Exam 8: Business Markets and Buying Behavior

How do individual factors affect the business buying decision process?

It is customary for contracts for raw materials and components to be negotiated semiannually.

Inelastic demand simply means that

In placing a tire order with Michelin, Jetland Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. Jetland proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.

Brittni is an account executive for a financial services firm that specializes in employee benefits services. She is meeting with the owner of a small business who has grown to the level where he needs to provide extended employee benefits to be in compliance with the Affordable Care Act. In the past, the small business provided a small stipend to employees to cover some of their insurance costs, but they now must offer comprehensive health-care insurance coverage or face a fine. Brittni is happy to help the small business owner and is excited about the opportunity to gain another customer. The company owner has purchased other insurance services such as property and casualty for the business, but has never purchased a group insurance plan and anticipates that it will take a considerable amount of time in the purchase process since this represents a significant decision for the company and its employees. What type of business purchase does this represent?

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.

Private B2B exchanges connect member firms through a secure system that permits all the organizations to share significant information as well as facilitate exchanges.

Retailers like Target and Kmart are considered to be members of which business market?

All of the following are important concerns of business customers except

After locating potential customers using industrial classification systems such as NAICS, the next step for the business marketer is to make the purchase.

Scenario 8.1 Use the following to answer the questions. Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives. Refer to Scenario 8.1. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not?

Government markets, although complicated in their requirements, can be very lucrative.

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

All companies, no matter what their size or market position, maintain only one buying center.

Jake works at an auto dealer. His company pays the Internet site AutoWurld.com to act as a neutral third party that provides access to an unlimited amount of vehicle listings and sales transactions. Jake is in charge of monitoring this site to look for deals. His firm pays $395 a month for access. AutoWurld.com is an example of a(n)

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase.

Individual influencing factors refer to

Demand for business products is characterized as derived. From what is the demand derived?

When charitable organizations such as the American Cancer Society, Second Harvest Food Bank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.

Online B2B auctions are especially popular for selling new products.