Question 1

Federal,state,and local buying units account for the greatest volume of purchases of any customer category in the United States.

Accepted Answer

Government entities, including federal, state, and local units, collectively make up the largest purchasing group in the U.S. due to their extensive procurement needs for public services and infrastructure.

Question 2

Which of the following statements is true about the federal government?

Accepted Answer

The federal government is a large and complex entity, and its purchasing needs are diverse and spread across various agencies. No single agency or buyer handles all procurement, making the process decentralized.

Question 3

The NAICS (North American Industry Classification System)is a valuable tool for business marketers engaged in analyzing,segmenting,and targeting markets in which each classification group is relatively homogenous in terms of _______.

Accepted Answer

The NAICS groups businesses based on similarities in raw materials required, components used, manufacturing processes employed, and problems faced, making it useful for market analysis and segmentation.

Question 4

NAICS codes can help identify firms that may be prospective users of a supplier's goods and services and the more identical digits in sequence in a code,the more homogeneous the group.

Accepted Answer

NAICS codes classify businesses into industries based on their economic activities, and the more digits shared in sequence, the more specific and similar the businesses are within that classification.

Question 5

The more identical digits in the sequence of a North American Industry Classification System code among companies,the less homogeneous that group of companies' main manufacturing processes are.

Accepted Answer

The more identical digits in the NAICS code, the more similar the companies are in terms of their industry classification and main manufacturing processes.

Question 6

For both small and large vendors,paperwork is typically simpler and manageable than if selling at a federal level.

Accepted Answer

The answer of For both small and large vendors,paperwork is...

Question 7

Explain how business establishments are classified under the North American Industry Classification System (NAICS).

Accepted Answer

The answer of Explain how business establishments are classified under...

Question 8

The North American Industry Classification System data can be used to:

Accepted Answer

The answer of The North American Industry Classification System data...

Question 9

The most popular source of information about government procurement is ____________.

Accepted Answer

FedBizOpps (Federal Business Opportunities) is the most popular source for information about government procurement, where federal agencies post their procurement opportunities.

Question 10

As long as smartphones are manufactured and are in demand,the demand for new apps will never die.This exemplifies ___________ demand.

Accepted Answer

The answer of As long as smartphones are manufactured and...

Question 11

James,an administrative manager at Seal Inc.,is asked to purchase 100 printers for the firm's office.He contacts a sales representative at Myro Distributors Inc.and places an order for 100 printers.Myro Distributors Inc.purchases the printers from Ink Corp.,a wholesaler,and delivers them to James at his office.In this scenario,Myron Distributors Inc.is most likely to be a(n)_____.

Accepted Answer

Myro Distributors Inc. acts as an intermediary between the wholesaler (Ink Corp.) and the end customer (Seal Inc.), making it a retailer.

Question 12

Two types of institutional purchasers exist: one type operates similarly to governments,in that the purchasing process is influenced,determined,or administered by government units.The other type of purchasers ____________.

Accepted Answer

The other type of institutional purchasers are organized more like corporations, meaning they have a more structured and business-like approach to purchasing, unlike the government-influenced type.

Question 13

The U.S.federal government buys goods and services valued at more than $875 billion per year,making it the world's largest customer.

Accepted Answer

The U.S. federal government is indeed the world's largest customer, purchasing a vast array of goods and services annually, with expenditures often exceeding $875 billion.

Question 14

A detailed numbering system developed by the United States,Canada,and Mexico to classify North American business establishments by their main production processes is the NAKES system.See 7-5: The North American Industry Classification System.

Accepted Answer

The correct system is the NAICS (North American Industry Classification System), not NAKES.

Question 15

Schools,hospitals,colleges and universities,churches,labor unions,fraternal organizations,civic clubs,foundations,and other so-called nonbusiness organizations are the components of which business market segment?

Accepted Answer

Institutions are nonbusiness organizations that include schools, hospitals, colleges, universities, churches, labor unions, and similar entities.

Question 16

Which of the following statements is a difference between wholesalers and retailers?

Accepted Answer

Wholesalers primarily sell to retailers and other businesses, whereas retailers sell directly to the end consumers.

Question 17

Original equipment manufacturers or OEMs include all individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers.

Accepted Answer

OEMs are companies that purchase components or products from other manufacturers to use in their own products, which they then sell to other businesses or consumers.

Question 18

Describe the role of resellers who comprise one the major categories of business customers.

Accepted Answer

The answer of Describe the role of resellers who comprise...

Question 19

With regard to business customers,which statement is true of institutions?

Accepted Answer

Institutions are nonbusiness entities in the business markets, such as schools, hospitals, and non-profits, that aim to achieve goals other than profit, such as education, health care, or social services.

Question 20

Which of the following statements is true of the North American Industry Classification System (NAICS)?

Accepted Answer

The NAICS code becomes more specific and homogeneous as more digits are added, allowing for detailed classification of industries.

Quiz 7: Business Marketing