Question 1

The total demand for many business goods and services is inelastic; that is, not greatly affected by price changes.

Accepted Answer

A) True 
 B)False

Question 2

A supplier signs an agreement with a customer that states that $350,000 in savings will be earned by the customer over the next 18 months in exchange for a tenfold increase in the customer's share of supplies ordered by the customer. If the supplier achieves less than this promised savings, it will make up the difference. If the supplier achieves substantially more than promised, it participates in the extra savings. This is an example of ________.

Accepted Answer

A)  solution selling 
B)  price fixing 
C)  demand shifting 
D)  systems buying 
E)  risk and gain sharing 
A)  solution selling 
B)  price fixing 
C)  demand shifting 
D)  systems buying 
E)  risk and gain sharing

Question 3

If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets?

Accepted Answer

A)  Concentrate on key buying influencers. 
B)  Use multilevel in-depth selling. 
C)  Use trade-based promotions. 
D)  Concentrate sales efforts on the support staff. 
E)  Move all operations to the Internet. 
A)  Concentrate on key buying influencers. 
B)  Use multilevel in-depth selling. 
C)  Use trade-based promotions. 
D)  Concentrate sales efforts on the support staff. 
E)  Move all operations to the Internet.

Question 4

In which of the following is a person performing the role of an influencer?

Accepted Answer

A)  Dan decides on the product requirements and makes the final choice of suppliers. 
B)  Luke has the authority to pick out the supplier and negotiate the terms of purchase. 
C)  Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. 
D)  LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. 
E)  Dana authorizes the actions of the deciders and buyers in LKG. 
A)  Dan decides on the product requirements and makes the final choice of suppliers. 
B)  Luke has the authority to pick out the supplier and negotiate the terms of purchase. 
C)  Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. 
D)  LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. 
E)  Dana authorizes the actions of the deciders and buyers in LKG.

Question 5

Framing occurs when customers are given a perspective or point of view that allows the firm to "put its best foot forward."

Accepted Answer

A) True 
 B)False

Question 6

Sometimes a rise of only 10 percent in consumer demand can cause as much as a 200 percent rise in business demand for products for the next period. This is an example of ________.

Accepted Answer

A)  inelastic demand 
B)  direct purchasing 
C)  fluctuating demand 
D)  derived demand 
E)  a straight rebuy 
A)  inelastic demand 
B)  direct purchasing 
C)  fluctuating demand 
D)  derived demand 
E)  a straight rebuy

Question 7

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework.

Accepted Answer

A)  buygrid 
B)  buying/selling 
C)  seller-centered 
D)  commercial 
E)  buy-analysis 
A)  buygrid 
B)  buying/selling 
C)  seller-centered 
D)  commercial 
E)  buy-analysis

Question 8

Which of the following methods is most likely to be used by buyers to review the performance of chosen suppliers?

Accepted Answer

A)  The buyer may contact different suppliers and ask for their evaluations. 
B)  The buyers may rate the end-users on several criteria using a weighted-score method. 
C)  The buyer might aggregate the cost of poor performance to come up with adjusted costs of purchase, including price. 
D)  The buyers may aggregate the opinions of various competitors and come up with the adjusted cost of supply. 
E)  The buyers might adopt the Supplier Added Value Effort technique to calculate supplier efficiency. 
A)  The buyer may contact different suppliers and ask for their evaluations. 
B)  The buyers may rate the end-users on several criteria using a weighted-score method. 
C)  The buyer might aggregate the cost of poor performance to come up with adjusted costs of purchase, including price. 
D)  The buyers may aggregate the opinions of various competitors and come up with the adjusted cost of supply. 
E)  The buyers might adopt the Supplier Added Value Effort technique to calculate supplier efficiency.

Question 9

In systems buying, the US government often solicits bids from prime contractors. What do prime contractors do?

Accepted Answer

The government solicits bids from prime

Question 10

How can a marketer overcome the negative effects of commoditization?

Accepted Answer

A)  convince target consumers that the firm's products are as good as those of competitors 
B)  convince target consumers that price is irrelevant in determining quality 
C)  convince target consumers that the firm's products are different from those of competitors 
D)  convince target customers that buying the highest-priced product is no guarantee of quality 
E)  convince target customers that all the products in the market are equivalent 
A)  convince target consumers that the firm's products are as good as those of competitors 
B)  convince target consumers that price is irrelevant in determining quality 
C)  convince target consumers that the firm's products are different from those of competitors 
D)  convince target customers that buying the highest-priced product is no guarantee of quality 
E)  convince target customers that all the products in the market are equivalent

Question 11

In the buygrid framework model, where the major stages of the industrial buying process are listed and characterized, supplier selection is an important process. What follows supplier selection and what occurs in this phase?

Accepted Answer

The step that follows supplier selection

Question 12

Timken achieved record revenue despite a recession by ________.

Accepted Answer

A)  shifting attention into heavy processing, aerospace and defense industries 
B)  shifting attention into the auto industry 
C)  lowering prices on bearings for a tractor manufacturer's medium-sized tractors 
D)  avoiding sales of high priced bearings for large tractors 
E)  all of the above 
A)  shifting attention into heavy processing, aerospace and defense industries 
B)  shifting attention into the auto industry 
C)  lowering prices on bearings for a tractor manufacturer's medium-sized tractors 
D)  avoiding sales of high priced bearings for large tractors 
E)  all of the above

Question 13

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments. What are specific investments and why are they risky?

Accepted Answer

Specific investments are those expenditu

Question 14

BEL is a small seller of specialized auto parts, while MES is a large seller of auto parts. Both firms want to approach the same car company with a view to supplying parts to it. How will their approaches differ?

Accepted Answer

Small sellers like BEL concentrate on re

Question 15

What are the methods available to the buyer to review the performance of the chosen supplier? What advantage does performance review offer to the buyer?

Accepted Answer

The buyer periodically reviews the perfo

Question 16

What is the composition of the buying center?

Accepted Answer

A buying center is composed of "all thos

Question 17

Sellers benefit from systems contracting through lower operating costs as a result of steady demand and reduced paperwork.

Accepted Answer

A) True 
 B)False

Question 18

In the ________ method for assessing customer value, customers are asked how costs of using a new product compare to those of using an incumbent product.

Accepted Answer

A)  direct survey 
B)  importance ratings 
C)  field value-in-use assessment 
D)  benchmarking 
E)  conjoint analysis 
A)  direct survey 
B)  importance ratings 
C)  field value-in-use assessment 
D)  benchmarking 
E)  conjoint analysis

Question 19

Define organizational buying.

Accepted Answer

Organizational buying is the decision-ma

Question 20

Corporate credibility depends on corporate expertise, corporate trustworthiness, and corporate likability.

Accepted Answer

A) True 
 B)False

Exam 7: Analyzing Business Markets

The total demand for many business goods and services is inelastic; that is, not greatly affected by price changes.

If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets?

In which of the following is a person performing the role of an influencer?

Framing occurs when customers are given a perspective or point of view that allows the firm to "put its best foot forward."

Sometimes a rise of only 10 percent in consumer demand can cause as much as a 200 percent rise in business demand for products for the next period. This is an example of ________.

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework.

Which of the following methods is most likely to be used by buyers to review the performance of chosen suppliers?

In systems buying, the US government often solicits bids from prime contractors. What do prime contractors do?

How can a marketer overcome the negative effects of commoditization?

In the buygrid framework model, where the major stages of the industrial buying process are listed and characterized, supplier selection is an important process. What follows supplier selection and what occurs in this phase?

Timken achieved record revenue despite a recession by ________.

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments. What are specific investments and why are they risky?

BEL is a small seller of specialized auto parts, while MES is a large seller of auto parts. Both firms want to approach the same car company with a view to supplying parts to it. How will their approaches differ?

What are the methods available to the buyer to review the performance of the chosen supplier? What advantage does performance review offer to the buyer?

What is the composition of the buying center?

Sellers benefit from systems contracting through lower operating costs as a result of steady demand and reduced paperwork.

In the ________ method for assessing customer value, customers are asked how costs of using a new product compare to those of using an incumbent product.

Define organizational buying.

Corporate credibility depends on corporate expertise, corporate trustworthiness, and corporate likability.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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