Deck 6: Business-To-Business Markets: How and Why Organizations Buy

Question 1

When a company's professional buyer considered a of a plant to house a new distribution center,he spent a lot of time and effort researching information because this purchase decision was very high- risk,complex task.

A)simplified rebuy
B)modified rebuy
C)new- task buy
D)utility buy
E)government purchase

Answer 1

C

Question 2

was/were being utilized when Boeing received orders for $100 million in spare parts in the first year its website was in operation.

A)Data bots
B)E- commerce
C)Single sourcing
D)Search engines
E)Intranet

Answer 2

B

Question 3

Firewalls and encryption are .

A)100 percent effective means of linking between various websites
B)two ways to eliminate employee pilferage
C)two methods of communicating with Internet customers
D)100 percent effective at keeping hackers away from sensitive information
E)two commonly used techniques to safeguard Internet transactions

Answer 3

E

Question 4

Celarix.com is an Internet company that provides other businesses operating on the Internet with various kinds of help handling distribution bottlenecks including software that manages tariffs and exchange rates for companies that ship internationally.Celarix.com engages in .

A)business- to- business e- commerce
B)reverse marketing
C)consumer- to- business e- commerce
D)business- to- consumer e- commerce
E)reciprocal activities

Question 5

occurs when two or more goods are necessary to create a product.

A)Joint demand
B)Government demand
C)Fluctuating demand
D)Inelastic demand
E)Consumer demand

Question 6

The fluctuating demand for organizational products is due to since business customers tend to purchase certain products infrequently.

A)an absence of demand synergy
B)the 80/20 rule
C)the desire to reduce fixed costs
D)the products' life expectancies
E)the distributors

Question 7

A consumer package goods producer sells its consumer package goods to wholesalers who in turn sell the product to retailers.The wholesaler is considered a .

A)producer
B)facilitator
C)reseller
D)organizational
E)consumer

Question 8

means that it usually does not matter if the price of a business- to- business product goes up or down; the business customer will still buy the same quantity.

A)Derived demand
B)Consumer demand
C)Inelastic demand
D)Economic demand
E)Elastic demand

Question 9

A description of how business- to- business marketing differs from consumer marketing must include the fact that business- to- business marketing _.

A)typically uses competitive bidding and price negotiations
B)consists of frequent impulse purchases
C)usually has one person involved in the decision
D)emphasizes advertising more than any other element of the promotion mix
E)is composed of many individual and household customers

Question 10

When the city of St.Louis buys a golf turf mower for maintaining the city's golf course in Forest Park ,the sale occurs in which market?

A)producer
B)facilitator
C)government
D)reseller
E)consumer

Question 11

Governments are just about the only customers for certain products such as Boeing's fighter jets.The government is a(n).

A)facilitator
B)distributor
C)organizational buyer
D)producer
E)reseller

Question 12

Any sales rep of a particular computer company that has a question about a product's capability,its delivery date,or the status of a customer's order can use a website of the organization's that allows its employees to be able to link with any of the company's databases.

A)data bots
B)web link
C)intranet
D)search engine
E)extranet

Question 13

A Miami restaurant has created atmosphere through its subtle use of blue and green lighting,ceiling fans over each table,and frozen drinks.If its electrical energy supplier raises its prices,the restaurant will most likely .

A)remove its lighting,turn off its fans,and economize on its use of electricity
B)continue its present operation because it has an elastic demand for electricity
C)ask other Miami restaurants to create a derived demand for cheaper electricity
D)continue its present operation because it has an inelastic demand for electricity
E)decide to find other ways to use electricity

Question 14

Another name for business- to- business marketing is _.

A)C2C marketing
B)B2C marketing
C)derived marketing
D)organizational marketing
E)functional marketing

Question 15

is a business practice in which a buyer shapes a supplier's products and operations to satisfy its needs.

A)Reverse marketing
B)Top- down marketing
C)Reciprocity
D)Functionalization
E)Bottom- up marketing

Question 16

A Maritime seafood products manufacturer hopes to attract Ontario consumers for its Brunswick sardines through a campaign pushing the small fish as a positive food choice.The campaign encouraged consumers to buy more sardines.If consumers purchased more sardines,then supermarkets would stock more sardines,thus creating for the small fish.

A)derived demand
B)micro- dependent
C)price elasticity
D)price inelasticity
E)value- added demand

Question 17

Power Electric connects with large buyers such as Cor Edison.The system making this possible is referred to as the Trade Network.The Trade Network is Power Electric's .

A)data bots
B)private exchange
C)extranet
D)web link
E)search engine

Question 18

Professional buyers are NOT responsible for .

A)making sure all accessory goods and services are available at a reasonable cost
B)manufacturing the product
C)negotiating transportation and delivery charges
D)ensuring products are delivered in a timely fashion
E)selecting quality products

Question 19

A(n)is a combination of hardware and software that ensures only authorized individuals gain entry into a computer system.

A)transaction barrier
B)intranet maze
C)firewall
D)locked door
E)dead- end

Question 20

In terms of organizational markets,an automobile company,a theme park company,and a food processing company are all examples of .

A)not- for- profit markets
B)resuppliers
C)distributors
D)resellers
E)producers

Question 21

A identifies the degree of effort required of the firm's personnel to collect information and make a purchase decision.

A)needs hierarchy
B)buying center continuum
C)purchase continuum
D)need- response framework
E)buy class framework

Question 22

During the stage of the business buying decision process,the buying center assesses the proposals.

A)evaluate alternatives
B)obtain written or verbal bids
C)engage in a value analysis
D)do an information search
E)problem recognition

Question 23

Worthington Farm raises chickens.For years,it has used wooden coops for hauling its poultry to market.When Bob Worthington went to reuse some of his coops,he noticed many of them could not be sufficiently cleaned for reuse and ought to be replaced.Worthington was at which stage of the business buying process when he decided to replace his old coops?

A)information search
B)prepurchase evaluation
C)a vendor analysis
D)information evaluation
E)problem recognition

Question 24

In terms of organizational markets,discount stores are examples of .

A)resuppliers
B)not- for- profit markets
C)resellers
D)producers
E)facilitating agents

Question 25

Without ,it would be easy for unethical people to get your credit card number by creating a "sniffer" program that intercepts and reads messages.

A)encryption
B)back- translation
C)message overlap
D)firewalls
E)reverse encoding

Question 26

The Green Awning is a flower and gift store.When its owner purchases the green foam used in the bottom of vases of cut flowers,floral tape used in flower arrangements,and gift cards,it is most likely a .

A)modified rebuy
B)straight rebuy
C)utility buy
D)simple- task purchase
E)value purchase

Question 27

An intranet is not used for .

A)training employees
B)videoconferencing
C)communicating with the supplier network
D)communicating with geographically dispersed branches of an organization
E)distributing internal documents

Question 28

When a company allows certain suppliers,customers,and others outside the organization to access its intranet,the system is known as a(n).

A)web link
B)extranet
C)search engine
D)private exchange
E)data bot

Question 29

Demand in business markets _ _.

A)changes on a case- by- case basis
B)is the same as in consumer demand
C)differs from consumer demand
D)is something not addressed in marketing
E)none of the above

Question 30

NCR sells Point of Sales Workstations to retailers.This is an example of marketing.

A)consumer
B)individual
C)distribution
D)business
E)direct

Question 31

Because PPG Industries is a producer,the company may experience since the number of units PPG's customers want to buy is dependent on the volume the customers will sell to their customers.

A)consumer demand
B)resupplying
C)elastic pricing
D)single source
E)derived demand

Question 32

As a result of ,the success of one company may depend on another company in a different industry.

A)value- added demand
B)micro- dependent
C)price inelastic
D)price elastic
E)derived demand

Question 33

The success of one company in one industry may depend on another company in a different industry.This dependence could create a situation of .

A)value- added demand
B)inelastic demand
C)elasticity
D)micro- dependent demand
E)derived demand

Question 34

Much lumber used in the United States comes from Canada even though U.S.- produced lumber is available.Canadian lumber is cheaper due to subsidies provided by the Canadian government to its lumber industry.The U.S.government instituted a tax on Canadian lumber,which made U.S.lumber the least expensive to purchase although still priced much higher than contractors were used to paying.As a result of higher- priced lumber,economists predicted the cost of building a house would increase,and there would be a decline in the number of consumers buying new homes because the demand for houses is _.

A)elastic
B)fixed
C)economic
D)joint
E)inelastic

Question 35

Aerochange.com was founded by thirteen airline companies as a website where the companies could purchase all the goods and services for their operation,excluding aircraft and fuel.Selected suppliers were invited to partner with these airlines at this site.Items that are traded through Aeroxchange include a wide range of airline- specific products and services,such as engine components and maintenance.Aerochange is an example of a(n)_.

A)web link
B)data bots
C)extranet
D)private exchange
E)search engine

Question 36

Most newspapers such as the New York Times and the Memphis Commercial Appeal rely on and use several different suppliers to provide the tons of paper that they use annually.

A)cross- docking
B)multiple sourcing
C)single sourcing
D)a composite source
E)segmented suppliers

Question 37

A(n)is a system that links invited groups of suppliers and partners over the web.It allows companies to collaborate with suppliers they trust-- without having to share sensitive information with others.

A)search engine
B)extranet
C)private exchange
D)data bot
E)Web link

Question 38

Wal- Mart buys toothpaste,peanuts,and shoes to sell in its stores.Wal- Mart is a .

A)reseller
B)facilitator
C)organizational
D)producer
E)consumer

Question 39

The group of people in the organization who participate in the purchase decision- making process is referred to as the .

A)purchasing office
B)resource center
C)buyer institution
D)buying center
E)purchasing hierarchy

Question 40

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise.It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice.It also allows Pace retailers to ask their suppliers about product usage,deliveries,and warranties,and it allows suppliers to send new- product information directly to Pace retailers.Pace Hardware uses a(n).

A)private exchange
B)data bots
C)web link
D)extranet
E)search engine

Question 41

Which of the following statements about buying centers is true?

A)The members of a buying center typically participate in a cross- functional team.
B)The buying center is like a standing committee.
C)The most commonly found buying center has six employees-- one to assume each of the buying center's roles.
D)An individual's role in the buying center does not change.
E)The buying center roles are specified on the organizational chart.

Question 42

A rifle manufacturer needs muzzles,trigger mechanisms,and wooden gunstocks to produce rifles.Without these items the manufacturer cannot produce its rifles and will reduce its demand for trigger mechanisms and gunstocks if suppliers are unable to sell the muzzles it needs.This is an example of demand.

A)elastic
B)joint
C)synergistic
D)inelastic
E)reciprocal

Question 43

What of the following statements does NOT apply to the North American Industry Classification System (NAICS)?

A)NAICS can be used by firms to assess potential markets.
B)NAICS is a numerical coding of industries developed by the United States,Canada,and Mexico.
C)NAICS is a consumer buying directory for North America.
D)NAICS can be used to find new customers.
E)NAICS replaced the Standard Industrial Classification (SIC)system.

Question 44

The can be especially useful for companies that need to secure communications between the company and its dealers,distributors,and/or franchisees.

A)extranet
B)buying center
C)intranet
D)private exchange
E)Internet

Question 45

Business buyers often develop ,written descriptions of the quality,size,weight,warranty,and delivery requirements for the purchase.

A)vendor analyses
B)FAB lists
C)product maps
D)product specifications
E)value analyses

Question 46

Hackers breaking into company sites and destroying company records is a technology .

A)security issue
B)source issue
C)private exchange concern
D)distribution concern
E)privacy issue

Question 47

Many businesses today are abandoning the traditional business attire and allowing their employees to come to work in business casual that typically does not include ties,cufflinks,or business suits.There has been a decrease in the sale of silk ties as a result of this cultural trend.A decrease in consumer demand for silk ties has led to a decrease in demand for silk because the demand for silk is .

A)fixed
B)elastic
C)inelastic
D)derived
E)micro- dependent

Question 48

Tricon Restaurant International,parent company of Taco Bell,has found a good way to communicate with franchisees.

A)private exchanges
B)reciprocity
C)extranets
D)firewalls
E)encryption

Question 49

When a product has demand,an increase or decrease in the price of the product has little or no effect on the demand for the product.

A)economic
B)fixed
C)derived
D)elastic
E)inelastic

Question 50

The is the member of the buying center who controls the flow of information to other members.

A)initiator
B)user
C)influencer
D)gatekeeper
E)decider

Question 51

A patient of Dr.Albrecht told the dentist he needed to buy a machine that would sterilize his dental tools without using any water because water tends to cause the tools to rust or corrode over time.The dentist,who runs a solo practice in a small rural town,located some articles on the chemical sterilizer and read about how the machine works.After gathering more information and talking to salespeople,Dr.Albrecht placed his order for the machine.In terms of the buying center,Dr.Albrecht had the role of .

A)user
B)decider
C)influencer
D)agent
E)initiator

Question 52

Which of the following statements about security issues on the Internet is true?

A)There are no security risks for companies doing business on the Internet.
B)Hackers are not interested in business- to- business transactions.
C)A company's employees are the least likely source of Internet security problems.
D)Firewalls provide adequate security for all Internet exchanges.
E)None of the above are true.

Question 53

means scrambling a message so that only another individual or computer that has the right "key" for deciphering it can unscramble it.

A)Encryption
B)Reverse encoding
C)Back- translation
D)Firewalls
E)Message overlap

Question 54

What is the next step in the business buying decision process after writing the product specifications?

A)evaluate alternatives
B)obtain written or verbal bids
C)engage in a value analysis
D)set price ceiling
E)do an information search

Question 55

PPG,a producer of glass for windows,is engaged in ,which is the marketing of goods and services that businesses and other organizations buy for purposes other than personal consumption.

A)Just in time (JIT)
B)Single sourcing
C)business- to- business marketing
D)Buying centers
E)Outsourcing

Question 56

Sometimes supplier selection is based on ,which means a buyer and a seller agree to purchase each other's goods and services even though the terms of the sales may not be the best available.

A)sourcing agreements
B)source synergy
C)reverse marketing
D)reciprocity
E)tying arrangements

Question 57

PPG Industries buys silicon and uses it to manufacture glass for windows.PPG is a .

A)reseller
B)consumer
C)organizational
D)producer
E)facilitator

Question 58

A patient of Dr.Albrecht's told the dentist he needed to buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.In terms of the buying center,the patient had the role of .

A)agent
B)initiator
C)influencer
D)liaison
E)user

Question 59

Although much of the equipment used by dentists is thrown away after one use,many of the instruments used to clean teeth,fill cavities,and deal with impactions and other dental problems are made of steel and must be sterilized.A dentist is considering replacing his conventional steam sterilizer with a chemical sterilizer that cleans without rusting or corroding instruments.Because the dentist is already familiar with sterilizers,he is looking to find the best price possible on a chemical sterilizer.He is engaged in a _ _.

A)simple- task purchase
B)modified rebuy
C)utility buy
D)straight rebuy
E)value purchase

Question 60

An Internet research firm projects that B2B sales transactions will take place through .

A)bids and exchanges
B)auctions and bids
C)auctions
D)exchanges and auctions
E)auctions,bids,and exchanges

Question 61

Gillette Shows of Pittsfield,Massachusetts,is a touring carnival company.In a season,it will do shows in New York and most of the New England states.The show has nineteen different rides and attractions.The owner made the decision to buy a new ride for the carnival.He paid $405,000 for a ride called The Typhoon,which became its most popular ride.The purchase of The Typhoon is an example of a .

A)simplified rebuy
B)new- task buy
C)complex- task purchase
D)modified rebuy
E)utility buy

Question 62

During the stage of the business buying process,total spending for the product is considered.

A)evaluation of alternatives
B)product selection
C)problem recognition
D)ordering
E)information search

Question 63

Intranets and extranets are _ .

A)very cost efficient
B)becoming less popular in recent years
C)more common ii government markets than non- government markets
D)used only by Fortune 500 companies
E)not very cost efficient

Question 64

When companies require employees to use a password to get access to the company's computer database,the company is enforcing .

A)security
B)private exchanges
C)search engines
D)firewalls
E)single sourcing

Question 65

Despite the use of software,hackers have been able to steal thousands of credit card numbers from companies including Creditcards.com,Western Union,and online music retailer CD Universe.

A)firewalls
B)encryption
C)message overlap
D)reverse encoding
E)back- translation

Question 66

Which of the following statements about the product and supplier selection stage of the business buying decision process is true?

A)Price is the only factor businesses consider before making a purchase decision.
B)Price and warranty are the only two factors businesses consider before making a purchase decision.
C)Even companies that have adopted a total quality management approach consider price to be the most important determinant of who to buy from.
D)Before making a purchase decision,many businesses consider quality,reliability,durability,after- the- sale service,as well as price.
E)Because after- the- sale service is a negotiation point,it is not considered at this stage of the business buying decision process.

Question 67

A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel.In terms of the buying center,the truck drivers who must make sure that the trucks' fuel tanks do not run out of fuel would be the .

A)users
B)liaisons
C)influencers
D)initiators
E)agents

Question 68

Business- to- business (B2B)e- commerce has .

A)linked marketers directly to customers
B)changed only internal business operations of a few businesses
C)no effect on the way businesses operate
D)no relation to the internet
E)changed only a very few businesses

Question 69

One year many customers' machinery is wearing out and needs replacing.The following year no customers need new machinery.This is an example of demand.

A)consumer
B)joint
C)fluctuating
D)inelastic
E)government

Question 70

A modified rebuy .

A)is similar to an impulse purchase in the consumer market
B)requires more time and effort than straight rebuys
C)occurs whenever a company reorders a product from an original supplier
D)requires more time and effort than new- task buying
E)is an impulse purchase

Question 71

occurs when firms obtain outside vendors to provide goods or services that might otherwise be supplied in- house.

A)Resource contracting
B)Multiple sourcing
C)Outsourcing
D)External human resources management
E)Cross- functionalization

Question 72

Straight rebuys .

A)are comparable to comparison shopping in the consumer market
B)often involve products with low risks
C)are more complex than new- task buys
D)are the most complex of purchase types because they require customer relationship management
E)occur when a buyer wants to shop around for the best deal

Question 73

Johnson Controls,Inc.produces the seats for the Dodge Neon.Although Johnson initially was able to meet Dodge's cost target,it was not able to meet its safety,weight,and comfort specifications.Engineers from Dodge visited the Johnson plant and worked with its design people to create a seat that met all of the technical requirements at a cost that both could agree on.Johnson Controls and Dodge engaged in .

A)bottom- up marketing
B)top- down marketing
C)reciprocity
D)functionalization
E)reverse marketing

Question 74

When the Metropolitan Museum of Modern Art buys office supplies,the purchase occurs in the market.

A)facilitator
B)producer
C)organizational
D)B2C
E)consumer

Question 75

During the _ stage of the business buying process,the buying center assesses proposals.

A)evaluation of alternatives
B)identifying potential suppliers
C)just- in- time decision
D)electronic data exchange
E)developing product specifications

Question 76

A city decided to build a stadium to hold 19,000 people; it was a difficult decision because the city already had a 70,000 seat dome.City planners convinced the people of the city that the older dome was too large for most touring shows and better suited for sporting events.In terms of the buy class framework,the decision to build an arena for touring shows featuring big- name stars was a .

A)government purchase
B)utility buy
C)complex- task purchase
D)new- task buy
E)simplified rebuy

Question 77

A new- task buy .

A)does not occur when the buyer uses single sourcing
B)is characterized by uncertainty and high risk
C)is similar to routine decision making in the consumer market
D)begins with a SWOT analysis
E)requires less time and effort than a modified rebuy

Question 78

Anyone who has gone to a dentist has seen the drills they use in the first step of filling cavities.One of the major manufacturers of drills for dentists is XGT.In manufacturing its standard drill,it uses three components from other suppliers: an anti- retraction valve,a coupler- based swivel,and a fusion optics system for light.The sale of the anti- retraction valve partly depends on the availability of the lighting system and the swivel because demand for these products is _.

A)reciprocal
B)joint
C)synergistic
D)inelastic
E)elastic

Question 79

Companies find that their Internet site is NOT important for _ _.

A)product information
B)order status information
C)face- to- face selling
D)customer service to corporate customers
E)delivering online technical support

Question 80

Business- to- business,or organizational,markets do NOT include .

A)manufacturers
B)wholesalers
C)government agencies
D)retailers
E)consumers