Question 1

In terms of organizational buying, 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

Amazon.com, Lands' End, and JCPenney are all retailers, which fall under the category of resellers in organizational buying. They purchase products from manufacturers or wholesalers to resell to their customers.

Question 2

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

Accepted Answer

The City of Denver is a government unit as it is responsible for providing essential services for the citizens living within its jurisdiction. Contracting with Solid Waste Management to provide trash collection services is an example of how the city fulfills its duty to ensure the health and safety of its residents.

Question 3

A firm that markets photocopy products used in the graphic arts field, buys sensitized paper from Eastman Kodak Co., packages it with the Photostat brand name, and sells it directly to amateur photographers. In this context, the marketer is most likely classified as
A)a manufacturer.
B)a reseller.
C)a service provider.
D)a government agency.
E)an industrial firm.

Accepted Answer

The answer of A firm that markets photocopy products used...

Question 4

The National Aeronautics and Space Administration (NASA) will pay Lockheed Martin Corp. $11.4 billion for Orion's development, test flights, and its first manned mission in 2021. NASA is a government unit operating in __________ market.
A)a heavy goods
B)a government
C)a service
D)an industrial
E)a reseller

Accepted Answer

The answer of The National Aeronautics and Space Administration (NASA)...

Question 5

When the Federal Aviation Administration (FAA) purchases radar systems for 22 major air traffic control centers in the United States, it is operating as
A)a government unit.
B)an industrial market.
C)a business market.
D)a consumer market.
E)a service provider.

Accepted Answer

The FAA is a government agency, so it is operating as a government unit when it purchases radar systems.

Question 6

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)an industrial service provider.
B)a health care manufacturer.
C)an industrial firm.
D)a reseller.
E)a government agency.

Accepted Answer

Liberty Medical Supply is a reseller because it purchases and sells products without making any changes to them. They are not a manufacturer or an industrial service provider since they do not create or produce the products they sell. They are also not a government agency as they are a private company.

Question 7

__________ comprise the highest percentage of firms in industrial markets.
A)Manufacturing firms
B)Construction firms
C)Agricultural firms
D)Mining companies
E)Service companies

Accepted Answer

The answer of __________ comprise the highest percentage of firms...

Question 8

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with __________, insurance, and real estate businesses, transportation, communication and public utility firms, and not-for-profit organizations, these firms represent 75 percent of all industrial firms.
A)finance
B)wholesalers
C)retailers
D)government units
E)educational institutions

Accepted Answer

The services market includes finance, insurance, and real estate businesses, which are part of the broader service sector contributing significantly to the economy.

Question 9

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 __________ market.
A)a consumer
B)a government
C)a service
D)an industrial
E)a reseller

Accepted Answer

Graham-Field Health Products sells its products to hospitals, nursing homes, and retailers, which are all part of the healthcare industry. Therefore, Graham-Field operates in an industrial market.

Question 10

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

Accepted Answer

The answer of When Georgia State University buys new laptops...

Question 11

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

The reseller market includes retailers and wholesalers who purchase products from manufacturers or distributors and then sell them to end-user service providers or directly to consumers. Logistics and supply chain providers may be involved in the distribution of these products, but they are not considered part of the reseller market. Government agencies may also purchase products, but they typically do not resell them for profit.

Question 12

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

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as reseller firms. Industrial firms are those that produce goods or provide services for use by other businesses, government agencies, or consumers. Government agencies are public organizations responsible for providing goods and services to citizens. Consumer product firms are companies that produce and sell goods for personal use by consumers. Nonprofit firms are organizations that exist for a social cause or public benefit and do not seek to make a profit.

Question 13

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)a producer.
B)a reseller.
C)a service provider.
D)a government agency.
E)an industrial firm.

Accepted Answer

ESF acquires furniture from manufacturers and resells them to furniture stores, thus classifying them as a reseller.

Question 14

A bank takes money from its depositors, reprocesses it, and "sells" it as loans to borrowers. The bank is operating in the ___________ market.
A)consumer
B)government
C)industrial
D)service
E)reseller

Accepted Answer

The bank is involved in the market for industrial loans, where it takes money from depositors and provides loans to borrowers for business purposes. This market deals with financing for various industries and businesses, including manufacturing, construction, and technology.

Question 15

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)an industrial market.
B)a business market.
C)a consumer market.
D)a government unit.
E)a service provider.

Accepted Answer

The GSA is a government unit that purchased the vehicles for its fleet. The other options do not accurately describe the nature of the transaction.

Question 16

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, and real estate businesses; transportation, __________ and public utility firms; and not-for-profit organizations, these firms represent about 75 percent of all industrial firms.
A)wholesaling
B)retailing
C)government units
D)communication
E)manufacturing

Accepted Answer

Communication is a service industry that, along with transportation and public utilities, contributes to the services market, which represents a significant portion of industrial firms.

Question 17

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 __________ market.
A)a consumer
B)a government
C)a service
D)a reseller
E)an industrial

Accepted Answer

Corning, Inc. is operating in an industrial market as it produces optical fiber, which is used in telecommunications and data communications industries.

Question 18

Which of the following is a service business within the industrial market?
A)construction
B)mining
C)insurance
D)government
E)farming

Accepted Answer

Insurance is a service business that caters to industrial clients by providing policies and coverage for various risks and liabilities involved in their operations. Construction, mining, government, and farming are all industrial sectors but are not necessarily service businesses.

Question 19

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, and real estate businesses, __________, communication, and public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent of all industrial firms.
A)wholesalers
B)transportation
C)retailers
D)government units
E)educational institutions

Accepted Answer

Transportation, communication, and public utility firms are part of the services market, contributing to the 75 percent of industrial firms alongside finance, insurance, and real estate businesses.

Question 20

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

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

Quiz 6: Understanding Organizations As Customers

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

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

A firm that markets photocopy products used in the graphic arts field, buys sensitized paper from Eastman Kodak Co., packages it with the Photostat brand name, and sells it directly to amateur photographers. In this context, the marketer is most likely classified as

The National Aeronautics and Space Administration (NASA) will pay Lockheed Martin Corp. $11.4 billion for Orion's development, test flights, and its first manned mission in 2021. NASA is a government unit operating in __________ market.

When the Federal Aviation Administration (FAA) purchases radar systems for 22 major air traffic control centers in the United States, it is operating as

__________ comprise the highest percentage of firms in industrial markets.

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 __________ market.

When Georgia State University buys new laptops for its faculty, it is operating as

The reseller market includes

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to 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 bank takes money from its depositors, reprocesses it, and "sells" it as loans to borrowers. The bank is operating in the ___________ market.

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

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 __________ market.

Which of the following is a service business within the industrial market?

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