Deck 7: Business-To-Business Marketing

Question 1

Consultative buying centers use one person to make a decision but solicit input from others before doing so.

Answer 1

True

Question 2

Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process.

Answer 2

False

Question 3

The information search is typically more formal in the B2B process than the B2C process.

Answer 3

True

Question 4

The surgeon at the hospital is the decider in the buying process of surgical equipment.

Question 5

As the owner of a small business with 60 employees that makes custom drawer liners, Kim makes all of the buying decisions. Kim is most likely the user.

Question 6

Organizational culture may vary by geography.

Question 7

A buying center whose decisions are based on majority rules is known as an autocratic buying center.

Question 8

LinkedIn is useful for networking in the B2B marketplace, but Twitter is not typically used.

Question 9

Structured proposals are expected by consumers in the B2C process.

Question 10

Resellers differ from producers in that resellers significantly alter the form of goods before selling them.

Question 11

When the Toyota Prius first entered the marketplace, dealers made waiting lists of the people who wanted one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.

Question 12

The RFP process is used by buyers to allow customer input into value creation.

Question 13

The local park district needs to upgrade the computers in the seven park offices. This represents the product specification stage of the B2B buying process.

Question 14

An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.

Question 15

The final step of the business-to-business buying process is a formal vendor performance analysis.

Question 16

B2B marketing involves manufacturers, wholesalers, and service firms.

Question 17

The service patients receive when they are hospitalized is an example of a B2B relationship between the hospital and the patient.

Question 18

Business-to-business marketing refers to buying and selling goods or services to consumers.

Question 19

A small business may use a web portal as a means of forming a supply chain that can respond to its needs.

Question 20

Lion's Leather Corp. buys leather from China and sells it to clothing manufacturers in the United States. Lion's Leather Corp. is a retailer.

Question 21

Whether targeting consumers or resellers, marketers need to focus on

A)creating value for their customers.
B)buying center synergy.
C)private exchange efficiency.
D)corporate profit sharing.
E)reducing derived demand.

Question 22

Sales of industrial dishwashers manufactured by Kleen-it-Right Corp. depend on the needs of large institutions like hospitals and universities. In other words, ________ demand.

A)synthetic
B)situational
C)monopolistic
D)contrived
E)derived

Question 23

Natalie works as a sales rep for a company that produces and sells steel used in building construction. Natalie is in ________ sales.

A)G2B
B)B2C
C)B2B
D)C2C
E)G2G

Question 24

What is an example of a government buyer?

A)Mayo Clinic
B)Procter & Gamble
C)the U.S. Marine Corps.
D)Nucor Steel Corporation
E)Walmart

Question 25

To maximize efficiency, farmers don't send their eggs directly to a grocery store but would rely on a(n)________ who handles sales and shipments to supermarkets.

A)distributor
B)fabricator
C)institution
D)trafficker
E)manufacturer

Question 26

A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order.

Question 27

A ________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys.

A)manufacturer
B)producer
C)consumer
D)wholesaler
E)factory

Question 28

Kaeko has developed a successful business selling home security systems to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many systems she will need to buy in order to supply her customers. Kaeko is concerned with ________ demand.

A)modified
B)secondary
C)rebuy
D)derived
E)delayed

Question 29

Unlike manufacturers, ________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

A)producers
B)consumers
C)resellers
D)raw materials suppliers
E)gatekeepers

Question 30

Caroline imports fragrances from Europe and sells them to discount retail stores. Caroline is an example of a

A)manufacturer.
B)producer.
C)consumer.
D)factory agent.
E)reseller.

Question 31

In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision.

Question 32

Griffin Grocery Stores orders produce from Fresh Farms-a wholesaler that buys fruits and vegetables from farmers all over the Midwest. Fresh Farms is an example of a

A)reseller.
B)merchandiser.
C)reference group.
D)manufacturer.
E)retailer.

Question 33

When you purchase a book on Amazon, you generally have two choices: buy it directly from Amazon or purchase it through Amazon but from a third-party vendor. If you go the direct route, Amazon has already purchased the book from a publisher and is holding it in an Amazon fulfillment center-the interaction between Amazon and the publisher is a ________ transaction. If you take the third-party route, Amazon acts as an agent for the supplier and takes a commission of about 10 percent of the value of the merchandise for the right to sell it on Amazon's platform-the interaction between Amazon and the supplier is a ________ transaction.

A)B2B; B2B
B)B2C; B2C
C)B2C; B2B
D)C2C; B2C
E)B2B; C2C

Question 34

What is an example of an institutional buyer?

A)Boston College
B)Procter & Gamble
C)U)S. Marine Corps
D)Nucor Steel Corporation
E)Walmart

Question 35

Wheely Fun Bicycles needs more bicycle seats. The business decides to order gel seats in addition to the traditional seats it has always ordered. This is a straight rebuy.

Question 36

Caroline's Casual Clothing has always stocked rain boots but recently added a new line of boots to give customers a lower-priced option. The new line of boots is an example of a new buy.

Question 37

Hospitals, schools, and religious organizations are examples of ________ buyers.

A)manufacturing
B)retail
C)institutional
D)factory agent
E)association

Question 38

In most countries, ________ is(are)among the largest purchasers of goods and services.

A)the largest retailer
B)the central government
C)construction firms
D)the intelligence agency
E)hospitals

Question 39

As Beth's business grew, she needed to find a way to manage payroll for her employees without having to do it herself, so she researched payroll companies to see which one best met her needs. Beth was involved in a new buy situation.

Question 40

What type of B2B organization is a retail store such as T.J.Maxx?

A)Internet
B)institution
C)government
D)manufacturer
E)reseller

Question 41

After need recognition and product specification, many firms using the B2B buying process

A)identify contract specifications.
B)issue a request for proposals from invited suppliers.
C)proceed to proposal analysis.
D)enter vendor negotiation and selection.
E)revise their need recognition analysis.

Question 42

After posting an RFP for telecommunications equipment, Simwell Corporation received six proposals from qualified vendors. Next, Simwell will

A)recognize obstacles that must be circumvented.
B)reevaluate the firm's needs.
C)give one vendor a purchase order.
D)conduct vendor analysis.
E)evaluate the proposals and narrow the choice to a few suppliers.

Question 43

After a series of devasting storms, many states reevaluated the structures built along their coastal areas to determine whether they met building codes, as well as, what repairs and new reinforcements were needed to help buildings withstand damage from future storms. In response to this need recognition, construction companies would be asked to pull together a materials list and provide various suppliers with

A)request for proposals.
B)initiator instructions.
C)determinant products.
D)product specifications.
E)focal alternatives.

Question 44

Samuel just received a major order from Eat Right Group for his company's organic flour products. After reviewing the terms of the order, Samuel should

A)send an acknowledgment that the order has been received.
B)rewrite her firm's proposal.
C)submit a competitive bid.
D)proceed to vendor analysis.
E)evaluate performance.

Question 45

The process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications is formally referred to as

A)specification review.
B)contract development.
C)a bidding initiative.
D)request for proposals.
E)invitation to review.

Question 46

Both the B2B and B2C buying processes begin with

A)central planning.
B)need recognition.
C)postpurchase dissonance.
D)alternative evaluation.
E)order specification.

Question 47

What details is(are)included in the order specification stage of the B2B buying process?

A)prices and delivery dates
B)vendor performance assessment
C)the request for proposal (RFP)
D)bids for supplying the required components or parts
E)reasons for choosing a selected vendor

Question 48

Marta knows it is important to approach business buyers at the right time, often during the first stage of their buying process, which is

A)need recognition.
B)the RFP process.
C)proposal analysis.
D)vendor negotiation and selection.
E)product specification.

Question 49

During the management meeting, Blaire gave feedback on the suppliers providing furniture for the hotel remodeling project. She revealed that they had not only failed to deliver the goods on time but the items that were eventually delivered were in the wrong color scheme. Which aspect of the B2B buying process is Blaire reporting on?

A)vendor negotiation
B)vendor performance assessment
C)proposal analysis
D)RFP process
E)order specification

Question 50

The final stage in the business-to-business buying process is to

A)place the order.
B)select the vendor.
C)assess vendor performance.
D)address additional needs.
E)prepare an RFP.

Question 51

Suppose that Volkswagen is preparing an RFP for a hands-free phone connection for a new car model. What information can the company omit from the RFP?

A)a description of the required features for the device
B)a time frame when the devices are needed
C)specifications for connecting the device to the car
D)an assessment of the vendor's performance
E)instructions for preparing proposals

Question 52

During the RFP stage, B2B buyers

A)recognize obstacles that the firm must work around.
B)revise their need recognition analysis.
C)invite suppliers to bid on supplying what is requested.
D)proceed to vendor analysis.
E)negotiate contract terms.

Question 53

Kate is hoping to get a chance to bid on supplying carpeting to Upper Class Hotels. She is eager to move forward, but must wait until the hotel company

A)completes vendor negotiations.
B)develops a list of product specifications.
C)has an opening in the buying center.
D)agrees to move Kate's firm from the evoked set to the retrieval set.
E)completes the order specification process.

Question 54

Typically, B2B buyers ask potential suppliers to

A)write the RFP for the buyer.
B)submit formal proposals.
C)determine product needs with final customers.
D)always be involved in reselling.
E)organize themselves into selling cooperatives.

Question 55

Because pharmaceutical sales representatives spend the majority of their time driving to doctors' offices, hospitals, and other medical facilities, they are given a company car. When a pharmaceutical company like Merck prepares to purchase a new fleet of cars, it will ask its sales reps for feedback about different car models and features. However, the higher levels of management will be the ones to make the final purchase decision. What buying center role(s)do the sales reps play in this buying situation?

A)users and initiators
B)initiators
C)influencers
D)users and influencers
E)influencers and initiators

Question 56

Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are

A)decentralized and informal.
B)less focused on customer value creation.
C)identical and interchangeable.
D)more formal and structured.
E)based on derived supply analysis.

Question 57

Normally, FlexFit Athletic company uses an imported fabric blend in its clothing line. However, a price increase from their existing supplier is forcing the company to look elsewhere and find a different company to source these fabric blends. In the B2B buying process, this is an example of

A)a modified rebuy situation.
B)vendor analysis.
C)need recognition.
D)a straight rebuy situation.
E)an RFP.

Question 58

After need recognition, a business develops ________ that suppliers might use to develop their proposals.

A)derived demand
B)initiator instructions
C)determinant attributes
D)product specifications
E)focal alternatives

Question 59

An Internet site that acts as a major starting point for users when they connect to the web and is often used by smaller companies in the RFP process is referred to as a(n)

A)podcast.
B)Internet channel.
C)web portal.
D)buying center.
E)search engine.

Question 60

The buying center for Cross Point Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the ________ stage of the business-to-business buying process.

A)vendor negotiation
B)product specification
C)need recognition
D)vendor performance assessment
E)RFP

Question 61

Lori is the sales representative for a major textbook publisher. When she calls on the business faculty at Bishop University, her first stop is to chat with David, the business department administrative officer. From David, Lori learns which professors have left the university or have newly arrived. David also helps Lori make appointments to see professors to discuss textbook choices. David acts as the ________ in the business department buying center.

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

Question 62

Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a(n)________ for the purchase of these medical services.

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

Question 63

A firm's organizational culture reflects

A)B2C dynamics.
B)a RFP process.
C)a buying center philosophy.
D)a set of values, traditions, and customs.
E)the behaviors and opinions of management staff.

Question 64

According to office policy and procedure at William's Supply Corp., any purchase requests that are $3,000 and over must be given to Michael Forster, who will obtain authorization from the chief financial officer. Michael serves as a(n)________ in the buying center.

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

Question 65

While no one in the firm has discussed it, Ryan notices everyone else seems to dress more casually on Fridays during the summer. Ryan is observing part of his firm's

A)organizational culture.
B)governing principles.
C)human resource policy.
D)employee obligations.
E)code of ethics.

Question 66

In most large organizations, several people are responsible for making a purchase decision. This group is called the

A)supply chain.
B)reselling team.
C)decider group.
D)buying center.
E)expediters.

Question 67

When Weekday Marketing Group decided to upgrade its computer network, many people were involved in the decision. In B2B buying systems, decisions are often made

A)quickly and informally.
B)by a consumer board.
C)at auction sites.
D)by a committee after considerable deliberation.
E)by community debating organizations.

Question 68

B2B buying decisions are often made by

A)governors.
B)influencers.
C)committees.
D)resellers.
E)consumers.

Question 69

The chair of the board of the local Humane Society chose the bank where the organization keeps its money; however, the society's chief accountant is the one that interacts with the bank, making deposits, writing checks, and balancing the accounts every month. The chief accountant is the ________ in the Humane Society's buying center.

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

Question 70

A buying center that makes its decisions by majority vote is a(n)________ buying center.

A)autocratic
B)democratic
C)consultative
D)consensus
E)bureaucratic

Question 71

The student body president of WestPark University submitted a formal request to the IT department for additional computers in the main computer lab. In this situation, the student body president is the ________ in the buying center.

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

Question 72

While training for her new job as a pharmaceutical sales representative, Hyacinth spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Hyacinth might assume that this reflected part of the pharmaceutical firm's

A)buying center.
B)organizational culture.
C)mission statement.
D)corporate social responsibility.
E)RFP process.

Question 73

At many universities, education faculty members were among the first to ask for course management systems that would allow them to keep track of their students' grades and progress more efficiently. These faculty members were ________ in the buying center.

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

Question 74

John Jeffries founded JeffCorp, a concrete supply company, three decades ago. Although he is now in his seventies, he still has a "hands on" management style. His employees have learned that there isn't much point in making purchase recommendations for new equipment, because John is going to choose whatever he thinks is best regardless of their views. JeffCorp has a(n)________ buying center culture.

A)autocratic
B)democratic
C)consultative
D)consensus
E)bureaucratic

Question 75

The Kinforth University IT department needs to buy additional computers for the computer lab. Akansha Raj, manager of the lab, is asked for a recommendation, and she suggests buying Macintosh computers instead of Windows PCs. What role does Akansha Raj play in the buying center?

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

Question 76

Jason is the sales representative for a campus food supply company. When he calls on the food services department at Henson University, he also tries to meet with several students to get their feedback on food served in the dorms. He passes this feedback to his managers to guide the development of future food preparation. The students are the ________ in the buying center.

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

Question 77

Kendrik is the director of human resources for a small film production firm. He has a strong personal interest in technology and is known throughout the firm as the one with the most knowledge about new kinds of audio equipment. If the firm decides to upgrade its audio equipment, Kendrik will probably function in what role in the firm's buying center?

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

Question 78

The local skydiving team is buying new parachutes. The team's coach has invited all team members to make recommendations, after which she will select the preferred vendor. The skydiving team's buying center has a(n)________ organizational culture.

A)democratic
B)consultative
C)consensus
D)autocratic
E)bureaucratic

Question 79

Unlike a firm's mission statement or employee handbook, a firm's organizational culture often

A)lists specific job tasks for employees.
B)is of no importance to purchase decisions.
C)exists as a set of unspoken guidelines.
D)is ignored by the vast majority of employees.
E)determines the order specification process.

Question 80

Sil-Fiber Corp. needs equipment to install swimming pool liners for an entire hotel chain. After a vendor is chosen, Maria will handle the paperwork and send out the purchase order. Maria plays the role of ________ in the buying center.

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