107. Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their
firms achieve organizational objectives.
a. True
b. False
108. When purchasing products, business customers are especially concerned about quality, service, price, and supplier
relationships.
a. True
b. False
109. In some cases, the types of services offered by a supplier may constitute a primary advantage over suppliers of
similar products.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
110. On-time delivery is crucial to a business customer, since a late delivery may hold up a production line or cause the
firm to lose sales.
a. True
b. False
111. A new-task purchase is one in which the business makes an initial purchase of a new item.
a. True
b. False
112. Of the three types of business purchases, the straight rebuy purchase usually requires the most information.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
113. Industrial demand derives from consumer demand.
a. True
b. False
114. In the long run, business demand becomes totally unrelated to consumer demand.
a. True
b. False
115. The demand for many business products is inelastic at the industry level.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
116. For business products, the concept of inelasticity of demand applies equally to industry demand for the product and
to demand for an individual supplier.
a. True
b. False
117. Raw materials are especially affected by joint demand.
a. True
b. False
118. In industries in which price changes occur frequently, demand fluctuations have practically been eliminated since
buyers have become used to these changes and have learned to ignore them.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
119. A fall in consumer demand for a product is likely to result in increased buying from suppliers as consumer goods
producers replenish depleted inventories and gear up for the next surge in consumer demand.
a. True
b. False
120. The factors that influence business buying behavior are the same as those that influence consumer buying behavior.
a. True
b. False
121. All companies, no matter what their size or market position, maintain only one buying center.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
122. In the buying decision process, one of the activities included in the search for products and suppliers is examining
catalogs and trade publications.
a. True
b. False
123. Specific details regarding terms, credit arrangements, and technical assistance are worked out during the product
specification stage of the buying decision process.
a. True
b. False
124. During the value analysis stage of the buying decision process, the focus is primarily on the examination of the cost
of products relative to design, quality, and materials used.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
125. Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of
dimensions including price, product quality, delivery service, product availability, and overall company reliability.
a. True
b. False
126. The fourth stage in the business buying decision process is that of searching for products and suppliers.
a. True
b. False
127. 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.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
128. The five-stage business buying decision process is used primarily for routine, straight rebuy purchases.
a. True
b. False
129. The North American Industry Classification System includes all three NAFTA partners.
a. True
b. False
130. The old Standard Industrial Classification system is more comprehensive than NAICS.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
131. NAICS provides less information about service industries and high-tech products than did the SIC system.
a. True
b. False
132. To obtain the names of specific potential customers, the business marketer is well advised to employ the services of
a commercial data company, since this is both cheaper and faster than any other method.
a. True
b. False
133. Industrial classification systems allow marketers to divide business customers into groups based mainly on the types
of logos and packaging provided.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior
134. When trying to estimate the purchases of a potential business customer, it is reasonable to suppose that there is a
relationshipbetweenthesizeofthepotentialcustomer’spurchasesandavariablesuchasthenumberofpersonnel
employed by the customer.
a. True
b. False
Chapter 7 – Business Markets and Buying Behavior