Exam 8: Business Markets and Buying Behavior

A new-task purchase is one in which the business makes an initial purchase of a new item.

The owner of a trucking business, who buys gasoline from the nearby service station for the company trucks, is a part of a business market.

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ____ purchase.

All of the following describe the demand for business products except

The old Standard Industrial Classification system is more comprehensive than NAICS.

Interpersonal dynamics are easy to observe and simple for the marketer to assess.

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 ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. 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 states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. 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

Of the three types of business purchases, the straight rebuy purchase usually requires the most information.

What factors affect the purchase method that business customers choose?

In industries in which price changes occur frequently, demand fluctuations have practically been eliminated since buyers have become used to these changes and have learned to ignore them.

Which of the following is true with respect to buyers in business markets?

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for ____ in order to achieve their quality goals.

Inelastic demand simply means that

After finding out which industries purchase the major portion of an industry's output, the next step is to begin production.

On-time delivery is crucial to a business customer, since a late delivery may hold up a production line or cause the firm to lose sales.

What are the two ways governments make purchases?

In the long run, business demand becomes totally unrelated to consumer demand.

What are the four major categories of factors that influence business buying decisions?

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

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