Deck 7: Business-To-Business Marketing

Question 1

The B2B buying process tends to be more formal than B2C buying.

Answer 1

True

Question 2

The local school district realized it needed to upgrade the computers in the school libraries. This represents the product specification stage of the B2B buying process.

Answer 2

False

Question 3

Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process.

Answer 3

False

Question 4

The RFP process is used by buyers to allow customer input into value creation.

Question 5

A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order.

Question 6

In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision.

Question 7

As the owner of a small business with 60 employees that makes custom floor mats, Paul makes all of the buying decisions. Paul is most likely the user.

Question 8

Organizational culture may vary by geography.

Question 9

Resellers differ from producers in that resellers significantly alter the form of goods they sell.

Question 10

An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.

Question 11

A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center.

Question 12

Fabricworld buys fabric from China and sells it to clothing manufacturers in the United States. Fabricworld is a retailer.

Question 13

Public institutions do not engage in B2B relationships.

Question 14

Most B2B buying situations can be categorized into three categories: new buys, structured rebuys, and automatic rebuys.

Question 15

Business-to-business marketing refers to buying and selling goods or services to consumers.

Question 16

A small business may use a web portal as a means of forming a supply chain that can respond to its needs.

Question 17

B2B marketing involves manufacturers, wholesalers, and service firms.

Question 18

When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.

Question 19

The final step of the business-to-business buying process is a formal vendor performance analysis.

Question 20

Once a vendor receives an order from a firm, it responds by immediately filling the order.

Question 21

Business-to-business marketing involves buying and selling goods or services by all of the following except

A) manufacturers.
B) consumers.
C) retailers.
D) producers.
E) wholesalers.

Question 22

A ________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys.

A) manufacturer
B) producer
C) consumer
D) wholesaler
E) factory

Question 23

Hospitals, schools, and religious organizations are examples of ________ buyers.

A) manufacturing
B) retail
C) institutional
D) factory agent
E) reseller

Question 24

The surgeon at the hospital is the decider in the buying process.

Question 25

Consultative buying centers use one person to make a decision but solicit input from others before doing so.

Question 26

Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in ________ sales.

A) G2B
B) B2C
C) B2B
D) C2C
E) G2G

Question 27

Whether targeting consumers or resellers, marketers need to focus on

A) creating value for their customers.
B) buying center synergy.
C) private exchange efficiency.
D) corporate profit sharing.
E) reducing derived demand.

Question 28

LinkedIn is useful for networking in the B2B marketplace, but Twitter is not typically used.

Question 29

Sales of electric components manufactured by Rick's company depend on sales of new cars, in other words, ________ demand.

A) synthetic
B) situational
C) monopolistic
D) contrived
E) derived

Question 30

In most countries, ________ is(are) among the largest purchasers of goods and services.

A) the largest retailer
B) the central government
C) construction firms
D) the intelligence agency
E) hospitals

Question 31

Unlike manufacturers, ________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

A) producers
B) consumers
C) resellers
D) raw materials suppliers
E) gatekeepers

Question 32

Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always ordered. This is a straight rebuy.

Question 33

As Daphne's business grew, she needed to find a new way to manage payroll for her employees, so she researched payroll companies to see which one would best meet her needs. Daphne was involved in a new buy situation.

Question 34

Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a trailer for his lawn maintenance business. His purchases were

A) both B2C purchases since he is the user in both situations.
B) both B2B purchases since he is the user in both situations.
C) neither B2C nor B2B since he is the consumer and his uses might be mixed.
D) B2C and B2B purchases, respectively.
E) B2B and B2C purchases, respectively.

Question 35

Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are

A) decentralized and informal.
B) less focused on customer value creation.
C) identical and interchangeable.
D) more formal and structured.
E) based on derived supply analysis.

Question 36

Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy in order to supply her customers. Paula is concerned with ________ demand.

A) modified
B) secondary
C) rebuy
D) derived
E) delayed

Question 37

Malcolm buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Malcolm is a

A) manufacturer.
B) producer.
C) consumer.
D) factory agent.
E) reseller.

Question 38

Which of the following is an example of a government buyer?

A) Mayo Clinic Hospital
B) Procter & Gamble
C) the Pentagon
D) Nucor Steel Corporation
E) Walmart

Question 39

Which of the following is an example of an institutional buyer?

A) Mayo Clinic Hospital
B) Procter & Gamble
C) U.S. Marine Corps
D) Nucor Steel Corporation
E) Walmart

Question 40

Both the B2B and B2C buying processes begin with

A) central planning.
B) need recognition.
C) postpurchase dissonance.
D) alternative evaluation.
E) order specification.

Question 41

Typically, B2B buyers ask potential suppliers to

A) write the RFP for the buyer.
B) submit formal proposals.
C) determine product needs with final customers.
D) always be involved in reselling.
E) organize themselves into selling cooperatives.

Question 42

When Goodwish Marketing decided to upgrade its computer network, many people were involved in the decision. In B2B buying systems, decisions are often made

A) quickly and informally.
B) by a consumer board.
C) at auction sites.
D) by a committee after considerable deliberation.
E) by community debating organizations.

Question 43

The process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications is formally referred to as

A) specification review.
B) contract development.
C) a bidding initiative.
D) request for proposals.
E) invitation to review.

Question 44

Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center?

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

Question 45

The final stage in the business-to-business buying process is to

A) place the order.
B) select the vendor.
C) assess vendor performance.
D) address additional needs.
E) prepare an RFP.

Question 46

After a series of devasting storms, many states reevaluated the structures built along their coastal areas to determine whether they met building codes, as well as what repairs and new reinforcements were needed to help buildings withstand damage from future storms. Construction companies had to pull together a materials list and provide various suppliers with

A) request for proposals.
B) initiator instructions.
C) determinant products.
D) product specifications.
E) focal alternatives.

Question 47

Charlie is hoping to get a chance to bid on supplying key components to Ned's business. He is eager to move forward, but he must wait until

A) Ned completes vendor negotiations.
B) Ned develops a list of product specifications.
C) Ned's buying center has an opening.
D) Ned agrees to move Charlie's firm from the evoked set to the retrieval set.
E) Ned completes the order specification process.

Question 48

As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will most likely

A) interview vendors and seek their feedback.
B) specify and weight performance factors and score the vendors.
C) develop an RFP for vendor analysis.
D) recruit new suppliers.
E) use a modified rebuy vendor form.

Question 49

After need recognition, a business develops ________ that suppliers might use to develop their proposals.

A) derived demand
B) initiator instructions
C) determinant attributes
D) product specifications
E) focal alternatives

Question 50

An Internet site whose purpose is to be a major starting point for users when they connect to the web and is often used by smaller companies in the RFP process is referred to as a(n)

A) podcast.
B) Internet channel.
C) web portal.
D) buying center.
E) search engine.

Question 51

After need recognition and product specification, many firms using the B2B buying process

A) identify contract specifications.
B) issue a request for proposals from invited suppliers.
C) proceed to proposal analysis.
D) enter vendor negotiation and selection.
E) revise their need recognition analysis.

Question 52

After posting an RFP for telecommunications equipment, USF Corporation received six proposals from qualified vendors. Next, USF will

A) recognize obstacles that must be circumvented.
B) reevaluate the firm's needs.
C) give one vendor a purchase order.
D) conduct vendor analysis.
E) evaluate the proposals and narrow the choice to a few suppliers.

Question 53

In most large organizations, several people are responsible for making a purchase decision. This group is called the

A) supply chain.
B) reselling team.
C) decider group.
D) buying center.
E) expediters.

Question 54

The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the ________ stage of the business-to-business buying process.

A) vendor negotiation
B) product specification
C) need recognition
D) vendor performance assessment
E) RFP

Question 55

When you purchase a book on Amazon, you generally have two choices: Buy it directly from Amazon or purchase it through Amazon but from a third-party vendor. If you go the direct route, Amazon has already purchased the book from a publisher and is holding it in an Amazon fulfillment center-a ________ transaction. If you take the third-party route, Amazon acts as an agent for the supplier and takes a commission of about 10 percent of the value of the merchandise for the right to sell it on Amazon's platform-a ________ transaction.

A) B2B; B2B
B) B2C; B2C
C) B2C; B2B
D) C2C; B2C
E) B2B; C2C

Question 56

Frieda has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment. After reviewing the order information, Frieda will

A) send an acknowledgment that the order has been received.
B) rewrite her firm's proposal.
C) submit a competitive bid.
D) proceed to vendor analysis.
E) evaluate performance.

Question 57

B2B buying decisions are often made by

A) governors.
B) influencers.
C) committees.
D) resellers.
E) consumers.

Question 58

At many universities, education faculty members were among the first to ask for course management systems that would allow them to keep track of their students' grades and progress more efficiently. These faculty members were ________ in the buying center.

A) buyers
B) initiators
C) influencers
D) deciders
E) gatekeepers

Question 59

Judy knows it is important to approach business buyers at the right time, often during the first stage of their buying process, which is

A) need recognition.
B) the RFP process.
C) proposal analysis.
D) vendor negotiation and selection.
E) product specification.

Question 60

During the RFP stage, B2B buyers

A) recognize obstacles that the firm must work around.
B) revise their need recognition analysis.
C) invite suppliers to bid on supplying what is requested.
D) proceed to vendor analysis.
E) negotiate contract terms.

Question 61

While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on Fridays during the summer. Brad is observing part of his firm's

A) organizational culture.
B) governing principles.
C) human resource policy.
D) employee obligations.
E) code of ethics.

Question 62

At the main campus of a large university, faculty always refer to one another as "Dr." or "Professor," dress formally, and are academically competitive. Meanwhile, at the various branch campuses, faculty members call one another by their first names, dress casually, and support one another's scholarly efforts. These differences reflect the differences in the ________ of the main campus and its branches.

A) supply chain communication
B) autocratic buying center culture
C) organizational culture
D) business missions
E) corporate social responsibility

Question 63

Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a(n) ________ for the purchase of these medical services.

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

Question 64

Not knowing the roles of key players in the buying process could cause a sales representative to

A) bid too high a quantity.
B) fail the vendor analysis.
C) respond to an RFP too quickly.
D) waste time and alienate people.
E) misdirect his or her product.

Question 65

In which buying situation is the buyer most likely to proceed through all six steps in the buying process?

A) new buy
B) modified rebuy
C) straight rebuy
D) generic buy
E) adapted buy

Question 66

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, her first stop is to chat with Frank, the business department secretary. From Frank, Kim learns which professors have left the university or have newly arrived. Frank also helps Kim make appointments to see professors to discuss textbook choices. Frank acts as the ________ in the business department buying center.

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

Question 67

The local homeless shelter is expecting to host its largest Thanksgiving dinner this year and has doubled its order for fresh, whole grain bread from the bakery that always supplies it. The bakery has run low on whole grain flour, however, so places a rush order with its main supplier. For the homeless shelter, the buying situation is a(n) ________ and for the bakery it is a(n) ________.

A) new buy; modified rebuy
B) modified rebuy; new buy
C) modified rebuy; straight rebuy
D) adjusted rebuy; straight rebuy
E) modified rebuy; adapted buy

Question 68

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, she also tries to meet with several students to get their feedback on textbooks. She passes this feedback to her managers to guide the development of the publisher's future textbooks. The students are the ________ in the buying center.

A) deciders
B) initiators
C) influencers
D) users
E) gatekeepers

Question 69

Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham Hardware should

A) focus exclusively on the head of the buying center.
B) address the concerns of all buying center members but understand there is just one decision maker.
C) focus on providing information to and making the sales approach to the one decision maker.
D) attempt to facilitate the collective agreement of all members of the buying center.
E) attempt to get one "friend" on the committee to support his products.

Question 70

The buying decision is likely to be most complex and take longest to complete in a(n) ________ B2B buying situation.

A) new buy
B) modified rebuy
C) straight rebuy
D) adapted buy
E) generic buy

Question 71

All of the following are general types of organizational cultures except

A) autocratic.
B) democratic.
C) consultative.
D) capitalist.
E) consensus.

Question 72

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. After a vendor is chosen, Reginald will handle the paperwork and send out the purchase order. Reginald plays the role of ________ in the buying center.

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

Question 73

When Leanne gave her presentation to the BigDeal buying center team, she focused on answering Beverly's questions, since she is the decision maker. What type of buying center does BigDeal employ?

A) democratic
B) consultative
C) consensus
D) autocratic
E) authoritative

Question 74

While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this reflected part of the pharmaceutical firm's

A) buying center.
B) organizational culture.
C) mission statement.
D) corporate social responsibility.
E) RFP process.

Question 75

A firm's organizational culture reflects

A) B2C dynamics.
B) a RFP process.
C) a buying center philosophy.
D) a set of values, traditions, and customs.
E) a derived set of influences.

Question 76

In which B2B buying situation does a buyer or buying organization purchase additional product units, service subscriptions, or both as per previously purchased?

A) generic buys
B) straight rebuys
C) ordinary rebuys
D) adapted buys
E) minor buys

Question 77

Unlike a firm's mission statement or employee handbook, a firm's organizational culture often

A) lists specific job tasks for employees.
B) is of no importance to purchase decisions.
C) exists as a set of unspoken guidelines.
D) is ignored by the vast majority of employees.
E) determines the order specification process.

Question 78

The customer whom Carlotta is calling on today has a(n) ________ buying center culture. This means that the decision process will involve reaching agreement among all members of the buying center.

A) consensus
B) autocratic
C) consultative
D) republican
E) democratic

Question 79

Jenny was buying the company's first video teleconferencing system, and she involved all of the company's department heads in the decision. Jenny spent weeks evaluating options, inviting RFPs, and negotiating with vendors before she finally made a purchase decision. This buying situation would most likely be classified as a

A) new buy.
B) modified rebuy.
C) straight rebuy.
D) modified buy.

Question 80

Markham Publishing is known for its consultative buying center culture. Recognizing this organizational culture, someone attempting to sell to Markham Publishing should

A) treat all members of the buying center as equally important.
B) address the concerns of all buying center members but understand there is just one decision maker.
C) focus on providing information to and making the sales approach to the one decision maker.
D) attempt to facilitate the collective agreement of all members of the buying center.
E) focus attention on the gatekeeper in the buying center's team.