Question 1

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

Accepted Answer

Educational attainments of buyers are not a commonly used basis for segmenting the business market. Business market segmentation typically focuses on factors directly related to the nature of the business and its operations, such as customer type, size of the firm, and product end-use application, rather than personal attributes of individual buyers.

Question 2

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?

Accepted Answer

Just-in-Time (JIT) delivery is a strategy that aims to reduce inventories to the minimum levels by requiring vendors to deliver goods only as they are needed in the production process. This approach helps in reducing waste and improving efficiency in the production cycle.

Question 3

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

Accepted Answer

The organizational (B2B) market tends to have fewer buyers compared to the consumer market, which is characterized by a large number of individual consumers.

Question 4

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?

Accepted Answer

Zardo Inc. is practicing customer type segmentation by categorizing its customers based on the type of organization they represent (e.g., small business, large business, government, not-for-profit institutions). This approach groups customers by their organizational characteristics rather than individual demographics or specific product uses.

Question 5

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

Accepted Answer

The answer of When the B2B market is segmented on...

Question 6

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?

Accepted Answer

Abel Building Solutions is using demographic characteristics for segmentation, as they are categorizing their customers based on quantifiable statistics such as the number of employees and sales revenue. This approach is typical of demographic segmentation, which involves dividing the market into segments based on variables such as age, gender, income, occupation, and in the case of businesses, size and revenue.

Question 7

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

Accepted Answer

The basis for market segmentation in this scenario is end-use application, as the manufacturer produces glass for different specific uses: microwave-oven doors, shower enclosures, and patio tabletops. Each of these products serves a distinct purpose and is targeted towards different segments of the market based on their application.

Question 8

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?

Accepted Answer

This relationship represents joint demand because both cotton and polyester are used together in the production of permanent press clothing. A change in the supply of one affects the demand for the other.

Question 9

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

Accepted Answer

Global sourcing refers to the practice of sourcing goods and services from the global market across geopolitical boundaries, which is what Dell does by purchasing parts and resources from suppliers worldwide.

Question 10

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

Accepted Answer

The North American Industry Classification System (NAICS) is the system for grouping businesses that was developed as a result of the North American Free Trade Agreement (NAFTA) to provide new comparability in statistics about business activity across North America.

Question 11

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?

Accepted Answer

Delhaise is using a customer-based segmentation approach by modifying their services to meet the specific needs of different business clients. This approach focuses on tailoring services or products to individual or group customers based on their unique requirements.

Question 12

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

Accepted Answer

Outsourcing allows firms to focus on their core competencies by delegating non-core activities to external specialists, thereby potentially increasing efficiency and effectiveness.

Question 13

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?

Accepted Answer

Product A is experiencing inelastic demand, which means its demand does not change significantly with changes in price or in the demand for other products.

Question 14

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

Accepted Answer

The question about creating new distribution systems (D) is not typically a primary consideration when deciding whether to manufacture parts and equipment in-house. The main considerations usually involve capability, quality, and cost comparisons between in-house production and outsourcing.

Question 15

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

Accepted Answer

The answer of What type of segmentation are customer relationship...

Question 16

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

Accepted Answer

End-use application segmentation focuses on how businesses intend to use the product, making it the correct choice for segmentation based on the precise way the product will be used.

Question 17

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

Accepted Answer

Outsourcing refers to the practice of hiring third parties to perform services or create goods that were previously done in-house, allowing companies to focus on their core competencies.

Question 18

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?

Accepted Answer

This is an example of derived demand because the increase in tire sales is a result of increased demand for cars, which in turn increases the demand for tires used in car manufacturing.

Question 19

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

Accepted Answer

Derived demand occurs when the demand for one product or service happens as a result of the demand for another. In this case, the demand for microprocessor chips is derived from the demand for personal computers.

Question 20

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?

Accepted Answer

Texas Instruments is likely to segment its market based on the end-use application of its electronic chips, as the specifications of the chips vary depending on the device they are used in, such as cell phones or hand calculators.

Quiz 6: Business-To-Business B2b Marketing