Question 1

Firms that practice sole sourcing tend to order from a large pool of suppliers to hedge the risk of failure of one supplier.

Accepted Answer

A) True 
 B)False  False

Question 2

Discuss the various factors that an organization should consider while taking the make,buy,or lease decision.

Accepted Answer

Before a company can decide what to buy,it should decide whether to buy at all.Organizational buyers must figure out the best way to acquire needed products.In fact,a firm considering the acquisition of a finished good,component part,or service has three basic options:
a)Make the good or provide the service in-house.
b)Purchase it from another organization.
c)Lease it from another organization.
If the company has the capability to do so,manufacturing the product itself may be the best route.It may save a great deal of money if its own manufacturing division does not incur costs for overhead that an outside vendor would otherwise charge.
On the other hand,most firms cannot make all the business goods they need.Often it would be too costly to maintain the necessary equipment,staff,and supplies.As a result,purchasing from an outside vendor is the most common choice.Companies can also look outside their own plants for goods and services formerly produced in-house,a practice called outsourcing.
In some cases,however,a company may choose to lease inputs.This option spreads out costs compared with lump-sum costs for up-front purchases.The company pays for the use of equipment for a certain time period.This option can provide useful flexibility for a growing business,allowing it to easily upgrade as its needs change.

Question 3

Cotton and polyester are used in the production of permanent press clothing.If the supply of cotton is reduced,there will be an immediate effect on the demand for polyester.This relationship represents a(n):

Accepted Answer

A)  derived demand. 
B)  elastic demand. 
C)  volatile demand. 
D)  joint demand. 
A)  derived demand. 
B)  elastic demand. 
C)  volatile demand. 
D)  joint demand. D

Question 4

Which of the following is most likely to help marketers to segment organizational buyers by purchase categories?

Accepted Answer

A)  Business process reengineering 
B)  Value engineering 
C)  Management by objectives 
D)  Customer relationship management 
A)  Business process reengineering 
B)  Value engineering 
C)  Management by objectives 
D)  Customer relationship management

Question 5

A person who controls the information that all members of a buying center will review is referred to as a(n)_____.

Accepted Answer

A) merchandisers 
B) trade industries 
C) remanufacturing 
D) nearshoring 
E) end-use application segmentation
F)global sourcing
G)joint demand
H)inelastic demand
I)outsourcing
J)value analysis
K)gatekeeper
L)commercial market
M)reciprocity
N)vendor analysis
O)category advisor
P)modified rebuy
Q)demographic characteristics based segmentation
R)influencers
S)buyer
T)customer-based segmentation 
A) merchandisers 
B) trade industries 
C) remanufacturing 
D) nearshoring 
E) end-use application segmentation
F)global sourcing
G)joint demand
H)inelastic demand
I)outsourcing
J)value analysis
K)gatekeeper
L)commercial market
M)reciprocity
N)vendor analysis
O)category advisor
P)modified rebuy
Q)demographic characteristics based segmentation
R)influencers
S)buyer
T)customer-based segmentation

Question 6

The business market features a limited number of buyers compared to consumer markets.

Accepted Answer

A) True 
 B)False

Question 7

A(n)_____ occurs when a purchaser is willing to reevaluate available options for repurchasing a good or service.

Accepted Answer

A) merchandisers 
B) trade industries 
C) remanufacturing 
D) nearshoring 
E) end-use application segmentation
F)global sourcing
G)joint demand
H)inelastic demand
I)outsourcing
J)value analysis
K)gatekeeper
L)commercial market
M)reciprocity
N)vendor analysis
O)category advisor
P)modified rebuy
Q)demographic characteristics based segmentation
R)influencers
S)buyer
T)customer-based segmentation 
A) merchandisers 
B) trade industries 
C) remanufacturing 
D) nearshoring 
E) end-use application segmentation
F)global sourcing
G)joint demand
H)inelastic demand
I)outsourcing
J)value analysis
K)gatekeeper
L)commercial market
M)reciprocity
N)vendor analysis
O)category advisor
P)modified rebuy
Q)demographic characteristics based segmentation
R)influencers
S)buyer
T)customer-based segmentation

Question 8

What are the potential problems associated with offshoring and outsourcing?

Accepted Answer

The potential problems associated with o

Question 9

Which of the following statements is true regarding the nature of the business market?

Accepted Answer

A)  Distribution channels for business products are significantly longer than those for consumer products. 
B)  As compared to business markets, customer relationships in consumer markets tend to last for longer duration. 
C)  Personal selling plays a bigger role in business markets than in consumer markets. 
D)  As compared to consumer markets, purchase decisions in business markets are relatively simple because of relatively less number of decision makers. 
A)  Distribution channels for business products are significantly longer than those for consumer products. 
B)  As compared to business markets, customer relationships in consumer markets tend to last for longer duration. 
C)  Personal selling plays a bigger role in business markets than in consumer markets. 
D)  As compared to consumer markets, purchase decisions in business markets are relatively simple because of relatively less number of decision makers.

Question 10

Organizational purchases such as office buildings and computer systems can be categorized as expense items.

Accepted Answer

A) True 
 B)False

Question 11

DigiSmart,a manufacturer of electronic goods in Canada,has moved its manufacturing operations to Costa Rica.This move has helped the company to reduce their production costs and also allowed them to focus on the product design and research activities that lead to new products.The movement of business in this case is an example of _____.

Accepted Answer

A)  leasing 
B)  offshoring 
C)  inshoring 
D)  global integration 
A)  leasing 
B)  offshoring 
C)  inshoring 
D)  global integration

Question 12

Explain the different roles played by business center participants in the purchasing decision process.

Accepted Answer

Buying center participants play differen

Question 13

Which of the following can be categorized as a capital item purchased by organizational buyers?

Accepted Answer

A)  Office supplies 
B)  Copy papers 
C)  Production plant 
D)  Machine lubricants 
A)  Office supplies 
B)  Copy papers 
C)  Production plant 
D)  Machine lubricants

Question 14

Outsourcing and offshoring have the potential to slow a company's efforts in bringing new products to market.

Accepted Answer

A) True 
 B)False

Question 15

The Federal Trade Commission in the United States views reciprocal arrangements as attempts to reduce competition.

Accepted Answer

A) True 
 B)False

Question 16

Purchasing a firm's entire stock of an item from just one vendor is termed as:

Accepted Answer

A)  multiple sourcing. 
B)  sole sourcing. 
C)  outsourcing. 
D)  inverted sourcing. 
A)  multiple sourcing. 
B)  sole sourcing. 
C)  outsourcing. 
D)  inverted sourcing.

Question 17

Reciprocal arrangements traditionally have been common in industries featuring heterogeneous products.

Accepted Answer

A) True 
 B)False

Question 18

The NAICS classification system is a useful tool for segmenting business markets by demographic characteristics.

Accepted Answer

A) True 
 B)False

Question 19

If Product A is used primarily to manufacture Product B,then the demand for product A is said to be "derived" from the demand for Product B.

Accepted Answer

A) True 
 B)False

Question 20

Differentiate between value analysis and vendor analysis.Give an example for each.

Accepted Answer

Value analysis examines each component o

Exam 7: Business-to-Business (B2B)Marketing

Firms that practice sole sourcing tend to order from a large pool of suppliers to hedge the risk of failure of one supplier.

Discuss the various factors that an organization should consider while taking the make,buy,or lease decision.

Cotton and polyester are used in the production of permanent press clothing.If the supply of cotton is reduced,there will be an immediate effect on the demand for polyester.This relationship represents a(n):

Which of the following is most likely to help marketers to segment organizational buyers by purchase categories?

A person who controls the information that all members of a buying center will review is referred to as a(n)_____.

The business market features a limited number of buyers compared to consumer markets.

A(n)_____ occurs when a purchaser is willing to reevaluate available options for repurchasing a good or service.

What are the potential problems associated with offshoring and outsourcing?

Which of the following statements is true regarding the nature of the business market?

Organizational purchases such as office buildings and computer systems can be categorized as expense items.

Explain the different roles played by business center participants in the purchasing decision process.

Which of the following can be categorized as a capital item purchased by organizational buyers?

Outsourcing and offshoring have the potential to slow a company's efforts in bringing new products to market.

The Federal Trade Commission in the United States views reciprocal arrangements as attempts to reduce competition.

Purchasing a firm's entire stock of an item from just one vendor is termed as:

Reciprocal arrangements traditionally have been common in industries featuring heterogeneous products.

The NAICS classification system is a useful tool for segmenting business markets by demographic characteristics.

If Product A is used primarily to manufacture Product B,then the demand for product A is said to be "derived" from the demand for Product B.

Differentiate between value analysis and vendor analysis.Give an example for each.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Global Marketing

Market Segmentation, Targeting, and Positioning

Marketing Research and Sales Forecasting

Relationship Marketing and Customer Relationship Management (CRM)

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, Wholesalers, and Direct Marketers

Integrated Marketing Communications, Advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Pricing Strategies

Your Career in Marketing

Developing an Effective Marketing Plan

Financial Analysis in Marketing

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