Question 1

The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.
A) business market
B) consumer market
C) e-commerce market
D) global market
E) domestic market

Accepted Answer

The business market, also known as the B2B market, is comprised of organizations that purchase goods and services to be used in the production of other products or services that are sold, rented, or supplied to others. This market can include manufacturers, retailers, government agencies, and nonprofits, among others.

Question 2

Jason Riggs' company is considered to be an in-supplier for a lawn mower manufacturer. However, recently the lawn mower company has put out a memo to in- and out-suppliers indicating that it would like to change product specifications and delivery schedules. Which of the following buying situations is most likely to be in operation given this data?
A) straight rebuy
B) single rebuy
C) rakeback rebuy
D) system buy
E) modified rebuy

Accepted Answer

A modified rebuy is a buying situation in which the buyer has purchased the product before but is now looking for some modifications in the product specifications or delivery schedules. In this case, the lawn mower company's memo to in- and out-suppliers indicates a change in product specifications and delivery schedules, which suggests a modified rebuy situation.

Question 3

The business buyer has to make the fewest decisions when involved in a ________.
A) modified rebuy
B) regular buy
C) straight rebuy
D) new rebuy
E) new task

Accepted Answer

In a straight rebuy, the business buyer is simply reordering a product they have purchased before without any changes or modifications, so they have to make the fewest decisions compared to other types of buying situations.

Question 4

Xerox offers a ________ approach to prospective clients when it offers a complete turnkey solution, including the operation and management of the client's information and communication need.
A) guided selling
B) fair trading
C) systems buying
D) cross-selling
E) local purchasing

Accepted Answer

Xerox is providing a comprehensive solution that includes both the product and the service aspect of managing the client's needs, which is referred to as "systems buying." This approach involves offering a complete package or system solution rather than just a product.

Question 5

Kenilworth Inc. is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________.
A) modified rebuy
B) regular buy
C) straight rebuy
D) new rebuy
E) new task

Accepted Answer

This situation is a new task because Kenilworth Inc. is making a significant change by moving from a rented office to a standalone office building they own, which involves a decision-making process they have not encountered before.

Question 6

Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent?
A) derived demand
B) inelastic demand
C) geographic demand
D) relational demand
E) static demand

Accepted Answer

Derived demand refers to the demand for a product or service that arises from the demand for another product or service. In this case, the demand for steel from the steel manufacturer arises from the demand for GM cars and trucks. Therefore, derived demand is the most pertinent form of demand for the steel manufacturer to consider. Inelastic demand refers to a situation in which changes in price have little or no effect on demand, which may not be relevant in this context. Geographic demand and relational demand do not apply to this scenario, and static demand is not a commonly used term in economics.

Question 7

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.
A) straight rebuy
B) modified rebuy
C) new task
D) secondary purchase
E) procure-to-pay

Accepted Answer

This type of purchase is classified as a straight rebuy, as it is a routine purchase from a pre-approved list of suppliers.

Question 8

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise, the service you provide for customers?
A) computer applications
B) database management
C) manufacturing
D) promotion management
E) MRO (maintenance, repair, operating) supplies

Accepted Answer

MRO (maintenance, repair, operating) supplies are the main area of expertise for systems contracting businesses. These businesses provide services to customers that help them maintain, repair, and operate their systems.

Question 9

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.
A) channel consolidation
B) systems buying
C) vertical buying
D) horizontal buying
E) supply buying

Accepted Answer

Systems buying refers to the practice of purchasing a complete solution to a problem from one seller. This can include multiple products or services that work together to address a specific need or challenge. This approach can be more efficient and effective than buying individual components from multiple sellers, as it can streamline the purchasing process and ensure compatibility and integration across all components.

Question 10

The total demand for many business goods and services is not much affected by price changes. Thus, this demand is ________.
A) derived
B) fluctuating
C) accelerated
D) multiple
E) inelastic

Accepted Answer

When the total demand for goods and services is not much affected by price changes, it is considered to be inelastic. This means that the demand is not sensitive to changes in price, and therefore, the demand curve is relatively steep.

Question 11

In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms.
A) new rebuy
B) regular buy
C) straight rebuy
D) modified rebuy
E) new task

Accepted Answer

In a modified rebuy situation, the buyer wants to make some changes to existing product specifications, prices, delivery requirements, or other terms. This differs from a straight rebuy situation where the buyer simply reorders previously purchased products without any modifications. A new rebuy situation involves the purchase of a completely new product or service, while a regular buy involves routine restocking of ongoing supplies. A new task situation involves purchasing a product or service for the first time, involving extensive decision-making and evaluation.

Question 12

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.
A) inelastic demand
B) direct purchasing
C) fluctuating demand
D) derived demand
E) a straight rebuy

Accepted Answer

The answer of Sometimes a rise of only 10% in...

Question 13

Which of the following is true for business marketers?
A) They deal with more and larger buyers than consumer marketers.
B) They deal with more and smaller buyers than consumer marketers.
C) They deal with fewer and larger buyers than consumer marketers.
D) They deal with fewer and smaller buyers than consumer marketers.
E) They deal with the same kind of buyers as consumer marketers.

Accepted Answer

Business marketers typically deal with fewer and larger buyers than consumer marketers because they generally sell products and services to other businesses rather than to individual consumers. Business buyers are typically fewer in number and have larger purchasing budgets compared to individual consumers.

Question 14

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________.
A) derived demand
B) inelastic demand
C) the acceleration effect
D) a straight rebuy
E) the sales cycle

Accepted Answer

The acceleration effect refers to the phenomenon where a small change in consumer demand can lead to a larger change in the demand for capital goods, like plant and equipment, as businesses adjust to meet the increased demand for their products.

Question 15

The demand for business goods is ultimately derived from the demand for ________.
A) raw materials
B) consumer goods
C) services
D) business solutions
E) e-commerce

Accepted Answer

The demand for business goods is ultimately derived from the demand for consumer goods. As consumers purchase more products, businesses require more raw materials and services to produce those products, leading to an increase in demand for business goods.

Question 16

How can a marketer overcome the negative effects of commoditization?
A) convince target consumers that the firm's products are as good as those of competitors
B) convince target consumers that price is irrelevant in determining quality
C) convince target consumers that the firm's products are different from those of competitors
D) convince target customers that buying the highest-priced product is no guarantee of quality
E) convince target customers that all the products in the market are equivalent

Accepted Answer

Commoditization occurs when products are perceived as interchangeable and of similar quality, leading to price competition. To overcome this, a marketer should convince target consumers that the firm's products are different from those of the competitors. This can be done by highlighting unique features, benefits, or brand attributes and creating a strong brand identity. Convincing target customers that all products in the market are equivalent or solely focusing on convincing them that the firm's products are as good as those of competitors may not be effective in creating differentiation and reducing price sensitivity. Similarly, convincing target customers that buying the highest-priced product is no guarantee of quality may not be the best strategy as it may not address the perception of similarity and commoditization. Convincing target customers that price is irrelevant in determining quality may be effective in premium markets but may not work in highly competitive and price-sensitive markets.

Question 17

Which of the following is a challenge in which business marketers differ from the consumer marketers?
A) understanding deep customer needs in new ways
B) identifying new opportunities for organic business growth
C) geographically concentrated buyers
D) calculating better marketing performance and accountability metrics
E) competing and growing in global markets, particularly China

Accepted Answer

Geographically concentrated buyers is a challenge that specifically applies to business marketers, as they often have a smaller pool of potential buyers who are concentrated in specific locations. Consumer marketers, on the other hand, typically have a much larger and more dispersed audience. The other options are challenges that can apply to both business and consumer marketers.

Question 18

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________.
A) inelastic demand
B) direct purchasing
C) the acceleration effect
D) a modified rebuy
E) a straight rebuy

Accepted Answer

Inelastic demand refers to a situation where a change in price results in little or no change in the quantity demanded. In this case, shoe manufacturers are unlikely to change their level of leather purchases in response to price changes, indicating inelastic demand.

Question 19

Orica Inc. competes in the market for commercial explosives. The company recently changed its business model from just selling explosives to managing an entire blast in a quarry. This customer-solution-based approach to the sale of explosives is an example of ________.
A) systems selling
B) straight rebuying
C) customer referencing
D) derived demand
E) channel consolidation

Accepted Answer

Orica Inc.'s change in business model from selling explosives to managing an entire blast in a quarry is an example of systems selling, which is a customer-solution-based approach to sales.

Question 20

________ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
A) Marketing channels
B) Organizational buying
C) Corporate retailing
D) Brand auditing
E) Inventory control

Accepted Answer

Organizational buying refers to the process by which formal organizations like businesses, government agencies, and non-profit organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. It involves a more formal and structured decision-making process than individual consumer buying.

Quiz 7: Analyzing Business Markets

The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

The business buyer has to make the fewest decisions when involved in a ________.

Xerox offers a ________ approach to prospective clients when it offers a complete turnkey solution, including the operation and management of the client's information and communication need.

Kenilworth Inc. is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________.

Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent?

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise, the service you provide for customers?

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

The total demand for many business goods and services is not much affected by price changes. Thus, this demand is ________.

In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms.

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.

Which of the following is true for business marketers?

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________.

The demand for business goods is ultimately derived from the demand for ________.

How can a marketer overcome the negative effects of commoditization?

Which of the following is a challenge in which business marketers differ from the consumer marketers?

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________.

Orica Inc. competes in the market for commercial explosives. The company recently changed its business model from just selling explosives to managing an entire blast in a quarry. This customer-solution-based approach to the sale of explosives is an example of ________.

________ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.