Question 1

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) 30 percent 
E) 50 percent

Question 2

All three NAFTA countries will convert to the NAICS over the next few years.

Accepted Answer

A) True 
 B)False

Question 3

Retailers purchase products and resell them to final consumers.

Accepted Answer

A) True 
 B)False

Question 4

As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.

Accepted Answer

A) gatekeepers 
B) users 
C) influencers 
D) buyers 
E) controllers

Question 5

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.

Accepted Answer

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis.

Accepted Answer

A) vendor 
B) downsizing 
C) strategic 
D) value 
E) profit

Question 8

Scenario 8.2
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 8.2. Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to?

Accepted Answer

A) Producers 
B) Governments 
C) Retailers 
D) Consumers 
E) Institutions

Question 9

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him

Accepted Answer

A) that he's absolutely right, the government doesn't deal with small businesses. 
B) although the government will deal with small businesses, he will never make a profit off a government contract. 
C) that any government, federal, state, or local would laugh at the size of his business. 
D) the government rarely considers new suppliers when making purchasing decisions. 
E) the government buys products from all sizes of business, but there is some red tape.

Question 10

Feedback acquired during the fifth stage of the business buying decision process is kept on file but not used as a reference for future business purchase decisions.

Accepted Answer

A) True 
 B)False

Question 11

Scenario 8.2
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 8.2. 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

Question 12

Which of the following statements about business buying is false?

Accepted Answer

A) Business marketers prefer not to sell to customers who place small orders. 
B) Business marketers must often sell their products in large quantities to make profits. 
C) Most business purchases are made by committee. 
D) Business purchases are usually made on the basis of contracts. 
E) Orders in business markets tend to be smaller than those placed in consumer markets.

Question 13

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is

Accepted Answer

A) joint. 
B) economically stable. 
C) derived. 
D) inelastic. 
E) more fluctuating.

Question 14

A(n) ____________________ market consists of individuals or groups that purchase products for resale, use in production, or daily operations.

Accepted Answer

The answer of A(n) ____________________ market consists of individuals or...

Question 15

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Accepted Answer

A) gatekeeper 
B) buyer 
C) decider 
D) buying center captain 
E) order giver

Question 16

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ____ market.

Accepted Answer

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

Question 17

In a buying center, purchasing agents or purchasing managers are also known as

Accepted Answer

A) gatekeepers. 
B) deciders. 
C) buyers. 
D) users. 
E) influencers.

Question 18

Retailers like Target and Kmart are considered to be members of which business market?

Accepted Answer

A) Reseller 
B) Customer 
C) Producer 
D) Institutional 
E) Services

Question 19

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.

Accepted Answer

A) Value 
B) Vendor 
C) Buying center 
D) Strategic 
E) Cost

Question 20

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?

Accepted Answer

A) Reseller 
B) Producer 
C) Consumer 
D) Government 
E) Supply

Exam 8: Business Markets and Buying Behavior

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

All three NAFTA countries will convert to the NAICS over the next few years.

Retailers purchase products and resell them to final consumers.

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.

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

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him

Feedback acquired during the fifth stage of the business buying decision process is kept on file but not used as a reference for future business purchase decisions.

Which of the following statements about business buying is false?

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is

A(n) ____________________ market consists of individuals or groups that purchase products for resale, use in production, or daily operations.

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ____ market.

In a buying center, purchasing agents or purchasing managers are also known as

Retailers like Target and Kmart are considered to be members of which business market?

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?