Deck 7: Business Marketing

Question 1

Dave Smith has been sent to Japan by Microsoft Corp.Microsoft's objective is to grow its business in Japan, where reciprocity and personal relationships are prominent. What kind of development do these two characteristics contribute to?

A)global ventures
B)amae
C)agricola
D)keiretsu

Answer 1

B

Question 2

How does B2B differ from consumer marketing?

A)In B2B, the nature of relationships and interactions could last for years.
B)In B2B there are few avenues for effective advertising of organizational goods.
C)Most buyers prefer meeting face to face with salespeople.
D)Many organizational products in B2B are complex and require expertise on the salesperson's part.

Answer 2

A

Question 3

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

A)physical form
B)intended use
C)distribution method
D)price

Answer 3

B

Question 4

What is the best definition of a business-to-business interaction?

A)interrupting customers
B)interacting with customers
C)a one-off transaction
D)getting the customer's attention

Question 5

Which of the following best describes business-to-business marketing?

A)It is marketing products or services sold for personal consumption.
B)It involves marketing goods that are sold in consumer markets.
C)It involves matching capabilities between two businesses.
D)In business-to-business marketing, relationship marketing is given little importance.

Question 6

What exists when one party has confidence in an exchange partner's reliability and integrity?

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

Question 7

Which of the following best characterizes 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 sets the price and other conditions of sale without chances for negotiations.

Question 8

Fournotts Printing Inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. What is this an example of?

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

Question 9

A product is defined as a business product rather than consumer good on the basis of which of the following?

A)intended use
B)physical characteristics
C)price
D)distribution method

Question 10

What do companies need to think about in business marketing?

A)Neither the seller nor the buyer can afford to be passive.
B)The buyer is most important in the process.
C)The seller is the most important in the process.
D)The buyer and the seller play small roles in the selling process.

Question 11

What is used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers?

A)a consumer product
B)a shopping product
C)a business product
D)a convenience product

Question 12

Vactin Corp., a construction company, buys ten truckloads of cement for its new construction project. Given this information, what is the cement an example of?

A)a consumer product
B)a service product
C)an industrial product
D)an unsought product

Question 13

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 14

C-Through, an optics-manufacturing company, wants to focus on relationship marketing. In this case, which of the following strategies should C-Through adopt?

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

Question 15

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, in which of the following cases would Tamery Corp. be said to be selling consumer products?

A)if it sells books to students
B)if it sells spare parts to automobile manufacturers
C)if it sells laptops to a hotel
D)if it sells printers to a partnership firm

Question 16

What needs to be in place for a business market to meet its customers' needs?

A)trust, mutual respect, and satisfying company goals
B)advertising
C)personal selling
D)public relations

Question 17

What is the Canadian Marketing Association's definition of business marketing?

A)a network of buyers
B)a network of buyers and sellers
C)a challenging network to be in today
D)NAFTA

Question 18

Which of the following best describes 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 is becoming more intense.

Question 19

What is the best definition of a sales approach?

A)sales and selling to companies
B)focus on generating leads
C)persuasion techniques
D)understanding the problems of a customer

Question 20

Which of the following is business marketing NOT used for?

A)to become part of another product
B)to manufacture other products
C)for personal consumption
D)to facilitate the normal operations of an organization

Question 21

A decline in the availability of bicycle handle bars will decrease Huffy Bicycle Company's production of bicycles. Decreased production in turn reduces Huffy's demand for bicycle seats. Which type of demand do the products in this situation have?

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

Question 22

During the first years of this century, the number of packages arriving at households has more than doubled. An increase in the price of the cardboard boxes in which these packages are shipped will have little effect on the amount of shipping done; the demand for the boxes will continue to increase. What type of demand is the demand for the cardboard boxes?

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

Question 23

Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different consumer magazines. Consumer magazine sales determine how much paper Inland Eastex sells. This is an example of which type of demand?

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

Question 24

Bàbolina Tetra is a Hungarian company that has genetically created a chicken that is guaranteed to produce uniform brown eggs with strong shells. It breeds and sells young chicks to farmers all over Europe who want to sell eggs in local markets. When consumers began to worry about cholesterol content and stopped eating as many eggs, the demand for the Bàbolina Tetra hen also declined. Which type of demand is this an example of?

A)derived demand
B)elastic demand
C)multiplying demand
D)bundled demand

Question 25

Which Canadian network brings together leading Canadian researchers and national youth-serving organizations?

A)Networks of Centre and Excellence
B)WITS
C)PREVNet
D)RCMP

Question 26

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 to meet the demand. What does this example illustrate?

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

Question 27

What does guanxi loosely mean?

A)friendships and trust
B)relationships
C)an understanding to make business happen
D)unwillingness to interact with other firms

Question 28

Fresnas Inc., an oil refinery, buys crude oil and converts it into various products such as gasoline, kerosene, and diesel fuel. 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 29

An acute shortage of heavy-duty tires is threatening to disrupt operations in mining and construction sites around the world. According to one mine operator, "I've got the coal and market, and I have the trucks to haul the coal, but I don't have the tires. I'd be willing to pay double the price if I could get the tires I need." What type of demand is the demand for heavy-duty tires in this example?

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

Question 30

Although the price of a chemical added to paint to protect surfaces from mould and mildew has almost doubled, the price of paint only rose an average of 5 percent, and the demand for both paint and the chemical that eliminates mould and mildew remained stable. What is the demand for this chemical?

A)elastic
B)derived
C)bundled
D)inelastic

Question 31

The number of companies ordering airplanes from Boeing has dropped. After some research, Boeing found out that the number of consumers flying had also dropped. What type of demand was this a result of?

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

Question 32

The demand for polyethylene film used to wrap meat in supermarkets is dependent on consumers' demand for meat. This is an example of which type of demand?

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

Question 33

Why did the Canadian government create Networks of Centres of Excellence?

A)to build friendship and trust
B)to bring together government and industry funding
C)to build better trade negotiations
D)to understand how other countries do business

Question 34

When two or more items are used in combination to produce a final product, which type of demand are they said to have?

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

Question 35

What is a keiretsu?

A)a type of strategic alliance commonly found in Japan
B)a method of business e-commerce found in Asia
C)an Internet site that offers its customers access to various languages that they can use to conduct their business
D)a form of relationship marketing that is illegal in Canada

Question 36

Challenger Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes last year, the sales did not drop. What is this an example of?

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

Question 37

When an increase or decrease in the price of the product will not significantly affect demand for the product, what is the demand for the product?

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

Question 38

What is the best definition of the network approach?

A)sales and selling to companies
B)focus on generating leads
C)persuasion techniques
D)understanding the external forces that have an impact on businesses

Question 39

What is the best definition of the marketing management approach?

A)sales and selling to companies
B)focus on generating leads
C)persuasion techniques
D)understanding that the customer has the same needs

Question 40

When the demand for packaged beer fell by 8 percent in one year, the demand for aluminum beer cans and glass beer bottles also fell. This demand for beer containers is an example of which type of demand?

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

Question 41

There was a spike in the sales of the new iPhone. This resulted in an even larger increase in demand for the machinery and equipment needed to manufacture the iPhones. What is this a result of?

A)the demand fluctuation principle
B)the joint demand principle
C)the inelastic demand effect
D)the multiplier effect

Question 42

Which of the following pairs of products best illustrates the concept of joint demand?

A)a pumpkin and the set of tools used to carve it
B)a thermometer and a barometer
C)a grandfather clock pendulum and a grandfather clock case
D)canola oil and sunflower oil

Question 43

A company that installs and maintains signs along major highways has a truck equipped with a 50-metre crane that is capable of lifting up to 15 tons. The company's accountant depreciated the value of the vehicle over several years. What type of business product is the truck with a crane?

A)major equipment
B)component part
C)processed material
D)fabricating item

Question 44

Pruitt sells embroidery machines used to embroider logos, names, and other designs on shirts, caps, umbrellas, etc., to people in the personalization business. The machines range in price from $39,000 to $75,000. He wants to stimulate business among some of his customers who cannot afford to buy his embroidery machines, but whose businesses would benefit from the use of one. Which of the following actions is most appropriate in this example?

A)develop leasing options for business customers
B)create full and complete reciprocity to ensure customer cash flow
C)manage derived demand to keep the customers' demand at the highest possible levels
D)set up a straight-rebuy ordering system

Question 45

Which of the following is the best example of major equipment?

A)a baseball stadium
B)a checkout counter
C)a lifeguard stand
D)a file cabinet

Question 46

Which of the following is the best example of accessory equipment?

A)a parking lot
B)a store display rack
C)car batteries
D)a river barge

Question 47

Why is it important that marketers understand the classification of the business product they are selling?

A)because OEM markets often act just like the consumer markets
B)because promotion and distribution strategies tend to vary depending upon the type of product
C)because distribution channels are almost always direct for all business selling
D)because raw materials demonstrate extreme flexibility in pricing

Question 48

Commonplace in business marketing, what is the term for the bargaining between buyers and sellers on product specifications, delivery dates, payment terms, and other pricing matters?

A)negotiation
B)need mediation
C)customerization
D)purchase arbitration

Question 49

What is the benefit of having fewer customers in business markets in comparison with consumer markets?

A)It reduces the attention required to be given to customers.
B)It makes it easy to identify prospective buyers.
C)It reduces the importance of relationships.
D)It increases product diversity.

Question 50

Caterpillar, the manufacturer of earthmoving equipment, uses completed drivetrains, drivetrain components, electrohydraulic components and systems, cooling systems, and undercarriage track systems produced by other organizations in its manufacturing process. What is Caterpillar an example of?

A)a fabricator
B)an installer
C)an original equipment manufacturer
D)a product provider

Question 51

What is the term for finished items ready for assembly or products that need very little processing before they become a part of some other product?

A)supplies
B)raw materials
C)accessory equipment
D)component parts

Question 52

Because they are shown as expenses on the yearly accounting statements, what are firearms, computers, printers, fax machines, and patrol vehicles for a police department?

A)mobile installations
B)component parts
C)accessory equipment
D)supplies

Question 53

Which of the following occurs when a bakery decides to buy its office supplies from a company that regularly buys muffins and pastries for its employees?

A)reciprocity
B)joint demand
C)elastic demand
D)disintermediation

Question 54

Creative Graphics has just moved into a new building. The owner wants to landscape the front of the building and build an employee picnic area on the side. When looking for a landscaper, the owner looked no further than his own customer list. He chose to use the services of a landscaper that had hired Creative Graphics to print a recent promotional brochure. The purchase by Creative Graphics is which of the following?

A)an example of nested demand
B)an example of an illegal influence
C)a normal business practice called reciprocity
D)unethical by all standards

Question 55

Parking garages, $500,000 printing presses, privately owned warehouses, and oil-well drilling platforms are depreciated over time rather than expensed in the year they are purchased. How are these classified?

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

Question 56

Tommy ran a warehouse selling nuts and bolts to car mechanics. After his own car broke down, Tommy decided to use a mechanic called Raymond. Raymond actually happened to be one of Tommy's customers at the warehouse. What is this an example of?

A)working to create purchase arbitration
B)opening oneself up to prosecution for illegal activities
C)practising reciprocity
D)trying to eliminate derived demand barriers

Question 57

What characteristics do buyers in business markets exhibit?

A)They are insensitive to price.
B)They are located throughout Canada.
C)They are more geographically concentrated than consumers.
D)They are involved with only a few negotiations.

Question 58

Which of the following customers are NOT served by business marketers?

A)institutions and nonprofits
B)producers
C)resellers and wholesalers
D)private consumers

Question 59

Pammi was looking for a new car. She has heard that the Car Mecca was the place to go. Many car companies including Ford, Volkswagen, Honda, and Toyota all sell at the Car Mecca. What is this an example of in the business market?

A)reciprocity
B)purchasing in much smaller quantities
C)buying more products that have a reduced probability of being affected by derived demand
D)geographic concentration

Question 60

Because they are not expensive, have short useful lives, and are frequently purchased from local distributors, how are store mannequins, notebook computers, fax machines, and grocery carts typically classified?

A)as accessory equipment
B)as mobile equipment
C)as component parts
D)as supplies

Question 61

In the past 24 years, Mothers Work has grown from a small, mail-order catalogue business, headquartered inside the founder's home, to the world's largest seller of maternity apparel, with nearly 1,600 locations. In terms of the business market, how would Mothers Work be classified?

A)as a reseller
B)as a producer
C)as a distribution network
D)as a business facilitator

Question 62

What can managers use the NAICS data to do?

A)to create a more focused mission statement
B)to eliminate risk
C)to classify consumer behaviour
D)to identify potential new customers

Question 63

Imagine you are the research director of a major industrial marketing firm. You need to select an NAICS code that defines the most homogeneous group of companies in a particular group of highly competitive companies. Which of the following codes might you use?

A)7432
B)532
C)19
D)7

Question 64

Which of the following is NOT a role within the buying centre?

A)influencers/evaluators
B)gatekeepers
C)suppliers
D)users

Question 65

Teknika sells inexpensive equipment to detect bacteria in food. The company serves not-for-profit institutions that need to regularly check food quality. Which of the following would Teknika be least likely to sell to?

A)Halton Regional School Board
B)a large pediatric hospital
C)a chain of Mexican restaurants
D)a chain of church-sponsored retirement homes

Question 66

One segment of the business market has primary goals that differ from the ordinary business goals such as profit, market share, or return on investment. This segment includes many schools, churches, and civic clubs. What is the name for this type of business market?

A)institution
B)OEM
C)service
D)provider

Question 67

The government uses a system called NAICS to classify North American business establishments. What does NAICS stand for?

A)North American Innovation Classification System
B)North and South American Institutional Coding Services
C)North American Industrial Corporation System
D)North American Industry Classification System

Question 68

Which of the following best describes the Canadian federal government?

A)It is not a business market segment.
B)It is Canada's largest business customer.
C)It is an organization accounting for over 50 percent of Canada's gross national product.
D)It is mainly a military equipment purchaser,

Question 69

The company mechanic suggested to the owner of Friendly Cab Company that to increase the cars' fuel efficiency, the firm should install Cherry Bomb glass-pack mufflers in all of the cabs. The owner, who was pleased the mechanic was concerned about the firm's profitability, instructed the mechanic to install the new mufflers. In terms of the buying centre, which roles did the mechanic fill?

A)initiator and influencer
B)decider and gatekeeper
C)initiator, decider, and user
D)user, influencer, and gatekeeper

Question 70

What would a Canadian company that manufactures the lighted signs used in amusement parks, at outdoor sports arenas, for restaurant promotion, and by provincial departments of transportation on the sides of roads use to facilitate its market segmentation and targeting if it wanted data that were readily available and usable?

A)a large amount of marketing research, including scanner data and focus groups
B)other competing firms as a strategic alliance referral service
C)government bidding processes
D)the North American Industry Classification System

Question 71

Which of the following statements best describes buying centres?

A)The most efficient buying centres have no more than five members.
B)No one individual should assume more than two buying centre roles.
C)Buying centres are clearly labelled on all organizational charts.
D)Number of people involved in a buying centre varies.

Question 72

Which of the following is typical of business marketing in a distribution structure?

A)It's indirect.
B)It's direct.
C)It's complex and multistage.
D)It's a three-step channel.

Question 73

Daya worked at a Museum. Her computer broke down. She let Charles at Tech Support know who recommended an Acer PC. The head of the museum signed off on the purchase and Doris at purchasing actually put the order through. What are these people part of?

A)the buying centre
B)the stakeholder committee
C)the ad hoc purchasing staff
D)the board of directors

Question 74

Berry SA buys components from other manufactures to construct its radiators, which are used by several European car manufacturers. What is Berry SA?

A)a channel
B)a reseller
C)a producer
D)a distributor

Question 75

Nissan Motor and Mazda Motor announced that the companies have signed an agreement under which Nissan will continue to supply Mazda with light commercial vehicles (LCVs) on an OEM basis. What does this mean?

A)Nissan is an installer of original materials.
B)Mazda is a fabricator.
C)Nissan is an original equipment manufacturer.
D)Mazda will be the producer.

Question 76

Robin Elan works as a salesperson for a company that provides customized motivational seminars to medium-sized businesses. She often talks to several different people before she locates someone who can give her a purchase order or a refusal. In terms of the buying centre, for the seminars she has the most trouble identifying which of the following?

A)decider
B)influencer
C)purchaser
D)gatekeeper

Question 77

Costco Wholesalers buys finished goods and sells and distributes them to businesses and consumers for a profit. How would Costco be classified?

A)as an inventory carrier
B)as a producer
C)as a distribution network
D)as a reseller

Question 78

Which of the following is the best description of a buying centre?

A)It will be composed of the same decision makers as long as the purchasing process lasts.
B)It is typically on the formal organizational chart under the vice-president for operations.
C)It requires all purchasing participants to be employed by the purchasing department.
D)It refers to all those organizational members who become involved in the purchasing process.

Question 79

The Acer Corporation buys circuit boards from their suppliers that they then use to make computers. How would you classify Acer? as

A)as an institution
B)as a reseller
C)as a wholesaler
D)as a producer

Question 80

NAICS data are helpful for analyzing, segmenting, and targeting markets. Who developed the system?

A)large manufacturers in United States and Mexico that produce similar goods
B)the North American Free Trade Agreement partners
C)the Canadian government
D)the SIC committee