Question 1

The B2B market comprises these three groups: business, industry, and institutions.

Accepted Answer

False

Question 2

Collectively, the federal, provincial, and municipal governments form Canada's largest buying group.

Accepted Answer

The combined purchasing power of all levels of government in Canada makes them the largest buying group, as they procure a wide range of goods and services for public use.

Question 3

Budgets in institutional markets have increased significantly in the last 10 years.

Accepted Answer

There is no specific data provided to confirm that budgets in institutional markets have increased significantly in the last 10 years.

Question 4

Government buyers have flexible buying procedures.

Accepted Answer

Government buyers typically follow strict procurement procedures and regulations to ensure transparency, fairness, and accountability in the use of public funds.

Question 5

In the B2B market there are many more buyers than in consumer markets.

Accepted Answer

In the B2B market, there are typically fewer buyers compared to consumer markets, as B2B transactions often involve larger, more specialized purchases by businesses rather than individual consumers.

Question 6

Purchasing a computer mainframe for a company involves a more formal decision-making process than would the purchase of a personal home computer.

Accepted Answer

Purchasing a computer mainframe typically involves a significant investment and impacts multiple aspects of a company's operations, requiring a formal decision-making process involving multiple stakeholders.

Question 7

A B2B buying decision process usually involves only the highest-ranking company officials.

Accepted Answer

The B2B buying decision process typically involves multiple stakeholders from different levels and departments within a company, not just the highest-ranking officials.

Question 8

Joint demand occurs when an industrial product can only be used in conjunction with another product.

Accepted Answer

Joint demand refers to the situation where the demand for one product is directly linked to the demand for another product, often because they are used together.

Question 9

The purpose of a vendor analysis is to screen potential suppliers on a variety of factors, such as their ability to provide consistent products in quantities that are needed.

Accepted Answer

Vendor analysis involves evaluating potential suppliers to ensure they can meet the company's requirements for quality, quantity, reliability, and other factors.

Question 10

Location of supplier is a significant criterion in the B2B buying decision process.

Accepted Answer

The answer of Location of supplier is a significant criterion...

Question 11

Buying committees follow a formal process; buying centres tend to use a more informal process.

Accepted Answer

Buying committees typically have a structured and formalized decision-making process, while buying centers are more informal, with members collaborating and influencing decisions without a strict procedure.

Question 12

Those who assist in defining specifications for products that are needed are called gatekeepers.

Accepted Answer

Gatekeepers control the flow of information and access within an organization, while those who define specifications are typically referred to as influencers or deciders.

Question 13

The gatekeeper controls the flow of information to others in a buying centre.

Accepted Answer

The gatekeeper in a buying center is responsible for controlling and filtering the information that reaches other members of the buying center, influencing the decision-making process.

Question 14

When a manufacturer of consumer goods decides to enter the B2B market and market its goods to other businesses, its communications strategy should include a greater emphasis on personal selling.

Accepted Answer

Personal selling is crucial in B2B markets as it allows for building relationships, understanding specific client needs, and providing tailored solutions, which are essential for business transactions.

Question 15

The purchasing manager decided he needed to conduct a vendor analysis. The most important question he needs to answer is which supplier can offer the best price.

Accepted Answer

While price is important, the purchasing manager should also consider factors like quality, reliability, and service when conducting a vendor analysis.

Question 16

To manufacture Maxwell House coffee, Kraft Canada needs coffee beans, plastic lids, glass or plastic jars, paper labels, and a cardboard shipping case. These requirements are an example of derived demand.

Accepted Answer

The answer of To manufacture Maxwell House coffee, Kraft Canada...

Question 17

The new purchasing assistant turned to the coordinator and asked him to set up a buying committee or buying centre. These terms are interchangeable.

Accepted Answer

A buying committee and a buying center are not interchangeable terms. A buying committee is a group of individuals who make purchasing decisions, while a buying center refers to all the roles and individuals involved in the buying process within an organization.

Question 18

Government contracting opportunities are advertised online through MERX, the government electronic public tendering service.

Accepted Answer

MERX is an online platform used by the Canadian government to advertise public tendering opportunities, allowing suppliers to access and bid on government contracts.

Question 19

Organizational buying is defined as the decision-making process firms follow to establish what products they need to purchase and then identify, evaluate, and select a brand and supplier for those products.

Accepted Answer

Organizational buying involves a structured decision-making process where firms determine their product needs and choose suppliers, aligning with the definition provided.

Question 20

Cassie, the lead industrial sales rep to a major heavy equipment manufacturer, is more likely to be part of a project team than to make a proposal to deal with customers' needs on her own.

Accepted Answer

In industrial sales, complex products and solutions often require collaboration with a team to address various aspects of customer needs, making it more likely for a sales rep to work as part of a project team.

Quiz 6: Business-To-Business Marketing and Organizational Buying Behaviour