomes impossible for business marketers to attend to each customer in their markets.
D) The main advantage for business marketers is that each customer becomes crucial-especially for those manufacturers that have only one customer.

Question 68

The use of direct channels in business marketing has increased dramatically in the past decade with the introduction of various Internet buying and selling schemes.

Question 69

The manager of TruColor Printers Inc.has purchased a sophisticated printing press for $1 million.Which of the following statements is most likely to be true about the printing press?

A) It will depreciate over its useful life.
B) It will be charged as an expense in the year it is bought.
C) It will be purchased by the customers through higher prices.
D) It will be bought through retailers.

Question 70

_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

A) The multiplier effect
B) Reciprocity
C) Fluctuating demand
D) Inelastic demand

Question 71

Which of the following is true of consumers in consumer markets?

A) They often follow the practice of reciprocity.
B) They tend to buy in larger quantities than business consumers.
C) They approach purchasing more formally than business buyers.
D) They normally buy products rather than lease them.

Question 72

A business-to-business online exchange is an electronic trading floor that provides companies with integrated links to their customers and suppliers.

Question 73

When negotiating a purchase in business marketing,final contracts are often short and precise.

Question 74

An advantage of business markets having fewer customers in comparison with consumer markets is that it

A) reduces the attention required to be given to customers.
B) makes it easy to identify prospective buyers.
C) reduces the dependency on distributors for product delivery.
D) increases product diversity.

Question 75

Capital goods such as large or expensive machines,mainframe computers,blast furnaces,generators,airplanes,and buildings,fall under the category of ____________.

A) accessory equipment
B) major equipment
C) processed materials
D) supplies

Question 76

Which of the following is true of distribution structure?

A) Consumer products pass through a system that includes several producers and one wholesaler.
B) The use of direct channels has increased in the past decade with the introduction of various Internet buying and selling schemes.
C) Channels of distribution for business marketing are typically longer.
D) A manufacturer market is most common for indirect users in direct channel.

Question 77

A practice in which business purchasers choose to buy from customers of their competitors is called reciprocity.

Question 78

Which of the following is true of leasing?

A) Businesses normally buy products rather than lease them,even they are very expensive.
B) Leasing allows firms to reduce capital outflow,acquire a seller's latest products,receive better services,and gain tax advantages.
C) Use of leasing is not encouraged in business markets.
D) Manufacturers do not use leasing in their businesses.

Question 79

Anex Textiles,Inc.manufactures cloth and buys the chemical dyes for its use from Werth Chemicals,Inc.Werth Chemicals,Inc.,in turn,buys uniform material for its employees from Anex textiles Inc.This scenario highlights a specific business practice known as ______________.

A) reciprocity
B) trust
C) reselling
D) relationship commitment

Question 80

Typically,more people are involved in a single business purchase decision than in a consumer purchase decision.