Deck 5: Business-To-Business Markets: How and Why Organizations Buy?

Question 1

Another name for business-to-business markets is ________.

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

Answer 1

E

Question 2

Which of the following statements about organizational markets is true?

A)The average purchase size in organizational markets is much smaller than the average purchase size in the consumer market.
B)Demand for products in the organizational market is derived from demand for consumer products.
C)Most demand for organizational markets is fixed.
D)Organizational marketers have a broad customer base and a large number of buyers.
E)Joint demand is not a factor.

Answer 2

B

Question 3

One year many customers' machinery wears out and needs to be replaced.The following year no customers need new machinery.This is an example of ________ demand.

A)inelastic
B)fluctuating
C)elastic
D)consumer
E)static

Answer 3

B

Question 4

________ is the marketing of goods and services that businesses and other organizations buy for purposes other than personal consumption.

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

Question 5

Many B2B marketers can take advantage of the ________ of business customers, focusing their sale efforts and perhaps even locating their distribution centres in a single region.

A)geographic concentration
B)mass media consumption
C)multiple requirements
D)fluctuating demand
E)organizational changes

Question 6

The major classes of business-to-business customers are ________.

A)producers, retailers, and consumers
B)resellers and governments
C)organizations, producers, and manufacturers
D)producers, resellers, and organizations
E)consumers and retailers

Question 7

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)elastic
B)joint
C)derived
D)inelastic
E)fixed

Question 8

________ purchases are much greater than ________ purchases, both in the quantity of items ordered and how much they cost.

A)Business; consumer
B)Organizational; nonorganizational
C)Online; offline
D)Not-for-profit; for-profit
E)Joint; derived

Question 9

Business-to-business markets do NOT include ________.

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

Question 10

________ do not actually produce goods, but they do provide their customers with the time, place, and possession utility by making goods available when and where consumers want them.

A)Resellers
B)End users
C)Not-for-profit organizations
D)Producers
E)Buying centres

Question 11

Organizational markets differ from consumer markets in that organizational markets ________.

A)have a high number of purchases that are low risk and low cost
B)have derived demand
C)are not geographically concentrated
D)have a single individual in the role of decision maker
E)involve more frequent purchases

Question 12

Most demand for business-to-business products is ________.

A)derived, inelastic, fluctuating, and joint
B)derived, elastic, fixed, and joint
C)derived, inelastic, static, and dependent on the macroenvironment
D)independent of all consumer market influences
E)competitive, derived, fluctuating, and elastic

Question 13

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

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

Question 14

Which of the following statements about organizational markets is NOT true?

A)End consumers are included in the market.
B)The size of purchases made in organizational markets is much larger than those made in consumer markets.
C)Organizational markets are geographically concentrated.
D)Organizational markets have a narrow customer base and a small number of buyers.
E)Most demand for organizational products is derived and inelastic.

Question 15

Walmart buys toothpaste, peanuts, and shoes to sell in its stores.Walmart is a ________.

A)producer
B)not-for-profit organization
C)consumer
D)facilitator
E)reseller

Question 16

Computer maker Dell and Marriott hotels are both examples of which type of business-to-business customer?

A)resellers
B)resuppliers
C)organizations
D)producers
E)distributors

Question 17

________ are B2B customers for raw materials.

A)Resellers
B)Resuppliers
C)Retailers
D)Producers
E)End consumers

Question 18

Business-to-business marketing differs from consumer marketing in that business-to-business marketing ________.

A)is targeted at many individual and household customers
B)relies upon frequent impulse purchases
C)emphasizes advertising more than any other element of the promotion mix
D)typically involves competitive bidding and price negotiations
E)usually has one person involved in purchase decisions

Question 19

Demand in B2B markets is mostly ________ because what a firm sells is often just one of the many parts or materials that go into producing the consumer product.

A)elastic
B)static
C)fixed
D)inelastic
E)fluctuating

Question 20

The success of one company in one industry may depend on another company in a different industry.This dependence creates ________.

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

Question 21

A(n)________ can be especially useful for companies that need to have secure communications with their dealers, distributors, and/or franchisees.

A)intranet
B)social networking site
C)extranet
D)virtual trade show
E)buying centre

Question 22

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

A)password
B)firewall
C)sniffer
D)encryption
E)virus

Question 23

Not-for-profit institutions such as the Salvation Army and the Red Cross belong to the ________ class of B2B consumers.

A)raw material
B)producer
C)organization
D)commerce
E)reseller

Question 24

A(n)________ is a system that links invited groups of suppliers and partners over the Web, allowing companies to collaborate with suppliers they trust without having to share sensitive information with others.

A)corporate Web site
B)search engine
C)intranet
D)private exchange
E)professional network

Question 25

Governments are just about the only customers for certain products, such as jet fighters.The government is a(n)________.

A)end user
B)organization
C)gatekeeper
D)facilitator
E)reseller

Question 26

Many companies maintain ________, which are internal corporate computer networks that use Internet technology to link company departments, employees, and databases.

A)Web sites
B)search engines
C)extranets
D)intranets
E)private exchanges

Question 27

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

A)links marketers directly to their business customers
B)has little effect on the way businesses operate
C)does not rely upon the Internet
D)has only two simple forms
E)is conducted almost exclusively through private exchanges

Question 28

A company uses a(n)________ to allow certain suppliers, customers, and others outside the organization to access its internal system.

A)corporate Web site
B)search engine
C)extranet
D)private exchange
E)intranet

Question 29

An intranet would NOT be used for which of the following?

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

Question 30

Which of the following is most likely to have an unprofessional or part-time buyer who needs more advice and assistance from marketers before and after a sale?

A)a reseller
B)a mass producer
C)a foreign government
D)a state government
E)a not-for-profit institution

Question 31

Which of the following make up the largest single business and organizational market in the Canada?

A)raw material markets
B)producer markets
C)not-for-profit markets
D)e-commerce markets
E)government markets

Question 32

Both B2C and B2B e-commerce companies are making sure that only authorized individuals are allowed to access a site and place an order.These companies are concerned with ________.

A)single sourcing
B)straight rebuys
C)security issues
D)private exchanges
E)search engines

Question 33

Firewalls and encryption are both ________.

A)common safeguards for Internet transactions
B)common authentication systems for intranets
C)types of sniffers used by hackers
D)types of passwords used by employees
E)tools for corporate espionage

Question 34

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

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

Question 35

A company could reasonably expect use of both an intranet and extranet to ________.

A)facilitate collaboration with external business partners
B)save the company money
C)increase traffic to the company's Web site
D)replace the use of professional networking sites
E)improve internal communications among employees

Question 36

The North American Industry Classification System (NAICS) ________.

A)is a replacement for the Better Business Bureau
B)was developed in Europe
C)includes information about industries in Mexico, Canada, and the United States
D)uses a two-digit code that sorts industries into subsectors
E)is a listing of consumer products

Question 37

Which of the following is the simplest form of B2B e-commerce?

A)online catalogs
B)reciprocal sites
C)intranets
D)extranets
E)private exchanges

Question 38

Prudential Health Care's ________ allows its corporate customers to enroll new employees and check eligibility and claim status themselves.

A)private exchange
B)extranet
C)intranet
D)professional network
E)reciprocity arrangement

Question 39

Nicknames, birthdates, and spouses' names are all examples of obvious ________.

A)firewalls
B)encryptions
C)sniffers
D)passwords
E)blogs

Question 40

Business-to-business ________ refers to Internet exchanges between two or more businesses or organizations.

A)social media
B)outsourcing
C)e-commerce
D)reciprocity
E)buyclass

Question 41

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

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

Question 42

A modified rebuy ________.

A)requires more time and effort than straight rebuys
B)is the B2B version an impulse purchase in the consumer market
C)requires more time and effort than new-task buying
D)occurs whenever a company reorders a product from an original supplier
E)involves only one role in the buying centre

Question 43

Which of the following statements about buying centres is true?

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

Question 44

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

A)Back-translation
B)Encryption
C)Authentication
D)Reverse encoding
E)Sniffing

Question 45

Which of the following is a job title for a professional buyer?

A)gatekeeper
B)procurement officer
C)initiator
D)influencer
E)sales manager

Question 46

Which of the following describes an advantage of LinkedIn?

A)It was created by college students for college students.
B)It facilitates quality introductions among business people.
C)It provides comparative information on industries in NAFTA countries.
D)It is a private exchange connecting buyers and suppliers.
E)It allows approved partners to access a company's intranet.

Question 47

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

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

Question 48

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

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

Question 49

According to recent research, which one of the following are business buyers least likely to use for business purposes?

A)webinars
B)podcasts
C)LinkedIn
D)Twitter
E)online ratings and reviews

Question 50

The ________ is the member of the buying centre who actually needs the product.

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

Question 51

LinkedIn, Twitter, and Facebook are all examples of ________.

A)viral techniques
B)professional networking sites
C)social networking sites
D)private exchanges
E)Webinars

Question 52

A new-task buy ________.

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

Question 53

Straight rebuys ________.

A)are the most complex of purchase types because they require customer relationship management
B)are more complex than new-task buys
C)often involve products with low risks
D)involve recruiting new vendors
E)are the B2B version of comparison shopping in the consumer market

Question 54

To purchase an item from an Internet site, you will be asked to provide a credit card number.Because of ________, a computer hacker who intercepts this number as it is being sent to the seller would likely see £D¥$&0PDJLJL, or something equally as meaningless.

A)decoding
B)back-translation
C)encryption
D)the firewall
E)reverse encoding

Question 55

According to research, social media channels are most effective to reach and engage business prospects at ________.

A)large government buying centres
B)large multinational companies
C)independent producers
D)small not-for-profits
E)mid-to-large-size companies

Question 56

Which of the following is geared primarily to corporate professionals?

A)Facebook
B)Twitter
C)podcasts
D)LinkedIn
E)blogs

Question 57

A(n)________ monitors and controls all traffic between the Internet and an intranet to restrict access.

A)private exchange
B)firewall
C)encryption
D)sniffer
E)password

Question 58

The ________ is the member of the buying centre who makes the final decision.

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

Question 59

Which of the following are tools used by hackers and Internet criminals to disrupt individual computers and entire company systems?

A)encryption and authentication
B)worms and viruses
C)sniffers and webinars
D)firewalls and decoders
E)passwords and private exchanges

Question 60

Which of the following would most likely be used by a hacker to intercept and read online communications?

A)back-translation
B)encryption
C)a sniffer
D)authentication
E)a firewall

Question 61

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

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

Question 62

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)requisition
B)reciprocity
C)customer references
D)outsourcing
E)reverse marketing

Question 63

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

A)request for proposal
B)information search
C)alternative evaluation
D)supplier selection
E)product selection

Question 64

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

A)Outsourcing
B)Reverse marketing
C)Crowdsourcing
D)Multiple sourcing
E)Insourcing

Question 65

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

A)obtain written or verbal bids
B)alternative evaluation
C)product selection
D)information search
E)problem recognition

Question 66

A rifle manufacturer needs muzzles, trigger mechanisms, and wooden gunstocks to produce rifles.Without these items the manufacturer cannot produce its rifles.It 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)reverse
B)synergistic
C)joint
D)reciprocal
E)inelastic

Question 67

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

Question 68

A vehicle manufacturer often won't buy a new product from a supplier unless the supplier's competitors are also capable of making the same item.The manufacturer is using ________.

A)single sourcing
B)crowdsourcing
C)multiple sourcing
D)customer reference programming
E)reciprocity

Question 69

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

A)obtain written or verbal bids
B)evaluate alternatives
C)scan trade publications
D)evaluate vendors
E)set price ceiling

Question 70

Which member of the buying centre typically has the most power?

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

Question 71

Many businesses today are abandoning 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)independent
B)micro-dependent
C)derived
D)inelastic
E)fixed

Question 72

A sign company creates and prints the full-sized vinyl sheets that make it quick and easy to change the promotion on a billboard.If a change in the price of petroleum (a necessary ingredient for the production of plastic) forced manufacturers of vinyl sheets to increase their price by 20 percent, the company would still need to buy the same amount to meet its customers' needs.Therefore, demand for vinyl sheets by companies that use this product to create billboard ads is ________.

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

Question 73

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

A)requests for quotations
B)requests for proposals
C)vendor analyses
D)product specifications
E)evaluative metrics

Question 74

The first step in the business buying decision process is ________.

A)recognize the problem
B)current vendor analysis
C)search for information
D)select the supplier
E)evaluate the alternatives

Question 75

For complex purchases, the buying centre will typically decide what type of sourcing to use in the ________ stage of the business buying decision process.

A)problem recognition
B)information search
C)alternative evaluation
D)product and supplier selection
E)postpurchase evaluation

Question 76

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

Question 77

Which of the following is NOT an example of business-to-business marketing?

A)Scott Sign Systems sells interior signs to an Alabama resort.
B)A municipal government buys chemicals for its city swimming pools.
C)Sue buys a gift for her mother.
D)A Canadian software company buys airline tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan.
E)Airmark sells a vinyl printing press to a manufacturer of plastic bags.

Question 78

Which of the following is an advantage of using single sourcing?

A)Suppliers are more likely to remain cost-competitive.
B)Buyers are less reliant on one firm to deliver the needed goods without interruption.
C)The buyer and seller agree to be each other's customers.
D)Consistency of quality of materials input into the product process is greater.
E)Buyers have other suppliers to fall back on if one supplier fails.

Question 79

When a business needs to make a complex purchase, it is most likely to form a buying centre during the ________ stage of the business buying decision process.

A)problem recognition
B)vendor analysis
C)information search
D)supplier selection
E)alternative evaluation

Question 80

The ________ is the member of the buying centre whose primary function is handling the details of the transaction.

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