NARRBEGIN: FAA
FAA
The Federal Aviation Administration has been struggling for several years with antiquated systems,
and all it takes is a single failure on one piece of the system to shut down the entire air-traffic control
system for several hours, resulting in significant snarls at major airports. The most recent failure
occurred in the FAA’s core telecommunications network, called the Federal Telecommunications
Infrastructure (FTI), which is managed by Harris Corporation. Marc Raimondi, a spokesperson for
Harris Corporation, said, “The FTI system has proven to be one of the most reliable and secure
communications networks operating within the civilian government.” Snafus like this have been
happening with alarming frequency, prompting Congress to demand the FAA and its contractors to do
more to prevent these malfunctions. The problem is that the FAA has been using a patchwork
approach by updating with modern hardware and software on old systems instead of a complete
overhaul of the system. The FAA’s next generation of modernization will rely on satellite-based
networks instead of phone lines and data cables. The FAA is waiting for White House approval on
whether it will have the funds to take this next step.
NARREND
122. Refer to FAA. The FAA is what type of business buyer?
a.
producer
b.
reseller
c.
government
d.
institution
e.
unbiased
123. Refer to FAA. The company that wins the contract to develop the satellite-based system for the FAA
will have to purchase satellites and mainframe computers for this system. These types of products are
best described as which type of business product?
a.
raw materials
b.
processed materials
c.
accessory equipment
d.
business equipment
e.
major equipment
124. Refer to FAA. Harris Corporation provides which type of business product to the FAA?
a.
major equipment
b.
accessory equipment
c.
raw materials
d.
business services
e.
component parts
125. Refer to FAA. Ultimately, The FAA must get authority from the President to spend the billions of
dollars necessary to upgrade the system because Congress must authorize the funds and the President
must approve that authorization. In terms of the buying center, the President is the:
a.
initiator
b.
gatekeeper
c.
purchaser
d.
decider
e.
user
126. Refer to FAA. When the FAA purchases a satellite-based system, this will be a situation in which it is
purchasing an entire system, not just a modified part or new vendor for existing parts. Basically, this
is a situation in which the FAA will be purchasing a system for the first time and is referred to as a(n):
a.
straight rebuy
b.
modified rebuy
c.
new buy
d.
original equipment purchase
e.
primary purchase
127. Refer to Lucent Technologies. Lucent Technologies sells:
a.
consumer products
b.
business products
c.
supplies
d.
consumer and business products
e.
installations
128. Refer to Lucent Technologies. Lucent Technologies depends on AT&T but also has found it necessary
to form cooperative partnerships with other technology, telecommunications, and software firms.
Lucent has found it necessary to form:
a.
strategic alliances
b.
relationship contracts
c.
outsourcing vendor liaisons
d.
bargaining positioning grids
e.
market groupings
129. Refer to Lucent Technologies. First National Bank of Chicago, one of AT&T’s customers, claims the
new network helped the bank win a huge contract from the U.S. Treasury. For classification purposes,
First National Bank would be which type of customer?
a.
producer
b.
reseller
c.
government
d.
institution
e.
wholesaler
130. Refer to Lucent Technologies. Consumers utilizing the First National Bank of Chicago to purchase
U.S. Treasury bonds will affect the demand for and use of the AT&T network computer system
capabilities. This is called:
a.
joint demand
b.
inelastic demand
c.
derived demand
d.
fluctuating demand
e.
elastic demand
131. Refer to Lucent Technologies. AT&T requires its customers to purchase all the necessary technology
to run the network. This requires expensive machinery that will be purchased and then depreciated
over time. The machinery is classified as:
a.
processed materials
b.
accessory equipment
c.
installations
d.
supplies
e.
component parts
NARRBEGIN: Baseball Dirt
Baseball Dirt
Dirt is not dirt when it comes to baseball fields. About two-thirds of the pro baseball fields got their
dirt from a dirt farm in New Jersey called Partac Peat. The company markets a secret mix for the
infield (resilient), the warning track (extra crunchy), and the pitcher’s mounds (firm). Mounds come in
red, brown, orange, and gray colors. Roger Bossard, the White Sox head groundskeeper, scouted
nationwide for dirt before settling on the mix provided by Partac Peat. (He uses sand under the grassy
areas of the playing field.)
NARREND
132. Refer to Baseball Dirt. Some of the dirt sold by Partac Peat is used to make clay tennis court surfaces.
As the number of people playing tennis increases so does the demand for new clay courts and,
therefore, the demand for Partac Peat. This occurs because the demand for Partac Peat is:
a.
inelastic
b.
intangible
c.
heterogeneous
d.
derived
e.
elastic
133. Refer to Baseball Dirt. An increase in the price of Partac Peat will not affect the demand for the
product because many groundskeepers believe there is no substitute for the product. Thus, demand for
Partac Peat is:
a.
inelastic
b.
intangible
c.
heterogeneous
d.
synergistic
e.
elastic
134. Refer to Baseball Dirt. Because Partac Peat is a business product, the primary promotional method
used for its sale is:
a.
trade promotions
b.
slotting allowances
c.
personal selling
d.
advertising in consumer magazines
e.
publicity
135. Refer to Baseball Dirt. What type of business product would Partac Peat be since it is used in the
making of baseball fields?
a.
equipment
b.
accessory equipment
c.
capital item
d.
processed materials
e.
component parts
136. Refer to Baseball Dirt. Roger Bossard, the White Sox head groundskeeper, most likely did NOT
assume which of the following buying center roles since he has the authority to buy whatever is
needed to make the baseball field the best playing surface possible?
a.
gatekeeper
b.
decider
c.
evaluator
d.
influencer
e.
initiator
137. Refer to Baseball Dirt. The first time Roger Bossard purchased Partac Peat, it was most likely an
example of which type of buying situation?
a.
modified rebuy
b.
new buy
c.
habitual buying decision
d.
buying heuristics
e.
straight rebuy
NARRBEGIN: Claxton Fruitcakes
Claxton Fruitcakes
One common Christmas tradition in many households is the Claxton fruitcake. The fruitcake bakery in
Claxton, Georgia, makes about 6 million pounds of fruitcake annually and has $12 million in sales.
One fruitcake batch weighs 375 pounds. About 70 percent of that weight is fruits and nuts. A single
batch is divided into 34 loaf pans that hold 11 pounds each. Loaves are cooked for 100 minutes at 375
degrees. The bakery can cook 6,000 pounds at a time. During the baking season (August-December),
the bakery uses a tractor-trailer load of raisins each day. The suggested retail price of a one-pound
Claxton fruitcake is $3.69.
NARREND
138. Refer to Claxton Fruitcakes. Because demand for raisins to bake into the fruitcakes does not change on
the basis of the price fluctuations of dried fruits, Claxton’s demand for raisins is an example of _____
demand.
a.
inelastic
b.
derived
c.
fluctuating
d.
elastic
e.
joint
139. Refer to Claxton Fruitcakes. In terms of business-to-business products, the large ovens in which the
cakes are baked are examples of:
a.
component parts
b.
MRO equipment
c.
specialty equipment
d.
processed supplies
e.
major equipment
140. Refer to Claxton Fruitcakes. In terms of business-to-business products, the flour used in fruitcakes is
an example of:
a.
OEM supplies
b.
installations
c.
MRO supplies
d.
processed materials
e.
accessory supplies
141. Refer to Claxton Fruitcakes. Any company that purchased Claxton fruitcakes to give to its customers
would treat this purchase like any other purchase and evaluate the cake and the company in terms of:
a.
demand, value, and promotion
b.
quality, service, and price
c.
order time and delivery time
d.
customer relationships, costs, and ethical behavior
e.
time requirements, order speed, and customer reactions
142. Refer to Claxton Fruitcakes. For a corporation that has been giving its key customers Claxton
fruitcakes since 1950, placing the order for cakes to be delivered this year would be an example of a
_____ because some negotiation about price and quantity must occur each year.
a.
new buy
b.
contingency buy
c.
modified rebuy
d.
situational buy
e.
straight rebuy
NARRBEGIN: Rock-Tenn
Rock-Tenn
Rock-Tenn produces packaging products. They make cartons that will hold a dozen Dunkin’ Donuts,
waffle fries for Chik-fil-A, Gillette razors, Haagen -Daz ice cream, express mail envelopes for FedEx
and much more. Rock-Tenn business fluctuates depending on consumer demand. As plastic products
become more expensive companies turn to cardboard and paper to package their products.
NARREND
143. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. This is an example of _____.
a.
business marketing
b.
consumer marketing
c.
Internet marketing
d.
retail marketing
e.
complex marketing
144. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. The business market consists of four categories of business customers. Rock-Tenn’s
customers are an example of a _____.
a.
producers
b.
resellers
c.
governments
d.
institutions
e.
all of the above
145. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. Rock-Tenn buys paper, wood chips, and supplies from companies to make its
cartons. Rock-Tenn would be considered a(n) _____.
a.
FAQ
b.
NAICS
c.
OEM
d.
NP
e.
LOL
146. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. As long as there is a demand for Dunkin’ Donuts, there will be demand for their
dozen-donut cartons, which will ensure demand for paper to manufacture into cartons. This is an
example of _____ demand.
a.
derived
b.
inelastic
c.
joint
d.
consumer
e.
upward
147. The demand for Rock-Tenn’s cardboard cartons depends on how many Dunkin’ Donuts, Chick-fil-A
waffle fries and Chinese take-out meals consumers order. This is an example of _____ demand.
a.
inelastic
b.
derived
c.
joint
d.
fluctuating
e.
elastic
148. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. As demand for their products increased due to rising plastic prices, Rock-Tenn had
to acquire other plants and equipment to help in its business. This is an example of the _____.
a.
customer accelerator
b.
volume principle
c.
growing principle
d.
marketing effect
e.
multiplier effect
149. Refer to Rock-Tenn. Power tools used to maintain the machinery that produces cartons would be an
example of _____.
a.
major equipment
b.
accessory equipment
c.
raw materials
d.
component parts
e.
processed materials
150. Refer to Rock-Tenn. Lubricants used to maintain the machinery that produces cartons would be an
example of _____.
a.
major equipment
b.
accessory equipment
c.
raw materials
d.
supplies
e.
processed materials
151. Refer to Rock-Tenn. A paper producing company sales representative wants to do business with Rock-
Tenn. He/She needs to locate the person who actually negotiates the purchase, in other words, the
_____ in the buying center.
a.
influencer
b.
gatekeeper
c.
decider
d.
purchaser
e.
user
152. Refer to Rock-Tenn. A sales representative from a paper producing company calls on Rock-Tenn
routinely every month to review their ordering needs. The monthly sale of paper to Rock-Tenn would
constitute a:
a.
new buy
b.
modified rebuy
c.
straight rebuy
d.
modified new buy
e.
straight new buy
ESSAY
1. What is business marketing, and what is the key characteristic distinguishing business products from
consumer products.
2. The use of the Internet to facilitate activities between organizations has evolved and grown rapidly
throughout its short history. Define B2B e-commerce and discuss the evolution of e-business
initiatives.
3. Discuss how businesses measure online success.
4. Discuss the difference between disintermediation and reintermediation. Give an example of a company
you are aware of that used these strategies.
5. What is a strategic alliance? How is it linked to relationship marketing?
6. Briefly describe the four major categories of customers in business marketing. Give examples of
companies or organizations in each category.
7. Describe the reseller market. Why do businesses use the services of business product distributors?
8. Discuss how institutional customers differ from other types of business customers such as producers or
resellers. Give two points of differentiation.
9. A Brazilian manufacturer of solar cells used as a renewable source of energy in all types of structures
would like to begin distribution and sales in the United States, Canada, and Mexico. The manufacturer
has hired you to investigate NAICS data for such products in North America. What is the NAICS
system? What other helpful kinds of information can be found in this source?
10. Explain the four ways demand in business markets differs from demand in consumer markets.
11. Name and briefly describe five of the major differences between business and consumer markets.
12. What is reciprocity? Is it illegal or unethical? Why or why not?
13. Briefly define and describe each of the categories of business goods and services. Give two specific
examples of goods or services that fit into each category.
14. What is a buying center? What are some implications of buying centers to the marketing manager?
15. Assume you are the vice-president of marketing in a medium-sized company that includes the
following departments: marketing, finance, purchasing, data processing, and production. The sales
force manager has mentioned to you that one of the salespersons thought a Web-based salesforce
automation service would help the sales force become more efficient. The sales manager requests that
this service be purchased. Illustrate the six buying decision roles that would take place for the purchase
of this service.
16. Business buyers use a variety of criteria to evaluate alternative products and suppliers. Name and
define specific aspects of the three most important criteria.
17. Cascade Landscaping Service (CLS) has decided to purchase computer-assisted-design (CAD)
software for landscape design. Describe the conditions under which each of the three business buying
situations would take place.
18. Why is customer service an important factor in business marketing?
19. You overhear a salesperson saying, “I don’t do anything with my straight-rebuy customers because
they don’t expect any service.” Comment on his statement.