Question 1

Which of the following types of firms are in the industrial market?

Accepted Answer

A) retailing 
B) construction 
C) wholesaling 
D) state governments 
E) federal regulatory agencies 
A) retailing 
B) construction 
C) wholesaling 
D) state governments 
E) federal regulatory agencies

Question 2

Consider how buy classes affect buying center tendencies in different ways. Describe the buy-class situations, and discuss the implications for the organization of each type of buy class.

Accepted Answer

New buy. Here the organization is a firs

Question 3

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase one another's products. This practice is referred to as

Accepted Answer

A) exclusive dealing. 
B) supply partnerships. 
C) reciprocity. 
D) strategic alliances. 
E) tying arrangements. 
A) exclusive dealing. 
B) supply partnerships. 
C) reciprocity. 
D) strategic alliances. 
E) tying arrangements.

Question 4

During the third stage of the organizational buying decision process, the organization engages in

Accepted Answer

A) information search. 
B) post-purchase behavior. 
C) alternative evaluation. 
D) purchase decision. 
E) problem recognition. 
A) information search. 
B) post-purchase behavior. 
C) alternative evaluation. 
D) purchase decision. 
E) problem recognition.

Question 5

Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as __________ demand.

Accepted Answer

A) unitized 
B) reseller 
C) applied 
D) implied 
E) derived 
A) unitized 
B) reseller 
C) applied 
D) implied 
E) derived

Question 6

Cassidy is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway, a successful trucking firm, regularly buys Cassidy's secretary lunch. The representative does this because she views the secretary as __________ and wants to be sure that information about her company reaches Cassidy.

Accepted Answer

A) a gatekeeper 
B) a decider 
C) an influencer 
D) an obstructionist 
E) a power broker 
A) a gatekeeper 
B) a decider 
C) an influencer 
D) an obstructionist 
E) a power broker

Question 7

__________ comprise the highest percentage of firms in industrial markets.

Accepted Answer

A) Manufacturing firms 
B) Construction firms 
C) Agricultural firms 
D) Mining companies 
E) Service companies 
A) Manufacturing firms 
B) Construction firms 
C) Agricultural firms 
D) Mining companies 
E) Service companies

Question 8

The buying objective for nonprofit firms and government agencies is usually to

Accepted Answer

A) meet the needs of the groups they serve. 
B) increase profits through reducing costs. 
C) increase profits through increasing revenues. 
D) maintain profits through reducing costs and increasing revenues. 
E) reduce profits through reducing costs and reducing revenues. 
A) meet the needs of the groups they serve. 
B) increase profits through reducing costs. 
C) increase profits through increasing revenues. 
D) maintain profits through reducing costs and increasing revenues. 
E) reduce profits through reducing costs and reducing revenues.

Question 9

A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a

Accepted Answer

A) new buy. 
B) straight rebuy. 
C) make-buy. 
D) modified rebuy. 
E) standard reorder. 
A) new buy. 
B) straight rebuy. 
C) make-buy. 
D) modified rebuy. 
E) standard reorder.

Question 10

An organization buys products and services for one main reason, which is to

Accepted Answer

A) achieve its own objectives. 
B) beat its competitors. 
C) satisfy the needs of its suppliers. 
D) employ people. 
E) maintain inventory. 
A) achieve its own objectives. 
B) beat its competitors. 
C) satisfy the needs of its suppliers. 
D) employ people. 
E) maintain inventory.

Question 11

Which of the following is a service business within the industrial market?

Accepted Answer

A) construction 
B) mining 
C) insurance 
D) government 
E) farming 
A) construction 
B) mining 
C) insurance 
D) government 
E) farming

Question 12

In a __________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.

Accepted Answer

A) derived buy 
B) straight rebuy 
C) make-buy 
D) rebuy class 
E) modified rebuy 
A) derived buy 
B) straight rebuy 
C) make-buy 
D) rebuy class 
E) modified rebuy

Question 13

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

Accepted Answer

A) gatekeeper. 
B) buying center. 
C) purchasing department. 
D) procurement committee. 
E) acquisition office. 
A) gatekeeper. 
B) buying center. 
C) purchasing department. 
D) procurement committee. 
E) acquisition office.

Question 14

When a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other, it is referred to as

Accepted Answer

A) a reverse auction. 
B) a traditional auction. 
C) a bidder's war. 
D) an e-auction. 
E) a Webfront auction. 
A) a reverse auction. 
B) a traditional auction. 
C) a bidder's war. 
D) an e-auction. 
E) a Webfront auction.

Question 15

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in __________ market.

Accepted Answer

A) a consumer 
B) a government 
C) a service 
D) an industrial 
E) a reseller 
A) a consumer 
B) a government 
C) a service 
D) an industrial 
E) a reseller

Question 16

At which stage of the organizational buying decision process would design and production engineers draft specifications?

Accepted Answer

A) problem recognition 
B) information search 
C) alternative evaluation 
D) purchase decision 
E) value analysis 
A) problem recognition 
B) information search 
C) alternative evaluation 
D) purchase decision 
E) value analysis

Question 17

The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The fifth digit designates

Accepted Answer

A) an industry subsector. 
B) an industry group. 
C) a specific industry. 
D) an individual country-level national industry. 
E) a sector of the economy. 
A) an industry subsector. 
B) an industry group. 
C) a specific industry. 
D) an individual country-level national industry. 
E) a sector of the economy.

Question 18

Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.

Accepted Answer

A) pay estimated sales taxes in advance 
B) move up the time required to execute a purchase agreement 
C) get competitive bids from at least three prospective suppliers 
D) forgo the purchase because senior management is unlikely to approve it 
E) forgo identifying the members of the supplying center and their roles in the selling process 
A) pay estimated sales taxes in advance 
B) move up the time required to execute a purchase agreement 
C) get competitive bids from at least three prospective suppliers 
D) forgo the purchase because senior management is unlikely to approve it 
E) forgo identifying the members of the supplying center and their roles in the selling process

Question 19

Reverse auctions

Accepted Answer

A) are seller-initiated. 
B) benefit the sellers significantly more than the buyers. 
C) have an increasing number of buyers as the auction progresses. 
D) put downward pressure on prices. 
E) have many buyers. 
A) are seller-initiated. 
B) benefit the sellers significantly more than the buyers. 
C) have an increasing number of buyers as the auction progresses. 
D) put downward pressure on prices. 
E) have many buyers.

Question 20

South Cape Ostrich Tanning (SCOT) is a producer of fine ostrich leathers, which are sold to manufacturers that make a variety of products from shoes to car interiors. Demand for SCOT's leather is a result of consumer interest in products such as Via La Moda handbags made from this exotic and expensive leather. SCOT has __________ demand for its product.

Accepted Answer

A) derived 
B) unitized 
C) industrial 
D) applied 
E) reseller 
A) derived 
B) unitized 
C) industrial 
D) applied 
E) reseller

Exam 6: Understanding Organizations As Customers

Which of the following types of firms are in the industrial market?

Consider how buy classes affect buying center tendencies in different ways. Describe the buy-class situations, and discuss the implications for the organization of each type of buy class.

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase one another's products. This practice is referred to as

During the third stage of the organizational buying decision process, the organization engages in

Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as __________ demand.

__________ comprise the highest percentage of firms in industrial markets.

The buying objective for nonprofit firms and government agencies is usually to

A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a

An organization buys products and services for one main reason, which is to

Which of the following is a service business within the industrial market?

In a __________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

When a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other, it is referred to as

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in __________ market.

At which stage of the organizational buying decision process would design and production engineers draft specifications?

The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The fifth digit designates

Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.

Reverse auctions

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation Targeting and Positioning

Developing New Products and Services

Managing Successful Products Services and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising Sales Promotion and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

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