Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.

Accepted Answer

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

Question 4

About what percentage of the annual U.S. gross domestic product is government spending?

Accepted Answer

A) 2 percent 
B) 10 percent 
C) 20 percent 
D) 40 percent 
E) 50 percent 
A) 2 percent 
B) 10 percent 
C) 20 percent 
D) 40 percent 
E) 50 percent

Question 5

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.

Accepted Answer

A) corporate 
B) government 
C) institutional 
D) producer 
E) nonprofit 
A) corporate 
B) government 
C) institutional 
D) producer 
E) nonprofit

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Scenario 8.1 Use the following to answer the questions.Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
-Refer to Scenario 8.1. What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods?

Accepted Answer

A) Searching for products and suppliers 
B) Selecting and ordering the most appropriate product 
C) Recognizing the problem or need 
D) Establishing product specifications 
E) Evaluating the product relative to specifications 
A) Searching for products and suppliers 
B) Selecting and ordering the most appropriate product 
C) Recognizing the problem or need 
D) Establishing product specifications 
E) Evaluating the product relative to specifications

Question 8

Raw materials are especially affected by joint demand.

Accepted Answer

A) True 
 B)False

Question 9

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in

Accepted Answer

A) Sales & Marketing Management. 
B) an SIC listing. 
C) the Census of Business. 
D) the Census of Manufacturers. 
E) Standard & Poor's Register. 
A) Sales & Marketing Management. 
B) an SIC listing. 
C) the Census of Business. 
D) the Census of Manufacturers. 
E) Standard & Poor's Register.

Question 10

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered​

Accepted Answer

A) a regulatory sale. 
B) a reseller purchase. 
C) a government purchase. 
D) a producer purchase. 
E) an institutional sale. 
A) a regulatory sale. 
B) a reseller purchase. 
C) a government purchase. 
D) a producer purchase. 
E) an institutional sale.

Question 11

The North American Industry Classification System includes all three NAFTA partners.

Accepted Answer

A) True 
 B)False

Question 12

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.

Accepted Answer

A) derived 
B) inelastic 
C) joint 
D) fluctuating 
E) higher 
A) derived 
B) inelastic 
C) joint 
D) fluctuating 
E) higher

Question 13

Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

Christoff's Lawn & Lot is a small business that provides landscaping and grass cutting services in the spring and summer. Christoff's usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35% causing Christoff's to pay more for their supplies. The demand for gas despite its price represents ________ demand for Christoff's Lawn & Lot.

Accepted Answer

A) elastic 
B) inelastic 
C) derived 
D) joint 
E) separate 
A) elastic 
B) inelastic 
C) derived 
D) joint 
E) separate

Question 17

What are the two ways governments make purchases?

Accepted Answer

A) Cash or credit 
B) Contracting previous suppliers and bids 
C) Bids and negotiated contracts 
D) Lottery system and contract negotiations 
E) Request for new purchases and recurring orders 
A) Cash or credit 
B) Contracting previous suppliers and bids 
C) Bids and negotiated contracts 
D) Lottery system and contract negotiations 
E) Request for new purchases and recurring orders

Question 18

Demand for a business product is ____ when two or more items are used in combination to produce a product.

Accepted Answer

A) inelastic 
B) joint 
C) fluctuating 
D) derived 
E) partnered 
A) inelastic 
B) joint 
C) fluctuating 
D) derived 
E) partnered

Question 19

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ____ of the alternative machines.

Accepted Answer

A) descriptions 
B) inspections 
C) a sampling 
D) specifications 
E) reputations 
A) descriptions 
B) inspections 
C) a sampling 
D) specifications 
E) reputations

Question 20

What is a primary difference between business and consumer buyers?

Accepted Answer

A) Consumer buyers require more product information than business buyers. 
B) Business purchases are made by one individual whereas families make consumer purchases together. 
C) Repeat sales are more common with consumer buyers than business buyers. 
D) Consumers primarily buy inexpensive items; businesses only buy expensive items. 
E) Business buyers generally make larger orders than consumer buyers. 
A) Consumer buyers require more product information than business buyers. 
B) Business purchases are made by one individual whereas families make consumer purchases together. 
C) Repeat sales are more common with consumer buyers than business buyers. 
D) Consumers primarily buy inexpensive items; businesses only buy expensive items. 
E) Business buyers generally make larger orders than consumer buyers.

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

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

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.

About what percentage of the annual U.S. gross domestic product is government spending?

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.

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

Raw materials are especially affected by joint demand.

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered

The North American Industry Classification System includes all three NAFTA partners.

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.

Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability.

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

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?

What are the two ways governments make purchases?

Demand for a business product is ____ when two or more items are used in combination to produce a product.

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ____ of the alternative machines.

What is a primary difference between business and consumer buyers?

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, Branding and Packaging

Developing and Managing Products

Services Marketing

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

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.

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

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.

About what percentage of the annual U.S. gross domestic product is government spending?

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.

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

Raw materials are especially affected by joint demand.

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered​

The North American Industry Classification System includes all three NAFTA partners.

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.

Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability.

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

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?

What are the two ways governments make purchases?

Demand for a business product is ____ when two or more items are used in combination to produce a product.

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ____ of the alternative machines.

What is a primary difference between business and consumer buyers?

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, Branding and Packaging

Developing and Managing Products

Services Marketing

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

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered