Question 1

In business markets, individuals or groups purchase products for one of three purposes. These purposes are

Accepted Answer

A) resale, wholesale, and direct use. 
B) wholesale, direct use, and use in producing other products. 
C) resale, wholesale, and use in producing other products. 
D) resale, direct use in producing other products, and use in general daily operations. 
E) use in general daily operations, wholesale, and resale. 
A) resale, wholesale, and direct use. 
B) wholesale, direct use, and use in producing other products. 
C) resale, wholesale, and use in producing other products. 
D) resale, direct use in producing other products, and use in general daily operations. 
E) use in general daily operations, wholesale, and resale. D

Question 2

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

Accepted Answer

A) Industrial demand 
B) Modified demand 
C) Demand for consumer products 
D) Future product demand 
E) The business cycle 
A) Industrial demand 
B) Modified demand 
C) Demand for consumer products 
D) Future product demand 
E) The business cycle C

Question 3

Reseller markets consist of intermediaries that buy finished goods and resell them for profit.

Accepted Answer

A) True 
 B)False  True

Question 4

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer?

Accepted Answer

A) Does the quality of the goods meet company specifications? 
B) Does the supplier consistently deliver on time? 
C) Does the supplier also sell to my competitors? 
D) Does the supplier offer the services required? 
E) Does the price meet company budget requirements? 
A) Does the quality of the goods meet company specifications? 
B) Does the supplier consistently deliver on time? 
C) Does the supplier also sell to my competitors? 
D) Does the supplier offer the services required? 
E) Does the price meet company budget requirements?

Question 5

Which of the following would be considered an institutional buyer?

Accepted Answer

A) The University of Illinois 
B) The Environmental Protection Agency 
C) Apple Computers 
D) The United Way 
E) City of Greenville 
A) The University of Illinois 
B) The Environmental Protection Agency 
C) Apple Computers 
D) The United Way 
E) City of Greenville

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Compared with consumer goods, marketers aiming at business customers

Accepted Answer

A) do not need to select target markets. 
B) have an enormous amount of information available concerning potential customers. 
C) have more difficulty in determining where their customers are located. 
D) are restricted in the types of promotion they can use. 
E) have more difficulty in estimating customers' purchase potentials. 
A) do not need to select target markets. 
B) have an enormous amount of information available concerning potential customers. 
C) have more difficulty in determining where their customers are located. 
D) are restricted in the types of promotion they can use. 
E) have more difficulty in estimating customers' purchase potentials.

Question 8

Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a(n) ____ market.

Accepted Answer

A) producer 
B) government 
C) reseller 
D) construction 
E) institutional 
A) producer 
B) government 
C) reseller 
D) construction 
E) institutional

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Inelastic demand in business markets refers to a situation where

Accepted Answer

A) demand for a given product fluctuates very little over time. 
B) price increases or decreases will not significantly change demand for a given product. 
C) demand for a given product fluctuates significantly over time. 
D) demand for one product depends heavily on the demand for another product. 
E) supply for a given product cannot keep pace with the demand for it. 
A) demand for a given product fluctuates very little over time. 
B) price increases or decreases will not significantly change demand for a given product. 
C) demand for a given product fluctuates significantly over time. 
D) demand for one product depends heavily on the demand for another product. 
E) supply for a given product cannot keep pace with the demand for it.

Question 11

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use?

Accepted Answer

A) The government will request bids from all companies on its qualified bidder list. 
B) It will contact whatever company made the last jets and have them develop the new ones. 
C) Ads will be placed in the top five circulated U.S.newspapers for a company to produce the jets. 
D) The government will select a few firms and enter into negotiations with them until the contract is awarded. 
E) The contract will go to the first company that submits a reasonable bid for the desired jets. 
A) The government will request bids from all companies on its qualified bidder list. 
B) It will contact whatever company made the last jets and have them develop the new ones. 
C) Ads will be placed in the top five circulated U.S.newspapers for a company to produce the jets. 
D) The government will select a few firms and enter into negotiations with them until the contract is awarded. 
E) The contract will go to the first company that submits a reasonable bid for the desired jets.

Question 12

The demand for many business products is inelastic at the industry level.

Accepted Answer

A) True 
 B)False

Question 13

Specific details regarding terms, credit arrangements, and technical assistance are worked out during the product specification stage of the buying decision process.

Accepted Answer

A) True 
 B)False

Question 14

The stages of the business buying decision process, in order, are

Accepted Answer

A) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. 
B) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. 
C) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. 
D) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. 
E) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers. 
A) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. 
B) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. 
C) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. 
D) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. 
E) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

Question 15

Compared with the SIC system, the North American Industry Classification System (NAICS) will

Accepted Answer

A) look at many industries at one time. 
B) be used throughout the world. 
C) contain the most up-to-date information for the NAFTA partners. 
D) provide less information about service industries. 
E) generate statistics that will not be useful in comparing countries. 
A) look at many industries at one time. 
B) be used throughout the world. 
C) contain the most up-to-date information for the NAFTA partners. 
D) provide less information about service industries. 
E) generate statistics that will not be useful in comparing countries.

Question 16

Problem recognition can be stimulated by external sources, such as trade shows or sales representatives.

Accepted Answer

A) True 
 B)False

Question 17

For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier.

Accepted Answer

A) True 
 B)False

Question 18

What are the major advantages of the North American Industry Classification System (NAICS) compared to the Standard Industrial Classification (SIC) system?

Accepted Answer

The answer of What are the major advantages of the...

Question 19

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.

Accepted Answer

A) modified rebuy 
B) straight rebuy 
C) new-task 
D) reevaluated 
E) repetitive 
A) modified rebuy 
B) straight rebuy 
C) new-task 
D) reevaluated 
E) repetitive

Question 20

The fourth stage in the business buying decision process is that of searching for products and suppliers.

Accepted Answer

A) True 
 B)False

Exam 8: Business Markets and Buying Behavior

In business markets, individuals or groups purchase products for one of three purposes. These purposes are

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

Reseller markets consist of intermediaries that buy finished goods and resell them for profit.

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer?

Which of the following would be considered an institutional buyer?

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

Compared with consumer goods, marketers aiming at business customers

Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a(n) ____ market.

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

Inelastic demand in business markets refers to a situation where

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use?

The demand for many business products is inelastic at the industry level.

Specific details regarding terms, credit arrangements, and technical assistance are worked out during the product specification stage of the buying decision process.

The stages of the business buying decision process, in order, are

Compared with the SIC system, the North American Industry Classification System (NAICS) will

Problem recognition can be stimulated by external sources, such as trade shows or sales representatives.

For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier.

What are the major advantages of the North American Industry Classification System (NAICS) compared to the Standard Industrial Classification (SIC) system?

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.

The fourth stage in the business buying decision process is that of searching for products and suppliers.

An Overview of Strategic Marketing

Planning Implementing and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets: Segmentation and Evaluation

Consumer Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts

Developing and Managing Products

Services Marketing

Branding and Packaging

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing, and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters