Deck 7: Business-to-Business (B2B)Marketing

Question 1

Purchasing decisions in the B2B sectors are more complex,take longer to negotiate,and often include many levels of decision making.

Answer 1

True

Question 2

Governmental organizations represent the largest segment of the B2B marketplace.

Answer 2

False

Question 3

Organizational buyers tend to have much more precise and complex requirements for goods and services than ultimate consumers.

Answer 3

True

Question 4

The NAICS categorizes the business marketplace into more detailed market segments compared to the SIC system and can be used across borders.

Question 5

Firms usually sell fewer standardized products to organizational buyers than to ultimate consumers.

Question 6

As compared to business-to-business marketing,consumer marketing puts greater emphasis on advertising.

Question 7

The commercial market consists of wholesalers and retailers who purchase goods primarily to sell it to the final consumers.

Question 8

When Cannondale purchases aluminum for use in its bicycle frames,the company is participating in the commercial market.

Question 9

Personal selling plays a much bigger role in consumer markets than in business markets.

Question 10

A company that groups its customers into categories like manufacturers,wholesalers,and retailers based on buyer's product specifications,is using the psychographic segmentation approach.

Question 11

B2B relationships tend to last longer than those in the consumer market.

Question 12

The term "reseller" is often used to describe marketing intermediaries who operate in trade industries.

Question 13

Not-for-profit organizations are considered to be a part of the business market.

Question 14

Members of the trade industries acquire products primarily to support the production of other goods and services.

Question 15

Geographic location is one of the criteria considered during demographic segmentation of the business market.

Question 16

The primary purchasing need of an organization is meeting the demands of its own customers.

Question 17

The distribution channels in consumer markets are relatively shorter compared to those in business markets.

Question 18

Business marketers advertise primarily to announce new products and to attract potential customers.

Question 19

Most of the early Internet marketers failed because they did not consider basic marketing principles such as targeting their customers and making sure to fulfill their needs.

Question 20

The primary motivation of government purchasing is to provide some form of public benefit such as national defense or pollution control.

Question 21

The business market features a limited number of buyers compared to consumer markets.

Question 22

Manufacturing the products in-house is always the best way for companies to acquire needed products.

Question 23

Global sourcing involves contracting with suppliers from around the world to purchase goods and services.

Question 24

The sixth digit of the NAICS codes accounts for specific data needs of each of the member nations of NAFTA.

Question 25

Demand characteristics remain the same across business and consumer markets,although the marketing techniques tend to vary.

Question 26

End-use application segmentation focuses on the precise way in which a business purchaser will use a product.

Question 27

In the automobile industry,suppliers of components and assemblies frequently build plants close to their customers.

Question 28

The federal government is the largest single source of statistical information on business markets.

Question 29

If Product A is used primarily to manufacture Product B,then the demand for product A is said to be "derived" from the demand for Product B.

Question 30

India is the most preferred destination for production offshoring.

Question 31

Depreciation is an accounting term that refers to charging a portion of an expense item's cost against the company's annual revenue for purposes of determining their net income.

Question 32

Airlines continue to purchase the same amount of fuel in order to meet their operational needs regardless of the rise in prices of jet fuel.The type of demand for jet fuel in the above situation is an example of an inelastic demand.

Question 33

The NAICS classification system is a useful tool for segmenting business markets by demographic characteristics.

Question 34

Relationships in consumer markets are often more complex than those in business-to-business markets.

Question 35

Organizational purchases such as office buildings and computer systems can be categorized as expense items.

Question 36

With the help of customer relationship management systems,businesses can segment their customers in terms of the stage of the relationship between the business and the customer.

Question 37

As the demand for personal computers increases,the demand for microprocessor chips will also increase.This is an example of derived demand.

Question 38

Relationship marketing focuses on developing long-term,value-added customer relationships.

Question 39

Capital items are items that are consumed within short time periods.

Question 40

Firms that practice sole sourcing tend to order from a large pool of suppliers to hedge the risk of failure of one supplier.

Question 41

For U.S.based firms,Mexico is an attractive location for nearshoring operations.

Question 42

Organizational purchasing decisions tend to be standardized,resulting in the same procedures being used for both capital and expense items.

Question 43

Outsourcing and offshoring have the potential to slow a company's efforts in bringing new products to market.

Question 44

Poor service or poor delivery performance by a current supplier can provoke a modified rebuy decision from the customer.

Question 45

A firm deciding to purchase more energy-efficient machines in response to rising fuel prices illustrates the first step in the business buying process.

Question 46

In some cases,outsourcing and offshoring can reduce a company's ability to respond quickly to the marketplace.

Question 47

Merchandisers are trade sector buyers who secure needed products at the best possible prices.

Question 48

A straight rebuy is the business market equivalent of extended problem solving in the consumer market.

Question 49

Competitive bidding is more common in the business sector compared to consumer markets.

Question 50

Personal selling skills and user preferences carry more weight in decentralized purchasing situations than in centralized buying.

Question 51

Technological change is an environmental factor influencing business buying decisions.

Question 52

Aitzen systems sources all the required components and raw materials necessary for making a computer system from various suppliers in the country and assembles them to create a final product.Aitzen is engaging in multiple sourcing.

Question 53

Both consumer and business purchase decisions begin when the recognition of problems,needs,or opportunities triggers the buying process.

Question 54

Centralized buying tends to emphasize short-term results rather than focusing on long-term relationships.

Question 55

Sales personnel must be well versed in the technical features of their products,to effectively address the concerns of all people involved in the buying decision.

Question 56

New-task buying situations require considerable effort by the decision makers.

Question 57

Turning to outside vendors to provide goods or services that were formerly produced in-house is referred to as outsourcing.

Question 58

Modified rebuys resemble routinized response behavior in consumer markets.

Question 59

If a company wants to concentrate its resources on its core business,it may be wise to outsource support functions.

Question 60

A straight rebuy is a recurring purchase decision in which a customer reorders a product that has satisfied its needs in the past.

Question 61

The Federal Trade Commission in the United States views reciprocal arrangements as attempts to reduce competition.

Question 62

Sole sourcing refers to the systematic study of the components of a purchase to determine the most cost-effective approach.

Question 63

Group purchasing is an important factor in institutional markets as institutions often join cooperative associations to pool purchases for quantity discounts.

Question 64

Reciprocity tends to simplify B2B buying behavior for new suppliers who are trying to compete with preferred vendors.

Question 65

International buying centers often involve more participants than U.S.companies involve.

Question 66

In business markets,discounts and distribution functions have proven to be ineffective in obtaining or keeping institutions as customers.

Question 67

A company's buying center encompasses everyone who is involved in any aspect of its buying activity.

Question 68

Gatekeepers in the buying center affect the buying decision by determining which individuals within the organization will be part of the buying process.

Question 69

Social goals influence governments to purchase goods and services from small firms and companies owned by minorities and women.

Question 70

Purchases made under cost-reimbursement contracts offer more profit potential to the government than the fixed price contracts.

Question 71

Institutional markets are characterized by widely diverse buying practices.

Question 72

The buying center is an informal group whose size and composition varies among purchase situations and firms.

Question 73

Reciprocal arrangements traditionally have been common in industries featuring heterogeneous products.

Question 74

General Services Administration is responsible for procuring goods and services for the U.S.government's Department of Defense.

Question 75

Buying practices can differ among institutions of the same type.

Question 76

The buyer has the formal authority to select a supplier and to implement the procedures for
securing the good or service.

Question 77

The consumer market equivalent of new-task buying is limited problem solving.

Question 78

A buying center is a basic component of a firm's formal organizational structure.

Question 79

A firm evaluating a supplier's performance in categories such as EDI capability,delivery time,and attention to special requests is carrying out vendor analysis.

Question 80

By law,most federal purchases must be awarded on the basis of bids,or written sales proposals,from vendors.