Question 1

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys.It sells these manufactured products to hospitals,nursing homes,and retailers of health care products.Graham-Field Health Products operates in a(n)________ market.
A)consumer
B)government
C)service
D)industrial
E)reseller

Accepted Answer

Marketing organizations operating in an industrial market buy a product or service,reprocess it,and then sell it to another buyer.In this case,the firm buys the mattresses,wheels,metal component parts,etc. ,makes wheelchairs and hospital beds,and then sells them to hospitals,nursing homes,and retailers of health care products.

Question 2

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the
A)European Union (EU).
B)United Nations (UN).
C)North American Free Trade Agreement (NAFTA).
D)North Atlantic Treaty Organization (NATO).
E)World Trade Organization (WTO).

Accepted Answer

The North American Industry Classification System (NAICS)provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

Question 3

Keystone Foods,which invented the individual quick freeze process for beef,provides McDonald's with millions of pounds of chicken,beef,and fish annually for use in its restaurants.The firm sources the animal proteins from farms and processes them in a variety of ways,such as breading or freezing,before selling them to McDonald's.Keystone is operating in a(n)________ market.
A)heavy goods
B)government
C)service
D)industrial
E)reseller

Accepted Answer

Marketing organizations operating in an industrial market buy a product or service,reprocess it,and then sell it to another buyer.In this case,the company acquires animal proteins from farms,processes them,and sells them to McDonald's.

Question 4

Archer Daniels Midland Co.(ADM)is the world's largest cocoa-bean processor.It buys cocoa beans and converts them into cocoa powder and cocoa butter,which it then sells to companies like Hershey's that manufacture consumer products containing chocolate.ADM is operating in a(n)________ market.
A)consumer
B)government
C)industrial
D)processor
E)reseller

Accepted Answer

Business marketing organizations operating in an industrial market buy a good or service,reprocess it,and then sell it to another buyer.In this instance,ADM buys cocoa beans,reprocesses them,and then resells them to consumer package goods manufacturers like Hershey's.

Question 5

Corning,Inc. ,which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand,is operating in a(n)________ market.
A)consumer
B)government
C)service
D)reseller
E)industrial

Accepted Answer

There are about 7.5 million firms in the industrial,or business,market.These industrial firms in some way reprocess a product or service they buy before selling it again to the next buyer.This is certainly true of Corning,Inc. ,which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand.

Question 6

The North American Industry Classification System (NAICS)
A)provides common industry definitions for North America,Central America,and South America to measure economic activity in the Western Hemisphere.
B)provides common industry definitions between Canada and the United States to measure economic activity and reduce barriers of trade for cross-border firms.
C)provides a classification system for products that is consistent worldwide.
D)provides a classification system for products that is consistent across North America,Central America,and South America to measure economic activity in the Western Hemisphere.
E)provides common industry definitions for Canada,Mexico,and the United States to measure economic activity in the three member countries of NAFTA.

Accepted Answer

Key term definition-North American Industry Classification System (NAICS).

Question 7

When Georgia State University buys new laptops for its faculty,it is operating as a(n)
A)industrial market.
B)business market.
C)government unit.
D)consumer market.
E)service provider.

Accepted Answer

Government units are federal,state (such as a state university),and local agencies that buy products and services for the constituents they serve.

Question 8

Federal,state,and local agencies that buy products and services for the constituents they serve are referred to as
A)industrial markets.
B)reseller markets.
C)consumer markets.
D)government units.
E)global markets.

Accepted Answer

Key term definition-government units.

Question 9

The services market sells diverse services such as legal advice,auto repair,and dry cleaning,and this market represents 75 percent of all industrial firms.Which of the following is another such service firm?
A)finance
B)wholesalers
C)retailers
D)government units
E)educational institutions

Accepted Answer

Service companies,such as legal advice,auto repair,and dry-cleaning services;finance,insurance and real estate businesses;transportation,communication,public utility firms;and not-for-profit organizations,represent 75 percent of all industrial firms.

Question 10

When the General Services Administration (GSA),an agency of the federal government,purchased 116 Chevy Volts from General Motors for its vehicle fleet,it was operating as a(n)
A)industrial market.
B)business market.
C)consumer market.
D)government unit.
E)service provider.

Accepted Answer

Government units are federal,state,and local agencies that buy products and services for the constituents they serve.

Question 11

1-800 Contacts is based in Draper,Utah,and sells contact lenses manufactured by other well-known companies,including Johnson & Johnson Vision Care,Ciba Vision,Bausch & Lomb,and CooperVision.It would most likely be classified as a(n)
A)industrial service provider.
B)health care provider.
C)reseller.
D)industrial firm.
E)government agency.

Accepted Answer

Resellers are wholesalers and retailers that buy physical products and resell them without any reprocessing.In this case,1-800 Contacts resells contacts manufactured by others.

Question 12

Among organizational markets,the reseller market includes
A)manufacturers.
B)logistics and supply chain providers.
C)government agencies.
D)end-user service providers.
E)retailers and wholesalers.

Accepted Answer

Key term definition-resellers.

Question 13

The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens.The city is operating as a(n)
A)government unit.
B)industrial market.
C)business market.
D)consumer market.
E)service provider.

Accepted Answer

Government units are federal,state,and local (like the City of Denver)agencies that buy products and services for the constituents they serve.

Question 14

Liberty Medical Supply is a home delivery service that sells diabetes testing supplies,prescription drugs,and other supplies directly to consumers to assist them in the management of their health-related conditions.Since Liberty Medical does not make any changes to the supplies that it obtains from manufacturers,it would most likely be classified as a(n)
A)industrial service provider.
B)health care manufacturer.
C)industrial firm.
D)reseller.
E)government agency.

Accepted Answer

Resellers are wholesalers and retailers who buy physical products and resell them again without any reprocessing.In this case,when Liberty Medical sells directly to diabetics and other ultimate consumers,the firm is acting as a reseller,and in particular a retailer.

Question 15

The system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA),is referred to as the
A)Standard Industrial Code System (SICS).
B)United Nations Central Product Classification System (UNCPCS).
C)National Codes of Industry System (NCIS).
D)North American Industry Classification System (NAICS).
E)Federal System of International Organizations (FSIO).

Accepted Answer

Key term definition-North American Industry Classification System (NAICS).

Question 16

The NAICS provides common industry definitions for
A)Canada,the United Kingdom,and the United States.
B)North America,Asia,and Europe.
C)North America,Central America,and South America.
D)Canada,England,and Australia.
E)Canada,Mexico,and the United States.

Accepted Answer

The North American Industry Classification System (NAICS)provides common industry definitions for Canada,Mexico,and the United States.

Question 17

In terms of organizational markets,Amazon.com,Lands' End,and JCPenney would most likely be classified as
A)government units.
B)resellers.
C)manufacturers.
D)wholesalers.
E)industrial firms.

Accepted Answer

Resellers are wholesalers and retailers that buy physical products and resell them without any reprocessing.These firms are examples of retailers that purchase merchandise as resellers.

Question 18

European Style Furniture (ESF),headquartered in New York,acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States.In this context,ESF is most likely classified as a(n)
A)producer.
B)reseller.
C)service provider.
D)government agency.
E)industrial firm.

Accepted Answer

Resellers are wholesalers and retailers that buy physical products and resell them without any reprocessing.Here,ESF is a wholesaler because it sells to other stores that will sell to retailers,which in turn sell to consumers.

Question 19

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as
A)industrial firms.
B)reseller firms.
C)government agencies.
D)consumer product firms.
E)nonprofit firms.

Accepted Answer

Key term definition-resellers.

Question 20

The acronym NAICS stands for
A)National Association of Industrial Compliance Standards.
B)National Association of Industrial Communication Systems.
C)North American Industrial Communication Standards.
D)North American Industry Classification System.
E)North Atlantic Industrial Classification System.

Accepted Answer

The acronym NAICS stands for the North American Industry Classification System (NAICS).

Quiz 6: Understanding Organizations As Customers

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys.It sells these manufactured products to hospitals,nursing homes,and retailers of health care products.Graham-Field Health Products operates in a(n) ________ market.

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Archer Daniels Midland Co.(ADM) is the world's largest cocoa-bean processor.It buys cocoa beans and converts them into cocoa powder and cocoa butter,which it then sells to companies like Hershey's that manufacture consumer products containing chocolate.ADM is operating in a(n) ________ market.

Corning,Inc. ,which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand,is operating in a(n) ________ market.

The North American Industry Classification System (NAICS)

When Georgia State University buys new laptops for its faculty,it is operating as a(n)

Federal,state,and local agencies that buy products and services for the constituents they serve are referred to as

The services market sells diverse services such as legal advice,auto repair,and dry cleaning,and this market represents 75 percent of all industrial firms.Which of the following is another such service firm?

When the General Services Administration (GSA) ,an agency of the federal government,purchased 116 Chevy Volts from General Motors for its vehicle fleet,it was operating as a(n)

1-800 Contacts is based in Draper,Utah,and sells contact lenses manufactured by other well-known companies,including Johnson & Johnson Vision Care,Ciba Vision,Bausch & Lomb,and CooperVision.It would most likely be classified as a(n)

Among organizational markets,the reseller market includes

The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens.The city is operating as a(n)

The system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) ,is referred to as the

The NAICS provides common industry definitions for

In terms of organizational markets,Amazon.com,Lands' End,and JCPenney would most likely be classified as

European Style Furniture (ESF) ,headquartered in New York,acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States.In this context,ESF is most likely classified as a(n)

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as

The acronym NAICS stands for