Exam 8: Business Markets and Buying Behavior

The four categories of consumer markets are producer, reseller, government, and institutional.

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is

Hank works at a large electronics firm. He needs a new type of software and sends in a purchasing request. The request gets approved. Gillian works as a purchasing agent and is in charge of selecting the suppliers and negotiating the terms of purchase. However, before she does so she consults with Paul, an engineer who works in IT and is highly familiar with the latest software. In this case, Hank is the ___________, Gillian is the _______________, and Paul is the _____________.

Industrial classification systems allow marketers to divide business customers into groups based mainly on the types of goods and services provided.

All of the following describe the demand for business products except

When the major component of an item experiences a price increase, the demand for the item may become more elastic.

Orders placed by business customers are usually smaller and more numerous than consumer sales.

To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method.

St. John's Baptist Church brews fresh coffee for its attendees as part of its hospitality ministry every Sunday. St. John's is a(n) ____________ market for coffee.

Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives.

Scenario 8.2 Use the following to answer the questions. Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the Northeastern and Southern regions. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern region, while dealers who sell to small business landscaping companies tend to be located in the Northeastern region. Company executives are considering expansion of its distribution to markets in the Midwest. Refer to Scenario 8.2. Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of

What must the government do when it wants to buy a standard product?

Demand for business products can be characterized in four ways; describe these four characteristics and compare and contrast their attributes.

Grocery stores and supermarkets are a part of producer markets.

Which of the following would be considered an institutional buyer?

The increase in government purchases has resulted partly from the increase in the number of services provided by the government.

In what ways do environmental factors affect the business buying decision process?

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?

The five-stage business buying decision process is used primarily for routine, straight rebuy purchases.

John owns an ice cream and frozen treat restaurant and is considering adding new menu items. He recently met with the representative of a yogurt company who is trying to convince John to add the frozen yogurt to his menu. John has never offered a yogurt product in the restaurant and has concentrated on ice cream items. The yogurt product would not need a different freezer or dispensing unit, so the investment would be similar to changing flavors of ice cream. However, since he's never offered yogurt, he's unsure what the market response will be and how much profit he can achieve with the frozen yogurt. What type of purchasing decision does this represent for John?