Exam 5: Business Markets and Buying Behavior

Disintermediation:

According to the text, resellers, such as a shoe store, a music store, and a bookstore, create _____ utility.

A product is said to have a vertical business market if:

Shortly after former stockbroker Cooper Skanda decided to open a florist shop, he was looking for multitasking software. He wanted it to handle his accounts receivable, provide him with tax information, and make it easy to place wire orders for flower deliveries. He looked at several packages aimed at making retailing easier. Many he discarded because they were not industry-specific. He finally settled on a software package called Your Floral Expert CPA, which was in the middle price range. The purchase of this software was an example of a _____ purchase.

The business market:

Norske Skog is a global supplier of publication paper with mills and sales offices on five continents. The Norwegian company's core business is newsprint and magazine paper for its 2,300 customers worldwide. It has a partnership with many of its customers and develops special paper grades in co-operation with its customers. Sarah DeJohn, its chief executive, announced the company would be downsizing in 2003 due to falling demand for paper. (Demand for publication paper is affected by economic activity in the market and printed media advertising revenue.) -Without considering the economic environment, the purchase of newsprint by an established newspaper publisher would most likely be classified as a _____ purchase.

Unlike a buyer in the consumer market, an industrial buyer:

Which of the following pieces of information would be most likely to be used as an activity indicator to estimate the demand for equipment to pick cotton in Georgia?

The drop cloth the painter brought to cover the statues outside the museum while he painted the museum's columns is an example of a consumer product.

For a manufacturer of mannequins, a good activity indicator of buying power would be the total number of retailers in its market area that use mannequins in store displays.

Peninsula Iron Works rebuilds band saw wheels used to cut tree trunks into lumber at a fraction of the cost of buying a new system. Since the only companies that can use the services of Peninsula are those in the timber business, Peninsula can be said to have a(n) _____ business market.

On which element of the promotional mix do sellers of business products place a greater emphasis than do sellers of consumer products?

Securing the right product at the right price at the right time is important for three reasons. One of those reasons is:

Straight-rebuy purchases are typically low-involvement situations for the buyer.

Which of the following products will probably reach a horizontal business market rather than a vertical business market?

The acceleration principle is used to explain:

The Potato Board advertises to get people to eat more potatoes. If as a result of the ad consumers eat more potatoes, then farmers must grow more potatoes. The producers of fertilizers, irrigation systems, and storage bins for potatoes must also manufacture more to satisfy the increased demand. This shows how consumer demand can trigger _____ in the business market.

Which of the following is NOT one of the roles people assume in the buying center?

Which of the following purchases does NOT involve a business user?

Brugg Wire Rope makes elevator cable. It only sells to elevator manufacturers and installers. Therefore, it has a _____ business market.