Question 1

Value added refers to the profit a manufacturer earns on a product once it has subtracted the costs of the inputs it used to make the product.

Accepted Answer

A) True 
 B)False  False

Question 2

The process of creating the supply chain and loyalty within the buyer-seller relationship is hasten by the use of:

Accepted Answer

A)   customer relationship management.
B)   a production-orientation.
C)   a sales orientation.
D)   a universal mission statement.
E)   derived demand. A

Question 3

The three _____ _____ are new-task buying, straight rebuy, and modified rebuy

Accepted Answer

buy classes

Question 4

When Dr. Zane Greene's staff complained about how slow his autoclave is when they use it to sterilize dental equipment, he made a couple of phone calls and then ordered the new Vela autoclave because it is the fastest and safest on the market. In terms of the buying-decision process, Dr. Greene's staff assumed the roles of:

Accepted Answer

A)   user and influencer.
B)   influencer, gatekeeper, user, and decider.
C)   gatekeeper, buyer, and decider.
D)   influences, user, decider, and buyer.
E)   gatekeeper, user, and decider.

Question 5

Straight rebuys are:

Accepted Answer

A)   usually routine purchases with no real consideration of alternative products.
B)   likely to involve more buy phases than new-task buying.
C)   highly influenced by the seller's promotional activities.
D)   likely to involve the upper management echelon.
E)   more complex than modified rebuys.

Question 6

A buying center:

Accepted Answer

A)   refers to the geographic concentration of business markets.
B)   is used for procurement in the government market.
C)   is another name for a purchasing department.
D)   exists in large corporations to facilitate the buying-decision process.
E)   may be defined as all the individuals or groups who are involved in the purchase decision-making process.

Question 7

By definition, bourbon cannot be aged in used oak barrels. Therefore, the number of new oak barrels purchased is based on how much bourbon is fermented annually. The demand for oak barrels for fermenting bourbon is:

Accepted Answer

A)   reciprocal.
B)   accelerated.
C)   cumulative.
D)   derived.
E)   synergistic.

Question 8

When a factory purchased a replacement hydraulic-drive motor, the purchase was an example of the _____ _____ buy class.

Accepted Answer

The answer of When a factory purchased a replacement hydraulic-drive...

Question 9

Seaboard Inn has leased four limousines for use of its guests who want to attend the Newport Jazz Festival. This approach to the acquisition of limousines:

Accepted Answer

A)   offers the inn no significant tax advantages.
B)   allows the inn to retain its investment capital for other purposes.
C)   requires the inn to pay all repair expenses.
D)   increases the inn's capital outlay.
E)   is impractical if the inn is a seasonal business.

Question 10

Fisher-Price toys can be purchased at retail stores and through its shop-at-home catalog as well as at its Web site, www.fisherprice.com. The use of the Web site is an example of:

Accepted Answer

A)   ISP distribution.
B)   disintermediation.
C)   network-based channel control.
D)   an internet marketing integration system (IMIS) .
E)   internet marketing distribution (IM
D)  .

Question 11

The key ingredient in artificial vanilla is vanillin, which is a byproduct for wood pulp manufacturing. Recent problems with the production of pure vanilla has led to increased sales of artificial sales, which is term has led to increased sales of the wood pulp by-product. This would be an example of:

Accepted Answer

A)   reciprocity
B)   derived demand
C)   fluctuating demand
D)   elastic demand
E)   multiple buying influence

Question 12

Ezekiel Adoni, a sales trainee, has been told by his supervisor that according to the North American Industry Classification System (NAICS), his company is classified by the federal government in sector 233411. This information allows anyone interested to know what industry the company is in. How is this information useful?

Accepted Answer

A)   to let potential suppliers know if Adoni's company is a good prospect
B)   to allow the federal government to monitor gross national product
C)   to provide the Internal Revenue Service (IRS)  with information
D)   to help Adoni locate ultimate users of his company's product
E)   to do none of the above

Question 13

In the business market, direct purchases by the business user from the producer:

Accepted Answer

A)   occur only with straight rebuy purchases.
B)   are quite common.
C)   occur only when services are being sold rather than goods.
D)   occur just as frequently as direct sales take place in the consumer market.
E)   never occur.

Question 14

When Dr. Zane Greene's staff complained about how slow his autoclave is when they use it to sterilize dental equipment, he made a couple of phone calls and then ordered the new Vela autoclave because it is the fastest and safest on the market. In terms of the buying-decision process, Dr. Greene assumed the roles of:

Accepted Answer

A)   gatekeeper, decider, and buyer.
B)   user, influencer, decider, and buyer.
C)   influencer and gatekeeper.
D)   decider, and buyer.
E)   influencer, decider, and gatekeeper.

Question 15

The supply chain approach:

Accepted Answer

A)   leads to a recognition and understanding of the roles played by all the parties involved in successfully . bringing a product to market.
B)   treats marketing activities as a series of links between buyers and sellers.
C)   is an important dimension of the buyer-seller relationship.
D)   considers the roles of suppliers, producers, distributors, and end users to see how each adds value to and benefits from the final product.
E)   is accurately described by all of the above.

Question 16

What do Sears, Rhodes furniture stores, Walgreen drugstores, Payless shoe stores, and Lands' End catalog retailer have in common?

Accepted Answer

A)   They all cater to the lower-middle class.
B)   They all stock generic products.
C)   They all use direct channels of distribution exclusively.
D)   They are all part of the reseller market.
E)   They are all part of the services market.

Question 17

Widely fluctuating demand for iron could cause its manufacturer to:

Accepted Answer

A)   modify its distribution strategy.
B)   cut prices to attract customers from other iron manufacturers.
C)   change its promotional strategy.
D)   diversify into other products.
E)   do all of the above.

Question 18

The _____ (NAICS) system enables a company to identify relatively small segments of its business market.

Accepted Answer

A)   North American Industrial Segmentation Code
B)   New American Innovative Coding System
C)   North American Institutional Code Standards
D)   Need-Automated Industrial Codes for Strategies
E)   North American Industry Classification System

Question 19

Brose, a German manufacturer, is the world's biggest producer of the components that sit inside car doors and do the job of adjusting windows, locks, wing mirrors, and hi-fi systems. Brose sells primarily to European car manufacturers. The company's CEO says the success of the company is due to the close contact it keeps with its big customers. Brose relies on _____ CRM.

Accepted Answer

A)   collaborative
B)   functional
C)   hierarchical
D)   analytical
E)   operational

Question 20

According to the text, a unique feature of government buying is:

Accepted Answer

A)   reciprocal agreements.
B)   competitive bidding.
C)   buying centers.
D)   buying committees.
E)   derived demand.

Exam 5: Business Markets and Buying Behavior