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A Framework for Marketing Management, 5e (Kotler)
Chapter 6 Analyzing Business Markets
1) ________ refer(s) to the decision-making process by which formal organizations establish the
need for purchased products and services and identify, evaluate, and choose among alternative
brands and suppliers.
A) Marketing channels
B) Organizational buying
C) Corporate retailing
D) Brand auditing
E) Inventory control
2) The ________ consists of all the organizations that acquire goods and services used in the
production of other products or services that are sold, rented, or supplied to others.
A) business market
B) consumer market
C) e-commerce market
D) global market
E) domestic market
3) Which of the following is true for business marketers?
A) They deal with more and larger buyers than consumer marketers.
B) They deal with more and smaller buyers than consumer marketers.
C) They deal with fewer and larger buyers than consumer marketers.
D) They deal with fewer and smaller buyers than consumer marketers.
E) They deal with the same kind of buyers as consumer marketers.
4) Which of the following is a challenge in which business marketers differ from the consumer
marketers?
A) understanding deep customer needs in new ways
B) identifying new opportunities for organic business growth
C) geographically concentrated buyers
D) calculating better marketing performance and accountability metrics
E) competing and growing in global markets, particularly China
5) Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for
GM cars and trucks. From the standpoint of the steel manufacturer, which of the following
demand forms is most pertinent?
A) derived demand
B) inelastic demand
C) geographic demand
D) relational demand
E) static demand
6) The demand for business goods is ultimately derived from the demand for ________.
A) raw materials
B) consumer goods
C) services
D) business solutions
E) e-commerce
7) The total demand for many business goods and services is not much affected by price
changes. Thus, this demand is ________.
A) derived
B) fluctuating
C) accelerated
D) multiple
E) inelastic
8) Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in
business demand for products for the next period. This is an example of ________.
A) inelastic demand
B) direct purchasing
C) fluctuating demand
D) derived demand
E) a straight rebuy
9) Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor
will they buy much less leather if the price rises, unless they can find satisfactory substitutes.
This is an example of ________.
A) inelastic demand
B) direct purchasing
C) the acceleration effect
D) a modified rebuy
E) a straight rebuy
10) Kenilworth Inc. is shifting from its rented four-room office to a standalone office building
owned by the company itself. This can be classified as a ________.
A) modified rebuy
B) regular buy
C) straight rebuy
D) new rebuy
E) new task
11) In a ________ purchasing situation, the buyer wants to make some change to existing
product specifications, prices, delivery requirements, or other terms.
A) new rebuy
B) regular buy
C) straight rebuy
D) modified rebuy
E) new task
12) The business buyer has to make the fewest decisions when involved in a ________.
A) modified rebuy
B) regular buy
C) straight rebuy
D) new rebuy
E) new task
13) Orica Inc. competes in the market for commercial explosives. The company recently
changed its business model from just selling explosives to managing an entire blast in a quarry.
This customer-solution-based approach to the sale of explosives is an example of ________.
A) systems selling
B) straight rebuying
C) customer referencing
D) derived demand
E) channel consolidation
14) If you decided to go into the systems contracting business, which of the following categories
would constitute your main area of expertise, the service you provide for customers?
A) computer applications
B) database management
C) manufacturing
D) promotion management
E) MRO (maintenance, repair, operating) supplies
15) Many business buyers prefer to buy a total solution to a problem from one seller. This
process is also known as ________.
A) channel consolidation
B) systems buying
C) vertical buying
D) horizontal buying
E) supply buying
16) Xerox offers a ________ approach to prospective clients when it offers a complete turnkey
solution, including the operation and management of the client's information and communication
need.
A) guided selling
B) fair trading
C) systems buying
D) cross-selling
E) local purchasing
17) If Ampex Support Systems is the single supplier for a local manufacturing company's MRO
(maintenance, repair, operating) supplies and needs, Ampex Support Systems is considered as
providing ________ for the manufacturer.
A) guided selling
B) purchasing support
C) turnkey logistics
D) decision support
E) systems contracting
18) ________ is a key industrial marketing strategy in bidding to build large-scale industrial
products such as dams, pipelines, etc.
A) Systems contracting
B) Systems buying
C) Systems selling
D) Solutions buying
E) Turnkey logistics
19) In the purchasing decision process, the ________ are those who request that something be
purchased. They may be users or others in the organization.
A) users
B) initiators
C) influencers
D) deciders
E) approvers
20) In the purchasing decision process, the ________ are those who have the power to prevent
sellers or information from reaching members of the buying center.
A) approvers
B) buyers
C) initiators
D) gatekeepers
E) deciders
21) In the purchasing decision process, the major role of ________ is in selecting vendors and
negotiating.
A) gatekeepers
B) buyers
C) initiators
D) approvers
E) deciders
22) If you performed the role of the ________ in a buying center, you would be the person that
has the power to prevent sellers or information from reaching other members of the buying
center.
A) initiator
B) influencer
C) decider
D) gatekeeper
E) approver
23) When purchasing disposable surgical gowns, Mercy Hospital's vice president of purchasing
analyzes whether the hospital should buy disposable gowns or reusable gowns. If the findings
favor disposable gowns, then the operating-room administrator compares various competitors'
products and prices and makes a choice. Surgeons influence the decision retroactively by
reporting their satisfaction with the particular brand. In this situation, the operating-room
administrator performs the role of the ________.
A) gatekeeper
B) initiator
C) user
D) decider
E) influencer
24) When purchasing disposable surgical gowns, Mercy Hospital's vice president of purchasing
analyzes whether the hospital should buy disposable gowns or reusable gowns. If the findings
favor disposable gowns, then the operating-room administrator compares various competitors'
products and prices and makes a choice. Surgeons influence the decision retroactively by
reporting their satisfaction with the particular brand. In this situation, the surgeons perform the
role of the ________.
A) decider
B) initiator
C) user
D) gatekeeper
E) buyer
25) In which of the following is a person performing the role of an influencer?
A) Dan decides on the product requirements and makes the final choice of suppliers.
B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
C) Liam heads the Tech team at LKG and provides information for evaluating the possible
alternatives.
D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good
prospects and refer them to others in LKG.
E) Dana authorizes the actions of the deciders and buyers in LKG.
26) In which of the following is a person performing the role of an approver?
A) Dan decides on the product requirements and makes the final choice of suppliers.
B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
C) Liam heads the Tech team at LKG and provides information for evaluating the possible
alternatives.
D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good
prospects and refer them to others in LKG.
E) Dana authorizes the actions of the deciders and buyers in LKG.
27) In which of the following is a person performing the role of a gatekeeper?
A) Dan decides on the product requirements and makes the final choice of suppliers.
B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
C) Liam heads the Tech team at LKG and provides information for evaluating the possible
alternatives.
D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good
prospects and refer them to others in LKG.
E) Dana authorizes the actions of the deciders and buyers in LKG.
28) Which of the following is true about the buying centre?
A) In a buying centre, one person cannot play more than one role.
B) A typical buying centre has a maximum of five or six members.
C) A buying centre consists of only mid-level managers and below.
D) It is the decision-making unit of a buying organization.
E) Gatekeepers in a buying centre are people who authorize the proposed actions of deciders or
buyers.
29) Small sellers should first concentrate their marketing efforts on reaching ________.
A) approvers
B) initiators
C) influencers
D) users
E) initiators
30) If you were an upper-level marketing executive of a large seller of trucks, which of the
following strategies would be most appropriate in reaching buying center targets?
A) Concentrate on key buying influencers.
B) Use multilevel in-depth selling.
C) Use trade-based promotions.
D) Concentrate sales efforts on the support staff.
E) Move all operations to the Internet.
31) Patrick J. Robinson and his associates have identified eight stages in the business buying-
decision process. This model is called the ________ framework.
A) buygrid
B) buying/selling
C) seller-centered
D) commercial
E) buy-analysis
32) According to Patrick J. Robinson, the eight stages in the business buying-decision process
are known as ________.
A) buyphases
B) buybacks
C) buyouts
D) buyables
E) buyoffs
33) Which of the following is a step in the straight rebuy buyclass?
A) problem recognition
B) general need description
C) product specification
D) supplier search
E) proposal solicitation
34) A new-task buyclass decision begins with which of the following steps?
A) supplier search
B) general need description
C) product specification
D) problem recognition
E) proposal solicitation
35) In reordering office supplies, the only stages that the buyer passes through are the product
specification stage and the ________ stage.
A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review
36) The approach to cost reduction that studies whether components can be redesigned or
standardized or made by cheaper methods of production without adversely impacting product
performance is termed as ________.
A) maintenance, repair, and operating (MRO)
B) product value analysis (PVA)
C) vendor managed inventories (VMI)
D) supplier performance management (SPM)
E) supplier added value effort (SAVE)
37) Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales
representative who offers a better product or a lower price compared to the current in-supplier.
These situations spur the ________ stage.
A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review
38) Business marketers can stimulate problem recognition by ________.
A) ensuring a presence in trade directories
B) direct mail, telemarketing, and calling on prospects
C) encouraging the Better Business Bureau to release statistics
D) using consumer advertising
E) conducting surveys of existing customers
