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168) In the business-to-business buying process, the first step is:
A) identification of a need.
B) establishment of specifications.
C) identification of alternatives.
D) appointing a committee.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
169) Derived demand is demand:
A) from consumers for new goods and services.
B) from manufacturers to find new customers.
C) linked to the production and sale of some other item.
D) as specified by governmental orders.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
170) The linkage between the demand for automobile tires and sales of automobiles is an
example of ________ demand.
A) derived
B) business
C) joint
D) fabricated
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 3-6
171) When a firm's buying center agrees that defect rates for a purchased component part should
be less than .01% of items received, the team is:
A) identifying needs.
B) establishing specifications.
C) evaluating vendors.
D) negotiating purchase terms.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
40
172) When members of the buying center agree to consider IBM, Dell, and Hewlett-Packard in
purchasing new computers because they are the firms that expressed interest, which stage of the
business-to-business buying process is taking place?
A) Vendor selection
B) Identification of alternatives
C) Identification of vendors
D) Vendor evaluation
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
173) In the "establishing specifications" step of the business-to-business purchasing process, for
a modified rebuy situation, specifications are:
A) examined to ensure that they are current and still meet the company's needs.
B) never examined.
C) developed by the users of the product.
D) developed with the assistance of the vendors bidding on the contract.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
174) When the buying center members find out that leasing a fleet from one car rental company
holds the advantage of a better repair service contract than other companies provide, they are in
which stage of the business-to-business buying process?
A) Identification of vendor
B) Establishment of specifications
C) Vendor selection
D) Vendor evaluation
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
41
175) In the business-to-business buying process, the vendor audit would occur in which stage?
A) Establishment of specifications
B) Vendor identification
C) Vendor selection
D) Vendor evaluation
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
176) An audit team is utilized in which stage of the business-to-business buying process?
A) Identification of vendors
B) Vendor evaluation
C) Vendor selection
D) Negotiating of terms
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
177) In the business-to-business buying process evaluation of vendors normally occurs at two
levels. The second level is:
A) a vendor audit.
B) an initial screening of proposals.
C) a sharing of vendor audit information.
D) vendor identification.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
178) Once a firm has carefully studied all of the vendors, bids have been considered, and the
vendor audit has been conducted, the next step in the business-to-business buying process is:
A) the vendor screening.
B) vendor selection.
C) negotiation of purchase terms.
D) postpurchase evaluation.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
42
179) In the business-to-business arena, the post-purchase phase is critical because:
A) businesses are more critical of quality than are consumers.
B) of the high cost involved in purchase decisions.
C) of the critical importance of supplying a continual supply of a product.
D) a positive evaluation may result in a straight rebuy situation or an advantage in a modified
rebuy situation.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
180) In new task purchasing situations, members of the buying center tend to go through all of
the steps of the business-to-business buying process.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
181) In a new buy situation, one or more steps of the business-to-business buying process is
typically eliminated.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
182) Derived demand is based on, linked to, or generated by the production of raw materials
within a country.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
183) In a modified rebuy situation, once a need has been recognized buyers will skip intervening
steps in the business-to-business buying process and go directly to making a purchase.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
43
184) In a new task purchase situation, potential vendors are often involved in helping the buyer
develop clear specifications of what is needed.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
185) Johnson Instrument Company is looking at various vendors to supply electrical materials
involved in building their instruments. The first step in evaluating vendors would be to conduct a
vendor audit.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
186) Vendor evaluation consists of an initial screening of proposals followed by a vendor audit of
those who pass the initial screening.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
187) The goal of a vendor audit is to evaluate potential suppliers in terms of cost and quality of
merchandise.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-6
188) When selection criteria are used in the vendor selection decision, the most common criteria
includes quality delivery, performance history, warranties, facilities and capacity, geographic
location, and technical capability.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
44
189) Purchase terms following the selection of a vendor are often only a formality because, in
most cases, the agreement has been worked out during the selection process.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
190) What are the steps of the business-to-business buying process?
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-6
191) Selling virtually the same goods or services to consumers and businesses is called:
A) relationship marketing.
B) double vending.
C) dual-channel marketing.
D) marketing extension.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-7
192) Selling computers to individuals and businesses is an example of:
A) multi-outlet marketing.
B) merchant distribution.
C) quantity enhancement marketing.
D) dual-channel marketing.
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 3-7
45
193) It is typical for dual-channel marketing to begin with:
A) sales to businesses and later to consumers.
B) manufacturer demand for better component parts.
C) retailer demand for new products.
D) consumer demand for more purchasing options.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 3-7
194) Spin-off sales occur when:
A) a person likes a business product so well he or she buys one for personal use.
B) advertising is combined with consumer promotions.
C) retailing is combined with wholesaling.
D) two related business buyers are identified by the vendor.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-7
195) A sales rep who likes his company car so well that he buys the same brand for personal use
is creating:
A) joint demand.
B) derived demand.
C) a spin-off sale.
D) vendor audit sale.
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 3-7
196) Starbucks would be an example of a company involved in dual-channel marketing because
the company sells coffee:
A) in retail stores only.
B) to businesses such as United Airlines, Holland America cruise line, and Chicago's Wrigley
Field.
C) using integrated channels.
D) to both consumers and businesses.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-7
46
197) Selling to both consumers and businesses is known as dual-channel marketing.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-7
198) In dual-channel marketing, if the benefits sought from a product differ between the
consumer and business-to-business markets, the best marketing strategy is to create separate
communication messages.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 3-7
199) A spin-off sale occurs when a brand used at work is also purchased for personal home use.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-7
200) In dual-channel marketing, to avoid confusing individuals who might see messages aimed
at consumers and other messages aimed at businesses promoting different benefits, companies
often engage in dual branding.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 3-7
201) What is dual-channel marketing?
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-7
47
202) The role and importance of a strong brand name is dramatically important in today's global
market because of:
A) the emphasis on accountability.
B) importance of consumer E-commerce.
C) brand parity in the business-to-business sector.
D) database mining capabilities of business firms.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 3-8
203) Strong brands are not as important in the global market because price is often the deciding
factor.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 3-8
204) At international trade shows, it is unlikely that an actual sale will be finalized, but the
opposite is true for domestic U.S. trade shows.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 3-8
48
