Deck 7: Business Marketing

Question 1

In the context of negotiations, final contracts are often short and precise.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

Businesses contract outside providers to perform janitorial, advertising, and legal services as it costs less than hiring an employee to perform the particular task.

Answer 3

True

Question 4

Processed materials include capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings.

Question 5

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 becoming more intense.

Question 6

In a buying center, the decider is the person who actually negotiates a purchase.

Question 7

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

Question 8

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

Question 9

Providing superior service to a firm's most valuable customers is likely to result in a maximization of the total business value generated over time.

Question 10

Many companies offer ethics training to employees and have codes of ethics that help guide buyers and sellers in business.

Question 11

Which of the following statements is true of accessory equipment?

A)It includes goods such as large or expensive machines and mainframe computers.
B)It includes goods such as portable drills, power tools, and microcomputers.
C)It includes goods such as lubricants, detergents, paper towels, pencils, and paper.
D)It includes goods such as spark plugs, tires, and electric motors for automobiles.

Question 12

By pressurizing a supplier to sell products at very low prices, a buyer may, in effect, force the supplier to compromise on the quality of the product.

Question 13

Price is one of the criteria against which business buyers evaluate products and suppliers.

Question 14

The more digits in a North American Industry Classification System code, the less homogeneous a group will be.

Question 15

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

Question 16

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

Question 17

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

Question 18

A consumer product is also known as an industrial product.

Question 19

Ethics refers to a firm's belief that an ongoing relationship with another firm is so important that it warrants maximum efforts at maintaining it indefinitely.

Question 20

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 21

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 stationaries to students.

Question 22

In the context of 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 23

Leo buys 500 sheets of paper from a vendor for his printing firm. He is satisfied with the product, and he orders the same quantity from the same vendor every week. This is most likely an example of a(n) _____.

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

Question 24

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 25

At Magnira Corp., a company that manufactures fruit preserves, fruits of excellent quality are used to make jams, jellies, and marmalades. In this scenario, the fruits are examples of _____.

A)raw materials
B)component parts
C)MRO items
D)finished goods

Question 26

In a(n) _____ situation, a purchaser wants some change in the original good or service.

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

Question 27

Which of the following statements is true of raw materials that are used as business products?

A)The promotion of raw materials is almost always done via mass advertising.
B)They are usually sold in large quantities.
C)Individual producers have great flexibility in the pricing of raw materials.
D)They are finished items that are ready for assembly.

Question 28

Which of the following is a similarity between raw materials and component parts?

A)Both fail to retain their identity in final products.
B)Both become part of a final product.
C)Both are unprocessed extractive products.
D)Both are more expensive than major equipment.

Question 29

Which of the following statements is true of business services?

A)They include consumable items.
B)They include processed items.
C)They do not retain outside providers and contractors.
D)They do not become part of a final product.

Question 30

In the context of a buying center, which of the following statements is true of deciders?

A)They approve of the selection of a brand.
B)They make the final purchase.
C)They influence the buying decision.
D)They regulate the flow of information.

Question 31

Which of the following is a difference between supplies and business services?

A)Supplies are consumable items, whereas business services are expense items.
B)Supplies are more expensive compared to other business goods, whereas business services are economical.
C)Supplies are part of a final product, whereas business services do not become part of a final product.
D)Supplies are custom designed for each customer, whereas business services are normally standardized.

Question 32

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

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

Question 33

In the context of a buying center, which of the following statements is true of gatekeepers?

A)They initiate the buying process.
B)They have the formal power to approve a brand.
C)They regulate the flow of information.
D)They negotiate a purchase.

Question 34

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

A)identify scope 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 35

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 36

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 37

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 38

Having fewer customers in business markets in comparison with consumer markets:

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 39

Nutrimax Cookies Inc. buys around three tons of raw materials every year. If the demand for its cookies increases next year, the company might need to buy more raw materials in order to meet the increased demand. This illustrates _____.

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

Question 40

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

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

Question 41

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 42

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

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

Question 43

Which of the following statements is true of business markets?

A)Products or services are sold for personal consumption.
B)Goods that are 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.

Question 44

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.

Question 45

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)unsought product

Question 46

Which of the following is a difference between component parts and supplies?

A)Component parts require extensive processing before they become part of another product, whereas supplies do not.
B)Component parts are consumable items, whereas supplies are finished items.
C)Component parts become part of a final product, whereas supplies do not.
D)Component parts are inexpensive when compared to other business products, whereas supplies are expensive.

Question 47

Which of the following statements is true of a new buy?

A)It is a situation that requires a purchasing contract.
B)It is a situation that requires a change in the original service.
C)It is a situation that is less critical and quick.
D)It is a situation that is more time-consuming than a modified rebuy.

Question 48

Which of the following scenarios illustrates the use of processed materials in manufacturing?

A)No-Glut Inc.uses rice flour to manufacture its gluten-free products.
B)Zintec Hardware Inc.uses nails to hold its ladders together.
C)Pace Corp., an automobile company, uses magnesium alloy wheels for its high-end cars.
D)Reldex Steel Corp. uses blast furnaces in its manufacturing process.

Question 49

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

A)Each classification group in NAICS is heterogeneous in terms of the components used.
B)The geographic dispersion of firms cannot be identified with the help of NAICS.
C)The more the digits in an NAICS code, the more homogeneous the group.
D)Goods- or service-producing firms grouped under NAICS use different production processes.

Question 50

In the context of business products, which of the following is a difference between major equipment and accessory equipment?

A)Major equipment is often standardized, whereas accessory equipment is often custom designed for each customer.
B)Major equipment is depreciated over time, whereas accessory equipment is charged as an expense in the year it is purchased.
C)Major equipment has a short life, whereas accessory equipment has a long life.
D)Major equipment is marketed more through advertising, whereas accessory equipment is marketed via personal selling.

Question 51

Casca Paints Inc., a manufacturer of paints and emulsions, owns a user-friendly Web site. The Web site allows customers to upload pictures of their house and select the colors that best match their expectations. Donnel Designs Inc., an interior decoration firm, enters into a partnership with Casca Paints Inc. As a result, customers can now get a complete interior design solution for their houses. This is an example of a _____.

A)straight rebuy
B)golden handshake
C)negative inventory
D)strategic alliance

Question 52

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 undergo processing before it is used.
D)It will be bought through retailers.

Question 53

_____ 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)The conversion rate
D)Frequency

Question 54

Which of the following statements is true of MRO (maintenance, repair, or operating) supplies?

A)They become part of a final product.
B)They are intangible business products.
C)They are relatively expensive when compared to other business products.
D)They are normally standardized items that purchasing agents routinely buy.

Question 55

Inland Eastex Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes 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 56

In the context of business customers, which of the following statements 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 business markets that seek to achieve goals other than the standard business goals of profit.

Question 57

Line Twists Inc. is a start-up dance company. On its Web site, it conducts an online competition for amateur dancers. It also asks people to post one sentence on why they love to dance. Thousands of people participate and comment on the Web site. In the context of business-to-business social media marketing, this step taken by Line Twists Inc. is an example of the marketing metric of _____.

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

Question 58

Which of the following is true of consumers in the context of 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 59

In the context of business products, which of the following statements is true of major equipment?

A)It is marketed by local industrial distributors.
B)It is sold through a longer distribution channel than accessory equipment.
C)It is often custom designed for each customer according to requirements.
D)It is less expensive and shorter-lived than accessory equipment.

Question 60

Which of the following statements is a difference between buyers in consumer markets and 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)Buyers in consumer markets generate less stable demand trends, while buyers in business markets generate more stable demand trends.
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 61

Tamery Corp. is engaged in marketing various goods and services. It buys goods 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 62

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

Question 63

In the context of categories of business customers, describe the role of resellers.

Question 64

Which of the following statements is true of processed materials?

A)They include materials such as large or expensive machines, mainframe computers, and generators.
B)They include materials such as sheet metal, chemicals, specialty steel, treated lumber, and plastics.
C)They include materials such as spark plugs, tires, and electric motors for automobiles.
D)They include materials such as lubricants, detergents, paper towels, pencils, and paper.

Question 65

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)Governments

Question 66

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

Question 67

Discuss the importance of customer service in business marketing.

Question 68

Differentiate between major equipment and accessory equipment.

Question 69

Explain the distribution structure followed in business markets.

Question 70

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