Deck 5: B2B Marketing

Question 1

Organizational buying behaviour is the process by which organizations determine the need for goods and then choose among alternative suppliers.

Answer 1

True

Question 2

Large firms that engage in many different activities are given as many North American Industry Classification System (NAICS) codes as the number of activities they engage in.

Answer 2

False

Question 3

Wholesalers and retailers that buy physical products and sell them again without any reprocessing are known as industrial firms.

Answer 3

False

Question 4

A buying centre is a heterogeneous group consisting of individuals with different goals and knowledge related to purchase decisions.

Question 5

Organizational buyers include all buyers in a nation, including the ultimate consumers.

Question 6

Polyron Inc.reprocesses the products it purchases before selling it to the next buyer.Polyron Inc.is an industrial firm.

Question 7

Digital communications technologies have made content marketing easier for many companies.

Question 8

Consumer demand for products and services is derived.

Question 9

Deciders control the flow of information in the buying centre.

Question 10

Content marketing seeks to keep customers engaged through informative and timely communications.

Question 11

Organizations that operate without having financial profit as a goal, and which seek to provide goods and services for the good of society, are called charitable organizations.

Question 12

Foreroll Inc.decides to shift its focus on firms looking for quality products and good customer service from those looking simply for lower prices.This is an example of segmenting business market on the basis of benefits sought.

Question 13

The total purchases of ultimate consumers in a year are always far greater than those of organizational buyers.

Question 14

Government units are the federal, provincial, regional, and municipal agencies that buy goods and services for the constituents that they serve.

Question 15

Freight Systems is a leading courier company.It provides courier services to large international businesses.It takes care of international customs, duties, and specialized packaging for these large businesses.It also provides courier services to small domestic organizations.It should use the same distribution channel for both types of clients.

Question 16

Peter purchases pizza crusts from Cakes & Bakes Co., which uses the flour from Husk Mills LLC to manufacture the crusts.Here, Cakes & Bakes Co.is the organizational buyer.

Question 17

Regardless of whether there is an increase or decrease of the price of a B2B product, customers buying the same quantity signifies an inelastic demand for that product.

Question 18

For organizational buyers, price is not always the most important criteria.

Question 19

Common industry definitions provided by the North American Industry Classification System (NAICS) facilitate the measurement of economic activity in Canada, Mexico, and the United States.

Question 20

The demand for the cows at Rockeller's dairy farm is based on the consumer demand for milk, cheese, ice cream, cream, and butter.This is an example of inelastic demand.

Question 21

Which of the following is true about organizational buyers?

A)Their total purchases in a year are far more than that of ultimate consumers.
B)They purchase and lease smaller amounts of supplies than ultimate consumers.
C)They purchase only business services for their firm.
D)They purchase only raw materials for their firm.

Question 22

The Baybuys a variety of kitchen products, such as mixers and blenders, and sells them to amateur cooks.Sears is an example of a _____.

A)non-profit organization
B)monopolist
C)reseller
D)industrial firm

Question 23

When a city-managed library system buys new computers, monitors, and printers for its student computer labs, it is operating as a(n) _____.

A)industrial market
B)business market
C)government market
D)facilitating agent

Question 24

Many Canadians participate in events like "Run for the Cure" and United Way fundraising campaigns.These organizations purchase significant amounts of goods and services as

A)Industrial buyers
B)Non-profit organizations
C)Resellers
D)Government buyers

Question 25

In a reverse auction, a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.

Question 26

Wholesalers and retailers that buy physical products and resell them again without any reprocessing are _____.

A)industrial firms
B)resellers
C)non-intermediaries
D)facilitators

Question 27

A manufacturer of consumer food products for the Chinese market in North America buys several thousand tonnes of camellia nuts annually.It converts those nuts into cooking oil that is popular among the Chinese population and then sells it to Chinese supermarkets.The pulp from which the oil is extracted is sold to beef cattle farmers who use it to fatten their cattle.These transactions occur in the _____ market.

A)vertical
B)reseller
C)business-to-consumer
D)industrial

Question 28

The reseller market includes:

A)manufacturers and service providers.
B)Retailers and wholesalers.
C)government agencies and service providers.
D)agricultural markets and the mining industry.

Question 29

Independent e-marketplaces charge a fee for their services and exist in settings that have thousands of geographically dispersed buyers and sellers.

Question 30

Pride Mobility makes wheelchairs from component parts purchased from Potto Hardware.The wheelchairs are sold to hospitals, nursing homes, and retailers of health care products.Pride Mobility operates in a(n) _____ market.

A)business-to-consumer
B)psychographic
C)industrial
D)reseller

Question 31

_____ is the marketing of products to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they then produce and market to others.

A)Micromarketing
B)Retail marketing
C)Business marketing
D)Consumer marketing

Question 32

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

A)After being used more than 50 years, NAICS was replaced by the Standard Industrial Classification (SIC) system.
B)NAICS neither permits comparability across countries nor accurately measures new or emerging industries.
C)NAICS provides a five-digit national industry code to each of the three countries.
D)NAICS groups economic activity to permit studies of market share, demand for goods and services, competition from imports in domestic markets, and similar studies.

Question 33

Which of the following statements represents an organizational buying decision?

A)Mr.Crowe buys a Toyota minivan to commute to work.
B)A dentist buys a new DVD player for her den.
C)Mr.Langley hires a housecleaning service to clean his apartment.
D)A restaurant owner hires a snow removal service to keep the parking lot clear for its clients.

Question 34

The North American Industry Classification System (NAICS) provides common industry definitions, which make easier the measurement of economic activity for member countries of the _____.

A)G7
B)World Trade Organization (WTO)
C)North American Free Trade Association (NAFTA)
D)North Atlantic Treaty Organization (NATO)

Question 35

Marker Jimmy's Co., a large cocoa-bean processor, buys cocoa beans and converts the beans into cocoa powder and cocoa butter, which is sold to companies that manufacture consumer products containing chocolate.Marker Jimmy's Co.is operating in a(n) _____ market.

A)reseller
B)vertical
C)industrial
D)business-to-consumer

Question 36

An industrial firm:

A)is distinguished by the amount of energy it uses and the potential for pollution to the environment.
B)in some way reprocesses a product or service it buys before selling it again to the next buyer.
C)employs more than 500 people, who are paid minimum wages with few or no benefits.
D)deals exclusively with federal, provincial, and local governments, and often mediates governmental agency disputes.

Question 37

_____ are the federal, provincial, regional, and municipal agencies that buy goods and services for the constituents that they serve.

A)Industrial firms
B)Resellers
C)Co-operatives
D)Government units

Question 38

Which of the following is an organizational buyer?

A)Girl Guides buying mint cookies to sell in their local neighbourhood to raise funds for charity.
B)A girl buying Timbits from Tim Hortons.
C)A couple buying a mega pack of cleaning supplies from Costco for their cottage.
D)A group of friends pooling their funds and buying a Lotto 6/49 ticket.

Question 39

_____ makes easier the measurement of economic activity in Canada, Mexico, and the United States by providing common industry definitions for these countries.

A)Strategic International Classification (SIC)
B)Federated Domestic and International Classification (FDIC)
C)Federated Trade Codification (FTC)
D)North American Industry Classification System (NAICS)

Question 40

The Scotts Company manufactures and sells packaged lawn fertilizers to The Home Depot.The Home Depot sells these products to the ultimate consumer-the homeowner.The Home Depot is a(n) _____.

A)service provider
B)municipal agency
C)reseller
D)industrial firm

Question 41

Which of the following statements accurately characterizes buying behaviour in organizational markets?

A)Organizational buying behaviour is similar to consumer buying behaviour since individuals are involved in both processes.
B)Demand for industrial products is elastic instead of inelastic or derived because companies, not ultimate consumers, determine the quantity of goods produced.
C)Fewer customers typically exist in organizational markets than in consumer markets.
D)Forecasting is not as important in organizational buying as in consumer buying.

Question 42

In selling business equipment, Xerox has found social media incredibly useful for keeping potential customers informed and engaged.This reflects

A)Derived demand
B)NAICS
C)Reseller markets
D)Content marketing

Question 43

A company that runs its trucks on a mixture of petroleum and ethanol buys its ethanol from the only large supplier of ethanol that has an ethanol manufacturing facility in the province and is able to meet the trucking company's delivery schedules.The selection of ethanol supplier is based on _____.

A)organizational buying criteria
B)derived demand factors
C)marginal demand
D)profit margins

Question 44

P & P is a global leader in pallet and container pooling services.Pallets are used for transporting and storing new appliances such as stoves, freezers, and refrigerators.Which of the following is true about the demand for P & P's pallets?

A)There is a high consumer demand for P & P's pallets.
B)There is elastic demand for P & P's pallets independent of the sales of pallets but tied to the sales of appliances.
C)There is derived demand for P & P's pallets because demand for the pallets is tied to demand for the appliances.
D)There is inelastic demand for P & P's pallets tied to the cost of the components of the pallets.

Question 45

The North American Industry Classification System (NAICS) permits a firm to:

A)find the NAICS codes of its present customers and then obtain NAICS-coded lists for similar firms.
B)get the names of the purchasing agents of all prospective customers.
C)sell to any company within North America as long as it is not a monopoly.
D)engage in benchmarking with companies manufacturing and/or marketing similar products.

Question 46

In organizational buying settings, _____ keeps potential customers engaged by providing valuable information.

A)Content marketing
B)NAICS
C)Derived demand
D)Price elasticity

Question 47

Which of the following is a commonly used organizational buying criterion?

A)taste of the buyer
B)personal relationship with sales representative
C)price
D)existing mood of the buyer

Question 48

Five Star Windows (FSW) manufactures high-quality, energy-efficient windows for homes and offices.The number of windows sold is directly linked to the number of new homes built.The sales of FSW's windows go up when the economy is strong and many homes are being built.This information reveals that the demand for FSW's windows is an example of _____.

A)derived demand
B)the price-quality relationship
C)the acceleration principle
D)price elasticity

Question 49

When small changes in price for consumer products can result in large increases or decreases in demand for the facilities and equipment needed to make the consumer product, it is referred to as _____ demand.

A)horizontal
B)fluctuating
C)discrete
D)unit

Question 50

_____ are detailed specifications for the products and services they want to buy and the characteristics of the suppliers that will supply them.

A)Supplier evaluative dimensions
B)Organizational buying criteria
C)Evaluative criteria
D)Performance measures

Question 51

Concert Staging Company (CSC) provides the stage, roof system, lighting, and sound for outdoor concerts and theatres.The frequency of concerts and theatre events conducted depends on the customers' decisions to purchase the tickets.The number of concerts and theatre events determine how many times CSC gets an opportunity to provide its services.Thus, the demand for the services provided by CSC is a(n) _____ demand.

A)derived
B)unitized
C)holistic
D)applied

Question 52

Which of the following is a market characteristic of products and services purchased within an organizational context?

A)The focus is on delivery time and post-sale service.
B)Raw and semi-finished goods are predominantly purchased.
C)Demand for industrial products and services is derived.
D)Goods and services are purchased on the basis of specifications that are technical in nature.

Question 53

MKL Inc.processes wheat into flour, which is sold to bakeries and pasta makers.What kind of demand exists for MKL Inc.'s flour?

A)unitized
B)derived
C)consumer
D)applied

Question 54

If the price of brake pads goes up, a car manufacturer will still order the same quantity because this single business product is only a minor portion of the price of the car.This is an example of _____ demand.

A)inelastic
B)vertical
C)fluctuating
D)elastic

Question 55

Derived demand means the demand for industrial products and services is driven by, or derived from:

A)mathematical formulas and statistical models.
B)the gross national product (GNP).
C)demand for consumer products and services.
D)demand for industrial goods.

Question 56

Firms selling consumer goods or services often try to reach thousands or millions of individuals or households.Firms selling to organizations are often:

A)inclined to try to reach tens of millions.
B)restricted to fewer buyers.
C)under pressure to stay within a fixed target of clients.
D)restricted by government regulations to only a few industrial categories.

Question 57

Identify the buying process characteristic from the following dimensions of organizational buying behaviours.

A)The focus is on delivery time and post-sale service.
B)Raw and semi-finished goods are predominantly purchased.
C)Online buying over the Internet is widespread.
D)Goods and services are purchased on the basis of specifications that are technical in nature.

Question 58

Which of the following is a marketing mix characteristic of the organizational buying behaviour?

A)The focus is on delivery time and post-sale service.
B)Advertising and other promotional forms are technical in nature.
C)Online buying over the Internet is widespread.
D)Goods and services are purchased on the basis of specifications that are technical in nature.

Question 59

The practice of organizational buyers attempting to work with suppliers to make their products, services, and capabilities fit the buyer's needs is called _____.

A)low pricing strategy
B)high quality protocol
C)reverse marketing
D)traditional supply chain management

Question 60

For many organizations, purchase decisions are made based upon minimizing risk.This reflects

A)The need for low price in organizational selling
B)Fear as a factor in organizational buying
C)Content marketing
D)Fluctuating and derived demand

Question 61

Once an organization making a purchase decision passes through the problem recognition stage of the process, it reaches the _____ stage.

A)information search
B)post purchase behaviour
C)alternative evaluation
D)purchase decision

Question 62

Mark & Co., a regular purchaser of personal computers, wants to change product specifications, price, and delivery schedule of the product.This is an example of a _____.

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

Question 63

At which stage in the buying decision process would a firm clarify its organizational buying criteria and select a supplier?

A)problem recognition
B)information search
C)purchase decision
D)evaluation of alternatives post-purchase behaviour

Question 64

In an effort to make better and more-efficient purchase decisions, Supersaver Inc., a large multi-store chain reseller, has formed formal groups of people to work together on purchase decisions. Which of the following statements accurately describes the people in the groups formed at Supersaver Inc.?

A)The groups will not include individuals from other functional areas.
B)The groups will never contain cross-functional teams.
C)The organizational buyer will not be a member of the groups.
D)The composition of the groups depends on the specific item being purchased.

Question 65

Which type of buyer-seller interaction is demonstrated when Evergreen Motors (EM) purchases Mark & Drew transmissions, and Mark & Drew buys trucks and cars from EM?

A)exclusive dealing
B)monopolistic arrangement
C)supply partnership
D)non-competitive bidding

Question 66

Within the buying centre, deciders are people who:

A)have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.
B)control the flow of information in the buying centre.
C)have the formal or informal power to select or approve the supplier that receives the contract.
D)affect the buying decision usually by helping define the specifications for what is bought.

Question 67

The process by which organizations determine the need for goods and then choose among alternative suppliers is referred to as _____.

A)the consumer purchase decision process
B)organizational buying behaviour
C)the industrial purchase procedure
D)the reseller procurement process

Question 68

At which stage in the buying decision process will a firm visit potential suppliers to assess their facilities?

A)problem recognition
B)information search
C)evaluation of alternatives
D)purchase decision

Question 69

In terms of the buying centre, people who control the flow of information in the buying centre, such as purchasing personnel, technical experts, and secretaries, and help or prevent sales people from reaching others in the buying centre are called _____.

A)influencers
B)obstructionists
C)gatekeepers
D)power brokers

Question 70

The people in the organization who actually use the product or service are called _____.

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

Question 71

Smith Systems is in the process of making a purchase decision for some key equipment.The company heads have asked the design and production engineers to draft specifications for the equipment needed.Smith Systems is in the _____ stage of the organizational purchase decision process.

A)problem recognition
B)information search
C)evaluation of alternatives
D)purchase decision

Question 72

The _____ is a group of persons within an organization who participate in the buying process and share common goals, risks, and knowledge important to purchase decisions.

A)status quo committee
B)purchasing agency
C)buying centre
D)gatekeeper group

Question 73

In which stage would a company's marketing research and sales department observe the improvement of its competitors?

A)problem recognition
B)information search
C)evaluation of alternatives
D)purchase decision

Question 74

Franco, a purchasing manager, reorders an existing product from a list of acceptable suppliers without doing any quality check.This is an example of a _____.

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

Question 75

In an effort to make better and more-efficient purchase decisions, Supersaver Inc., a large multi-store chain reseller, has formed formal groups of people to work together on purchase decisions. The groups formed at Supersaver Inc.are referred to as the _____.

A)selling committee
B)decision-making unit
C)purchasing unit
D)buying committee

Question 76

In a buying centre, _____ have formal authority and responsibility to select the supplier and negotiate the terms of a contract.

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

Question 77

Within the buying centre, influencers are people who:

A)have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.
B)control the flow of information in the buying centre.
C)have the formal or informal power to select or approve the supplier that receives the contract.
D)affect the buying decision usually by helping define the specifications for what is bought.

Question 78

A relationship called a _____ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate customer.

A)double-deal
B)conflict of interest
C)restricted access
D)supply partnership

Question 79

Hartey & Inova Inc.is a first-time buyer of the services of Gamko Inc.This is an example of a _____.

A)new buy
B)straight rebuy
C)modified rebuy
D)make-buy

Question 80

At which stage in the buying decision process would a firm use a formal vendor rating system to evaluate the quality of the vendor's product and customer service?

A)problem recognition
B)information search
C)purchase decision
D)post-purchase behaviour