60. Which of the following statements does NOT describe the business market?
a.
Organizational buying decisions are usually made independently by a purchasing agent
while consumer buying decisions are made jointly.
b.
Business customers tend to be more geographically concentrated, and customers in
consumer markets tend to be more geographically dispersed.
c.
The channel of distribution is more often direct for business markets than for consumer
markets.
d.
Purchasing by businesses is a more formal process than it is in consumer markets.
e.
Business marketers tend to have far fewer customers than consumer marketers.
61. _____ is the primary promotional method for the sale of all business products.
a.
Direct mail
b.
Advertising
c.
Personal selling
d.
Public relations
e.
Trade promotions
62. Personal selling is pervasive in organizational markets because:
a.
most of the situations involve fairly low cost items
b.
there are few avenues for effective advertising of organizational goods
c.
organizational salespeople seldom speak the language of their customers
d.
it is the most inexpensive method of promotion
e.
many organizational products are complex and require expertise on the salesperson’s part
63. All of the following are considered types of business products EXCEPT:
a.
raw materials.
b.
convenience goods
c.
major equipment
d.
accessory equipment
e.
component parts
64. Which type of business product includes such capital goods as large or expensive machines,
mainframe computers, blast furnaces, generators, airplanes, and buildings?
a.
major equipment
b.
raw materials
c.
component parts
d.
accessory equipment
e.
investment goods
65. Major equipment goods, such as machines, mainframe computers, and buildings are also referred to as:
a.
investment goods
b.
necessity goods
c.
capital components
d.
strategic goods
e.
installations
66. Which of the following is the BEST example of an installation?
a.
a baseball stadium
b.
a checkout counter
c.
a lifeguard stand
d.
a file cabinet
e.
original artwork
67. Products such as parking garages, mainframe computers, privately owned office buildings, and street–
cleaning equipment are depreciated over time rather than expensed in the year they are purchased.
These are classified as:
a.
processed materials
b.
accessory equipment
c.
major equipment
d.
supplies
e.
component parts
68. Claas is Europe’s largest manufacturer of combine harvesters. As farming becomes more professional
and more intensive, farmers are buying more sophisticated machines, which Claas can supply. The
expensive machines sold by Claas would be examples of:
a.
installations
b.
component parts
c.
accessory equipment
d.
processed materials
e.
minor equipment
69. Southeastern Concrete Company has 15 concrete trucks. The company’s accountant depreciated the
value of the vehicles over several years. What type of business product is the concrete truck?
a.
major equipment
b.
component part
c.
processed material
d.
fabricating item
e.
accessory equipment
70. Which type of business product represents goods, such as portable tools and office equipment, that are
less expensive and shorter-lived than major equipment?
a.
accessory equipment
b.
component parts
c.
processed goods
d.
supplies
e.
intermediate goods
71. Copying machines, personal computers, and fax machines are typically classified as _____ because
they are not expensive, have short useful lives, and are frequently purchased from local distributors.
a.
accessory equipment
b.
mobile equipment
c.
component parts
d.
processed materials
e.
supplies
72. For a police department, firearms, computers, printers, fax machines, and patrol vehicles are all
examples of _____ because they are shown as expenses on the yearly accounting statements.
a.
mobile installation
b.
component part
c.
processed material
d.
supply
e.
accessory equipment
73. Which of the following is the BEST example of accessory equipment?
a.
a parking lot
b.
a store display rack
c.
accounting services
d.
a river barge
e.
light bulbs
74. Unprocessed extractive or agricultural products, such as copper, peanuts, soybean, bauxite, fruits, ore,
etc., that become part of finished products are examples of:
a.
supplies
b.
OEM parts
c.
component parts
d.
processed materials
e.
raw materials
75. One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being
picked to ensure product freshness. The fresh tomatoes it buys from growers are examples of:
a.
OEM parts
b.
raw materials
c.
component parts
d.
processed materials
e.
supplies
76. Farmer Pat Stein provides local restaurants with organic fruits and vegetables that have been grown
without the use of pesticides or chemical fertilizers. Pat Stein is a supplier of:
a.
accessory parts
b.
supplies
c.
raw materials
d.
unprocessed extractive products
e.
processed materials
77. Finished items ready for assembly or products that need very little processing before they become a
part of some other product are called:
a.
supplies
b.
raw materials
c.
accessory equipment
d.
processed materials
e.
component parts
78. Within the business market, roller belts that are purchased by vacuum manufacturers are examples of:
a.
supplies
b.
raw materials
c.
accessory equipment
d.
processed materials
e.
component parts
79. PAS Systems has developed an unobtrusive flashlight-alcohol detector. The flashlight readings are
inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety
test. Each one costs $600. The manufacturer assembles a breathalyzer from one supplier with a slightly
modified flashlight case from another supplier to make the new product. The breathalyzer and the
flashlight case are examples of:
a.
major equipment
b.
component parts
c.
processed materials
d.
integrated parts
e.
accessory equipment
80. Products that have had some processing, are used directly in the production of other products, and do
not retain their identity in the final product are called:
a.
raw materials
b.
supplies
c.
processed materials
d.
component parts
e.
replacement parts
81. No-Glut is a small company that manufactures several gluten-free products for consumers who cannot
digest this substance. For this manufacturer, rice flour, which will be used in its manufacturing
process, is a(n)
a.
accessory equipment
b.
fabricating material
c.
component part
d.
integrated material
e.
processed material
82. A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a
dry dog food. These processed meat by-products are examples of:
a.
raw materials
b.
OEM products
c.
processed materials
d.
component parts
e.
replacement parts
83. Metalcrafter Enterprise manufactures stamped brass door plates, brass numbers, and other decorative
brass trim for homes. Every month Metalcrafter purchases sheets of brass, which are classified as:
a.
processed materials
b.
fabricating supplies
c.
raw materials
d.
component parts
e.
replacement parts
84. _____ are consumable, inexpensive, and often standardized items that do not become part of the final
product.
a.
Processed materials
b.
Supplies
c.
Provisions
d.
Accessory equipment
e.
Replacement parts
85. Another name for business supplies like pens, paper, and file folders is:
a.
processing goods
b.
components
c.
OEM parts
d.
MRO items
e.
accessories
86. At an accounting firm, the secretary orders printer cartridges, cases of paper, paper clips, and other
small items. These items would be classified as:
a.
replacement parts
b.
provisions
c.
OEM parts
d.
accessory equipment
e.
supplies
87. Business services:
a.
are capital items
b.
are never outsourced
c.
are not used in reciprocity arrangements
d.
typically become part of the finished product
e.
are expense items
88. A small retailer hired an accountant to run its payroll and pay its taxes. The accountant provided the
retailer with:
a.
OEMs
b.
processed services
c.
business services
d.
accessory services
e.
service supplies
89. The Barter Company (TBC) located in Kennesaw, Georgia acts as a broker between companies that
want to trade products or services. Companies must be a TBC member, and there is a one-time fee to
join. The Barter Company charges a brokerage fee on each transaction facilitated. The Barter
Company is an example of a (n):
a.
service integrator
b.
job source
c.
business service
d.
extended service
e.
component service
90. The _____ is the set of all persons in an organization who become involved in the purchasing process.
a.
buying center
b.
stakeholder committee
c.
ad hoc purchasing staff
d.
board of directors
e.
comptroller’s staff
91. The buying center:
a.
will be composed of the same decision makers as long as the purchasing process lasts
b.
is typically on the formal organizational chart under the vice-president for operations
c.
requires all purchasing participants to be employed by the purchasing department
d.
refers to all those organizational members who become involved in the purchasing process
e.
regularly generates formal announcements of who is in the buying center
92. Which of the following statements about buying centers is true?
a.
The most efficient buying centers have no more than five members.
b.
No one individual should assume more than two buying center roles.
c.
Buying centers are clearly labeled on all organizational charts.
d.
Complex purchase situations usually have fewer people involved in the buying center than
less complex purchases.
e.
Membership and influence in a buying center vary from company to company.
93. You have started raising your first litter of AKC registered Chihuahuas. You want to sell your puppies
to the locally owned and operated pet store, Pets and People. How do you find the buyer?
a.
Look at the formal organization chart of the company.
b.
Get a copy of Pets and People’s phone directory, where all buying center members are
listed.
c.
Contact the store and probe to see who is in charge of buying
d.
Locate the decider at Pet and People
e.
Wait for Pets and People to call you when they will hear about your new breeding
program
94. All of the following are roles found within a buying center EXCEPT:
a.
influencers
b.
gatekeepers
c.
suppliers
d.
users
e.
initiators
95. Harold works as a new business manager for a manufacturer of marine lubricants. He often talks to
several different people before he locates someone who can give him a purchase order or a refusal. In
terms of the buying center, he has the most trouble identifying the _____ for his services.
a.
decider
b.
influencer
c.
purchaser
d.
gatekeeper
e.
user
96. The _____ is the member of the buying center who regulates the flow of information.
a.
decider
b.
influencer
c.
purchaser
d.
gatekeeper
e.
user
97. PAS Systems has developed a new product—an unobtrusive flashlight-alcohol detector. The flashlight
readings are inadmissible in court but are used by police officers to decide whether to hold someone
for a sobriety test. Each one costs $600. After seeing a prototype brought back by one of its employees
from a highway safety convention, the Georgia Governor’s Office of Highway Safety decided to equip
every DUI officer with one. In this example, the individual who attended the convention had the roles
of _____ in the buying center.
a.
buyer and decider
b.
decider and user
c.
gatekeeper and influencer
d.
initiator and decider
e.
purchaser and gatekeeper
98. The three most important evaluative criteria for business-to-business purchases are quality, price, and:
a.
competitive offers
b.
service
c.
reliability
d.
assurance
e.
existing relationships
99. In terms of how business buyers evaluate products and suppliers, the most important criterion is:
a.
price
b.
behavior
c.
quality
d.
personal relationships
e.
reciprocity
100. Business buyers use a variety of criteria to evaluate alternative products and suppliers. The three most
important criteria, in order of importance, are usually:
a.
price, sales support, and service
b.
quality, service, and price
c.
reputation, price, and capability
d.
price, delivery time, and product reliability
e.
service, quality, and reputation
101. The Beaumont Homeowner’s Association had to replace its pool pump. They asked two local
companies—Thompson Pools and Southern Pool and Spa Company—for quotes on replacing the
pump. Beaumont negotiated with both companies and quickly decided to buy from the Thompson Pool
because its quote was $200 cheaper in its labor estimate. Which evaluative criterion appears to have
been most important in making this purchase decision?
a.
price
b.
familiarity with the product
c.
reliability
d.
the availability of replacement parts
e.
buyer/seller relationship
102. A _____ is a situation requiring the purchase of a product for the first time.
a.
straight rebuy
b.
value buy
c.
modified rebuy
d.
new buy
e.
make-or-buy
103. A new-buy situation refers to the:
a.
setting of new standards for current vendors
b.
establishment of a new buying center
c.
resolution of new conflict between buyer and seller
d.
search for replacement vendors for standard, currently used parts
e.
purchase of a product or service when a new demand arises
104. A university is considering the purchase of a Web-based course delivery system due to increased
demand for online courses and degrees. Since the school has not offered online courses before, what
type of buying situation does this represent for the school?
a.
value engineering task
b.
modified rebuy
c.
straight rebuy
d.
new buy
e.
derived rebuy
105. A small police department wants to buy a machine with which it can perform alcohol breath tests. It
has never had this capability before but feels it is an essential tool as the community grows. The
machine costs about $5,000, which is almost 75 percent of the department’s entire supply budget. This
purchase would be an example of a(n) _____ situation.
a.
extensive buying
b.
low-involvement buying
c.
new-buy
d.
modified-rebuy
e.
straight-rebuy
106. A _____ buying situation is normally less critical and less time-consuming than a new-buy situation
but does require some change in the original good or service.
a.
synergistic rebuy
b.
value buy
c.
negotiated rebuy
d.
modified rebuy
e.
make-or-buy
107. Apple Inc. wanted a faster microprocessor for its new Macs. Apple Inc. most likely engaged in a:
a.
value engineering task
b.
modified rebuy
c.
straight rebuy
d.
new process
e.
new buy
108. The Dallas Morning News needed a new printing press comparable to the one that needed to be
replaced. The firm’s familiarity with the product and its manufacturer caused it to approach two
companies—one in the United States and one in Japan—to see which could offer the better deal. It
negotiated with both companies and quickly decided to buy from the Japanese manufacturer when it
offered to sell a press for $2.2 million less than its U.S. competitor. This purchase was an example of
a:
a.
contingency buy
b.
modified rebuy
c.
negotiated buying system
d.
straight rebuy
e.
new buying situation
109. Axel Spring AG, one of Europe’s largest newspaper publishers, with 10,000 employees and more than
150 papers in 30 countries, announced it would switch its entire operation from PCs to Macs. Axel
decided to make a switch to Apple because the company’s layout work was already being done by
Macs, the Macs were more user friendly, more elegant, and cheaper to maintain than they had been in
the past. This is an example of a _____.
a.
new buy
b.
value buy
c.
straight rebuy
d.
modified rebuy
e.
make-or-buy
110. Which of the following is the best example of a modified-rebuy situation?
a.
the purchase of a replacement hamster as the class mascot
b.
bidding on a new high school multi-purpose gymnasium to replace one built in 1963
c.
the purchase of three large screen computer monitors to replace smaller monitors
d.
the annual purchase of calendar refills for the desks of all company executives
e.
the monthly updating of computer virus protection
111. A routine purchasing situation in which the purchaser is not looking for new information or at other
suppliers is called a:
a.
modified rebuy
b.
value buy
c.
synergistic buy
d.
straight rebuy
e.
make-or-buy
112. Elizabeth buys flour weekly for her bakery. This purchase is most likely an example of a(n) _____
situation.
a.
need-related buy
b.
limited rebuy
c.
straight rebuy
d.
rebuy sourcing
e.
institution buy
113. A professor sent the following memo to his department chair for his authorization:
Glen:
I need to purchase a camera, Mac computer, and microphone for the selling center lab #2 just like we
did for lab #1.
This buying situation should be described as a:
a.
make-or-buy
b.
value buy
c.
new buy
d.
modified rebuy
e.
straight rebuy
114. Purchasing contracts are commonly used in which type of buying situations?
a.
reciprocal
b.
straight-rebuy
c.
new-buy
d.
extended-rebuy
e.
modified-rebuy
115. Texas Instruments has developed a detailed Values and Ethics Statement and Code of Business
Conduct. Why did they choose to create this?
a.
Because it makes TI look good
b.
TI’s suppliers will only buy from them if they have this statement
c.
U. S. law requires a code of ethics
d.
Consumers demand ethical practices
e.
A Code of Ethics helps guide buyers and sellers and overall helps the company to follow
ethical practices
116. Which of the following is becoming increasingly more important in business marketing strategies?
a.
customer service
b.
price collusion
c.
ethnocentrism
d.
the divider effect
e.
competitive advertising
NARRBEGIN: Etruscan Railing
Etruscan Railing Company
Etruscan Railing Company makes railing that is used in sports arenas, nursing home corridors,
queue houses at amusement parks, and many other places that are not as obvious. Its railing is molded
into bicycle racks. You may also see city governments using the railing to make walkways over
ravines and creek banks safer for pedestrian traffic. Hospitals also use the railing in their physical
therapy departments, to keep the lines straight in the hospital cafeteria, and to prevent patients from
falling out of hospital beds.
NARREND
117. Refer to Etruscan Railing Company. Etruscan Railing sells:
a.
consumer products
b.
business products
c.
supplies
d.
consumer and business products
e.
major equipment
118. Refer to Etruscan Railing Company. When Etruscan sells railing to contractors to use in building
loading docks in accordance with federal government regulations, it is selling to:
a.
government
b.
institutions
c.
resellers
d.
producers
e.
consumers
119. Refer to Etruscan Railing Company. When Etruscan sells railings to refurbish a private university’s
football stadium, it is selling to a(n):
a.
intermediary
b.
institution
c.
reseller
d.
producer
e.
consumer
120. Refer to Etruscan Railing Company. Etruscan has experienced a strong increase in railing sales as a
result of the growth of college football. This increase in the demand for railings as a result of the
demand for new football stadiums is called _____ demand.
a.
joint
b.
derived
c.
inelastic
d.
fluctuating
e.
elastic
121. Refer to Etruscan Railing Company. Companies that make bicycle racks for bike safekeeping in public
places receive the railing as 30-foot lengths of pipe. For these companies, Etruscan railing is:
a.
supplies
b.
accessory equipment
c.
an installation
d.
processed material
e.
raw material