Question 1

The four major types of business markets are:

Accepted Answer

explain the characteristics of different types of business markets. The overall business market comprises four major categories: (1) reseller markets, (2) producer markets, (3) government markets, and (4) institutional markets (see figure 5.1).

Question 2

Individuals or organisations that purchase products for resale, for use in the production of other products, or for use in their daily business operations, comprise which market?

Accepted Answer

explain the characteristics of different types of business markets. Business markets are made up of individuals or organisations that purchase products for resale, uses in the production of other products, or for use in their daily business operations.

Question 3

When a wholesaler purchases a good from a producer and then sells it to a retailer, the transactions have taken place in:

Accepted Answer

explain the characteristics of different types of business markets. Reseller markets comprise intermediaries such as wholesalers and retailers that buy products in order to sell or lease them to other parties for profit. Generally, the reseller does not make any substantial change to the products. For the most part they act, essentially, as a distribution mechanism (see figure 5.1).

Question 4

The annual "HBF Run for a Reason" is to aid the funding of more than 190 WA health institutions, such as Lifeline, Heart Foundation and Diabetes WA. This event is supported by commercial partners such as HBF, Commonwealth Bank and government partners such as The City of Perth. This is an example of:

Accepted Answer

explain the characteristics of different types of business markets. Not-for-profit organisations typically have different goals and fewer resources than commercial organisations. They often rely on volunteer members, public donations and bequests. Many of these institutional organisations have recognised the financial opportunities in co-branding their organisations or their programs with commercial partners.

Question 5

Retailers' own brands:

Accepted Answer

explain the characteristics of different types of business markets. An important trend in recent years has been the growth in volume of products sold under retailers' own brands, such as Woolworths' 'Select' brand. This has placed the retailers in direct competition with their suppliers and has the potential to fundamentally change the mix of manufacturers' and retailers' branded products we see in retail stores.

Question 6

As the operator of a small business, you regularly purchase office supplies such as stationary, tea and coffee, and computer software. Which of the following markets are you participating in when buying these products?

Accepted Answer

explain the characteristics of different types of business markets. Producer markets are those in which business organisations and professionals purchase products for use in the production of other products or in their daily business operations.

Question 7

Jolly Juicy JellyBeans buys sugar from a local mill and sells its lollies to department stores and supermarkets. Which two markets do these transactions take place in?

Accepted Answer

explain the characteristics of different types of business markets. Producer markets - sometimes known as 'industrial markets' - are those in which business organisations and professionals purchase products for use in the production of other products or for use in their daily business operations. Jolly Juicy JellyBeans buying sugar from a local sugar mill is a transaction that takes place in a producer market. Reseller markets comprise intermediaries such as wholesalers and retailers that buy products in order to sell or lease them to other parties for profit. Jolly Juicy JellyBeans selling its lollies to department stores and supermarkets is a transaction that takes place in a reseller market.

Question 8

Non-public, not-for-profit organisations face many of the same marketing challenges confronting businesses, including:

Accepted Answer

explain the characteristics of different types of business markets. Non-public, not-for-profit organisations face many of the same marketing challenges confronting businesses, including recruiting members and publicising their activities and achievements. In essence, they compete with other community service organisations for 'market share'. Not-for-profit organisations also have different goals and fewer resources than commercial organisations.

Question 9

The processes required to sell products to government buyers can be complicated by:

Accepted Answer

explain the characteristics of different types of business markets. Because governments have such an enormous responsibility for the wellbeing of their citizens, government markets are subject to extensive rules and regulations designed to ensure that government business is conducted ethically and legally. In particular, government purchases are closely monitored by government financial authorities, which are formally responsible for ensuring transparency and contestability and that the government achieves the best value for the taxpayer. These requirements often impose additional compliance costs on businesses seeking to sell to government.

Question 10

In Australia and New Zealand, which business markets are dominated by familiar large retail chains such as Woolworths and Harvey Norman?

Accepted Answer

explain the characteristics of different types of business markets. The reseller markets are dominated by familiar large retail chains such as Woolworths, Coles and Harvey Norman.

Question 11

The markets for non-public, not-for-profit organisations are:

Accepted Answer

explain the characteristics of different types of business markets. There are many organisations that are neither public nor for-profit. Such organisations commonly have charitable or social objectives and include many schools, religious organisations and hospitals as well as charities. The markets in which these organisations buy and sell products are known as institutional markets.

Question 12

Upon completing your marketing degree, you are offered a job working as a business buyer for a company that operates in the institutional market. Your company can be distinguished from businesses operating in other markets by:

Accepted Answer

explain the characteristics of different types of business markets. There are many organisations that are neither public nor for-profit. Such organisations commonly have charitable or social objectives and include many schools, religious organisations and hospitals as well as charities. The markets in which these organisations buy and sell products are known as institutional markets.

Question 13

Which of the following statements is false?

Accepted Answer

explain the characteristics of different types of business markets. In essence, not-for-profit organisations compete with other community service organisations for 'market share'. Not-for-profit organisations also have different goals and fewer resources than commercial organisations. They often rely on volunteer members, public donations and bequests. Marketing to such organisations will often be less financially profitable, but overall the not-for-profit sector still comprises a very substantial market.

Question 14

One of the key differences between marketing to business customers compared to consumers is:

Accepted Answer

understand the major issues involved in marketing to business customers. Marketing to business customers is distinctly different to marketing to consumers. One of the key differences is; many business-to-business purchases involve high volumes and regular repeat purchases, particularly in the reseller markets.

Question 15

____________, just-in-time delivery, ___________, repairs, technical help desk support, dedicated account and relationship managers are examples of 'after-sales' service in the _____________ market.

Accepted Answer

understand the major issues involved in marketing to business customers. There are often numerous additional aspects of 'after-sales' service in the business market, including: transport, just-in-time delivery, returns, repairs, technical help desk support, dedicated account and relationship managers.

Question 16

Businesses tend not to adjust their consumption of products in relation to price changes. Rather, they:

Accepted Answer

understand the major issues involved in marketing to business customers. The demand characteristics in the business market are quite different to those in the consumer market. Because any particular product a business purchases is usually just one of many, businesses tend not to adjust their consumption in relation to price changes. Rather they pass the cost on to their customers while they seek to identify substitute products.

Question 17

High-value purchases are relatively common in which business market/s?

Accepted Answer

understand the major issues involved in marketing to business customers. Many business market transactions are for very high-value purchases, particularly in the producer, government and institutional markets.

Question 18

There are far fewer ________ and _________sellers in business markets than in consumer markets.

Accepted Answer

understand the major issues involved in marketing to business customers. There are far fewer buyers and sellers in business markets than in consumer markets.

Question 19

Public transport networks, council sanitation and local infrastructure upgrades are all examples of:

Accepted Answer

understand the major issues involved in marketing to business customers. In order to provide these services, national (Commonwealth), state (provincial) and local (municipal) governments purchase an enormous volume of products in that part of the business markets known as the government markets.

Question 20

Platforms like Etsy, and farmers markets and cellar doors are examples of:

Accepted Answer

understand the major issues involved in marketing to business customers. Producers sell directly to consumers via the internet or small owned retail outlets.

Quiz 5: Business Buying Behaviour