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M: Marketing, 6e (Grewal)
Chapter 7 Business-to-Business Marketing
1) Business-to-business marketing refers to buying and selling goods or services to consumers.
2) B2B marketing involves manufacturers, wholesalers, and service firms.
3) Resellers differ from producers in that resellers significantly alter the form of goods they sell.
4) The B2B buying process tends to be more formal than B2C buying.
5) The RFP process is used by buyers to allow customer input into value creation.
6) The final step of the business-to-business buying process is a formal vendor performance
analysis.
7) Organizational culture may vary by geography.
8) Most B2B buying situations can be categorized into three categories: new buys, structured
rebuys, and automatic rebuys.
9) In both new buy and straight rebuy situations, several members of a buying center will be
intensely involved in the purchasing decision.
10) An architect working for a large firm requests specific computer software to produce
designs, drawings, and other technical information for his clients. The architect probably serves
as a gatekeeper in the buying center.
11) A buying center whose members reach a decision based on a collective agreement is known
as an autocratic buying center.
12) A small business decides to upgrade its aging phone system. The business will probably
place a straight rebuy order.
13) When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people
wanting one and the factories had to ramp up production and order more raw materials. This is
an example of derived demand.
14) Fabricworld buys fabric from China and sells it to clothing manufacturers in the United
States. Fabricworld is a retailer.
15) Public institutions do not engage in B2B relationships.
16) Formal performance evaluations of the vendor and the products sold generally occur in the
B2C buying process.
17) The local school district realized it needed to upgrade the computers in the school libraries.
This represents the product specification stage of the B2B buying process.
18) A small business may use a web portal as a means of forming a supply chain that can
respond to its needs.
19) Once a vendor receives an order from a firm, it responds by immediately filling the order.
20) As the owner of a small business with 60 employees that makes custom floor mats, Paul
makes all of the buying decisions. Paul is most likely the user.
21) The surgeon at the hospital is the decider in the buying process.
22) Consultative buying centers use one person to make a decision but solicit input from others
before doing so.
23) LinkedIn is useful for networking in the B2B marketplace, but Twitter is not typically used.
24) As Daphne's business grew, she needed to find a new way to manage payroll for her
employees, so she researched payroll companies to see which one would best meet her needs.
Daphne was involved in a new buy situation.
25) Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the
traditional seats it had always ordered. This is a straight rebuy.
26) Business-to-business marketing involves buying and selling goods or services by all of the
following except
A) manufacturers.
B) consumers.
C) retailers.
D) producers.
E) wholesalers.
27) Derek bought a pickup truck to transport his equipment to fishing tournaments. He also
bought a trailer for his lawn maintenance business. His purchases were
A) both B2C purchases since he is the user in both situations.
B) both B2B purchases since he is the user in both situations.
C) neither B2C nor B2B since he is the consumer and his uses might be mixed.
D) B2C and B2B purchases, respectively.
E) B2B and B2C purchases, respectively.
28) Jackie works as a sales rep for a company that produces and sells steel used in building
construction. Jackie is in ________ sales.
A) G2B
B) B2C
C) B2B
D) C2C
E) G2G
29) Sales of electric components manufactured by Rick's company depend on sales of new cars,
in other words, ________ demand.
A) synthetic
B) situational
C) monopolistic
D) contrived
E) derived
30) Paula has developed a successful business selling appliances to homebuilders. She carefully
monitors the issuance of new home permits to anticipate how many appliances she will need to
buy in order to supply her customers. Paula is concerned with ________ demand.
A) modified
B) secondary
C) rebuy
D) derived
E) delayed
31) Whether targeting consumers or resellers, marketers need to focus on
A) creating value for their customers.
B) buying center synergy.
C) private exchange efficiency.
D) corporate profit sharing.
E) reducing derived demand.
32) Unlike manufacturers, ________ buy products from other businesses but do not significantly
alter the form of the products they buy before selling them.
A) producers
B) consumers
C) resellers
D) raw materials suppliers
E) gatekeepers
33) A ________ is a type of reseller, a business that buys from other businesses but does not
significantly alter the form of the products it buys.
A) manufacturer
B) producer
C) consumer
D) wholesaler
E) factory
34) Malcolm buys overrun clothing from factories around the South. He sells the clothes to
discount retailers. Malcolm is a
A) manufacturer.
B) producer.
C) consumer.
D) factory agent.
E) reseller.
35) Hospitals, schools, and religious organizations are examples of ________ buyers.
A) manufacturing
B) retail
C) institutional
D) factory agent
E) reseller
36) Which of the following is an example of an institutional buyer?
A) Mayo Clinic Hospital
B) Procter & Gamble
C) U.S. Marine Corps
D) Nucor Steel Corporation
E) Walmart
37) Which of the following is an example of a government buyer?
A) Mayo Clinic Hospital
B) Procter & Gamble
C) the Pentagon
D) Nucor Steel Corporation
E) Walmart
38) In most countries, ________ is(are) among the largest purchasers of goods and services.
A) the largest retailer
B) the central government
C) construction firms
D) the intelligence agency
E) hospitals
39) Both the B2B and B2C buying processes begin with
A) central planning.
B) need recognition.
C) postpurchase dissonance.
D) alternative evaluation.
E) order specification.
40) Compared to the B2C process, the information search and alternative evaluation steps in the
B2B process are
A) decentralized and informal.
B) less focused on customer value creation.
C) identical and interchangeable.
D) more formal and structured.
E) based on derived supply analysis.
41) Typically, B2B buyers ask potential suppliers to
A) write the RFP for the buyer.
B) submit formal proposals.
C) determine product needs with final customers.
D) always be involved in reselling.
E) organize themselves into selling cooperatives.
42) B2B buying decisions are often made by
A) governors.
B) influencers.
C) committees.
D) resellers.
E) consumers.
43) When Goodwish Marketing decided to upgrade its computer network, many people were
involved in the decision. In B2B buying systems, decisions are often made
A) quickly and informally.
B) by a consumer board.
C) at auction sites.
D) by a committee after considerable deliberation.
E) by community debating organizations.
44) Judy knows it is important to approach business buyers at the right time, often during the
first stage of their buying process, which is
A) need recognition.
B) the RFP process.
C) proposal analysis.
D) vendor negotiation and selection.
E) product specification.
45) After need recognition, a business develops ________ that suppliers might use to develop
their proposals.
A) derived demand
B) initiator instructions
C) determinant attributes
D) product specifications
E) focal alternatives
46) After a series of devasting storms, many states reevaluated the structures built along their
coastal areas to determine whether they met building codes, as well as what repairs and new
reinforcements were needed to help buildings withstand damage from future storms.
Construction companies had to pull together a materials list and provide various suppliers with
A) request for proposals.
B) initiator instructions.
C) determinant products.
D) product specifications.
E) focal alternatives.
47) Charlie is hoping to get a chance to bid on supplying key components to Ned's business. He
is eager to move forward, but he must wait until
A) Ned completes vendor negotiations.
B) Ned develops a list of product specifications.
C) Ned's buying center has an opening.
D) Ned agrees to move Charlie's firm from the evoked set to the retrieval set.
E) Ned completes the order specification process.
48) After need recognition and product specification, many firms using the B2B buying process
A) identify contract specifications.
B) issue a request for proposals from invited suppliers.
C) proceed to proposal analysis.
D) enter vendor negotiation and selection.
E) revise their need recognition analysis.
