Question 1

Straight rebuys are:

Accepted Answer

Straight rebuys are typically routine purchases that do not require significant consideration of alternative products, as they often involve repurchasing goods or services that have been bought previously and have met the buyer's needs.

Question 2

Why do many companies make no effort to sell to the lucrative government market?

Accepted Answer

Many companies are intimidated by the bureaucratic hurdles and complex regulations (red tape) associated with selling to the government, which can be daunting and resource-intensive to navigate.

Question 3

Salespeople John and Zsa-Zsa are offering basically the same product at the same price and with the same post sale services to a purchasing agent at Hamilton Industries. Which of the following describes a technique that Zsa-Zsa could ethically use to win the sale away from John?

Accepted Answer

Zsa-Zsa can ethically offer the purchasing agent a dozen golf balls since she has noticed golf memorabilia in his office. This is a small gift that is not likely to influence the purchasing agent's decision, but it may show that Zsa-Zsa is attentive to the purchasing agent's interests.

Question 4

On which element of the promotional mix do sellers of business products place a greater emphasis than do sellers of consumer products?

Accepted Answer

Sellers of business products often place a greater emphasis on personal selling due to the complex nature of their products and the need for direct interaction to explain and customize their offerings for individual business customers.

Question 5

As the receptionist for Wakefield Engineering Company, Devin follows orders by not allowing salespeople to see any of the company's managers before lunch. Which role in the buying center is Devin clearly assuming?

Accepted Answer

Devin is acting as a gatekeeper by controlling the flow of information and access to the company's managers, a common role in the buying center where individuals regulate the access of vendors and salespeople to parts of the company.

Question 6

The objective of _____ is to effectively analyze all the available data about a customer.

Accepted Answer

Analytical CRM focuses on analyzing customer data and behavior to improve business decisions, including marketing strategies, sales, and customer service. It uses data analysis to understand customer trends and needs.

Question 7

Which of the following pieces of information would be most likely to be used as an activity indicator to estimate the demand for coal-shearing machines used to strip coal from mines?

Accepted Answer

The volume of coal mined directly relates to the demand for coal-shearing machines, as more mining activity would likely increase the need for such equipment.

Question 8

In which of the following industries is reciprocity traditionally used?

Accepted Answer

Reciprocity is traditionally used in the oil industry.

Question 9

The CEO of Ford Motor Company has implemented a plan he calls TVM, which brings together the company's engineering and purchasing staffs to look for ways to cut costs when buying component parts and materials. In terms of the buying center, Ford's new CEO has assumed the role of:

Accepted Answer

The answer of The CEO of Ford Motor Company has...

Question 10

Brugg Wire Rope makes elevator cable. It only sells to elevator manufacturers and installers. Therefore, it has a _____ business market.

Accepted Answer

Brugg Wire Rope operates in a vertical market because it specializes in a specific industry's needs, in this case, the elevator industry, by providing a specialized product (elevator cable) exclusively to businesses within that industry (elevator manufacturers and installers).

Question 11

A buying center:

Accepted Answer

A buying center is defined as all the individuals or groups who are involved in the purchase decision-making process.

Question 12

Fisher-Price toys can be purchased at retail stores and through its shop-at-home catalog as well as at its Web site, www.fisherprice.com. The use of the Web site is an example of:

Accepted Answer

The use of the Fisher-Price website for selling products directly to consumers is an example of disintermediation. This term refers to the removal of intermediaries in the supply chain, allowing a company to sell directly to its customers. By selling through its website, Fisher-Price bypasses traditional retailers and distributors.

Question 13

Food processing companies and commercial cooks recently had to decide whether to use pure vanilla or artificial vanilla. A cyclone in Madagascar, the number one producer of vanilla, destroyed most of the vanilla plants, so some cooks and food processors had to use artificial vanilla. Who in the buying center would have resolved to replace pure vanilla with artificial vanilla? decide

Accepted Answer

The decider is responsible for making the final purchasing decision, and the user is the one who will be using the product, so they would be involved in deciding to replace pure vanilla with artificial vanilla.

Question 14

Shortly after former stockbroker Cooper Skanda decided to open a florist shop, he was looking for multitasking software. He wanted it to handle his accounts receivable, provide him with tax information, and make it easy to place wire orders for flower deliveries. He looked at several packages aimed at making retailing easier. Many he discarded because they were not industry-specific. He finally settled on a software package called Your Floral Expert CPA, which was in the middle price range. The purchase of this software was an example of a _____ purchase.

Accepted Answer

The purchase of the software by Cooper Skanda for his new florist shop represents a new-task buying situation because it is a new requirement for his business, indicating that he has not made this type of purchase before.

Question 15

Which of the following practices is most likely to impede a company's implementation of customer relationship management?

Accepted Answer

Compensation plans based solely on the achievement of sales quotas can impede the implementation of customer relationship management (CRM) because they may encourage short-term sales at the expense of building long-term customer relationships. CRM focuses on long-term engagement and satisfaction, which might not align with the immediate sales incentives.

Question 16

The Mobile city government wants to buy a new security system for its courthouse. It is at the evaluation of alternatives stage of the buying-decision process. In its evaluation, it should consider:

Accepted Answer

When evaluating alternatives for a new security system, it's important to consider all aspects that could affect the performance, reliability, and cost-effectiveness of the system. This includes the price (A), product performance (B), the suppliers' ability to meet delivery schedules (C), and the quality of after-sale service (D). All these factors together ensure that the chosen system meets the needs of the Mobile city courthouse both in terms of functionality and value for money.

Question 17

Disintermediation:

Accepted Answer

Disintermediation is the process where traditional intermediaries, such as brokers or retailers, are replaced by direct sales, often facilitated by the internet. This allows producers to sell directly to consumers, bypassing traditional distribution channels.

Question 18

A customer analysis would be a part of ____ CRM.

Accepted Answer

Analytical CRM involves the analysis of customer data for a variety of purposes, including designing and executing targeted marketing campaigns, improving customer service, and making informed business decisions. Customer analysis is a key component of analytical CRM, as it helps in understanding customer behavior, preferences, and trends.

Question 19

If Weyman Paper Company agrees to always buy its shrinkwrap from a plastics manufacturer that has agreed to buy all of its paper products from Weyman, it would be an example of a:

Accepted Answer

This scenario is an example of a reciprocity arrangement, where two companies agree to buy products or services from each other.

Question 20

The two dimensions of the buyer-seller relationship are the supply chain and:

Accepted Answer

The answer of The two dimensions of the buyer-seller relationship...

Quiz 5: Business Markets and Buying Behavior