Exam 8: Business Markets and Buying Behavior

Institutional markets include state prisons.

Value analysis focuses primarily on the examination of the cost of products relative to design, quality, and materials used.

The group of people within a business who are involved in making business buying decisions is referred to as

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. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not?

What factors affect the purchase method that business customers choose?

In the buying decision process, one of the activities included in the search for products and suppliers is examining various online and print publications.

Government markets, although complicated in their requirements, can be very lucrative.

Retailers purchase products and resell them to final consumers.

​You are manager of a clothing manufacturing firm that has operations in different countries. Your Indonesian manufacturing facility is dedicated solely to producing elementary school uniforms for the U.S. market. Most of your product output is sold to a larger school uniform company in the U.S. called School Uniforms, Inc. School Uniforms, Inc. has major contracts with school districts like the Los Angeles Unified School District. In this scenario, the Los Angeles Unified School District is part of which of the following business markets?

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

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ____ for a purchase decision.

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes ____ demand.

Orders placed by business customers are usually smaller and more numerous than consumer sales.

Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive?

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.

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

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC?

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?

Demand for business products can be characterized in four ways; describe these four characteristics and compare and contrast their attributes.

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ____ market.