Deck 6: Business-To-Business Marketing

Question 1

Sales of electric components manufactured by Rick's company depend on sales of new cars.Rick's company faces ________________ demand.

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

Answer 1

E

Question 2

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

Answer 2

False

Question 3

Organizational culture may vary by geography.

Answer 3

True

Question 4

Business-to-business marketing refers to buying and selling goods or services to be used by final consumers.

Question 5

B2B marketing involves manufacturers,wholesalers,and service firms.

Question 6

The B2B buying process tends to be more formal than B2C buying.

Question 7

A university's purchasing department is required to get at least three bids for any purchase greater than $3000.This requirement is used to keep suppliers "on their toes."

Question 8

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

Question 9

Nearly all small businesses have consensus buying centers.

Question 10

A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center.

Question 11

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

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

Question 12

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

Question 13

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 14

Most B2B buying situations can be categorized into three categories: new buys,structured rebuys and automatic rebuys.

Question 15

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

Question 16

Resellers differ from producers in that resellers significantly alter the form of goods they sell.

Question 17

Derek bought a pick-up truck to transport his equipment to fishing tournaments.He also bought a pick-up for his lawn maintenance business.His purchases were:

A)both B2C purchases since he is the user in both situations.
B)both B2B purchases since he is the user in both situations.
C)neither B2C nor B2B since he is the consumer and his uses might be mixed.
D)B2C and B2B,respectively.
E)None of these.

Question 18

Business-to-business marketing involves buying and selling goods or services to be used by:

A)manufacturers.
B)wholesalers.
C)retailers.
D)producers.
E)all of these.

Question 19

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

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

Question 20

Business-to-business marketing involves buying and selling goods or services by all of the following except:

A)manufacturers.
B)consumers.
C)retailers.
D)producers.
E)wholesalers.

Question 21

Which of the following is an example of a government buyer?

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

Question 22

Typically,B2B buyers ask potential suppliers to:

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

Question 23

Unlike manufacturers,_________________ buy products from other businesses but do not significantly alter the form of the products they buy.

A)producers
B)consumers
C)resellers
D)English auctioneers
E)gatekeepers

Question 24

The first stage of the B2B buying process is:

A)product specification.
B)the request for proposals.
C)proposal analysis.
D)vendor negotiation and selection.
E)need recognition.

Question 25

Judy knows it is important to approach business buyers at the right time,which is often during the first stage of their buying process.She stays in touch with her customers,hoping to find out when they are going through:

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

Question 26

Edward,the leading salesperson for Harry's Honda dealership,began hearing customers asking for hybrid automobiles several years ago.Edward alerted Harry,and Harry pre-ordered many Honda hybrids before they became available.In this case,the source of need recognition was:

A)trade show demonstrations.
B)ads in trade journals.
C)customers.
D)the Internet.
E)suppliers.

Question 27

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 28

Which of the following is an example of an institutional buyer?

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

Question 29

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 30

Malcolm buys overrun clothing from factories around the South.He sells the clothes to discount retailers.Malcolm is a:

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

Question 31

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

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

Question 32

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

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

Question 33

After Hurricane Katrina,many states re-evaluated their coastal area building requirements.These new building codes represented ________________ that building materials companies used in developing new products.

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

Question 34

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 35

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

A)quickly.
B)by a single expert.
C)at auction sites.
D)by a committee after considerable deliberation.
E)through community debating organizations.

Question 36

B2B buying decisions are often made by:

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

Question 37

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 38

Charlie is hoping to get a chance to bid on supplying key components to Ned's business.He is eager to move forward,but he must wait until:

A)Ned completes vendor negotiations.
B)Ned develops a list of product specifications.
C)Ned's buying center has an opening.
D)Ned agrees to move Charlie's firm from the evoked set to the retrieval set.
E)All of these.

Question 39

Whether targeting consumers or B2B Markets,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 40

In most countries,________________ is one of the largest purchasers of goods and services.

A)the largest retailer
B)the central government
C)the national airline
D)the intelligence agency
E)a consumer buying center

Question 41

When reviewing her firm's business buying process,Carla noticed a company requirement that they have at least three qualified bids from suppliers for any purchase over $50,000.This requirement is designed to:

A)minimize competitive pressure.
B)efficiently organize resellers.
C)keep suppliers on their toes.
D)foster democratic buying centers.
E)slow down the purchase process.

Question 42

After posting an RFP for telecommunication equipment,USF received six proposals from qualified vendors.Next,USF will:

A)recognize obstacles that must be circumvented.
B)re-evaluate 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

While consumers weigh postpurchase dissonance,business buyers:

A)file lawsuits.
B)evaluate organizational culture.
C)conduct vendor analysis.
D)prepare RFPs.
E)remain dissatisfied.

Question 44

At many universities,education faculty members were among the first to ask for personal computers.These faculty members were _____________ in the buying center.

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

Question 45

Thomas wants to get a number of bids for parts and components for the specialty food-processing equipment his firm will manufacture.He has developed detailed product specifications and has developed an RFP.How will he distribute the RFP to ensure a reasonable supply at a reasonable cost?

A)Use his company's website
B)Contact potential suppliers directly
C)Invite current suppliers to bid
D)Network through his trade association or Chamber of Commerce
E)All of these

Question 46

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 47

Which of the following is NOT one of the roles typically played by one of the members of a buying center?

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

Question 48

Frieda has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment.After reviewing the order information,Frieda will:

A)send an acknowledgement 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 49

Carlos recently graduated with a degree in marketing,and he has taken an attractive sales position with a B2B firm.He did quite well in school,but one of his strongest assets is the way he works with people.In the firms he plans to visit,he has planned to focus most of his attention on:

A)gatekeepers.
B)initiators.
C)buyers.
D)deciders.
E)Carlos should focus on all of these.

Question 50

Vendor analysis often involves ____________________ important to the buyer.

A)specifications and weighting of issues
B)RFPs
C)informal review of issues
D)derived demands
E)all of these

Question 51

As the buyer in Northrop's buying center team,when a decision is made,Craig will specify:

A)price.
B)quantities.
C)delivery schedule.
D)nonperformance penalties.
E)all of these.

Question 52

Frequently a B2B buyer will post its RFP:

A)on Twitter.
B)in Commerce Business Daily.
C)in the legal section of a local newspaper.
D)on its website.
E)in the employee human resources office.

Question 53

As purchasing manager for Avalon Electronics,Carrie is required to submit a vendor performance analysis every three months.To meet this requirement,Carrie will probably:

A)interview vendors and seek their feedback.
B)specify and weight performance factors and quantify results.
C)develop an RFP for vendor analysis.
D)recruit new suppliers.
E)use a modified rebuy vendor form.

Question 54

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

A)derived demand cohort.
B)reselling team.
C)decider group.
D)buying center.
E)expediters.

Question 55

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska.Raycom engineers will be asked to evaluate the equipment needs and provide detailed specifications and recommendations.The Raycom engineers will primarily play the ____________ role in the company's buying center.

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

Question 56

Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska.Raycom engineers will specify the type of equipment to be purchased.When the decision is made,Reginald will handle the paperwork and send out the purchase order.Reginald plays the ______________ in the buying center.

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

Question 57

Melissa is the director of human resources,but is known throughout the firm as being one of the first to hear about and use new kinds of communications technologies.When the firm wants to upgrade its network,Melissa will probably function in what role in the firm's buying center?

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

Question 58

When Jerry was negotiating a total renovation for the local health care clinic,he knew every month the clinic was closed he would lose $10,000 in rent from the various tenants in the clinic.Jerry shrewdly included ___________________ in the renovation contract to encourage the vendor to finish on schedule.

A)an automatic payment system
B)a nonperformance penalty
C)an RFP
D)a new buyback bonus
E)a derived demand multiplier

Question 59

After evaluating proposals they received for new telecommunication equipment,the buying center for USF Corporation will probably discuss ___________ with qualified suppliers.

A)price
B)quality
C)delivery schedule
D)financing
E)all of these

Question 60

The buying center for USF 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

When Leanne gave her presentation to the BigDeal discount buying center team,she treated each member's question seriously and gave equal time to addressing each.Leanne did not realize BigDeal has an autocratic buying center culture and she needed to focus on answering Beverly's questions,since she is the decision maker.In addition to wasting time by not understanding BigDeal's culture,Leanne may have also:

A)bid too many products.
B)failed the vendor analysis.
C)responded to the RFP too quickly.
D)alienated Beverly,the real decision maker.
E)all of these.

Question 62

Markham Publishing is known for its consultative buying center culture.Recognizing this corporate culture,someone attempting to sell to Markham Publishing should:

A)treat all members of the buying center as equally important.
B)address the concerns of all members of the buying center with particular attention to those of the decision maker.
C)focus on providing information to and making the sales approach to the one decision maker.
D)attempt to facilitate the collective agreement of all members of the buying center.
E)focus attention on the gatekeeper in the buying center's team.

Question 63

Fordham Hardware is known for its consensus buying center culture.Recognizing this corporate culture,someone attempting to sell to Fordham Hardware should:

A)treat all members of the buying center as equally important.
B)address the concerns of all members of the buying center with particular attention to those of the decision maker.
C)focus on providing information to and making the sales approach to the one decision maker.
D)attempt to facilitate the collective agreement of all members of the buying center.
E)all of these.

Question 64

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

A)forces customers to look elsewhere for value.
B)is of no importance to purchase decisions.
C)exists as a set of unspoken guidelines.
D)is defined by a straight rebuy philosophy.
E)all of these.

Question 65

Which of the following is NOT one of the four general types of organizational cultures?

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

Question 66

Most B2B buying situations can be categorized as new buys,modified rebuys,and:

A)generic buys.
B)straight rebuys.
C)ordinary rebuys.
D)adapted buys.
E)minor buys.

Question 67

Whenever Kim,a textbook publisher's representative,calls on the business faculty at General University,she also meets with several students to get their feedback on the textbooks used by the department.The students are the ____________ in the buying center.

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

Question 68

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

A)culture.
B)governing principles.
C)human resources policy.
D)employee obligations.
E)gatekeeping.

Question 69

Many health insurance policies require patients to call and get pre-approval for tests or procedures,or else pay a much higher co-payment.The health insurance company acts as a __________________ for the purchase of medical services.

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

Question 70

The customer Carlotta is calling on today has a(n)__________ buying center culture.This means that the decision process will involve reaching agreement among all members of the buying center.

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

Question 71

While training for her new job as a pharmaceutical sales representative,Mallory 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.Mallory accepted this as being part of the pharmaceutical firm's:

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

Question 72

Not knowing the roles of key players in the buying process could cause a sales representative to:

A)bid too high a quantity.
B)fail the vendor analysis.
C)respond to an RFP too quickly.
D)waste time and alienate people.
E)all of these.

Question 73

Olivia knows that one person,who makes all major purchase decisions,dominates the firm she is calling on today.Knowing the type of buying center she is calling on will help Olivia to decide:

A)how to approach a particular client.
B)how to deliver pertinent information.
C)to whom to deliver pertinent information.
D)to whom to make the sales presentation.
E)all of these.

Question 74

Whenever Kim,a textbook publisher's representative,calls on the business faculty at General University,her first stop is to chat with Frank,the business department secretary.From Frank,Kim learns which professors have left or are new,and what courses will be taught next semester.Frank also helps Kim to make appointments to see professors to discuss textbook choices.Frank acts as the _____________ in the business department buying center.

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

Question 75

(p.180,Ethical and Societal Dilemma)Which of the following is NOT an ethical concern in the pharmaceutical industry?

A)Sales representatives may not provide all the information doctors need before prescribing the drugs.
B)Sales representatives obtain confidential patient information.
C)An important study found doctors frequently visited by representatives tended to focus on drug therapies even when researchers supported nondrug therapies.
D)In an important study,researchers found doctors frequently visited by representatives from pharmaceutical companies were less likely to prescribe generic equivalents.
E)All of these are ethical issues.

Question 76

An organization's culture reflects the _____________________ that guide its employees' behavior.

A)B2B dynamics
B)RFP process
C)buying center philosophy
D)set of values,traditions,and customs
E)derived set of influences

Question 77

Jenny was feeling frustrated."What's taking them so long to make a decision? It's been weeks since I first met with them,and they all seem interested in the product.I've also jumped through all their paperwork hoops." Jenny is likely selling to a firm in what kind of buying situation?

A)New buy
B)Modified rebuy
C)Straight rebuy
D)Generic buy
E)Adapted buy

Question 78

Knowing which type of buying center culture is prevalent in a given organization helps sellers to decide:

A)how to approach a particular client.
B)how to deliver pertinent information.
C)to whom to deliver pertinent information.
D)to whom to make the sales presentation.
E)all of these.

Question 79

When she gave her presentation to Harmon's Automotive Supply,Brie did not know the roles of the key players in the buying center.This could cause her to waste a lot of time and to:

A)bid too many products.
B)fail the vendor analysis.
C)respond to an RFP too quickly.
D)alienate the real decision maker.
E)all of these

Question 80

At the main campus of a large university,faculty always refer to each other as Doctor,wear suits,and guard their academic domains against each other.This leads to frequent name-calling and strenuous debates.Meanwhile,at the various branch campuses,faculty members call each other by their first names,dress casually,and supported each other's scholarly efforts.This example illustrates the differences in ___________________ that can exist within an organization.

A)supply chain communication
B)autocratic buying center culture
C)organizational culture
D)business missions
E)corporate social responsibility