Question 1

The institutional market is BEST described as the market consisting of:

Accepted Answer

A)  all the individuals and organisations acquiring goods and services used in the production of other goods and services. 
B)  all the individuals and organisations that acquire goods for the purpose of reselling or renting them to others, usually at a profit. 
C)  government units at all levels-federal, state and local government-that purchase or rent goods used in carrying out their functions. 
D)  schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. 
E)  all the individuals and organisations acquiring goods and services for use in not- for- profit activities. 
A)  all the individuals and organisations acquiring goods and services used in the production of other goods and services. 
B)  all the individuals and organisations that acquire goods for the purpose of reselling or renting them to others, usually at a profit. 
C)  government units at all levels-federal, state and local government-that purchase or rent goods used in carrying out their functions. 
D)  schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. 
E)  all the individuals and organisations acquiring goods and services for use in not- for- profit activities.

Question 2

At which stage of the procurement process would a buyer be MOST likely to invite potential suppliers to provide a formal written presentation?

Accepted Answer

A)  Problem recognition 
B)  General need description 
C)  Information/supplier search 
D)  Product specification 
E)  Proposal solicitation 
A)  Problem recognition 
B)  General need description 
C)  Information/supplier search 
D)  Product specification 
E)  Proposal solicitation

Question 3

Colleen sells art and decorative supplies to small motels and boarding houses. She often talks to several different people before she locates someone who can give her a purchase order or a refusal. In terms of the buying centre, she has the most trouble identifying the _______ for her merchandise.

Accepted Answer

A)  decider 
B)  buyer 
C)  influencer 
D)  gatekeeper 
E)  user 
A)  decider 
B)  buyer 
C)  influencer 
D)  gatekeeper 
E)  user

Question 4

The Knoll Textile Company has drawn up a list of the desired attributes for suppliers of zippers and fasteners to be used in a line of children's fashion. To date the list includes the following criteria: delivery reliability, price and supplier reputation. Knoll is MOST likely to be in which stage of the business buying process?

Accepted Answer

A)  Supplier selection 
B)  Information/ supplier search 
C)  Product specification 
D)  General need description 
E)  Order- routine specification 
A)  Supplier selection 
B)  Information/ supplier search 
C)  Product specification 
D)  General need description 
E)  Order- routine specification

Question 5

Buying a packaged solution to a problem is called systems buying.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following markets is MOST likely to have its purchasing decisions subject to high levels of public scrutiny and use very transparent purchasing routines?

Accepted Answer

A)  Reseller 
B)  Institutional 
C)  Government 
D)  Consumer 
E)  Industrial 
A)  Reseller 
B)  Institutional 
C)  Government 
D)  Consumer 
E)  Industrial

Question 7

With the help of the operations manager, Geelong Rail Distributors is planning to buy a hydraulic roto- dumper for loading merchandise from hoppers into rail cars. It will be replacing an obsolete piece of equipment which the operations manager describes as hard to operate and potentially dangerous. In terms of the buying centre, the operations manager who will be responsible for overseeing the employee who operates and maintains the dumper has which decision role?

Accepted Answer

A)  buyer, influencer, gatekeeper and initiator 
B)  decider, user and buyer 
C)  initiator, influencer and decider 
D)  gatekeeper and decider 
E)  influencer, user and buyer 
A)  buyer, influencer, gatekeeper and initiator 
B)  decider, user and buyer 
C)  initiator, influencer and decider 
D)  gatekeeper and decider 
E)  influencer, user and buyer

Question 8

Inelastic demand is +characteristic of goods which form a small percentage of an items total cost.

Accepted Answer

A) True 
 B)False

Question 9

Before a company is permitted to supply government departments, it is required to undergo a variety of checks on the company's financial position, the quality of its products or services and the integrity of its key personnel. These checks are known as:

Accepted Answer

A)  vetting. 
B)  pre- qualification. 
C)  supplier specification. 
D)  supplier selection. 
E)  none of the above 
A)  vetting. 
B)  pre- qualification. 
C)  supplier specification. 
D)  supplier selection. 
E)  none of the above

Question 10

The decider possesses only informal power and is the key member of the buying centre.

Accepted Answer

A) True 
 B)False

Question 11

Due to rapidly rising overhead costs and prices of raw materials, Screw Manufacturing Pty Ltd was forced to raise the prices of its nails, which Ruckles sells to timberyards and hardware stores, by 35 per cent. Other nail manufacturers have raised their prices for similar reasons. The sales force at Ruckles believes the price increase will result in a drop in sales. You are the marketing manager and you disagree, because the nails are:

Accepted Answer

A)  derived demand. 
B)  price inelastic. 
C)  price elastic. 
D)  J- curve demand. 
E)  fluctuating demand. 
A)  derived demand. 
B)  price inelastic. 
C)  price elastic. 
D)  J- curve demand. 
E)  fluctuating demand.

Question 12

Name and briefly describe six of the major differences between business and consumer markets.

Accepted Answer

Ideally students should summarise conten

Question 13

The market consisting of all the individuals and organisations that acquire goods for the purpose of reselling or renting them to others, usually at a profit, is known as the:

Accepted Answer

A)  not- for- profit market. 
B)  business or industrial market. 
C)  institutional market. 
D)  reseller market. 
E)  government market. 
A)  not- for- profit market. 
B)  business or industrial market. 
C)  institutional market. 
D)  reseller market. 
E)  government market.

Question 14

Metallocene is an innovative plastic used in making films, liners and pipes. It is more durable than any other form of sheet plastic on the market. The first year after the product was introduced its sales totalled $880 million. Analysts have predicted an annual growth of 30 per cent as businesses like food producers discover how well Metallocene wraps and protects their products. Since the demand for Metallocene is dependent on the demand for the products wrapped in it, the demand for Metallocene is:

Accepted Answer

A)  elastic demand. 
B)  derived demand. 
C)  J- curve demand. 
D)  fluctuating demand. 
E)  inelastic demand. 
A)  elastic demand. 
B)  derived demand. 
C)  J- curve demand. 
D)  fluctuating demand. 
E)  inelastic demand.

Question 15

After getting advice from the company mechanic on how to obtain improved petrol mileage for the fleet of cabs, the owner of Sunshine Cabs decided to have the mechanic install Cherry Bomb glass- pack mufflers in all of his cabs to increase the cars' fuel efficiency. In terms of the buying centre, the mechanic filled the role of:

Accepted Answer

A)  decider. 
B)  gatekeeper. 
C)  buyer. 
D)  influencer. 
E)  user. 
A)  decider. 
B)  gatekeeper. 
C)  buyer. 
D)  influencer. 
E)  user.

Question 16

The market that consists of all the individuals and organisations acquiring goods and services used in the production of other goods and services is known as a(n):

Accepted Answer

A)  business or industrial market. 
B)  not- for- profit market. 
C)  institutional market. 
D)  government market. 
E)  reseller market. 
A)  business or industrial market. 
B)  not- for- profit market. 
C)  institutional market. 
D)  government market. 
E)  reseller market.

Question 17

Interpersonal factors have almost no influence in business purchasing decisions.

Accepted Answer

A) True 
 B)False

Question 18

In terms of geographic dispersal, which of the following statements about business buyers is true?

Accepted Answer

A)  Business buyers are relatively evenly dispersed throughout the country. 
B)  Business buyers tend to be concentrated in mining districts such as Western Australia, Northern Territory and far north Queensland. 
C)  More than two- thirds of Australian business buyers are concentrated in Sydney and Melbourne. 
D)  More than half of business buyers are concentrated in farming communities and regional centres. 
E)  Business buyers are geographically concentrated along Australia's coastal districts. 
A)  Business buyers are relatively evenly dispersed throughout the country. 
B)  Business buyers tend to be concentrated in mining districts such as Western Australia, Northern Territory and far north Queensland. 
C)  More than two- thirds of Australian business buyers are concentrated in Sydney and Melbourne. 
D)  More than half of business buyers are concentrated in farming communities and regional centres. 
E)  Business buyers are geographically concentrated along Australia's coastal districts.

Question 19

A school has been awarded a grant to purchase computers for its visually handicapped students. The computers will convert students' spoken language to words on the computer monitor that can be saved to a disk. With a tap on the mouse, the computer will read to the student whatever is on its screen. Since this is new, cutting- edge technology and the school has never had such a system before, the purchase of these computers will be a:

Accepted Answer

A)  straight rebuy. 
B)  modified rebuy. 
C)  systems rebuy. 
D)  customised order. 
E)  new task. 
A)  straight rebuy. 
B)  modified rebuy. 
C)  systems rebuy. 
D)  customised order. 
E)  new task.

Question 20

Which of the following statements about the business market purchasing decision process is true?

Accepted Answer

A)  Buyers and sellers build close long- term relationships. 
B)  The business buying process is more formalised. 
C)  Business buyers usually face more complex buying decisions. 
D)  A major issue is whether to purchase outright or to lease. 
E)  all of the above 
A)  Buyers and sellers build close long- term relationships. 
B)  The business buying process is more formalised. 
C)  Business buyers usually face more complex buying decisions. 
D)  A major issue is whether to purchase outright or to lease. 
E)  all of the above

The institutional market is BEST described as the market consisting of:

At which stage of the procurement process would a buyer be MOST likely to invite potential suppliers to provide a formal written presentation?

Colleen sells art and decorative supplies to small motels and boarding houses. She often talks to several different people before she locates someone who can give her a purchase order or a refusal. In terms of the buying centre, she has the most trouble identifying the _______ for her merchandise.

Buying a packaged solution to a problem is called systems buying.

Which of the following markets is MOST likely to have its purchasing decisions subject to high levels of public scrutiny and use very transparent purchasing routines?

Inelastic demand is +characteristic of goods which form a small percentage of an items total cost.

Before a company is permitted to supply government departments, it is required to undergo a variety of checks on the company's financial position, the quality of its products or services and the integrity of its key personnel. These checks are known as:

The decider possesses only informal power and is the key member of the buying centre.

Name and briefly describe six of the major differences between business and consumer markets.

The market consisting of all the individuals and organisations that acquire goods for the purpose of reselling or renting them to others, usually at a profit, is known as the:

The market that consists of all the individuals and organisations acquiring goods and services used in the production of other goods and services is known as a(n):

Interpersonal factors have almost no influence in business purchasing decisions.

In terms of geographic dispersal, which of the following statements about business buyers is true?

Which of the following statements about the business market purchasing decision process is true?

Marketing: Creating Superior Customer Value

Marketing: Delivering and Capturing Value

Strategic Planning and Marketing

Marketing Strategies for Competitive Advantage

The Global Marketing Environment

Information Management and Marketing Research

Consumer Behaviour

Market Segmentation, Targeting and Positioning

Products and Services Marketing

New Products

Pricing for Value

Marketing Channels and Logistics Networks

Retailing and Wholesaling

Advertising and Public Relations

Sales Promotion and Selling

Direct and Online Marketing

Tapping Into Markets Across the Globe

Responsible Marketing

Filters

Exam 8: Business-To-Business Behaviour

The institutional market is BEST described as the market consisting of:

At which stage of the procurement process would a buyer be MOST likely to invite potential suppliers to provide a formal written presentation?

Colleen sells art and decorative supplies to small motels and boarding houses. She often talks to several different people before she locates someone who can give her a purchase order or a refusal. In terms of the buying centre, she has the most trouble identifying the _______ for her merchandise.

Buying a packaged solution to a problem is called systems buying.

Which of the following markets is MOST likely to have its purchasing decisions subject to high levels of public scrutiny and use very transparent purchasing routines?

Inelastic demand is +characteristic of goods which form a small percentage of an items total cost.

Before a company is permitted to supply government departments, it is required to undergo a variety of checks on the company's financial position, the quality of its products or services and the integrity of its key personnel. These checks are known as:

The decider possesses only informal power and is the key member of the buying centre.

Name and briefly describe six of the major differences between business and consumer markets.

The market consisting of all the individuals and organisations that acquire goods for the purpose of reselling or renting them to others, usually at a profit, is known as the:

The market that consists of all the individuals and organisations acquiring goods and services used in the production of other goods and services is known as a(n):

Interpersonal factors have almost no influence in business purchasing decisions.

In terms of geographic dispersal, which of the following statements about business buyers is true?

Which of the following statements about the business market purchasing decision process is true?

Marketing: Creating Superior Customer Value

Marketing: Delivering and Capturing Value

Strategic Planning and Marketing

Marketing Strategies for Competitive Advantage

The Global Marketing Environment

Information Management and Marketing Research

Consumer Behaviour

Market Segmentation, Targeting and Positioning

Products and Services Marketing

New Products

Pricing for Value

Marketing Channels and Logistics Networks

Retailing and Wholesaling

Advertising and Public Relations

Sales Promotion and Selling

Direct and Online Marketing

Tapping Into Markets Across the Globe

Responsible Marketing

Filters