Question 1

A practice in which two businesses agree to buy from each other is

Accepted Answer

A)  a new task purchase. 
B)  a straight rebuy. 
C)  a modified rebuy. 
D)  reciprocity. 
E)  a straight purchase. 
A)  a new task purchase. 
B)  a straight rebuy. 
C)  a modified rebuy. 
D)  reciprocity. 
E)  a straight purchase.

Question 2

Perry Supply's sales and sales force have continued to expand.Now,the firm plans to add a fleet of company cars as part of its sales compensation package.For Perry Supply,these vehicles would represent a ____ purchase.

Accepted Answer

A)  modified rebuy 
B)  straight rebuy 
C)  new-task 
D)  reevaluated 
E)  repetitive 
A)  modified rebuy 
B)  straight rebuy 
C)  new-task 
D)  reevaluated 
E)  repetitive

Question 3

Demand for business products is characterized as derived.From what is the demand derived?

Accepted Answer

A)  Industrial demand 
B)  Modified demand 
C)  Demand for consumer products 
D)  Future product demand 
E)  The business cycle 
A)  Industrial demand 
B)  Modified demand 
C)  Demand for consumer products 
D)  Future product demand 
E)  The business cycle

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

In its purchase of desktop business computers,Albertson's asked that potential suppliers provide information only on units with 4.0 gigabytes of memory.As Albertson's management evaluates this purchase,it finds that 4.0 gigabytes are inadequate for many of the software programs used at Albertson's.In this instance,the firm would need to modify which aspect of the purchase process?

Accepted Answer

A)  Searching 
B)  Specification development 
C)  Alternative evaluation 
D)  Selection 
E)  Performance evaluation 
A)  Searching 
B)  Specification development 
C)  Alternative evaluation 
D)  Selection 
E)  Performance evaluation

Question 6

Compared with consumer goods,marketers aiming at business customers

Accepted Answer

A)  do not need to select target markets. 
B)  have an enormous amount of information available concerning potential customers. 
C)  have more difficulty in determining where their customers are located. 
D)  are restricted in the types of promotion they can use. 
E)  have more difficulty in estimating customers' purchase potentials. 
A)  do not need to select target markets. 
B)  have an enormous amount of information available concerning potential customers. 
C)  have more difficulty in determining where their customers are located. 
D)  are restricted in the types of promotion they can use. 
E)  have more difficulty in estimating customers' purchase potentials.

Question 7

Analysis of business input-output data by the federal government allows the government to have a better understanding of the

Accepted Answer

A)  cash flows that exist among industries. 
B)  raw materials and labor required to produce a given product. 
C)  amount of reinvestment that different industries use. 
D)  types of industries that purchase particular products. 
E)  growth projections for a given industry. 
A)  cash flows that exist among industries. 
B)  raw materials and labor required to produce a given product. 
C)  amount of reinvestment that different industries use. 
D)  types of industries that purchase particular products. 
E)  growth projections for a given industry.

Question 8

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

Accepted Answer

A)  Business buyers always act rationally when making purchases for their company. 
B)  Business customers tend to be less informed about the products they purchase than consumer buyers. 
C)  Business customers demand detailed information about a product's quality,features,or technical specifications. 
D)  Business customers are no different than buyers in consumer markets. 
E)  Business customers tend to buy products from their friends and contacts with business suppliers. 
A)  Business buyers always act rationally when making purchases for their company. 
B)  Business customers tend to be less informed about the products they purchase than consumer buyers. 
C)  Business customers demand detailed information about a product's quality,features,or technical specifications. 
D)  Business customers are no different than buyers in consumer markets. 
E)  Business customers tend to buy products from their friends and contacts with business suppliers.

Question 9

All of the following are important concerns of business customers except

Accepted Answer

A)  achieving a specific level of quality in the products offered to target markets. 
B)  obtaining a level of quality that meets specifications. 
C)  obtaining products that exceed specifications to ensure the best possible product performance. 
D)  obtaining products for which the quality level is consistent. 
E)  supporting customers with services they expect. 
A)  achieving a specific level of quality in the products offered to target markets. 
B)  obtaining a level of quality that meets specifications. 
C)  obtaining products that exceed specifications to ensure the best possible product performance. 
D)  obtaining products for which the quality level is consistent. 
E)  supporting customers with services they expect.

Question 10

A disadvantage of reciprocity is that it can lead to

Accepted Answer

A)  a price war. 
B)  higher promotional costs. 
C)  more competitive firms entering the industry. 
D)  less-than-optimal purchases for the buyer. 
E)  longer periods of negotiation. 
A)  a price war. 
B)  higher promotional costs. 
C)  more competitive firms entering the industry. 
D)  less-than-optimal purchases for the buyer. 
E)  longer periods of negotiation.

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Inelastic demand in business markets refers to a situation where

Accepted Answer

A)  demand for a given product fluctuates very little over time. 
B)  price increases or decreases will not significantly change demand for a given product. 
C)  demand for a given product fluctuates significantly over time. 
D)  demand for one product depends heavily on the demand for another product. 
E)  supply for a given product cannot keep pace with the demand for it. 
A)  demand for a given product fluctuates very little over time. 
B)  price increases or decreases will not significantly change demand for a given product. 
C)  demand for a given product fluctuates significantly over time. 
D)  demand for one product depends heavily on the demand for another product. 
E)  supply for a given product cannot keep pace with the demand for it.

Question 14

Wholesalers sell primarily to ultimate consumers.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 7.2.When Precision Brake sells to the individual dealers,they would be considered which of the following business types?

Accepted Answer

A)  Producer 
B)  Reseller 
C)  Government 
D)  Institutional 
E)  Covert 
A)  Producer 
B)  Reseller 
C)  Government 
D)  Institutional 
E)  Covert

Question 17

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

Accepted Answer

A)  Environmental,organizational,interpersonal,and individual 
B)  Environmental,organizational,psychological,and individual 
C)  Environmental,psychological,individual,and technological 
D)  Technological,organizational,environmental,and interpersonal 
E)  Environmental,organizational,technological,and individual 
A)  Environmental,organizational,interpersonal,and individual 
B)  Environmental,organizational,psychological,and individual 
C)  Environmental,psychological,individual,and technological 
D)  Technological,organizational,environmental,and interpersonal 
E)  Environmental,organizational,technological,and individual

Question 18

Institutional markets include state prisons.

Accepted Answer

A) True 
 B)False

Question 19

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 20

When a business is making its initial purchase of an item to be used to perform a new job,it is known as a ____ purchase.

Accepted Answer

A)  straight rebuy 
B)  reciprocal 
C)  delayed 
D)  new-task 
E)  modified rebuy 
A)  straight rebuy 
B)  reciprocal 
C)  delayed 
D)  new-task 
E)  modified rebuy

Exam 7: Business Buying Behavior

A practice in which two businesses agree to buy from each other is

Perry Supply's sales and sales force have continued to expand.Now,the firm plans to add a fleet of company cars as part of its sales compensation package.For Perry Supply,these vehicles would represent a ____ purchase.

Demand for business products is characterized as derived.From what is the demand derived?

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

Compared with consumer goods,marketers aiming at business customers

Analysis of business input-output data by the federal government allows the government to have a better understanding of the

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

All of the following are important concerns of business customers except

A disadvantage of reciprocity is that it can lead to

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.

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

Inelastic demand in business markets refers to a situation where

Wholesalers sell primarily to ultimate consumers.

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.

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

Institutional markets include state prisons.

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.

When a business is making its initial purchase of an item to be used to perform a new job,it is known as a ____ purchase.

Strategic Marketing Management

Developing and Implementing Marketing Strategies

The Global Marketing Environment

Information for Marketing Decisions

Selecting Target Markets

Consumer Behavior

International Marketing

Digital Marketing and Social Media

Product Decisions

Strategic Product Management

Services Marketing

Strategic Management of Branding and Packaging

A Supply Chain Management and Marketing Channels

B Supply Chain Management and Marketing Channels

A Retailing,wholesaling and Direct Marketing

B Retailing,wholesaling and Direct Marketing

Integrated Marketing Communications

Advertising and Publicrelations

Personal Selling and Sales Promotion

Strategic Pricing Management

Pricingdecisions

Global Issues,social Responsibility and Marketing

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