Name:
Class:
Date:
Indicate whether the statement is true or false.
1. As compared to business-to-business marketing, consumer marketing puts greater emphasis on advertising.
a.
True
b.
False
2. Aitzen Systems sources all the required components and raw materials necessary for making a computer system from
various suppliers in the country and assembles them to create a final product. Aitzen is engaging in multiple sourcing.
a.
True
b.
False
3. The NAICS categorizes the business marketplace into more detailed market segments compared to the SIC system and
can be used across borders.
a.
True
b.
False
4. Gatekeepers in the buying center affect the buying decision by determining which individuals within the organization
will be part of the buying process.
a.
True
b.
False
5. Merchandisers are trade sector buyers who secure needed products at the best possible prices.
a.
True
b.
False
6. Organizational purchasing decisions tend to be standardized, resulting in the same procedures being used for both
capital and expense items.
a.
True
b.
False
7. A firm deciding to purchase more energy-efficient machines in response to rising fuel prices illustrates the first step in
the business buying process.
a.
True
b.
False
8. Demand characteristics remain the same across business and consumer markets, although the marketing techniques tend
to vary.
a.
True
b.
False
9. Sales personnel must be well versed in the technical features of their products, to effectively address the concerns of all
people involved in the buying decision.
a.
True
b.
False
10. Centralized buying tends to emphasize short-term results rather than focusing on long-term relationships.
a.
True
Name:
Class:
Date:
b.
False
11. Personal selling skills and user preferences carry more weight in decentralized purchasing situations than in
centralized buying.
a.
True
b.
False
12. A company’s buying center encompasses everyone who is involved in any aspect of its buying activity.
a.
True
b.
False
13. Reciprocity tends to simplify B2B buying behavior for new suppliers who are trying to compete with preferred
vendors.
a.
True
b.
False
14. Technological change is an environmental factor influencing business buying decisions.
a.
True
b.
False
15. The term “reseller” is often used to describe marketing intermediaries who operate in trade industries.
a.
True
b.
False
16. Group purchasing is an important factor in institutional markets as institutions often join cooperative associations to
pool purchases for quantity discounts.
a.
True
b.
False
17. When Cannondale purchases aluminum for use in its bicycle frames, the company is participating in the commercial
market.
a.
True
b.
False
18. Reciprocal arrangements traditionally have been common in industries featuring heterogeneous products.
a.
True
b.
False
19. Organizational purchases such as office buildings and computer systems can be categorized as expense items.
a.
True
b.
False
20. Institutional markets are characterized by widely diverse buying practices.
a.
True
b.
False
Name:
Class:
Date:
21. The NAICS classification system is a useful tool for segmenting business markets by demographic characteristics.
a.
True
b.
False
22. The primary motivation of government purchasing is to provide some form of public benefit such as national defense
or pollution control.
a.
True
b.
False
23. General Services Administration is responsible for procuring goods and services for the U.S. government’s
Department of Defense.
a.
True
b.
False
24. In some cases, outsourcing and offshoring can reduce a company’s ability to respond quickly to the marketplace.
a.
True
b.
False
25. The business market features a limited number of buyers compared to consumer markets.
a.
True
b.
False
26. Governmental organizations represent the largest segment of the B2B marketplace.
a.
True
b.
False
27. Outsourcing and offshoring have the potential to slow a company’s efforts in bringing new products to market.
a.
True
b.
False
28. Poor service or poor delivery performance by a current supplier can provoke a modified rebuy decision from the
customer.
a.
True
b.
False
29. Buying practices can differ among institutions of the same type.
a.
True
b.
False
30. Business marketers advertise primarily to announce new products and to attract potential customers.
a.
True
b.
False
31. Capital items are items that are consumed within short time periods.
a.
True
b.
False
Name:
Class:
Date:
32. The Federal Trade Commission in the United States views reciprocal arrangements as attempts to reduce competition.
a.
True
b.
False
33. Geographic location is one of the criteria considered during demographic segmentation of the business market.
a.
True
b.
False
34. India is the most preferred destination for production offshoring.
a.
True
b.
False
35. With the help of customer relationship management systems, businesses can segment their customers in terms of the
stage of the relationship between the business and the customer.
a.
True
b.
False
36. The consumer market equivalent of new-task buying is limited problem solving.
a.
True
b.
False
37. In the automobile industry, suppliers of components and assemblies frequently build plants close to their customers.
a.
True
b.
False
38. Turning to outside vendors to provide goods or services that were formerly produced in-house is referred to as
outsourcing.
a.
True
b.
False
39. The buying center is an informal group whose size and composition varies among purchase situations and firms.
a.
True
b.
False
40. Most of the early Internet marketers failed because they did not consider basic marketing principles such as targeting
their customers and making sure to fulfill their needs.
a.
True
b.
False
41. Depreciation is an accounting term that refers to charging a portion of an expense item’s cost against the company’s
annual revenue for purposes of determining their net income.
a.
True
b.
False
42. Relationships in consumer markets are often more complex than those in business-to-business markets.
Name:
Class:
Date:
a.
True
b.
False
43. The primary purchasing need of an organization is meeting the demands of its own customers.
a.
True
b.
False
44. By law, most federal purchases must be awarded on the basis of bids, or written sales proposals, from vendors.
a.
True
b.
False
45. The sixth digit of the NAICS codes accounts for specific data needs of each of the member nations of NAFTA.
a.
True
b.
False
46. A straight rebuy is the business market equivalent of extended problem solving in the consumer market.
a.
True
b.
False
47. If a company wants to concentrate its resources on its core business, it may be wise to outsource support functions.
a.
True
b.
False
48. Relationship marketing focuses on developing long-term, value-added customer relationships.
a.
True
b.
False
49. Competitive bidding is more common in the business sector compared to consumer markets.
a.
True
b.
False
50. Members of the trade industries acquire products primarily to support the production of other goods and services.
a.
True
b.
False
51. A firm evaluating a supplier’s performance in categories such as EDI capability, delivery time, and attention to special
requests is carrying out vendor analysis.
a.
True
b.
False
52. New-task buying situations require considerable effort by the decision makers.
a.
True
b.
False
53. A straight rebuy is a recurring purchase decision in which a customer reorders a product that has satisfied its needs in
the past.
Name:
Class:
Date:
a.
True
b.
False
54. Purchases made under cost-reimbursement contracts offer more profit potential to the government than the fixed price
contracts.
a.
True
b.
False
55. If Product A is used primarily to manufacture Product B, then the demand for product A is said to be “derived” from
the demand for Product B.
a.
True
b.
False
56. Organizational buyers tend to have much more precise and complex requirements for goods and services than ultimate
consumers.
a.
True
b.
False
57. Purchasing decisions in the B2B sectors are more complex, take longer to negotiate, and often include many levels of
decision making.
a.
True
b.
False
58. The commercial market consists of wholesalers and retailers who purchase goods primarily to sell it to the final
consumers.
a.
True
b.
False
59. Sole sourcing refers to the systematic study of the components of a purchase to determine the most cost-effective
approach.
a.
True
b.
False
60. A company that groups its customers into categories like manufacturers, wholesalers, and retailers based on buyer’s
product specifications, is using the psychographic segmentation approach.
a.
True
b.
False
61. Firms usually sell fewer standardized products to organizational buyers than to ultimate consumers.
a.
True
b.
False
62. The distribution channels in consumer markets are relatively shorter compared to those in business markets.
a.
True
b.
False
63. Personal selling plays a much bigger role in consumer markets than in business markets.
Name:
Class:
Date:
a.
True
b.
False
64. Both consumer and business purchase decisions begin when the recognition of problems, needs, or opportunities
triggers the buying process.
a.
True
b.
False
65. Airlines continue to purchase the same amount of fuel in order to meet their operational needs regardless of the rise in
prices of jet fuel. The type of demand for jet fuel in the above situation is an example of an inelastic demand.
a.
True
b.
False
66. As the demand for personal computers increases, the demand for microprocessor chips will also increase. This is an
example of derived demand.
a.
True
b.
False
67. B2B relationships tend to last longer than those in the consumer market.
a.
True
b.
False
68. Firms that practice sole sourcing tend to order from a large pool of suppliers to hedge the risk of failure of one
supplier.
a.
True
b.
False
69. A buying center is a basic component of a firm’s formal organizational structure.
a.
True
b.
False
70. Global sourcing involves contracting with suppliers from around the world to purchase goods and services.
a.
True
b.
False
71. In business markets, discounts and distribution functions have proven to be ineffective in obtaining or keeping
institutions as customers.
a.
True
b.
False
72. Modified rebuys resemble routinized response behavior in consumer markets.
a.
True
b.
False
73. International buying centers often involve more participants than U.S. companies involve.
a.
True
Name:
Class:
Date:
b.
False
74. Not-for-profit organizations are considered to be a part of the business market.
a.
True
b.
False
75. Manufacturing the products in-house is always the best way for companies to acquire needed products.
a.
True
b.
False
76. Social goals influence governments to purchase goods and services from small firms and companies owned by
minorities and women.
a.
True
b.
False
77. For U.S. based firms, Mexico is an attractive location for nearshoring operations.
a.
True
b.
False
78. The federal government is the largest single source of statistical information on business markets.
a.
True
b.
False
79. End-use application segmentation focuses on the precise way in which a business purchaser will use a product.
a.
True
b.
False
80. The buyer has the formal authority to select a supplier and to implement the procedures for securing the good or
service.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
81. Businesses choose outsourcing as an alternative to making goods in-house or providing in-house services when:
a.
they want to reduce the amount of depreciation indicated on their books of account.
b.
proprietary technology has the potential to raise security concerns.
c.
conflicts arise between nonunion outside workers and in-house union employees.
d.
the company needs to reduce costs to remain competitive.
82. When a consumer purchases an item that she previously bought and found acceptable, it would be considered an
example of _____________.
a.
modified rebuying
b.
straight rebuying
c.
new-task buying
d.
reciprocity
Name:
Class:
Date:
e.
vendor analysis
83. Delhaise, a leading service provider in hospitality industry, segments its business clients based on the services
required by them, in order to meet their specific requirements. They modify their services based on the needs of the
clients. Which of the following segmentation approach is being employed by Delhaise?
a.
End-use application segmentation
b.
Customer-based segmentation
c.
Geographic segmentation
d.
Demographic segmentation
84. Toyota uses steel in the manufacturing process of automobiles in factories around the world. The price of steel may
vary at different times throughout the year but Toyota only purchases the amount of steel needed to maintain their output
goals at each facility. Thus, if the price increases, Toyota continues to purchase the amount of steel needed to build the
number of cars they have determined to build. For Toyota, the demand for steel is most likely:
a.
inelastic
b.
elastic
c.
derived
d.
joint
85. A new employee in your company is confused. She was hired to help with purchasing, but she’s been told that she will
be busiest after purchases have been concluded — in other words, after vendors have been chosen and their goods have
been supplied. Will this employee be involved in the organizational buying process?
a.
Yes, by obtaining feedback and evaluating performance.
b.
Yes, by evaluating proposals.
c.
Yes, by qualifying vendors.
d.
No, because the process will be over when she gets involved.
e.
No, because she will not have a say in vendor selection.
86. Multiple sourcing is defined as purchasing from several vendors. Which of the following is an advantage of multiple
sourcing?
a.
protects a firm from shortages
b.
interacting with multiple vendors is more efficient
c.
enables a firm to use a centralized purchasing strategy
d.
purchasing agents can save time
87. Which of the following is the largest segment of the business market?
a.
Trade industries, which include retailers, wholesalers, and resellers
b.
The commercial market, which includes anyone who acquires products to support production of other goods
and services
c.
Government organizations, including the military, state, and federal governments
d.
Institutions such as hospitals and churches
88. Which of the following inventory practices seeks to boost efficiency by cutting inventories to absolute minimum
levels?
a.
Inventory bounce
Name:
Class:
Date:
b.
Just-in-time policy
c.
Stock obsolescence
d.
Perpetual inventory management
89. Kobe is an account executive with Stryker, a medical device company. He and his team have prepared a document to
submit to a regional hospital to become their primary vendor for medical devices within the hospital system. The
document will be reviewed by the hospital purchasing department and Stryker will be compared to other suppliers vying
for the opportunity to assist with the hospital with their medical device needs. What stage in the buying process does this
reflect?
a.
acquire and analyze proposals
b.
recognize problem and general solution
c.
describe characteristics and quantity
d.
select order routine
90. Which is the largest single source of statistical information on the sizes and characteristics of business markets?
a.
The North American Industry Classification System
b.
Business publications
c.
Auditing firms such as PricewaterhouseCoopers
d.
Federal government
91. Which of the following is true of expense items purchased by organizational buyers?
a.
The cost of these products is charged against the income of the company in the year of purchase.
b.
The net income of these products is determined by charging a portion of their cost against the company’s
annual revenue.
c.
These items are long lived business assets that must be depreciated over time.
d.
All major expenses such as setting up new plants, equipments and machinery are included in this category.
92. _____ is an accounting term that refers to charging a portion of a capital item’s cost as a deduction against the
company’s annual revenue for purposes of determining its net income.
a.
Valuation
b.
Depreciation
c.
Accretion
d.
Depletion
93. Institutions are a major component of the business market that:
a.
tend to have greater financial resources than industrial customers.
b.
consist of wholesalers and retailers, who sell the products they buy to final consumers.
c.
include wide variety of organizations that often have diverse buying practices.
d.
acquire products mainly to indirectly support the production of other goods and services.
94. You work for a clothing merchandiser that has been using the same fabric manufacturer for the last decade. When a
new designer joins the team, he asks the team if they have considered using an alternative fabric manufacturer whose
prices are more affordable. The team is mainly concerned about sacrificing quality and style for cheaper prices, but the
new designer assures everyone that there are companies out there that produce high quality goods at reasonable rates. The
team decides to research possible alternatives.
Name:
Class:
Date:
Required:
Which of the following purchase behaviors is represented in the business buying situation described above?
a.
extended problem solving
b.
limited problem solving
c.
impulse buying behavior
d.
low-involvement decisions
e.
routinized response behavior
95. In an effort to better structure the purchasing process, a company may use _____________ to standardize buying
decisions. A skilled marketer understands the client’s ____________ and realizes that many companies purchase from
several vendors, so this pattern is taken into account when the marketer formulates a marketing proposal.
a.
systems integration; interpersonal influences
b.
organizational factors; systems integrations
c.
systems integration; organizational factors
d.
merchandisers; environmental factors
e.
interpersonal influences; organizational factors
96. When firms in business markets are grouped based on their sales revenues, they are said to be segmented by:
a.
customer type.
b.
purchase category.
c.
end-use application.
d.
demographic characteristics.
97. _____ is a combination of strategies and tools that drives relationship programs, reorienting the entire organization to
a concentrated focus on satisfying buyers.
a.
Data warehousing
b.
Business process reengineering
c.
Value engineering
d.
Customer relationship management
98. Adam, a purchasing agent for an automobile manufacturer, is making a list of payroll services suppliers available in
the market. In which stage of the organizational buying process is Adam?
a.
Recognizing a problem or opportunity
b.
Determining the characteristics and quantity of the needed service
c.
Describing the characteristics of the needed service
d.
Searching for and qualifying potential sources
99. Once a search for suppliers is completed and the company makes the suppliers aware of its needs, the company will
begin:
a.
obtaining feedback from its customers.
b.
notifying the distribution channels of the new product introduction.
c.
acquiring and analyzing proposals.
d.
selecting an order routine.
100. Which of the following is a possible disadvantage of outsourcing?
Name:
Class:
Date:
a.
It increases the expenses incurred by the company to remain competitive in the market.
b.
It compromises on the quality and speed of production.
c.
It slows down the company’s efforts in bringing new products to market.
d.
It is not suitable for jobs such as human resources and accounting.
101. You work for a uniform manufacturer that sells to police departments, supermarkets, and airlines. For segmentation
purposes, its customers are grouped into three categories: government agencies (police), retailers (supermarkets), and
service providers (airlines). This is segmentation by _______:
a.
end-use application
b.
purchase categories
c.
customer type
d.
North American Industry Classification
e.
geographic characteristics
102. DigiSmart, a manufacturer of electronic goods in Canada, has moved its manufacturing operations to Costa Rica.
This move has helped the company to reduce its production costs and also allowed it to focus on the product design and
research activities that lead to new products. The movement of business in this case is an example of _____.
a.
leasing
b.
offshoring
c.
inshoring
d.
global integration
103. Which of the following is one of the four major categories that define the business market?
a.
Stock exchanges
b.
Governmental organizations
c.
Labor unions
d.
Lobbying groups
104. Purchasing a firm’s entire stock of an item from just one vendor is termed as:
a.
multiple sourcing.
b.
sole sourcing.
c.
outsourcing.
d.
inverted sourcing.
105. Tiffany is the purchasing manager for electronic components that are kept in inventory for a large electrical
contracting company. Tiffany sources most of these items from Fastenal and is thrilled with their ability to help her
maintain the appropriate level of inventory for the various items. Fastenal has a computer system to assist Tiffany with
her forecasting and can identify items that are “slow moving” or “fast moving”meaning that there are some items that are
used more frequently than others. Fastenal has also helped Tiffany to identify the inventory levels when reorders should
be placed so that she’s never out–of-stock in any items. Which stage of the purchasing process is Fastenal providing
assistance?
a.
select an order routine
b.
obtain feedback and evaluate performance
c.
evaluate proposals and select suppliers
d.
describe characteristics and the quantity of a needed good or service
Name:
Class:
Date:
106. A buying situation in which business purchasers are willing to reevaluate their available options is known as:
a.
a straight rebuy.
b.
a modified rebuy.
c.
new-task buying.
d.
value engineering.
107. The organizational buying process has more steps than the consumer buying process, which can be attributed to:
a.
shorter durations of customer relationships formed in business markets.
b.
less standardized products sold in consumer markets.
c.
lack of interpersonal and environmental influences on consumer buying decisions.
d.
relatively complex buying process with greater number of decision makers in business markets.
108. _____ involves movement of high-wage jobs from one country to lower-cost overseas locations.
a.
Insourcing
b.
Value engineering
c.
Offshoring
d.
Leasing
109. In order to receive quantity discounts on needed purchases, many institutions:
a.
tend to hoard products which are resold at lower prices.
b.
insist on equal treatment under the Robinson-Patman Act.
c.
join cooperative associations to pool purchases.
d.
implement customer relationship management.
110. Which of the following is the final step in the business buying process?
a.
Selecting an order routine
b.
Evaluating proposals and selecting suppliers
c.
Obtaining feedback and evaluating performance
d.
Acquiring and analyzing proposals
111. When an organization desires to purchase a finished product, a product part, or service, there are three basic options
from which the company can choose. They are:
a.
buying; leasing; offshoring
b.
making; buying; leasing
c.
making; buying; nearshoring
d.
leasing; offshoring; buying
e.
nearshoring; making; leasing
112. When the buying situation is important to marketers, they typically consider whether the customer has made previous
purchases or this is the customer’s first order, offering special rates or programs for valued clients. You work for a cell
phone company that provides the employees at its partner firms with discounts on monthly bills and new products. The
longer your partners’ employees have used your company’s services, the greater their discounts. Which of the following
systems can help your firm manage purchasing relationships?
a.
end-use application systems
Name:
Class:
Date:
b.
segmentation of customers by type
c.
The Standard Industrial Classification
d.
customer relations management tools
e.
The North American Industry Classification System
113. You are the manager of a clothing manufacturing firm with operations in different countries. Your Vietnamese
manufacturing facility is dedicated solely to producing elementary school uniforms for the U.S. market. Most of your
product output is sold to a larger school uniform company in the United States called School Uniforms, Inc. School
Uniforms, Inc. has major contracts with (and sells its uniforms to) school districts like the San Diego Unified School
District. In this scenario, the San Diego Unified School District is part of which of the following business markets?
a.
reseller market
b.
government market
c.
institutional market
d.
distributor market
e.
wholesaler market
114. The function performed by the gatekeeper in the company buying center is to:
a.
inform potential suppliers about the required specifications of the product.
b.
select a supplier and implement the procedures for securing the goods and services.
c.
choose which goods and services will actually be bought.
d.
control the information that all buying center members will review.
115. The demand for gold has remained the same in the market regardless of the rise in its price, because there is no other
replacement for the product. This type of demand experienced by gold is referred to as a(n) _____.
a.
joint demand
b.
inelastic demand
c.
versatile demand
d.
derived demand
116. Employee unions generally view outsourcing as a:
a.
way to stay competitive and preserve jobs.
b.
bargaining tool for higher wages.
c.
threat to their jobs and means of livelihood.
d.
means of reducing the overhead costs on production processes.
117. If the demand for a product stays almost constant throughout an industry regardless of the change in the price of the
product, it can be said that the product is experiencing a(n) _____ demand.
a.
derived
b.
joint
c.
volatile
d.
inelastic
118. Which of the following stages of the organizational buying process involves comparing vendors’ proposals?
a.
Searching for potential sources
b.
Acquiring and analyzing proposals
Name:
Class:
Date:
c.
Recognizing and determining the characteristics of a need
d.
Evaluating proposals and selecting suppliers
119. Praga is an automobile manufacturing company that makes cars. Praga buys steel, aluminum, paints, car engines and
other necessary components from various suppliers around the world and assembles them together to make a final
product. Praga belongs to the _____ component of the business-to-business market.
a.
commercial market
b.
trade industries
c.
institutions
d.
governmental organizations
120. Which of the following is true regarding leasing needed products from other organizations?
a.
It requires a high level of capital commitment.
b.
It increases the sunk costs incurred by a firm.
c.
It provides flexibility for a growing business allowing it to easily upgrade when needed.
d.
It makes it difficult for a firm to customize the product according to their needs.
121. The role of an influencer in a buying center is to:
a.
inform potential suppliers about the required specifications of the product.
b.
select the supplier and implement the procedures for securing the good.
c.
supply information to guide the evaluation of alternatives.
d.
make the actual buying decision.
122. Zardo, Inc. divides its customers into the following categories: manufacturers, retailers, government agencies, and
not-for-profit institutions. Which of the following type of segmentations is being used by Zardo?
a.
Segmentation by end-use application
b.
Segmentation by customer type
c.
Segmentation by demographic characteristics
d.
Segmentation by purchase categories
123. Which of the following is most likely to help marketers to segment organizational buyers by purchase categories?
a.
Business process reengineering
b.
Value engineering
c.
Management by objectives
d.
Customer relationship management
124. Connor is an account manager or sales representative with Sherwin Williams. He typically calls on facility managers
in hospitals, office buildings, apartment complexes and schools to discuss their paint and specialty coating needs. He’s
talking with his aunt at Thanksgiving and trying to explain the difference between his role as a sales representative and the
counter or inside sales representative that his aunt might encounter within the Sherwin Williams retail store. Which of the
following characteristics might be true for Connor in his role as a B2B sales representative with Sherwin Williams?
a.
Connor’s relationships with customers would last longer
b.
Connor’s customers can quickly make decisions
c.
The purchasing decision for Connor’s customers is very simple
d.
Connor typically works with only one person or decision-maker withing the buying organization
Name:
Class:
Date:
125. Vendors who would like to provide products or services to the federal government may need to work through the
GSA which is an abbreviation for _______, a central management agency involved in areas such as procurement, property
management, and information resources management.
a.
General Services Administration
b.
Government Supplies Authority
c.
General Supplies Administration
d.
Great Services Authority
126. The North American Industry Classification System (NAICS) uses __________ digits. The first ________ digits are
fixed among the members of the North American Free Trade Agreement (NAFTA).
a.
four; three
b.
six; four
c.
five; two
d.
six; five
e.
three; two
127. A _____ is a trade industry vendor who develops a comprehensive procurement plan for a retail buyer.
a.
category captain
b.
merchandiser
c.
boundary spanner
d.
gatekeeper
128. Jayden is a computer programmer who is employed for TekSystems. TekSystems recruits programmers and other IT
specialists to its company so they can fulfill needs on a contract basis with Fortune 500 companies such as Allstate and
Procter and Gamble. TekSystems is utilizing _____ to place it’s IT professionals within Fortune 500 firms for a limited
time to provide agreed-upon work products.
a.
outsourcing
b.
offshoring
c.
nearshoring
d.
job placement
129. Which of the following buying behaviors in the consumer markets is similar to new-task buying in business markets?
a.
Impulsive buying behavior
b.
Limited problem solving
c.
Extended problem solving
d.
Routinized response behavior
130. Which of the following is true of a buying center in an organization?
a.
The buying center is an integral part of a firm’s formal organizational structure.
b.
The composition of the buying center remains the same for all purchase situations.
c.
The buying center includes everyone involved in any aspect of the buying process.
d.
It is a group of people in an organization who are responsible for developing new product concepts.
131. Which of the following will be considered an institutional buyer?
Name:
Class:
Date:
a.
The Federal Government
b.
Wholesalers
c.
Hospitals
d.
Department of Defense
132. The government category of the B2B market primarily buys products:
a.
to sell it to the final consumers.
b.
to provide some form of public benefit.
c.
to export them to other countries.
d.
to improve its resale value.
133. Business markets differ from consumer markets in that, in business markets:
a.
the products sold are mostly standardized and fit broader market segments compared to consumer products.
b.
the distribution channels are longer as the product passes through a number of intermediate links.
c.
the buying process is less complex and involves fewer decision makers.
d.
advertising plays a much smaller role when compared to the consumer market.
134. Efforts to restore worn-out products to like-new condition is called _____.
a.
reverse engineering
b.
merchandising
c.
remanufacturing
d.
over-engineering
135. Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles
from a variety of suppliers in the United States and abroad. The volume of your raw materials purchases is a function of
the customer demand for your firm’s motorcycles. Which of the following best describes the type of demand your firm
has for these raw materials?
a.
forecasted demand
b.
volatile demand
c.
customer-driven demand
d.
joint demand
e.
derived demand
136. Which of the following can be categorized as a capital item purchased by organizational buyers?
a.
Office supplies
b.
Copy papers
c.
Production plant
d.
Machine lubricants
137. Trade industries are a component of business markets that include:
a.
manufacturers.
b.
resellers.
c.
end users.
d.
services providers.
Name:
Class:
Date:
138. You work for the Department of Education (DOE) in your county, which is responsible for ten elementary schools,
fifteen middle schools, and twelve high schools. At the beginning of each school year, the purchasing department at the
DOE must buy new textbooks and technological supplies, including tablets and computer software for student
personalized study plans.
Which of the following challenges might one infer from the scenario described above?
a.
Because the DOE has a diverse population, it should only work with businesses that value diversity.
b.
Vendors have a difficult time following the contractual obligations and guidelines that governmental firms
provide.
c.
Governmental businesses like the Department of Education have a hard time managing all of the purchases
they must make annually.
d.
Since the product end users typically work outside of the DOE, vendors need to understand the unique
challenges associated with working with governmental businesses.
e.
Because governmental entities hoard much of their funding until the fourth quarter, the business firms from
which they buy don’t make money until the fiscal year is coming to a close.
139. Adam Brooke is the superintendent for a school district and is responsible for making purchasing decisions for the
district. He has met with the technology staff and is reviewing proposals from vendors to replace the computers in the
labs. The district has purchased computers in the past and has considerable knowledge about buying computers.
However, the technology continues to evolve and Adam is willing to devote time to the decision so he and the staff can
make the best decision on behalf of the district, teachers and students. What type of buying decision does this situation
describe?
a.
modified rebuy
b.
new-task
c.
straight rebuy
d.
limited reorder
140. Menhir Systems, an information technology company in Germany has moved its customer service and accounting
operations to Austria to take advantage of the low labor costs. Also the closeness in geography and cultural values is an
added advantage in choosing Austria for these operations. Menhir Systems is engaging in _____.
a.
nearshoring
b.
inshoring
c.
leasing
d.
sole sourcing
141. Texas Instruments produces electronic chips used in a variety of devices, from cell phones to hand calculators. The
specifications of the chips change depending on the final product in which they are utilized. The company is most likely to
segment its customers based on:
a.
end-use application.
b.
purchase category.
c.
psychographic characteristics.
d.
demographic characteristics.
142. Which of the following locations would be ideal for a U.S. firm hoping to nearshore its operations?
a.
Poland
b.
China
Name:
Class:
Date:
c.
India
d.
Mexico
143. _____ refers to a first-time or unique purchase situation that requires considerable effort by decision makers.
a.
Straight rebuying
b.
New-task buying
c.
Primary buying
d.
Modified rebuying
144. Resellers are marketing intermediaries who mostly buy finished goods and resell them for a profit. Their business
structure means that they must consider several factors when deciding which products to buy. Which of the following
factors is a reseller least likely to consider?
a.
the level of demand for the product
b.
storage space required for the product
c.
the sales tax that must be charged on the product
d.
how the product fits within the product mix of the reseller’s other products
e.
the availability of technical assistance and training programs related to the product
145. You work for an airline company that has been leasing planes from two competing vendors. When a new vice
president (VP) of communications joins your company, he asks for a performance review on the two vendors. You realize
that your team has failed to keep thorough evaluations of the two companies, so you provide them with a formal
evaluation tool and ask them to obtain feedback from the two companies. A few weeks later you obtain an evaluation
letter from one of the vendors highlighting the following:
• The employees at our Cambodian site believe in our company’s overall mission and are committed to
employing cost cutting practices that do not forego our products’ value.
• Through minimizing time spent per product and by ensuring that all staff attend mandatory trainings, we
have been able to cut costs by 30%, streamline internal business systems, increase customer loyalty, and
increase customer satisfaction.
Which of the following items is missing from the performance evaluation?
a.
product quality
b.
budget and time
c.
effectiveness and efficiency
d.
relationships with internal staff
e.
whether companies use outsourcing
146. Janelle works in the purchasing department of an apparel manufacturing company and has the formal authority to
select a supplier. Janelle is a(n):
a.
buyer.
b.
influencer.
c.
gatekeeper.
d.
decider.
147. Institutions constitute another important market. Institutional buyers include a wide variety of organizations, such as
schools, hospitals, libraries, foundations, clinics, churches, and not-for-profit agencies. A small software company
Name:
Class:
Date:
develops computer programs for different business institutions. Which of the following challenges can this company
anticipate?
a.
Institutions do not have buying centers.
b.
Different institutions have varying buying practices.
c.
Some institutions employ a purchasing manager to make decisions.
d.
Social media and marketing make institutional buying more complex.
e.
Institutional businesses sometimes join cooperative associations to pool their purchases.
148. Paul is the quality-control specialist for a furniture manufacturer. His job is to develop specifications for every
potential purchase of wood and fabric. Within the buying center, Paul plays the role of a(n):
a.
Gatekeeper
b.
Decider
c.
Influencer
d.
Specialist
e.
Spec supervisor
149. Businesses follow a defined buying decision process in order to ensure the goods and services they purchase will
meet their organization’s needs. The process has multiple stages; in one of the stages the business will consider a proposal
usually given to them in writing by a supplier. This stage may include competitive bidding depending on the company.
This proposal consideration takes place in which of the following stages of the business buying decision process?
a.
first stage
b.
seventh stage
c.
third stage
d.
sixth stage
e.
fifth stage
150. Dell Computer purchases parts and resources for its computers from multiple suppliers that are spread across the
world. This practice is known as:
a.
offshoring.
b.
global sourcing.
c.
outsourcing.
d.
reciprocity.
151. The first stage in the eight-stage model of an organizational buying process involves:
a.
determining the characteristics and quantity of a needed good or service.
b.
searching for and qualifying potential sources.
c.
anticipating a problem, need, or opportunity and a general solution.
d.
establishing specifications for a needed good or service.
152. A company decides to ____________ a good or service it formerly made internally so that it can reduce its costs and
provide higher-value items to its consumers.
a.
outsource
b.
export
c.
offshore
d.
nearshore
Name:
Class:
Date:
e.
lease
153. The General Services Administration (GSA) is a central management agency of the U.S. federal government that:
a.
validates the laws and regulations governing business sales transactions in the United States.
b.
regulates purchases taking place in the mining industry.
c.
procures goods and services and is responsible for property management and information resources
management.
d.
regulates purchases taking place in the healthcare industry.
154. LifeCare, a small chain of hospitals, is looking to buy new medical equipment for its hospitals. The company decides
to look for various options available in the market rather than buying from their usual supplier, as they want new,
sophisticated features in the products. This buying situation in which the purchaser is willing to reevaluate its available
options is an example of _____.
a.
straight rebuy
b.
business process reengineering
c.
modified rebuy
d.
cross-docking
155. Nadine is an account manager with an insurance brokerage company who provides specialized services to K-12
public and private schools as well as churches and non-profit organizations. Which term best describes Nadine’s target
market?
a.
institutional market
b.
government market
c.
charity market
d.
commerce market
156. The organizational buying process differs from the consumer purchase process as the organizational buying process:
a.
involves few decision makers in making purchase decisions.
b.
is informal and less professional.
c.
requires a longer time frame because of complexity of the decisions.
d.
generally involves purchase of highly standardized products.
157. After buying sterile gloves from one vendor for many years, Mercy Hospital has now decided to search for a lower-
cost supplier. Which of the following is an accurate classification of Mercy’s buying situation?
a.
It is moving from straight rebuying to modified rebuying.
b.
It is moving from a repurchase to a reevaluation.
c.
It will engage in reciprocity.
d.
It will be involved in new-task buying.
e.
It is moving from standard buying to custom buying.
158. A negotiation process wherein each marketer develops its offer, including a price that will satisfy the criteria
determined by the customer’s problem, need, or opportunity, is known as:
a.
competitive bidding.
b.
decentralized buying.
c.
collective underwriting.
Name:
Class:
Date:
d.
systems integration.
159. Amy Lou works for a small business firm that specializes in the home furnishing design business. Amy Lou is the
head of the textiles department and coordinates with twenty-five textile manufacturers around the world to ensure that her
firm has the best supplies on the market. Each quarter, Amy Lou meets with each of the manufacturers and then brings
back her top picks to share with the rest of her team at her company. The company’s owner values Amy Lou’s opinions,
especially since the company’s profits have continually increased for ten years. This year; however, the company’s
overhead costs have increased, and Amy Lou and her team need to figure out why.
Required:
Which of the following can be said is a drawback of having Amy Lou serve in the role described above?
a.
Amy Lou controls all of the information about which types of textiles the firm should purchase.
b.
Amy Lou lacks formal authority when it comes to making decisions about the company’s budget.
c.
Amy Lou is inexperienced and makes poor choices that impact the firm’s bottom line negatively.
d.
Amy Lou’s decision to work with international buying centers has led to an increase in the firm’s overhead
costs.
e.
Amy Lou has to surrender her power to more influential team members when it comes to making purchase
decisions.
160. Now that you’ve rented a larger office space, you’ve decided to outsource the cleaning task instead of hiring more
janitors. Which of the following would not be a potential advantage of this decision?
a.
It may help reduce your costs.
b.
It may help improve the quality of the cleaning.
c.
It may help you concentrate your resources on your core business.
d.
You may be able to obtain a performance guarantee.
e.
It may eliminate the challenges involved in managing contracts and relationships.
161. Which of the following is a distinction between business (B2B) and consumer (B2C) markets?
a.
business markets are more complex
b.
consumer markets involve more decision makers
c.
customer service is more important for B2C purchasers
d.
advertising plays a larger role in business markets
162. Brooke is a pastry chef in a fine dining restaurant and enjoys creating one–of-a-kind desserts for the customers. She
recently graduated from pastry school and this is her first full-time job in a restaurant. Brooke reports to the head chef,
Brandon who oversees the kitchen and is responsible for creating the menu, managing and hiring staff, and placing orders
for supplies. Brooke mentioned to Brandon that she would like to have gluten free flour on stock so she can create
desserts that would meet the dietary needs of customers who have gluten allergies. Brandon thought that was a great idea
and appreciated Brooke’s recommendation. What role in the buying center did Brooke play regarding her discussion with
Brandon about flour?
a.
influencer
b.
decider
c.
gatekeeper
d.
buyer
Name:
Class:
Date:
163. Kendra is the office manager for a large legal firm and performs a variety of functions for the office. She
manages purchases of copying machines and printers and is responsible for placing orders for supplies such as
toner cartridges and paper. In general, Kendra is solely responsible for making decisions about the brand of
paper and toner used in printers and copying machines. What is her role as part of the buying center?
a.
buyer
b.
gatekeeper
c.
user
d.
influencer
164. Which of the following is one of the distinct characteristics that differentiates buying centers in foreign companies
from those in the U.S. companies?
a.
In U.S. companies, the participants in the buying centers have more trouble identifying deciders than foreign
marketers do.
b.
Foreign buying centers often include more participants than those involved in U.S. buying centers.
c.
U.S. buying centers have a more streamlined approach to organizational buying than foreign buying centers.
d.
Foreign buying centers usually involve separate individuals as gatekeeper and influencer, while U.S. firms
usually have the same person performing the roles of influencer and gatekeeper.
165. In recent years, large equipment manufacturers such as Caterpillar and Komatsu have focused on the mining industry
as a major growth area. However, in recent months the mining industry is showing signs of a recession and mines around
the world are reducing their output and laying off workers. Due to the decline in sales of raw materials coming from the
mine, Caterpillar has experienced a decline in sales of mining equipment. Which of the following best describes the
demand for Caterpillar equipment in the mining industry?
a.
derived
b.
volatile
c.
joint
d.
inelastic
166. _____ are trade sector buyers employed by organizations to secure needed products at the best possible prices.
a.
Resellers
b.
Merchandisers
c.
Category advisors
d.
Influencers
167. The demand for computer microprocessor chips depends on the demand for personal computers. This is an example
of a(n):
a.
joint demand.
b.
derived demand.
c.
volatile demand.
d.
inelastic demand.
168. Santiago is the manager of a Jimmy John’s franchise and is responsible for placing orders for all products and
services the restaurant utilizes. He has a great relationship with Cintas to provide cleaning equipment to sanitize the
bathrooms and kitchen/prep areas. Since Santiago is pleased with the items he purchases from Cintas, he simply
continues to order and is fairly loyal to his Cintas sales representative. What type of buying situation does Santiago utilize
Name:
Class:
Date:
when purchasing cleaning supplies from Cintas?
a.
straight rebuy
b.
modified rebuy
c.
new-task
d.
routinized response behavior
169. When a business purchaser reorders a product that has performed satisfactorily in the past without assessing
competing options, the buying situation is called:
a.
a straight rebuy.
b.
new-task buying.
c.
value engineering.
d.
a modified rebuy.
170. Chris works for Aon, a large commercial brokerage company who serves as the intermediary between customers who
need risk or insurance coverage and firms who provide the coverage – insurance carriers. Since Aon is one of the largest
brokerage firms in the world, they utilize ______ segmentation where they divide the business buyers into groups
according to their needs. For example, manufacturing firms would have specific requirements for insurance that might be
distinct from a public school or university. A municipality such as the city of Chicago would also have a different set of
needs that would result in a different mix of insurance coverage.
a.
customer-based
b.
demographic
c.
end-use application
d.
purchasing function
171. Organizational buyers engage in multiple sourcing to:
a.
counter the possibility of increased buying power.
b.
reduce the time taken to process purchasing decisions.
c.
ensure that a single vendor’s failure to deliver does not cause a shortage.
d.
bring down costs related to transportation and warehousing.
172. The system for grouping businesses that grew out of the NAFTA accord is known as the:
a.
Standard Industrial Classification System.
b.
Industrial Data Records System.
c.
International Organization for Standardization of Business.
d.
North American Industry Classification System.
173. Evaluating a supplier’s performance in categories such as price, EDI capability, delivery times, and attention to
special requests is known as:
a.
value analysis.
b.
customer relationship management.
c.
vendor analysis.
d.
task-based evaluation.
174. The segmentation of B2B marketplace based on how business purchasers will use the product is called:
a.
segmentation by purchasing category.
Name:
Class:
Date:
b.
segmentation by customer type.
c.
segmentation by end-use application.
d.
segmentation by demographic characteristics.
175. When the B2B market is segmented on the basis of product specifications issued by buyers, it is known as _____
segmentation.
a.
customer-based
b.
end-use application
c.
demographic
d.
purchase category
176. You are a sales representative for a major computer products company in Nashville, Tennessee. Lowe’s Home
Improvement is one of your major clients and you like to entertain the company’s employees regularly to maintain good
business relationships. Because you do not have an unlimited entertainment budget, you must be selective in regard to the
company employees whom you entertain. You want to make sure you are getting the greatest benefit for your
entertainment dollars. You have found that the most influential people in the company are those who control the flow of
information to everyone else in the organization. These are the people you want to spend your time and money
entertaining. Based on this finding, you should:
a.
spend your money and time entertaining the users in the company
b.
spend your money and time entertaining the influencers in the company
c.
spend your money and time entertaining the buyers in the company
d.
spend your money and time entertaining the gatekeepers in the company
e.
spend your money and time entertaining the deciders in the company
177. A firm has decided to purchase hybrid delivery vehicles in response to rising gasoline prices. Which step in the
business buying process does this illustrate?
a.
Determining the characteristics of the needed product
b.
Recognizing a problem or opportunity
c.
Searching for qualified sources
d.
Evaluating proposals and selecting suppliers
178. Zach is employed by Scott Paper Company and is a key account manager on the WalMart team based in Bentonville,
AR so he can be near the corporate headquarters of WalMart. Zach was selected to lead the WalMart purchasing team for
paper towels, toilet tissue and other paper products. He coordinates vendors, analyzes sales data, assists with plan-a-gram
layouts, and is responsible for interacting with other suppliers in addition to the purchasing and logistics teams at
WalMart. Zach’s role at WalMart is known as a(n):
a.
category captain
b.
lead merchandiser advisor
c.
category killer merchandiser
d.
channel captain
179. Which of the following components of B2B market includes all individuals and firms that acquire goods and services
to support production of other goods and services?
a.
Stock exchanges
b.
Commercial markets
c.
Governmental organizations
Name:
Class:
Date:
d.
Financial institutions
180. The centralization of the procurement function within an internal division or as a service of an external supplier is
known as:
a.
supply chain inversion.
b.
inventory perpetuation.
c.
systems integration.
d.
merchandising.
181. Which stage of the organizational buying process involves establishing specifications for a needed product?
a.
Recognizing a need
b.
Describing characteristics of a needed product
c.
Qualifying potential vendors
d.
Selecting an order routine
182. You recently raised your prices on the products you sell to your business customers. To your surprise, your
customers did not change the number of units they purchase from you. It was as if the price increase did not matter to your
customers. Which of the following types of business demand most accurately describes this situation?
a.
constant demand
b.
inelastic demand
c.
joint demand
d.
elastic demand
e.
derived demand
183. Which of the following is one of the industry categories created by the Standard Industrial Classification system?
a.
Health care and social assistance
b.
Professional, scientific, and technical services
c.
Information services
d.
Public administration
184. Horch is the biggest manufacturer of consumer goods in Germany. The company segments its business customers
into new and existing customer groups based on the stage of relationship between the company and the customer. This
helps the company develop different strategies for newly acquired customers and existing customers, who are interested in
making repeat purchases. Which of the following segmentation approaches is being used by Horch in the above scenario?
a.
Segmentation by customer type
b.
Segmentation by purchase categories
c.
Segmentation by end-use application
d.
Segmentation by demographic characteristics
185. The linkage between demand for a company’s output and its purchases of resources such as machinery, components,
supplies, and raw materials is referred to as a(n) _____.
a.
joint demand
b.
versatile demand
c.
inelastic demand
d.
derived demand
Name:
Class:
Date:
186. When a business pays for the use of an equipment owned by an outside supplier for a specified period of time, the
process is known as:
a.
outsourcing.
b.
supply inversion.
c.
leasing.
d.
nearshoring.
187. Which of the following buying center participants chooses a good or service, although another person may have the
formal authority to complete the sale?
a.
Decider
b.
Gatekeeper
c.
Boundary spanner
d.
Influencer
188. Which of the following statements is true regarding the nature of the business market?
a.
Distribution channels for business products are significantly longer than those for consumer products.
b.
As compared to business markets, customer relationships in consumer markets tend to last for longer duration.
c.
Personal selling plays a bigger role in business markets than in consumer markets.
d.
As compared to consumer markets, purchase decisions in business markets are relatively simple because of
relatively less number of decision makers.
189. Which of the following is most likely to be the reason behind why business purchasers shift from straight rebuy to
modified rebuy?
a.
To comply with the Sarbanes-Oxley Act
b.
To purchase a new product for the first time
c.
To address a change in the organizational hierarchy
d.
To address deterioration in supplier service or delivery
190. Jamie owns an engineering firm that provides engineering and design services to Fortune 500 firms. Jamie has
several offices in the United States and also employs engineers in India so his firm can provide services to his customers
24 hours each day. Jamie is using _______ by employing engineers in India.
a.
offshoring
b.
nearshoring
c.
outsourcing
d.
websourcing
191. Abel building solutions, a steel manufacturing company that supplies steel to various construction companies,
segments its customers based on the number of employees in the company and the sales revenue generated by it. This
strategy is used by Abel to develop specific marketing plans for their customers. Abel is segmenting its customers on the
basis of:
a.
demographic characteristics.
b.
service provided.
c.
buyer specifications.
d.
end-use application.
Name:
Class:
Date:
192. Cotton and polyester are used in the production of permanent press clothing. If the supply of cotton is reduced, there
will be an immediate effect on the demand for polyester. This relationship represents a(n):
a.
derived demand.
b.
elastic demand.
c.
volatile demand.
d.
joint demand.
193. Modified rebuys resemble _____ in consumer markets.
a.
impulsive buying behavior
b.
limited problem solving
c.
extended problem solving
d.
routinized response behavior
194. Carlita works for Dell Computers in their outbound call center as an inside sales representative. She primarily
focuses on small businesses – those with fewer than 10 employees. Based on Carlita’s customers, what type of
segmentation is Dell using?
a.
demographic
b.
customer-based
c.
end-use application
d.
purchase category
195. The practice of using outside vendors to provide goods and services that were formerly produced in-house is known
as _____.
a.
outsourcing
b.
sole sourcing
c.
supply chain inversion
d.
leasing
196. A manufacturer who produces glass for microwave oven doors, shower enclosures, and patio tabletops is likely to
segment his business customers on the basis of:
a.
geographic locations.
b.
end-use application.
c.
demographic characteristics.
d.
psychographic characteristics.
197. Which of the following service sectors was newly created by the NAICS to better reflect the economy of the 21st
century?
a.
Healthcare and social assistance
b.
Finance, insurance, and real-estate services
c.
Public administration
d.
Wholesale and retail trade
198. Which of the following factors is considered by marketers while segmenting business markets by purchase
categories?
a.
The precise way a business purchaser will use a product
Name:
Class:
Date:
b.
The complexity and precision of the requirements for goods and services
c.
The customer’s transaction history
d.
The sales revenues of the customer’s firm
199. An organization’s purchasing decisions can be influenced by such ______________ as a tornado destroying a
factory that produces supplies necessary for the organization’s operations.
a.
environmental factors
b.
interpersonal influences
c.
organizational factors
d.
merchandisers and category advisors
e.
impulse factors
200. Which of the following statements is true regarding the influence of organizational factors on purchasing decisions?
a.
Centralized buying tends to emphasize short-term results.
b.
Personal selling skills and user preferences carry more weight in decentralized purchasing situations.
c.
Consolidating vendor relationships increases the company’s overall expenses.
d.
Decentralized buying focuses more on long-term relationships with suppliers.
201. The identity of the _____ is the most difficult role for salespeople to pinpoint.
a.
user
b.
decider
c.
gatekeeper
d.
influencer
202. Susan works for Fashion Supply, a women’s clothing wholesaler. Her husband is employed by Target, the popular
retailer. Their older son has a job with a gourmet butcher, which supplies top-quality cuts of meat to fancy restaurants.
Their younger son was just hired by Lumber Liquidators, the discount flooring seller. Despite the diversity of their
employers, all of Sue’s family members work in the ____ segment of the business market.
a.
commercial
b.
institutions
c.
consumer
d.
trade
e.
regional
Indicate one or more answer choices that best complete the statement or answer the question.
203. Your Pies Inc. supplies desserts to restaurants. Its purchasing decision makers are subject to many influences; among
the most important are the state of the economy, the cost of flour, food safety regulations, and competition. All of these
influences have certain characteristics in common. They are:
a.
internal
b.
external
c.
environmental
d.
interpersonal
e.
organizational
Name:
Class:
Date:
204. You were hired by an office design firm largely on the strength of your success in relationship marketing. To make
sure customers are satisfied and make repeat purchases, which of the following relationships will be important?
a.
Relationships with vendors, like fabric suppliers
b.
Relationships with customers’ purchase decision makers
c.
Relationships with distributors of items like lamps and silk plants
d.
Relationships with contractual partners
e.
Relationships with government officials
205. Choose the scenario(s) that illustrate(s) derived demand.
a.
If restaurant customers order more sandwiches, commercial bakeries sell the restaurants more bread.
b.
If fewer people buy cars, auto makers reduce their purchases from suppliers of windshield glass.
c.
If children lose interest in playing video games, fewer parents buy the XBox.
d.
If airline travel increases, suppliers of packaged meals sell the airlines more food.
206. During a long career in selling to different business markets, June felt most challenged when she was dealing with
the federal government. Unlike most of her commercial customers, government purchase agents typically:
a.
Make most purchases during three months of the year.
b.
May be influenced by dozens of interested parties.
c.
Require bids or written sales proposals.
d.
Must comply with SR (social responsibility) standards
e.
Must use fixed-price contracts
Match each item with the correct statement below.
a.
merchandisers
b.
trade industries
c.
remanufacturing
d.
nearshoring
e.
end-use application segmentation
f.
global sourcing
g.
joint demand
h.
inelastic demand
i.
outsourcing
j.
value analysis
k.
gatekeeper
l.
commercial market
m.
reciprocity
n.
vendor analysis
o.
category advisor
p.
modified rebuy
q.
demographic characteristics based segmentation
r.
influencers
s.
buyer
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t.
customer-based segmentation
207. The _____ is the largest segment of the business market that includes all individuals and firms that acquire products
to support the production of other goods and services.
208. _____ is a segment of organizational market that consists of retailers and wholesalers who purchase products for
resale to others.
209. _____ is the process of dividing a B2B market into groups on the basis of their size, sales revenues, or number of
employees.
210. _____ is the process of dividing a B2B market into homogeneous groups based on buyers’ products specifications.
211. The process of dividing a B2B market based on how a business purchaser will use a product is called _____.
212. The practice of purchasing goods and services from suppliers worldwide is known as _____.
213. _____ results when the demand for a product depends on the demand for another product used in combination with
it.
214. If the demand for a product remains constant, regardless of the change in price, then the product is said to exhibit
_____.
215. The practice of moving jobs to vendors in countries close to the business’s home country is referred to as _____.
216. The term _____ refers to the use of outside vendors to produce goods and services that were formerly produced in–
house.
217. _____ are trade sector buyers who secure needed products at the best possible prices.
218. A(n) _____ is a trade industry vendor who develops a comprehensive procurement plan for a retail buyer.
219. A(n) _____ occurs when a purchaser is willing to reevaluate available options for repurchasing a good or service.
220. _____ is the practice of buying from suppliers who are also customers.
221. _____ is the systematic study of the components of a purchase to determine the most cost-effective approach.
222. The assessment of supplier performance in categories such as price, back orders, timely delivery, and attention to
special requests is called _____.
223. A person who controls the information that all members of a buying center will review is referred to as a(n) _____.
224. The term “_____” is used to refer to the technical staff such as engineers who affect the buying decision by
supplying information to guide evaluation of alternatives or by setting buying specifications.
225. A(n) _____ is a buying center participant who has the formal authority to select a supplier and to implement the
procedures for securing a good or service.
226. The term _____ refers to the efforts to restore older products to like-new condition.
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227. Discuss the role of merchandisers and category advisors in the business buying process. Give examples.
228. What are the stages involved in a business buying process?
229. Explain the different roles played by business center participants in the purchasing decision process.
230. Differentiate between offshoring and nearshoring. Which countries are preferred for these operations?
231. Differentiate between value analysis and vendor analysis. Give an example for each.
232. Describe the NAICS system. Bring out the differences between the older SIC system and the NAICS system.
233. How do just-in-time policies influence business demand?
234. Describe the three organizational buying situations. How do they correlate to the purchasing decisions of consumers?
235. Describe the influence of organizational factors on business buying behavior.
236. Discuss the various factors that an organization should consider while taking the make, buy, or lease decision.
237. Describe the unique challenges of selling to government markets.
238. What are the different criteria involved in the selection of a vendor in a business buying process?
239. Explain the four components of business-to-business markets.
240. Describe the major approaches used by marketers to segment business-to-business markets.
241. Describe the role of the Internet in business-to-business markets.
242. What distinguishes the business buying process from the consumer buying process? What do B2B marketers need to
understand about organizational buying behavior?
243. Differentiate between B2B marketing and consumer product marketing.
244. Discuss the major categories of business market demand.
245. What are the potential problems associated with offshoring and outsourcing?
246. What is outsourcing? Why do firms outsource production of goods and services?
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