Question 1

Which of the following statements accurately characterizes buying behaviour in organizational markets?

Accepted Answer

Firms selling to organizations are always restricted to far fewer buyers than firms selling consumer products to ultimate users.

Question 2

In selling business equipment, Xerox has found social media incredibly useful for keeping potential customers informed and engaged.This reflects

Accepted Answer

Xerox, among othersb2b sellers, has found that content marketing works very well through social media channels.This approach provides potential customers with timely and relevant information.

Question 3

A company that runs its trucks on a mixture of petroleum and ethanol buys its ethanol from the only large supplier of ethanol that has an ethanol manufacturing facility in the province and is able to meet the trucking company's delivery schedules.The selection of ethanol supplier is based on _____.

Accepted Answer

Most commonly used organizational buying criteria include price, ability to meet the quality specifications required, ability to meet the required delivery schedules, technical capability, warranties and claim policies, past performance on previous contracts, and production facilities and capacity.The location of the ethanol supplier and its ability to meet required delivery schedules are examples of organizational buying criteria.

Question 4

P & P is a global leader in pallet and container pooling services.Pallets are used for transporting and storing new appliances such as stoves, freezers, and refrigerators.Which of the following is true about the demand for P & P's pallets?

Accepted Answer

Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.The demand for the pallets is driven by the sales of (demand for) appliances.

Question 5

The North American Industry Classification System (NAICS) permits a firm to:

Accepted Answer

The North American Industry Classification System (NAICS) permits a firm to find the NAICS codes of its present customers and then obtain NAICS-coded lists for similar firms.

Question 6

In organizational buying settings, _____ keeps potential customers engaged by providing valuable information.

Accepted Answer

Content marketing focuses on providing potential customers with timely and relevant information at key points in the decision process.

Question 7

Which of the following is a commonly used organizational buying criterion?

Accepted Answer

Most commonly used organizational buying criteria include price, ability to meet the quality specifications required, ability to meet the required delivery schedules, technical capability, warranties and claim policies, past performance on previous contracts, and production facilities and capacity.

Question 8

Five Star Windows (FSW) manufactures high-quality, energy-efficient windows for homes and offices.The number of windows sold is directly linked to the number of new homes built.The sales of FSW's windows go up when the economy is strong and many homes are being built.This information reveals that the demand for FSW's windows is an example of _____.

Accepted Answer

Derived demand means that demand for industrial goods and services is driven by, or derived from, the demand for consumer products.In this case, the demand for windows is a derived demand as it is driven by the consumer demand for new houses.

Question 9

When small changes in price for consumer products can result in large increases or decreases in demand for the facilities and equipment needed to make the consumer product, it is referred to as _____ demand.

Accepted Answer

Small changes in demand for consumer products can result in large increases or decreases in demand for the facilities and equipment needed to make the consumer product.This is referred to as fluctuating demand.

Question 10

_____ are detailed specifications for the products and services they want to buy and the characteristics of the suppliers that will supply them.

Accepted Answer

Organizational buying criteria are detailed specifications for the products and services they want to buy and the characteristics of the suppliers that will supply them.

Question 11

Concert Staging Company (CSC) provides the stage, roof system, lighting, and sound for outdoor concerts and theatres.The frequency of concerts and theatre events conducted depends on the customers' decisions to purchase the tickets.The number of concerts and theatre events determine how many times CSC gets an opportunity to provide its services.Thus, the demand for the services provided by CSC is a(n) _____ demand.

Accepted Answer

Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.The demand for Concert Staging Company services is driven by the sales of tickets to concert/theatre attendees, so it is a derived demand.

Question 12

Which of the following is a market characteristic of products and services purchased within an organizational context?

Accepted Answer

Market characteristics of products and services purchased within an organizational context include derived demand for industrial product and services and the small number of business customers with large purchase orders.

Question 13

MKL Inc.processes wheat into flour, which is sold to bakeries and pasta makers.What kind of demand exists for MKL Inc.'s flour?

Accepted Answer

Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.The demand for flour is driven by consumer demand for pasta and baked goods, so in this case the demand for flour is a derived demand.

Question 14

If the price of brake pads goes up, a car manufacturer will still order the same quantity because this single business product is only a minor portion of the price of the car.This is an example of _____ demand.

Accepted Answer

Inelastic demand means that regardless of whether there is an increase or decrease of the price of a B2B product, customers will buy the same quantity.

Question 15

Derived demand means the demand for industrial products and services is driven by, or derived from:

Accepted Answer

Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.

Question 16

Firms selling consumer goods or services often try to reach thousands or millions of individuals or households.Firms selling to organizations are often:

Accepted Answer

The number of potential buyers is much smaller in organizational buying situations.Firms selling to organizations are often restricted to far fewer buyers.

Question 17

Identify the buying process characteristic from the following dimensions of organizational buying behaviours.

Accepted Answer

Extensive online purchase of products and services is a buying process characteristic within an organizational context.

Question 18

Which of the following is a marketing mix characteristic of the organizational buying behaviour?

Accepted Answer

Marketing mix characteristics of organizational buying behaviour include advertising and promotional forms that are technical in nature.

Question 19

The practice of organizational buyers attempting to work with suppliers to make their products, services, and capabilities fit the buyer's needs is called _____.

Accepted Answer

Many organizational buyers today are transforming their buying criteria into specific requirements that are communicated to suppliers.This practice, called reverse marketing, means that organizational buyers are attempting to work with suppliers to make their products, services, and capabilities fit the buyer's needs.

Question 20

For many organizations, purchase decisions are made based upon minimizing risk.This reflects

Accepted Answer

In organizational buying settings, individuals face the risk of making the wrong choice.Many marketers think that fear of making a bad choice is an important factor that limits the way purchases are made.

Quiz 5: B2B Marketing