41. Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards
for _____ in order to achieve their quality goals.
a. how many different suppliers they use
b. the number of inelastic demands made
c. controlling when shipments will arrive
d. the percentage of defects allowed
e. how long the parts should last
42. All of the following are important concerns of business customers except:
a. achieving a specific level of quality in the products offered to target markets.
b. striking a balance between quality and price when making purchasing decisions.
c. obtaining products that exceed specifications to ensure the best possible product performance.
d. obtaining products for which the quality level is consistent.
e. supporting customers with services they expect.
Chapter 7 – Business Markets and Buying Behavior
43. Luxus Auto, an automobile manufacturer, purchases upholstery for the interiors of its vehicles from various
suppliers. This upholstery must have technical standards expressed by Luxus Auto. This set of characteristics is
known as _____.
a. descriptions
b. product features
c. criterion
d. purchase requests
e. specifications
44. The management of ReadyFresh Dry Cleaners is concerned about maintaining a high level of service for its
customers. How should the firm monitor the level of service these customers receive?
a. It should develop a code of service.
b. It should set service quality standards based only on accounting systems.
c. It should formally survey customers.
d. It should specify service uniformity.
e. It should stress the importance of truthfulness to its employees.
Chapter 7 – Business Markets and Buying Behavior
45. A mill in Utah buys grains from cultivators in the western region. Which of the following is a buying method that
should be used by the purchasing agent of the mill?
a. Description
b. Inspection
c. Sampling
d. Negotiation
e. Selection
46. Collin Roberts, Purchasing Manager of Roberts Constructions, is planning to buy a used excavator. Collin should
make his purchasing decision based on the _____.
a. equipment’sdescription
b. equipment’sinspection
c. samples provided by the seller
d. specifications mentioned by the seller
e. reputation of the seller
Chapter 7 – Business Markets and Buying Behavior
47. Under one of the methods of business buying, products are standardized and graded according to characteristics
such as size, shape, weight, and color, and a business buyer purchases these products simply by specifying their
attributes such as quantity and grade. This describes the method of business buying known as _____.
a. reciprocation
b. inspection
c. description
d. sampling
e. negotiation
48. Evaluating a portion of the product on the assumption that its characteristics represent the entire lot is known as:
a. heterogeneous selection.
b. description.
c. trust.
d. negotiated inspection.
e. sampling.
Chapter 7 – Business Markets and Buying Behavior
49. Which of the following is a method of business buying that is necessary when products are highly homogeneous and
examination of each item is not feasible?
a. Negotiation
b. Sampling
c. Description
d. Inspection
e. Reciprocation
50. St.Jude’sHospitaldecidestoredoitskitchenwithnewflooring,cabinets,counters,andappliances.Thehospital
compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids,
the hospital will then work with two or three companies to determine who will get the contract. This is an example
of using _____ for a purchase decision.
a. sampling
b. negotiation
c. inspection
d. elimination
e. description
Chapter 7 – Business Markets and Buying Behavior
51. Most business purchases can be classified as belonging to one of three types:
a. delinquent, repetitive, or delivered.
b. repetitive, new-task, or modified rebuy.
c. new-task, straight rebuy, or modified rebuy.
d. delinquent, new-task, or reciprocal.
e. rebuy, reciprocal, or delayed.
52. The United States Navy purchases uniforms from a single supplier. For the last five years, the trousers purchased
from this supplier have not changed and have been bought in seven different sizes every six months under
approximately the same terms of sale. This is an example of _____.
a. new-product purchase
b. demand purchase
c. straight rebuy purchase
d. modified rebuy purchase
e. standard order purchase
Chapter 7 – Business Markets and Buying Behavior
53. When a business is making its initial purchase of an item to be used to perform a fresh job, it is known as a _____
purchase.
a. straight rebuy
b. reciprocal
c. delayed
d. new-task
e. modified rebuy
54. Perry Supply & Co. experiences an increase in its sales, and accordingly, its sales force has continued to expand.
Now, the firm plans to add a fleet of company vans as part of its sales expansion. For Perry Supply & Co., these
vehicles would represent a _____ purchase.
a. modified rebuy
b. straight rebuy
c. new-task
d. reevaluated
e. repetitive
Chapter 7 – Business Markets and Buying Behavior
55. Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next
order for five more machines, the management adds additional features in order to handle changes in the product
lines it carries. For Anderson, these modified forklifts represent a _____ purchase.
a. new-task
b. reciprocal task
c. straight rebuy
d. repetitive order
e. modified rebuy
56. A representative from Coca-Cola stops by at a local megastore once a month to inquire the amount of soft drink
thatthestorewillneed.Therestaurant’sordersareanexampleof_____purchase.
a. new-task
b. modified rebuy
c. straight rebuy
d. bid
e. negotiated
Chapter 7 – Business Markets and Buying Behavior
57. Supermart, a megastore, recently placed an order with the Kahn Corporation for hotdogs. Their usual weekly order
is for 10 cases. However, since the upcoming weekend includes a holiday, this time Supermart places an order for
100casesofhotdogs.Whichofthefollowingtypesofpurchasedoesthisparticularholidayweek’spurchase
represent?
a. New-task buying
b. Repetitive buying
c. Institutional buying
d. Straight rebuy
e. Modified rebuy
58. The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area. The company
had acquired a new software system designed to track their inventory better. Now that they have had the system
for a couple of months, they have decided to upgrade to a newer version. The original purchase is an example of a
_____ purchase, while the current purchase will be a modified rebuy purchase.
a. new-task
b. reevaluated
c. contract
d. straight rebuy
e. negotiated
Chapter 7 – Business Markets and Buying Behavior
59. Demand for business products is also known as _____ demand.
a. derived
b. corporate
c. business buying
d. manufacturing
e. industrial
60. 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. joint.
b. economically instable.
c. derived.
d. inelastic.
e. more fluctuating.
Chapter 7 – Business Markets and Buying Behavior
61. Everglideisamanufacturerandmarketeroftiresfornewpassengercars.Inrecentyears,thecompany’sbusiness
has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for
Everglide’stireproductsissaidtobe_____,sinceitdependsonthedemandfornewcars.
a. inelastic
b. fluctuating
c. derived
d. elastic
e. non-derived
62. Which of the following is a major threat to the sales success of jointly demanded products?
a. Price changes
b. Shortages
c. Economic instability
d. Inventory buildup
e. Proliferation of brands
Chapter 7 – Business Markets and Buying Behavior
63. Inelastic demand simply means that:
a. buyers will not make a modified rebuy purchase for an item.
b. demand depends on how many items are purchased.
c. a price increase or decrease will not significantly change the demand for an item.
d. when the price of an item goes up, demand for that item goes down.
e. when the supply of an item is reduced, the price of the item will increase.
64. Inelastic demand in business markets refers to a situation where:
a. supply for a given product fluctuates very little over time.
b. price increases or decreases will not significantly change demand for a given product.
c. demand for a given product fluctuates significantly over time.
d. demand for one product depends heavily on the demand for another product.
e. supply for a given product cannot keep pace with the demand for it.
Chapter 7 – Business Markets and Buying Behavior
65. Christoff’sLawn&Lotisasmallbusinessthatprovideslandscapingandgrasscuttingservicesduringspringand
summer.Christoff’susuallysigncontractswithcustomersonanannualbasis,withthetermssetoutatthe
beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow
morequickly.Christoff’swasrequiredtocutthegrasseverytimeitgrew2inches,andnomatterhowmanytimes
it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has
nowincreasedby35%causingChristoff’stopaymorefortheirsupplies.Thedemandforgasdespiteitsprice
represents_____demandforChristoff’sLawn&Lot.
a. elastic
b. inelastic
c. derived
d. joint
e. separate
66. In placing an order with the tire manufacturing company Cratus, South Side Industrial Supply finds that the price for
the truck tires it is ordering has increased by $37.50, since its last order. South Side places the order with the
confident that it can pass on the price increase to its future customers. This is an example of business products
having a(n) _____ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
Chapter 7 – Business Markets and Buying Behavior
67. Demand for a business product is _____ when two or more items are used in combination to produce a product.
a. inelastic
b. joint
c. fluctuating
d. derived
e. partnered
68. Apollo Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As Apollo Auto
Supply places its order for truck tires with the tire manufacturing company Cratus, it must also place an order for
valve stems and balancing weights for the tires. Such business products are characterized as having a(n) _____
demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
Chapter 7 – Business Markets and Buying Behavior
69. 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 a(n) _____ demand.
a. joint
b. inelastic
c. consumer
d. fluctuating
e. derived
70. In a buying center, purchasing agents or purchasing managers are also known as the:
a. gatekeepers.
b. purchase deciders.
c. buyers.
d. users.
e. influencers.
Chapter 7 – Business Markets and Buying Behavior
71. The group of people within a business who are involved in making business purchasing decisions is referred to as
the:
a. new-task team.
b. negotiators.
c. purchasing agents.
d. assessment group.
e. buying center.
72. A university decides to purchase new computers for the computer labs on campus. Usually, the purchasing agent
negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked
theuniversity’sITtechnicianstogiveinputonthepurchasedecision.Inthisinstance,theITtechnicianswouldbe
acting as influencers, while the purchasing agent is a(n) _____.
a. buyer
b. litigator
c. user
d. decider
e. gatekeeper
Chapter 7 – Business Markets and Buying Behavior
73. Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee
Dorchette, director of purchasing for MMK Inc to fix an appointment. The secretary sets up the appointment to
discuss the upcoming purchase of software from WP International. The secretary plays the role of a _____ in this
purchase decision.
a. gatekeeper
b. buyer
c. decider
d. litigator
e. negotiator
74. As the new sales representative for Livsafe Healthcare, Sophie is responsible for calling hospital management and
selling medical equipment, such as blood pressure monitors, scales, and heart rate monitors. Sophie knows that she
needs to communicate effectively with the administrative assistants in the management offices in order to make
surethatLivsafeHealthcare’sinformationbrochuresandnewproductdiagramsreachthemanagementstaff.In
this situation, the administrative assistants are the _____ in the buying decision process.
a. gatekeepers
b. users
c. influencers
d. buyers
e. deviators
Chapter 7 – Business Markets and Buying Behavior
75. The stages of the business buying decision process, in order, are:
a. recognizing the problem, establishing product specifications, searching for products and evaluating possible
suppliers, selecting suppliers and products, and evaluating performance.
b. recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and
products, establishing product specifications, and evaluating performance.
c. recognizing the problem, selecting suppliers and products, evaluating performance, establishing product
specifications, and searching for substitute products.
d. establishing product specifications, recognizing the problem, searching for products, evaluating possible
products and suppliers, selecting suppliers and products, and evaluating performance.
e. establishing product specifications, searching for products, selecting suppliers and products, evaluating
performance, recognizing the problem, and evaluating possible products and suppliers.
76. While planning a purchase of business desktop computers, Albertson Inc. asked potential suppliers to provide
information only on units with 8GB memory. As the firm’s management evaluates this purchase, it finds that 8GB is
inadequate for the software programs used at the firm. In this instance, which of the following aspects of the
buying decision process does the firm needs to modify?
a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation
Chapter 7 – Business Markets and Buying Behavior
77. After deciding to order replacement parts for their aging machinery, a buyer from a construction company
examines catalogs and trade publications looking for these parts. The buyer is in the _____ stage of the business
buying decision process.
a. problem recognition
b. product specification
c. product-supplier search and evaluation
d. product-supplier selection
e. product-supplier post-evaluation
78. Christy Bridgman is planning to buy a new fax machine for her real estate office. She is considering to buy a
machine that does not have as many functions but is available at a considerably lower price than her current
machine. She is engaging in _____ analysis.
a. vendor
b. demand
c. straight rebuy
d. value
e. profit
Chapter 7 – Business Markets and Buying Behavior
79. During the search for products and evaluating possible suppliers stage of the business buying decision process,
marketers sometimes use _____ analysis to examine the quality, design, materials, and possibly item reduction in
order to acquire the product in the most cost-effective way.
a. cost
b. value
c. profit
d. demand
e. SWOT
80. _____ 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 reliability.
a. Value
b. Vendor
c. Buying center
d. Strategic
e. Cost
Chapter 7 – Business Markets and Buying Behavior