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Principles of Marketing, 17e, Global Edition (Kotler/Armstrong)
Chapter 6 Business Markets and Business Buyer Behavior
1) The decision process by which business buyers determine which products and services their
organizations need to purchase and then find, evaluate, and choose among alternative suppliers
and brands is known as ________.
A) situational analysis
B) business buying process
C) business diversification
D) business process automation
E) lateral expansion
2) Business buyer behavior refers to the ________.
A) buying behavior of consumers who buy goods and services for personal consumption
B) buying behavior of the organizations that buy goods and services for use in the production
of other products and services that are sold, rented, or supplied to others
C) buying behavior of consumers who rely on small retailers for the regular supply of
provisions
D) decision process by which business buyers determine which products and services their
organizations need to purchase
E) strong affinity of businesses for value-for-money deals
3) Which of the following is NOT part of the business market?
A) Kruger Group sells interior security systems to resorts.
B) A country club buys safety equipment for its swimming pool.
C) Maria Theresa shops for her family's groceries at the local Whole Foods store.
D) A firm buys laptops from Dell for company salespeople to use when traveling.
E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.
4) Business markets are similar to consumer markets in that ________.
A) the nature of the buying unit is the same for both
B) the decision processes involved in both the markets are same
C) both involve people who assume buying roles and make purchase decisions to satisfy needs
D) both share the same market structure
E) the types of decisions are fairly consistent in both the markets
5) Differences between business markets and consumer markets include all of the following
EXCEPT ________.
A) nature of the buying unit
B) market structure and demand
C) number of buyers
D) people who make purchase decisions to satisfy needs
E) types of decisions and the decision process
6) The business marketer normally deals with ________ than the consumer marketer does.
A) far fewer but far larger buyers
B) far more but far smaller buyers
C) negligible customer complaints
D) far less fluctuations in demands
E) far more elastic demand
7) The Pure Drug Company produces insulin, a product with a very stable demand. Even
though the price changed several times in the past two years, the demand for Pure Drug's
insulin remained relatively unaffected. In this instance, the demand for insulin is representative
of ________ demand.
A) latent
B) negative
C) inelastic
D) derived
E) composite
8) In business markets with inelastic demand ________.
A) the total demand for products is not much affected by short-term price changes
B) buyers are highly sensitive to price changes
C) derived demand is absent
D) a business purchase usually involves fewer decision participants
E) a business purchase usually does not involve a professional purchasing effort
9) A university enrolled 200 graduate students in the Fall of 2015. However, the enrollment rate
was only slightly affected following a 12-percent hike in tuition the following fall. This
illustrates ________ demand.
A) derived
B) negative
C) highly elastic
D) composite
E) inelastic
10) Business demand that ultimately comes from the demand for consumer goods is known as
________ demand.
A) derived
B) negative
C) primary
D) consumer
E) elastic
11) Green Bees, a popular American heavy-metal band, will perform in Berlin during
Christmas. There is a high demand for concert tickets among fans worldwide who are looking
forward to the much-awaited performance. In this instance, the high demand for tickets for the
Green Bees concert is representative of ________ demand.
A) primary
B) negative
C) derived
D) elastic
E) business
12) Demand for outboard motors depends on consumers purchasing fishing boats. This is an
example of ________ demand.
A) primary
B) composite
C) derived
D) elastic
E) negative
13) Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in
anticipation of brisk sales of handbags during December. This is an example of a(n) ________
demand.
A) composite
B) derived
C) primary
D) latent
E) inelastic
14) Which of the following is true about business purchases?
A) Business purchases involve more professional purchasing effort than consumer purchases.
B) Business purchases involve fewer participants in decision making compared to consumer
purchases.
C) Purchasing agents are absent in business purchases.
D) Business purchases involve less technical and economic considerations compared to
consumer purchases.
E) Business purchases are usually quicker and more informal than are consumer purchases.
15) A business purchase usually involves all of the following EXCEPT ________.
A) more decision participants
B) manufacturing representatives
C) more professional purchasing effort
D) trained purchasing agents
E) high-level trained supply managers
16) Since business marketers have fewer buyers than consumer marketers, business buyers
often face ________ than do consumer buyers.
A) less complex buying decisions
B) shorter buying processes
C) informal buying processes
D) more complex buying decisions
E) fewer product details
17) ________ involves systematically developing networks of supplier-partners to ensure a
dependable supply of products and materials for use in making products or reselling them to
others.
A) Supplier development
B) Business buying
C) Supplier quality assurance
D) Relationship management
E) Executive development
18) The owners of a manufacturing firm in Ohio have developed a core network of suppliers to
ensure an uninterrupted supply of products. This is an example of ________.
A) capability management
B) a supply bottleneck
C) asset management
D) backsourcing
E) supplier development
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the side,
two will require an extra plating process, and two will require an additional weld operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of
Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and
steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected
his suppliers based on quality and price, but the major consideration had been the type of steel
required and the specialized production processes of his respective suppliers. Not all of Alpha's
suppliers could produce the exact grades of steel needed; some suppliers were better at
producing certain types of steel than others.
Richard contacted several employees at Alpha who had worked with the various types of steel
in the past. The quality control manager and line inspector, for example, could help to
determine which suppliers had the capabilities of producing specific types of steel. The
production control manager could provide input regarding which types of steel worked best in
which presses. The warehouse foreman gave inputs regarding how long various types of steel
could be held in inventory before rust spots began to form on their surfaces. Each person
contributed the necessary information to help Richard in making his decision.
19) The demand for Alpha Stampings' products is ultimately based on the demand for new
automobiles in the consumer market. This is an example of ________ demand.
A) negative
B) latent
C) primary
D) derived
E) composite
20) In the business buying process, business buyers determine which products and services
their organizations need to purchase.
21) The main differences between business and consumer markets are in market structure and
demand, the nature of the buying unit, and the types of decisions and the decision process
involved.
22) Most businesses that manufacture products for the consumer market also sell directly to
consumers.
23) The business marketer normally deals with far fewer but far larger buyers than the
consumer marketer does.
24) The demand for many business goods tends to change more slowly than the demand for
consumer goods.
25) Derived demand refers to the business demand that ultimately comes from the demand for
consumer goods.
26) Business demand ultimately derives from the demand for consumer goods.
27) In the business buying process, the buyer and seller are relatively less dependent on each
other.
28) Why is demand in the business market mostly inelastic?
29) Explain the concept of derived demand.
30) Why is the business buying process more formalized than the consumer buying process?
31) What is supplier development?
32) Distinguish between business markets and consumer markets.
33) In which of the following would the buyer reorder a product without any modifications?
A) reverse auction
B) solution selling
C) new task
D) straight rebuy
E) modified rebuy
34) Sigma Inc., a software firm based in California, reordered 50 printers from the designated
provider without any modifications. This is an example of ________.
A) derived demand
B) inelastic demand
C) a straight rebuy
D) a new task
E) a modified rebuy
35) A marketer wanting to determine business buyer behavior is most likely to ask which of the
following questions?
A) Are buyers sensitive toward price changes in consumer markets?
B) What are the major influences on buyers?
C) Are niche markets more profitable than mass markets?
D) How do interpersonal factors affect organizational performance?
E) Is the role of gatekeepers relevant in the international business environment?
36) In a ________ situation, the "in" suppliers may become nervous and feel pressured to put
their best foot forward to protect an account and the "out" suppliers may see the present
situation as an opportunity to make a better offer and gain new business.
A) straight rebuy
B) new task
C) reverse auction
D) modified rebuy
E) solutions selling
37) In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms,
or suppliers.
A) reverse auction
B) straight rebuy
C) new task
D) modified rebuy
E) absolute auction
38) In a straight rebuy, ________.
A) the "in" suppliers try to maintain product and service quality to keep the business
B) the "in" suppliers feel pressured to protect an account
C) the "out" suppliers view the situation as an opportunity to gain new business
D) a company buys a product or a service for the first time
E) buyers are keen on revising product specifications
39) Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies
for her custodial staff, using the same vendor and ordering relatively consistent amounts of the
same products on each purchase. This is an example of ________.
A) a modified rebuy situation
B) a new task
C) a straight rebuy situation
D) reverse auction
E) product differentiation
40) Which of the following is most likely true about a straight rebuy?
A) Suppliers are not required to focus on quality of products or services delivered.
B) A straight rebuy is far more complex than a new-task situation.
C) A straight rebuy is handled on a routine basis by the purchase department.
D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best deal in the
market.
E) A straight rebuy involves more opportunities for "out" buyers than do other types of
purchasing situations.
41) Ralph works for a manufacturing company in Ohio. Recently, he called in a department
manager to assist in the purchase of some heavy machinery. After consulting the department
manager, Ralph is considering a change in product specifications and characteristics and
expects suppliers to meet his requirements. Which of the following is evident here?
A) modified rebuy
B) new task
C) straight rebuy
D) product differentiation
E) reverse auction
42) Sheffield Cargo serves both consumer and business markets, but most of its revenue comes
from its business customers. Of late, the business customers of Sheffield Cargo have demanded
a change in the packaging of heavy cargo along with a more sophisticated and user-friendly
extranet framework. Sheffield Cargo is under pressure to offer better products and services or
risk losing a huge portion of its customers. This is an example of ________.
A) a new task
B) a modified rebuy situation
C) a straight rebuy situation
D) trade exchange
E) reverse auction
43) Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed
servers and computers for his company, he decided to order these from a local vendor who was
offering attractive discounts. In this instance, Peter ________.
A) faces a new task situation
B) faces a modified rebuy situation
C) is most likely to benefit the most from reverse auction
D) faces the need for product differentiation
E) plans to attract customers by offering products at below-market prices
44) ________ refers to a business buying situation in which the buyer purchases a product or
service for the first time.
A) Modified rebuy
B) Straight rebuy
C) New task
D) Reverse auction
E) Derived demand
45) A new task situation presents ________.
A) low risk for the buyer
B) the fewest decisions for the buyer
C) the least information required
D) the greatest opportunity and the greatest challenge to the marketer
E) the smallest number of decision participants
46) ________ refers to buying a packaged solution to a problem from a single seller, thus
avoiding all the separate decisions involved in a complex buying situation.
A) Systems selling
B) Performance review
C) Problem recognition
D) Proposal solicitation
E) General need specification
47) Solutions selling ________.
A) is often a key business marketing strategy for winning and holding accounts
B) refers to a business buying situation in which the buyer purchases a product or service for
the first time
C) refers to a business buying situation in which the buyer wants to modify product
specifications, prices, terms, or suppliers
D) is equivalent to cold calling
E) refers to a business buying situation in which the buyer routinely reorders something without
any modifications
48) Rudolf Technologies Inc. decided to enter the automobile service market. Consequently,
the company decided to procure the tools and machines needed from a reputable supplier.
Rudolf Technologies is facing ________.
A) a new task situation
B) a modified rebuy situation
C) negative competition
D) the need to outsource its primary service offering
E) the pressure to diversify its market
49) The decision-making unit of a purchasing organization is called its ________.
A) value chain
B) buying center
C) customer support system
D) quality center
E) innovation center
50) In routine buying situations, which of the following members of the buying center has formal
or informal power to select or approve the final suppliers?
A) users
B) influencers
C) gatekeepers
D) deciders
E) buyers
51) The ________ refer(s) to all the individuals and units that play a role in the purchase
decision-making process.
A) users
B) influencers
C) buying center
D) gatekeepers
E) systems sellers
52) A(n) ________ controls the flow of information to others in the buying center.
A) user
B) influencer
C) buyer
D) decider
E) gatekeeper
53) ________ refer to members of the buying organization who help define specifications and
provide information for evaluating alternatives.
A) Gatekeepers
B) Influencers
C) Users
D) Deciders
E) Buyers
54) ________ have formal authority to select the supplier and arrange the terms of purchase.
A) Users
B) Influencers
C) Buyers
D) Gatekeepers
E) Deciders
55) ________ refer to people in an organization's buying center who affect the buying decision;
they often help define specifications and provide information for evaluating alternatives.
A) Users
B) Influencers
C) Buyers
D) Gatekeepers
E) Deciders
56) ________ may help shape product specifications, but their major role is to select vendors
and to negotiate.
A) Gatekeepers
B) Deciders
C) Buyers
D) Influencers
E) Users
57) Eric Mason, an employee of Huntington Steelworks, is responsible for defining product
specifications and providing relevant information for evaluating alternatives in his
organization's buying center. Eric, whose opinions affect the buying decisions of his
organization to a great extent, is most likely a(n) ________.
A) user
B) influencer
C) decider
D) gatekeeper
E) buyer
58) Dora has formal authority to select the suppliers and arrange terms of purchase for many of
the items her firm uses. Her role in the buying center is that of a(n) ________.
A) user
B) influencer
C) buyer
D) decider
E) gatekeeper
59) Paul, a purchasing agent for Kiel Inc., has the authority to prevent salespersons from seeing
the decision makers in his organization. Which of the following best describes Paul's position?
A) influencer
B) decider
C) gatekeeper
D) buyer
E) user
60) Who among the following does NOT participate in the purchase decision process of a
buying organization?
A) individuals who use the product or service
B) individuals who influence the buying decision
C) individuals who make the buying decision
D) individuals who supply raw materials
E) individuals who control the flow of information to others
61) Jason Perkins has the informal power to approve the final suppliers in his organization. In
other words, Jason plays the role of a(n) ________ in his organization's buying center.
A) gatekeeper
B) decider
C) buyer
D) influencer
E) user
62) A technician in a hospital told the chief dentist, Dr. Albrecht, that the hospital should
purchase equipment that would sterilize the dentists' tools without using any water because
water tends to affect the durability of the tools over time. Dr. Albrecht located some articles on
chemical sterilizers and gathered more information on how they worked. After talking to
salespeople, Dr. Albrecht finally placed his order for the machine. In this instance, Dr. Albrecht
played the role of a(n) ________.
A) monitor
B) decider
C) agent
D) influencer
E) gatekeeper
63) Marissa Hopkins, a hospital nurse, notices that the gurneys used in the hospital are not
durable enough. She informed the hospital authorities about Grace Care Inc., a new company
selling lightweight and durable gurneys. In this instance, Marissa played the role of a(n)
________.
A) strategist
B) buyer
C) gatekeeper
D) influencer
E) decider
64) In new product buying, the users are often the ________.
A) monitors
B) influencers
C) gatekeepers
D) deciders
E) primary advertisers
65) Phoi Nguyen, a manufacturing mechanic, determines that the molds for manufacturing
plastic jar lids are wearing out sooner than expected. Phoi contacts her manager to request that
the parts be reordered. In this instance, Phoi played the role of a(n) ________.
A) user
B) buyer
C) gatekeeper
D) influencer
E) decider
