81. An organization that decides to buy all parts of an item from the same company is using:
a. single-supplier purchasing.
b. multiple sourcing.
c. same vendor analyzing.
d. straight rebuying.
e. sole sourcing.
82. Individual influencing factors refer to:
a. personalitiesofanorganization’svendors.
b. uncontrollable environmental forces.
c. reputation of the organization.
d. personal characteristics of individuals in the buying center.
e. activities of suppliers.
Chapter 7 – Business Markets and Buying Behavior
83. AbuyerwhopurchaseshandbagsfromMacy’sDepartmentStoresordersthemfromaparticularsupplierbecause
thissupplierallowsthebuyertomaintainMacy’scompanypolicyof30dayadvancepurchasenotice.Thisisan
example of _____ influence on the business buying decision process.
a. environmental
b. organizational
c. interpersonal
d. individual
e. demographic
84. Compared with the SIC system, the North American Industry Classification System (NAICS):
a. deals with many industries at one time.
b. is a single industry classification system used throughout the world.
c. contains more up-to-date information for the NAFTA partners.
d. provides less information about service industries.
e. generates statistics that are not useful in comparing countries.
Chapter 7 – Business Markets and Buying Behavior
85. Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his
territorythathavepotentialforusingsizablequantitiesofhisfirm’sproducts.WhichofthefollowingshouldBen
approach if he wants his search to be efficient?
a. Sales & Marketing Management
b. An SIC listing
c. The Census of Business
d. The Census of Manufacturers
e. Standard&Poor’sRegister
Scenario 7.1
Use the following scenario to answer the questions.
FreezeAll is an upcoming manufacturer in the home appliance market. It plans to enter the market with a model
called French Door Refrigerator. While designing the production facility, FreezeAll discovered that they need
various pieces of equipment that includes the perpetual assembly belt-drive, assembly pods, and finishing stations.
The purchasing agent for the Appliance Division inquires about the people who will be needed for input on the
purchasing decision. FreezeAll has already contacted several producers of quasi-assembly pods, and has begun
negotiations with their sales representatives.
86. Refer to Scenario 7.1. What type of business purchase is FreezeAll undertaking?
a. Modified rebuy
b. Straight rebuy
c. New-task
d. Straight purchase
e. New rebuy
Chapter 7 – Business Markets and Buying Behavior
87. Refer to Scenario 7.1. Which of the following groups should FreezeAll not include in its buying center for the new
equipment?
a. Purchasing agents at FreezeAll
b. Eventual users within FreezeAll
c. Potential future FreezeAll customers
d. Gatekeepers within FreezeAll
e. Senior managers at FreezeAll
88. Refer to Scenario 7.1. What was the first step of the buying decision process that FreezeAll went through when
looking for the assembly pods?
a. Searching for products and suppliers
b. Selecting and ordering the most appropriate product
c. Recognizing the problem or need
d. Establishing product specifications
e. Evaluating the product relative to specifications
Chapter 7 – Business Markets and Buying Behavior
Scenario 7.2
Use the following scenario to answer the questions.
Accura Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel
ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and
southern states of the USA. Accura 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. Thus, the board of directors of
Accura Brake Company is considering expansion of its distribution to markets in the Midwest.
89. Refer to Scenario 7.2. Which of the following market types does Accura Brake fall under when selling their
products to individual dealers?
a. Producer
b. Reseller
c. Government
d. Institutional
e. Covert
Chapter 7 – Business Markets and Buying Behavior
90. RefertoScenario7.2.WhenAccuraBrake’ssalesteamcallsontractormanufacturingcompanies,themeetings
typically include the engineers who design the tractors. In this situation, the engineers would most likely be
considered to be _____ as a part of the buying center.
a. gatekeepers
b. influencers
c. users
d. buyers
e. controllers
91. RefertoScenario7.2.Lastyear,AccuraBrake’ssalestothemanufacturersoflawntractorsdeclinedpartiallydue
to the fact that more consumers were hiring small landscaping businesses to maintain their gardens. This decline in
sales for Accura Brake is an example of:
a. product scarcity.
b. joint demand.
c. derived demand.
d. reciprocity demand.
e. inelastic demand.
Chapter 7 – Business Markets and Buying Behavior
92. Buyers in producer markets purchase raw materials and semifinished products.
a. True
b. False
93. The four categories of consumer markets are producer, reseller, government, and institutional.
a. True
b. False
94. Theownerofatruckingbusiness,whobuysgasolinefromthenearbyservicestationforhiscompany’strucks,isa
part of a business market.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
95. The term business markets refers only to producer markets.
a. True
b. False
96. Farmers are a part of business markets.
a. True
b. False
97. Grocery stores and supermarkets are a part of producer markets.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
98. Reseller markets consist of intermediaries that buy finished goods and resell them for profit.
a. True
b. False
99. Wholesalers sell primarily to ultimate consumers.
a. True
b. False
100. Thereislittleornodifferencebetweenwholesalers’customersandretailers’customers.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
101. Retailers purchase products and resell them to final consumers.
a. True
b. False
102. Institutional markets include senior living centers.
a. True
b. False
103. Orders placed by business customers are usually smaller and more numerous than consumer sales.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
104. Reciprocal dealing is widespread because it is one of the few avenues not regulated by the FTC, and it facilitates
optimal purchases.
a. True
b. False
105. Business customers generally seek to obtain detailed information about a product before purchasing it.
a. True
b. False
106. Business customers are forced to satisfy personal goals in pursuits that lie outside their jobs.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior