Deck 6: Business-To-Business B2b Marketing

Question 1

Why do marketing strategies designed to reach consumers differ from strategies designed to reach businesses?

A) consumers expect a higher level of customer service than do businesses
B) businesses respond better to advertising than do consumers
C) consumers act in groups but business buyers act alone
D) business buying often involves more technical issues

Answer 1

D

Question 2

Which of the following is NOT found in e-commerce serving the business market?

A) private portals that allow customers access to products and vendors
B) service pages accessed using passwords provided by B2B marketers
C) online auctions where business goods may be purchased
D) chat rooms dedicated to opinions of new products

Answer 2

D

Question 3

What term is used to describe secure networks used for e-marketing and accessible through a firm's website by external customers, suppliers, or other authorized users for purposes of collaboration?

A) cybernets
B) extranets
C) intranets
D) ethernets

Answer 3

B

Question 4

Which statement best describes the institution segment of a B2B market?

A) It often involves rigid purchasing procedures.
B) It provides business services to the other members of the market.
C) It tends to have greater financial resources than industrial customers.
D) It is accountable to their clients and shareholders.

Question 5

Which statement best describes B2B E-marketing?

A) It cannot be used to provide detailed product descriptions.
B) It can help slash order-processing expenses.
C) It is a minor part of the e-business activity and typically involves less steps compared to consumer purchases.
D) It is not a very attractive option for buying and selling as more errors occur when orders are placed over the Internet.

Question 6

What is the term used to describe a Web-based system that enables all types of organizations to improve the efficiency of their bidding and purchasing processes.

A) electronic data interchange
B) extranet
C) private exchange
D) e-procurement

Question 7

What is the name of the component of the business market that consists of individuals and firms that acquire goods and services to be used, directly or indirectly, in producing other goods and services?

A) wholesaling and retailing
B) government
C) the commercial market
D) an institution

Question 8

What do the trade industries consist of?

A) manufacturers
B) wholesalers and retailers
C) farmers
D) transportation

Question 9

Adecco systems has a website service that allows the company to interact with its suppliers and share all types of data related to e-marketing. What can this innovative website can considered?

A) marketing website
B) private exchange
C) corporate website
D) electronic storefront

Question 10

How does the purchasing process for business products differ from the purchasing process for consumer products?

A) distribution channels for business products are significantly longer
B) customer relationships for business products tend to be short term and transaction based
C) personal selling plays a much larger role in business product markets
D) customer service plays a smaller role in the distribution of business products

Question 11

What is the largest segment of the business market?

A) trade industries
B) institutions
C) government organizations
D) commercial markets

Question 12

Which statement best describes the business market compared to the consumer market?

A) Customization tends to be less.
B) Negotiations are shorter.
C) Distribution channels are shorter.
D) Customer relations are less enduring.

Question 13

Why does the government segment of the B2B market most commonly buy products?

A) to resell to the public
B) to provide public benefits
C) to acquire customized items
D) to use domestic sources only

Question 14

Which of the following is NOT included in the four segments of the B2B marketplace?

A) entertainment industry
B) government
C) commercial market
D) trade industries

Question 15

TecMag is a technology firm that builds computer systems and other related components. TecMag sources its raw materials from various manufacturing firms and is looking for a website that can help in effectively placing orders with the manufacturers online, and also in tracking the order. Which type of website can help TecMag accomplish this task efficiently?

A) social
B) intranet
C) private exchange
D) corporate

Question 16

A private exchange is a secure website used by companies. What is the purpose of a private exchange?

A) improve the efficiency of their bidding and purchasing processes
B) share all types of data related to e-marketing with its suppliers
C) give financial information to its investors
D) share information with the employees in different locations

Question 17

What market has the primary motivation of providing some form of public benefit when making a purchase?

A) industrial market
B) global market
C) government market
D) trade industries

Question 18

What do most businesses expect when they enter the marketplace to buy goods and services?

A) to enjoy a high level of customer service
B) to locate vendors through the Yellow Pages
C) to find standard items that will fill their needs
D) to make quick purchasing decisions

Question 19

Which of the following has given a new life to electronic data interchanges, which were once limited by operating system incompatibility?

A) Web services using open-source XML
B) open-source operating systems
C) use of secure virtual private networks
D) uniform OS programming practices.

Question 20

TechnoMarket, a retailer of consumer electronics, has its branches worldwide in around 25 countries. The company is looking for a website that will allow it to communicate with its employees worldwide. The website should also enable the employees to access details regarding the new products, their functionality, and their availability in the store. Which of the following will best suit this purpose?

A) private exchange
B) extranet
C) electronic storefront
D) intranet

Question 21

Which of the following is NOT a commonly used basis for segmenting the business market?

A) educational attainments of buyers
B) customer type
C) demographics using the size of the firm
D) product end-use application

Question 22

What type of delivery reduces inventories to absolute minimum levels and requires vendors to deliver the items as they are needed in the production process?

A) in-real-time (IRT) delivery
B) just-in-time (JIT) delivery
C) on-time (OT) delivery
D) next-time-in (NTI) delivery

Question 23

Which of the following is NOT a characteristic that distinguishes B2B markets from consumer markets?

A) Organizational markets are more geographically concentrated.
B) More people exert influence on the organizational buying decision.
C) The organizational market tends to have a greater number of buyers.
D) Organizations often engage in multiple sourcing and vendor analysis.

Question 24

Zardo Inc. divides its customers into the following categories: small business, large business, government, and not-for-profit institutions. Which type of segmentation is Zardo practising?

A) end use
B) customer type
C) demographic
D) purchase category

Question 25

When the B2B market is segmented on the basis of product specifications issued by organizational buyers, what type of segmentation is it known as?

A) customer-based
B) profit-generating
C) benefits
D) engineering and design

Question 26

Abel Building Solutions, a steel manufacturing company that supplies steel to various construction companies, segments its customers based on the number of employees in the company and the sales revenue generated by it. This strategy is used by Abel to develop specific marketing plans for their customers. What type of segmentation is Abel using?

A) demographic characteristics
B) service provided
C) buyer specifications
D) end-use application

Question 27

What is the basis for market segmentation for a manufacturer that produces glass for microwave-oven doors, shower enclosures, and patio tabletops?

A) cost-plus considerations
B) end-use application
C) benefits offered
D) design factors

Question 28

Cotton and polyester are used in the production of permanent press clothing. If the supply of cotton is reduced, there will be an immediate effect on the demand for polyester. What does this relationship represent?

A) derived demand
B) demand variability
C) inventory adjustments
D) joint demand

Question 29

Dell Computer purchases parts and resources for its computers from suppliers worldwide. What is this practice known as?

A) outsourcing
B) global sourcing
C) joint demand
D) derived demand

Question 30

What is the system for grouping businesses that grew out of the North American Free Trade Agreement known as?

A) the Standard Industrial Classification System
B) the Industrial Data Recording System
C) the Standard Industrial Census System
D) the North American Industry Classification System

Question 31

Delhaise, a leading service provider in hospitality industry, segments its business clients based on the services required by them, in order to meet their specific requirements. They modify their services based on the needs of the clients. Which segmentation approach is being employed by Delhaise?

A) end-use application
B) customer-based
C) geographic
D) demographic

Question 32

Why is outsourcing often chosen as an alternative to making goods in-house or providing in-house services?

A) It solves customer pressure for firms to diversify production.
B) It guarantees that the highest-quality product will be produced.
C) It solves security problems when proprietary technology is involved.
D) It allows firms to concentrate their resources on their core businesses.

Question 33

If the demand for product A stays constant regardless of the increase or decrease in demand for product B, what kind of demand is product A experiencing?

A) derived
B) joint
C) volatile
D) inelastic

Question 34

Which question would NOT likely be considered when deciding whether to manufacture needed parts and equipment in-house?

A) Do we have the needed capability to manufacture this equipment?
B) Can someone else do this job better than we can?
C) Can someone else do this work cheaper than we can?
D) Do we create new distribution systems by manufacturing this equipment?

Question 35

What type of segmentation are customer relationship management systems most useful in?

A) end use
B) demographic
C) customer type
D) purchase category

Question 36

In the B2B marketplace, what type of segmentation is based on the precise way in which the business will use the product?

A) purchasing situation
B) customer type
C) end-use application
D) demographic characteristics

Question 37

What is turning to outsiders to provide goods and services that were formerly produced or handled internally known as?

A) outsourcing
B) supplier sourcing
C) supply-chain management
D) external buying

Question 38

A car tire supplier is noticing a five percent increase in sales in tires it sells to car manufacturers. What is this an example of?

A) joint demand
B) derived demand
C) volatile demand
D) demand variability

Question 39

The demand for computer microprocessor chips is based on the demand for personal computers. What is this an example of?

A) joint demand
B) derived demand
C) volatile demand
D) demand variability

Question 40

Texas Instruments produces electronic chips used in a variety of devices, from cell phones to hand calculators. The specifications of the chips change depending on the final product in which they are utilized. How is Texas Instruments most likely to segment its market?

A) purchasing category
B) psychographic characteristics
C) end-use application
D) demographic characteristics

Question 41

What is a buying situation in which business purchasers are willing to re-evaluate their available options known as?

A) a straight rebuy
B) a modified rebuy
C) new-task buying
D) routinized response behaviour

Question 42

When a firm undertakes systems integration and designates a major trade industry supplier as the systems integrator, what is that supplier known as?

A) category captain
B) purchasing coordinator
C) division leader
D) supply-chain manager

Question 43

Once a search for suppliers is completed and the company makes the suppliers aware of its needs, what will the company do next?

A) evaluate proposals
B) notify the distribution channels of the new product introduction
C) acquire and analyze proposals
D) select an order routine

Question 44

A rail service company has a special "2 for 1 seat sale" and requires an additional 100 railcars to meet the forecasted demand in the next 10 months. After the 10 months, demand is anticipated to fall to previous levels. Which option is the company most likely choose?

A) manufacturing the product in-house
B) purchasing the product from an outside vendor
C) leasing the product
D) outsourcing

Question 45

What is an employee participating in when he/she recognizes that the use of a new product can potentially improve the company's market performance?

A) need or opportunity recognition
B) identification of suppliers
C) word-of-mouth exploration
D) information search

Question 46

What step in the business buying process involves establishing specifications for a required product?

A) recognizing a need
B) describing product characteristics
C) qualifying potential vendors
D) selecting an order routine

Question 47

Which of the following is NOT a drawback of outsourcing?

A) lower-than-anticipated cost savings
B) concerns over proprietary technology
C) poor customer service
D) higher risk of losing touch with customers

Question 48

How do unions generally view outsourcing?

A) as a threat to union jobs
B) as a bargaining tool for higher wages
C) as a good idea to stay competitive and preserve jobs
D) as a means of saving money and putting the savings into wages and benefits

Question 49

The Fairchild Company decides to defer purchasing new production equipment for its factory due to slowing economic activity. What type of factor has influenced the company's buying decision?

A) product-specific
B) environmental
C) organizational
D) interpersonal

Question 50

What contributes to the need for more steps in the organizational buying process than the consumer buying process?

A) the limited number of suppliers in the B2B marketplace
B) the importance of integrating the responsibilities of the wholesalers or retailers
C) interpersonal and environmental influences not seen in consumer buying decisions
D) business purchasing introduces new complexities that do not affect consumers

Question 51

What step in the organizational buying process would involve procedures that measure characteristics such as a supplier's reliability, price, and order accuracy?

A) searching for potential sources
B) analyzing proposals
C) recognizing a need
D) evaluating proposals and selecting suppliers

Question 52

ACME Inc., a small and growing computer animation business, requires laptops for 10 new employees. Which option is the company most likely to choose?

A) manufacturing the product in-house
B) purchasing the product from an outside vendor
C) leasing the product
D) outsourcing

Question 53

What is often the cause when business purchasers shift from straight rebuy to modified rebuy behaviour?

A) a change in the accelerator principle
B) the routine buying format being outdated
C) a corporate expansion
D) a deterioration in supplier service or delivery

Question 54

A business purchaser accepts the terms of sale of an item that has performed satisfactorily in the past and requires no new information to decide to purchase it again. What kind of buying situation is this an example of?

A) straight rebuy
B) service purchase
C) contract purchase
D) modified rebuy

Question 55

What term refers to the business buying situation in which a company buys component parts never before purchased?

A) complex rebuying
B) new-task buying
C) technical buying
D) modified rebuying

Question 56

Eagle Systems, an information technology company in Seattle, Washington has moved its customer service and accounting operations to Vancouver, British Columbia to take advantage of lower labour costs. Also, geographic closeness and similar cultural values added further advantages in choosing Vancouver for these operations. What is this an example of?

A) nearshoring
B) inshoring
C) offshoring
D) global sourcing

Question 57

Which of the following is NOT an important product factor in the buying decision?

A) replacement cost
B) purchase price
C) operating and maintenance costs
D) vendor service

Question 58

What is a unique purchase situation in the business market called that requires considerable effort on the decision maker's part?

A) straight rebuy
B) modified rebuy
C) new-task buying
D) selective rebuy

Question 59

Adam, a purchasing agent for the Canadian Heart Association, has made a list of suppliers that may be considered for payroll services. What step in the organizational buying process is Adam currently at?

A) recognizing a problem or opportunity
B) determining the characteristics and quantity of the needed product
C) describing the characteristics of the needed product
D) searching for and qualifying potential sources

Question 60

What is the final step in the business buying process?

A) selecting an order routine
B) obtaining feedback and evaluating performance
C) evaluating proposals and selecting suppliers
D) acquiring and analyzing proposals

Question 61

Organizational buyers tend to purchase standardized products, unlike the consumer market in which customization is more prevalent.

Question 62

What does a company's buying centre encompass?

A) a representative from each department within an organization
B) a gatekeeper and a buyer
C) everyone who is involved in any aspect of the buying process
D) a top-notch buying department

Question 63

The B2B marketplace is significantly larger in sales dollars and volume of transactions than the consumer marketplace.

Question 64

Which of the following is NOT a challenge ordinarily encountered in marketing to government entities?

A) handling retail sales contracts using credit cards
B) fixed-price contracts based on a bid process
C) cost-reimbursement contracts providing for allowable costs and profits
D) standing offer

Question 65

Geeta works in distribution management at a winery and has formal authority to select a bottle supplier, although many people have provided her with input regarding the decision. What role does Geeta play in the buying centre?

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

Question 66

How are institutional markets characterized?

A) by similar buying practices
B) by widely diverse buying practices
C) by few group purchasing arrangements
D) by little negotiation to secure volume discounts

Question 67

What is the function performed by the gatekeeper in the company buying centre?

A) to supply information to guide evaluation of alternatives
B) to select a supplier and implement the procedures for securing the goods and services
C) to choose which goods and services will actually be bought
D) to control the information that all buying centre members will review

Question 68

Which of the following is one type of buying centre role?

A) the influencer, who supplies information to guide evaluation of alternatives
B) the contractor, who has the formal authority to select a supplier
C) the distributor, who controls the information that all buying centre members will review
D) the technician, who presents technical requirements

Question 69

What do many institutions choose to do in order to receive quantity discounts on needed purchases?

A) purchase products they do not need
B) put off purchases for as long as possible
C) join cooperative associations to pool purchases
D) rely on their independence and future growth

Question 70

Who controls the information that enters the company's buying centre?

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

Question 71

What is the ongoing evaluation of a supplier's performance in categories such as price, Electronic Data Interchange capability, delivery times, and attention to special requests known as?

A) product-substitution analysis
B) component redesign
C) vendor analysis
D) costs-benefits analysis

Question 72

Reciprocity has been most common in industries featuring what type of products?

A) homogeneous products with different prices
B) diverse products with different prices
C) diverse products with similar prices
D) homogeneous products with similar prices

Question 73

Which of the following best describes the challenge of identifying participants in international buying centres, compared to domestic buying centres?

A) quite easier to identify
B) slightly easier to identify
C) same level of difficulty to identify
D) more difficult to identify

Question 74

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

Question 75

In a business buying centre situation, who are the people that sometimes initially request the product, utilize the purchased product, and may assist in developing the product specifications?

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

Question 76

What term refers to the practice of buying from suppliers that are also customers?

A) a modified rebuy
B) a straight rebuy
C) vendor analysis
D) reciprocity

Question 77

The buying centre concept explains how groups of people participate informally in business purchase decisions. What else does the buying centre concept explain?

A) methods to break through group perceptions
B) roles group members play in making the decisions
C) formation dynamics of new groups of decision makers
D) way family units operate as buying centres

Question 78

Who does much of the purchasing for the federal government of Canada?

A) the City of Toronto
B) Public Works and Government Services Canada
C) MERX
D) independent merchandisers

Question 79

Which statement best describes international buying centres?

A) They tend to be larger.
B) They are the same as domestic buying centres.
C) It is easier to identify who fills each buying centre role.
D) The role of gatekeeper does not exist.

Question 80

Which type of organizations would NOT ordinarily be considered a part of the institutional market?

A) public libraries
B) department stores
C) educational foundations
D) churches