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Indicate whether the statement is true or false.
1. Procurement takes place within a formalized framework consisting of budgets, cost projections, and profit
considerations.
a. True
b. False
2. Geographic location is one of the criteria considered during demographic segmentation of the business market.
a. True
b. False
3. 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
4. Not-for-profit organizations are considered to be a part of the business market.
a. True
b. False
5. Personal selling plays a much bigger role in consumer markets than in business markets.
a. True
b. False
6. Located in countless cities across the United States, SalonCentric is part of the reseller business market,
providing wholesale hair and beauty products exclusively for licensed cosmeticians.
a. True
b. False
7. When Cannondale purchases aluminum for use in its bicycle frames, the company is participating in the commercial
market.
a. True
b. False
8. The commercial market consists of wholesalers and retailers who purchase goods primarily to sell it to the final
consumers.
a. True
b. False
9. The distribution channels in consumer markets are relatively shorter compared to those in business markets.
a. True
b. False
10. Business market customers may require different levels of product customization, which can have an impact on how
an organization segments these customers.
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a. True
b. False
11. Technological change is an environmental factor influencing business buying decisions.
a. True
b. False
12. Competitive bidding is common when the product is nonstandard, complex, or custom-made.
a. True
b. False
13. The business market features a limited number of buyers compared to consumer markets.
a. True
b. False
14. B2B relationships tend to last longer than those in the consumer market.
a. True
b. False
15. 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
16. In the automobile industry, suppliers of components and assemblies frequently build plants close to their customers.
a. True
b. False
17. A buying center is a basic component of a firm’s formal organizational structure.
a. True
b. False
18. As compared to business-to–business marketing, consumer marketing puts greater emphasis on advertising.
a. True
b. False
19. 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
20. Both consumer and business purchase decisions begin when the recognition of problems, needs, or opportunities
triggers the buying process.
a. True
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b. False
21. The term “reseller” is synonymous with “retailer,” as this is the only type of participant in this market category.
a. True
b. False
22. 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
23. Buying practices can differ among institutions of the same type.
a. True
b. False
24. Marketers need to be thoroughly familiar with the organizational buying process, which always follows a sequence of
seven steps.
a. True
b. False
25. End-use application segmentation focuses on the ultimate way in which a business purchaser will use a product.
a. True
b. False
26. Marketers must be well versed in the technical features of their products, to effectively address the concerns of all the
people involved in the buying decision.
a. True
b. False
27. The buying center is an informal group whose size and composition vary among purchase situations and firms.
a. True
b. False
28. Governmental organizations represent the largest segment of the B2B marketplace.
a. True
b. False
29. Relationships in consumer markets are often more complex than those in business-to-business markets.
a. True
b. False
30. A company’s buying center encompasses everyone who is involved in any aspect of its buying activity.
a. True
b. False
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Indicate the answer choice that best completes the statement or answers the question.
31. 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.
32. You are a flower wholesaler, and you’ve become good friends with one of your customers, a florist. She is submitting
a proposal to become the floral arrangement provider for a huge hotel in New York City. If she gets the contract, it will be
great for your business as well, so you want to help her write an excellent proposal that will impress the decision makers
when they evaluate all of the proposals. Which of the following do you NOT recommend?
a. Including photographs of floral arrangements that demonstrate her ability to deliver what the hotel’s buyer wants
and needs.
b. Adding a complete client list and several client testimonials that demonstrate her excellent reputation.
c. Omitting any detailed budgetary information so the hotel’s buyer isn’t put off by the high costs.
d. Creating a recommended delivery schedule so the hotel’s buyer knows what to expect from her.
33. 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.
34. At the Union, New Jersey, headquarters of Bed, Bath, and Beyond (BB&B), Tiana receives product information from
manufacturers about sheets, towels, and other similar products. After reviewing the literature to determine which products
meet BB&B’s general requirements, she forwards only the pertinent information on to her boss. Tiana is a ______ at
BB&B.
a. gatekeeper
b. decider
c. influencer
d. buyer
35. 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.
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36. You’re the marketing director for a company that imports fruit from South America into the United States. This past
year, bad weather ruined most of the domestic crops, which creates an opportunity for you to sell more of your imported
fruit. In this context, when marketing to grocery stores and food product manufacturers, which environmental factor
should you emphasize?
a. The delicious taste and freshness of your products
b. The wide variety of fruits you have to offer
c. The lower cost of your products as compared to domestic products
d. The volume of products you can deliver
37. 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
38. You work for a company that pours concrete for commercial construction projects. You’ve received a request for a
proposal for a new multi-story parking garage from Wyoming Commercial Builders, but the information regarding
concrete provided in the request is so minimal that you’re not really sure what the construction company is looking for or
how to develop a bid. What is the problem, and how should you respond?
a. WCB hasn’t clearly defined the specifications for the project, so you will have to allow for some flexibility when
writing your proposal.
b. WCB hasn’t accurately identified their needs, so you should withdraw from consideration.
c. WCB hasn’t clearly defined the specifications for the project, so you should set up a meeting to clarify their
requirements before writing your proposal.
d. WCB hasn’t correctly identified qualified suppliers, so you should redirect them to a couple of good candidates.
39. You’re the chief sales and marketing officer for Western Health Products, a manufacturer of a wide range of medical
products for home, medical office, and hospital use. Some of your customers have buyers who make their own purchasing
decisions, whereas other customers have lengthy decision-making processes involving many people within the
organization. Given the variations in your customers, what could you do to make your marketing and sales processes more
efficient?
a. Set up separate sales/marketing divisions for reseller and institutional buyers.
b. Set up separate sales/marketing divisions for commercial and institutional buyers.
c. Set up separate sales/marketing divisions for commercial, reseller, and institutional buyers.
d. Set up separate sales/marketing divisions for commercial, reseller, government, and institutional buyers.
40. Which of the following components of the B2B market includes all individuals and firms that acquire goods and
services to support the production of other goods and services?
a. Stock exchanges
b. Commercial markets
c. Governmental organizations
d. Financial institutions
41. The identity of the _____ is the most difficult role for salespeople to pinpoint.
a. user
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c. gatekeeper
d. influencer
42. Which of the following is an example of B2B selling?
a. A pharmaceutical sales representative makes a presentation to a physician.
b. An Avon Cosmetics sales associate demonstrates the latest eye shadow techniques at an in-home party.
c. A butcher talks a customer into buying filet mignon.
d. A sales representative for a printing company meets with a purchasing agent at a publishing company.
43. Megan is in charge of hiring a graphic designer to create her company’s next annual report. She had asked for
proposals from five different designers or design agencies, and she’s received four. She’s not quite sure what to do next, so
she asks her coworker, Jenna, for help. What does Jenna advise Megan to do?
a. Select an order routine
b. Define the characteristics of the needed product or service
c. Evaluate the proposals and select a supplier
d. Search for and qualify suppliers
44. You’re a marketer for a wholesale flower supplier in New York City. You’ve built strong, personal relationships with
florists who trust you. To what do you attribute your success?
a. Knowing the key decision makers at each florist
b. Sourcing the most cost-effective flowers and supplies and passing along the savings
c. Keeping in touch with industry trends
d. Taking a personal interest in understanding your customers’ needs and issues
45. Damon is a produce buyer for Whole Foods Markets. Which of the following is NOT an environmental factor that will
influence Damon’s purchasing decisions?
a. Bad weather in Asia and its impact on wholesale produce prices.
b. Political unrest in South America preventing suppliers in that area from shipping produce to the United States.
c. Changes in federal regulations governing the storage and sale of produce.
d. Whole Foods’ internal process for receiving new shipments.
46. At Premium Screens, you manufacture screens for use in cell phones, tablets, laptops, monitors, and other similar
products. The company’s researchers have just invented a way to make your screens even more heat-, water-, and
pressure-resistant. Which factor will play the biggest role in influencing your customers to purchase your latest products?
a. Your product will give their products a competitive edge.
b. Your proposal will streamline their processes.
c. Your proposal fits into their purchase process.
d. Your product will help their product meet safety regulations.
47. 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
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b. Decider
c. Gatekeeper
d. Buyer
48. 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.
49. You own a public relations firm in Sacramento, California. Several months ago, the campaign manager for one of
California’s senators hired your company to handle PR for the upcoming re–election campaign, and you’ve been working
with the campaign team continuously ever since. This morning you received an email from the campaign manager, saying
she’d like to schedule a meeting. In the context of the typical organizational buying process, what would you anticipate
discussing in this meeting?
a. Your qualifications for the assignment
b. The fees for your services
c. Feedback on your firm’s performance so far
d. The senator’s need for PR in the future, after she’s been re-elected
50. Elise Mayes, the office manager for a mid-sized real-estate agency, DeMarco Realty, is currently researching high-
speed photocopiers to replace one of their aging models. She’s received three proposals from three different suppliers, and
she’s selected the best one. Now she’s just waiting on Shandra DeMarco’s approval to make the purchase. In this case,
Elise is the ___ and Shandra is the ______.
a. gatekeeper; buyer
b. buyer; decider
c. influencer; buyer
d. buyer; influencer
51. You’re the Chief Marketing Officer of Airbus, one of the leading manufacturers of airplanes in the world. As the cost
of travel skyrockets, the amount of air travel declines, and the number of airlines decreases, your biggest business concern
is:
a. the size and number of buyers.
b. the rising cost of your component products.
c. the best means of maintaining relationships with your customers.
d. understanding your customers’ purchase decision processes.
52. You feel terrible! You sell laptops and desktop computers to various corporations, and you recently lost one of your
biggest accounts. Which of the following factors would you have the best chance of changing so you could win back your
account?
a. An environmental factor: the super low prices of your new competitor’s products
b. An organizational factor: your customer’s purchasing process
c. An environmental factor: the technological specifications required by your customer
d. An interpersonal factor: the purchasing agent’s opinion of your sales techniques
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53. 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 such as 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
54. 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.
55. Logan Home Builders is in the early stages of a new 185-home development project. Buyers for Logan have contacted
you and several other local firms, and provided extensive information about the plumbing fixtures, lighting fixtures,
cabinetry, and other items they will need for this project. As the sales and marketing manager for Glow Lighting, how
should you respond?
a. Find out what other lighting fixture suppliers you’re competing against and what they’re offering so you can
underbid them.
b. Write a detailed proposal describing how your firm can deliver what they need within the budget and time
constraints they’ve outlined.
c. Invite Logan’s buyers to your showroom so they can pick out the fixtures they need for the project.
d. Create a PowerPoint presentation highlighting all of your product offerings, and schedule a meeting so you can
make your pitch to Logan’s buyers.
56. You are a buyer for GameStop, a video games retailer. Which of the following is the best indication that users play an
important role in your buying decisions?
a. Your company holds gaming conferences, which gives you a chance to interact with customers.
b. You’ve established a system that allows store managers to submit customer requests for specific games.
c. Your company is using social media to handle customer service issues.
d. You have an assistant, an avid gamer, who collects and reviews new product information for you.
57. Based on your extensive knowledge of electronics, you’re thinking of starting a business that manufactures automotive
sound systems. You envision your company becoming a preferred vendor for one of the major automobile manufacturers.
When it comes to promoting your new business, your first priority will be:
a. finding affordable suppliers for the components you’ll need.
b. understanding your customers’ purchase decision processes.
c. selecting a location near your most promising potential customers.
d. maintaining healthy buyer-seller relationships.
58. As the marketing manager for Uniforms R Us, a company that sells, cleans, and repairs company uniforms, you’re
looking for regional businesses that supply uniforms to their employees. Which set of characteristics should you use to
develop a list of qualified businesses to target?
a. Customer type, number of employees, annual revenues
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b. Number of employees, annual revenues
c. Geographic location, customer type
d. Geographic location, customer type, number of employees
59. 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
60. Which of the following stages of the organizational buying process involves comparing vendors’ proposals?
a. Searching for potential sources
b. Acquiring and analyzing proposals
c. Recognizing and determining the characteristics of a need
d. Evaluating proposals and selecting suppliers
61. You’ve owned and operated Pop, a boutique children’s clothing store on Martha’s Vineyard, for more than 20 years.
You absolutely love Hansini, the new assistant manager you’ve hired, because she brings so much value to the store.
Which of the following is the best indication that Hansini has become an influencer in your buying decisions?
a. As she unpacks recently purchased products and puts them out on display, she provides you with insightful
opinions.
b. Whenever a customer returns a defective product, she reports it to you.
c. She monitors the accounts and lets you know how much you can spend on purchasing new products.
d. She pays attention to what customers are buying and makes specific product recommendations based on trends.
62. Entrepreneurs and small mom-and-pop business owners can’t afford to have their own IT departments, but they still
need help with setting up, maintaining, and repairing their computer systems on site. That’s where you come in! To let
people know about your services, you’re going to take out a Facebook ad that will go to Facebook users with the following
demographic characteristics:
a. business owners, fewer than five employees.
b. business owners, annual revenue of $200K plus, within 25 miles of your location.
c. business owners, fewer than 12 employees, within 50 miles of your location.
d. business owners in your state, annual revenue of $200K plus.
63. 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
64. The first stage in the seven-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.
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d. establishing specifications for a needed good or service.
65. As a sales representative for Plumber’s Best Fixtures Co., Carolyn has been asked to write up a proposal for plumbing
fixtures for Logan Home Builder’s next big housing development. In her proposal, Carolyn should address all of the
following environmental factors EXCEPT:
a. Changes in statewide building codes that affect water usage and plumbing fixtures
b. The need for lower cost products that could help Logan Homes be more profitable
c. A request to make a formal presentation to Logan’s purchasing agent
d. The desire for more resource-efficient products that could be an additional selling feature of the homes
66. Which of the following scenarios describes a typical B2B purchase decision?
a. In the process of repairing his car, Walt selects commonly used parts from a catalog.
b. Christine and Tomas, co-owners of a Dunkin’ Donuts franchise, order supplies from the corporate office.
c. Before Kim, an office manager, orders a new high-volume photocopier, she gets input from department heads and
seeks approval from the VP of Operations.
d. Jean-Luc, a soon-to-be entrepreneur, interviews lawyers before selecting a legal services provider.
67. You’re a carpenter who specializes in kitchen cabinetry. One day you go to visit your sister Fiona at the restaurant she
owns. Fiona is really frustrated because her badly organized kitchen has caused delays and problem with food preparation,
which means unhappy customers for her to deal with. You start to wonder if there could be a business opportunity for you
here, so how can you help her take the next step?
a. Suggest that she could eliminate some of these issues with a kitchen redesign
b. Draw a sketch of how you’d like the kitchen to look
c. Offer to work with her on retraining her kitchen staff
d. Bring in cabinet, tile, and flooring samples for her to choose from
68. You are the marketing director of a company that imports toys from Europe. You’ve been very successful in marketing
products for children aged 6 to 12, but now you’d like to expand your business by selling into another market category.
What is your best option?
a. Start importing toys for children aged 3 to 6.
b. Work with your suppliers to develop a line of video games for children aged 6 to 12.
c. Work with your suppliers to develop educational toys that can be sold for use in school systems.
d. License a clothing manufacturer to use your company’s logo on a line of clothing.
69. 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. reseller
70. Sherry markets paper cups, lids, sleeves, and other paper goods to coffee stores. She obviously sells far more products
to large operations with multiple locations than she does to independent owners of individual stores. Based on this
knowledge, how will she probably categorize potential customers as she becomes aware of them?
a. By the demographic characteristic of size
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b. By the customer type of chain vs. individual store
c. By the end-use application of volume
d. By the demographic characteristic of geographic location
71. 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.
72. Connor is a 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 within the buying organization.
73. Your company manufactures specialty fabrics, and your engineers have just developed an incredibly durable, yet
breathable and lightweight fabric that will be ideal for running and walking shoes. Given this development, which
environmental factor should you emphasize when marketing this new product to shoe manufacturers?
a. The fabric’s immediate availability
b. The fabric’s look and feel
c. The fabric’s low cost
d. The fabric’s advanced technological features
74. 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.
75. You spend a lot of time with the police, but not for bad behavior. Instead, you’re a sales rep for a company that
produces scanners, radios, and other equipment for use in law enforcement. Which of these is NOT an organizational
factor affecting the purchase process in the organizations you work with?
a. Who the key purchasing decision makers are in each police department
b. How and when proposals should be submitted to various police departments
c. What budget constraints exist in various police departments
d. What pricing guidelines are employed by different police departments
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76. Elise is the office manager for a mid-sized real-estate agency, and she is currently researching high-speed
photocopiers to replace one of their existing models. Which of the following is NOT an organizational factor that
influences Elise?
a. Researching the technical specifications needed in the new photocopier
b. Requesting three written proposals for photocopiers from three different vendors
c. Submitting an approval request to the head of the agency
d. Issuing a purchase order for the new photocopier that has been selected
77. As a freelance website and app developer, you are responsible for marketing and selling your own services. You’ve
been trying to get your foot in the door of a large corporation in your city, but you’re getting stonewalled and cannot
determine who you need to connect with to make a sales presentation. You’re having issues with understanding:
a. the purchase decision process.
b. current demand for your product.
c. distribution in the technology industry.
d. geographic market concentration.
78. You are marketing MRI (magnetic resonance imaging) machines, which are extremely expensive medical devices.
You’ve just received a database containing all kinds of information about hundreds of medical facilities across the
country. Which piece of information might be most useful in determining which facilities are most likely to be able to
afford your machines?
a. Facility type, such as hospital, urgent care center, or medical practice
b. Medical specialty of each facility (such as cancer treatment and pain management)
c. Average number of employees
d. Geographic location of each facility
79. You’re a sales rep for a company that manufactures picture frame moldings, which you sell to independent picture
framers in your region. Your company has just rolled out a new line of premium, gold-leaf frame moldings, which are
slightly more expensive than most of your products but are absolutely beautiful. You’re about to make a sales pitch to one
of your favorite customers, Marianna Garcia, a framer you’ve enjoyed doing business with for more than five years.
Which of the following is most likely to have the greatest influence over Marianna’s decision to start carrying your new
line?
a. The expense of your new product line
b. The prestige your products would bring to her frame shop
c. Your long-term, cordial relationship with the customer
d. Your ability to make persuasive sales pitches
80. 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.
81. You’re an account manager in New York City’s garment district, and you sell buttons, zippers, and other similar items
to clothing manufacturers in the area. You know that your customers’ opinions are always influenced by the people around
them, but which of the following interpersonal influences is least likely to affect your customers’ buying decisions?
a. Designers’ requests for particular items
b. Colleagues’ and business partners’ feedback on the best suppliers
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c. Employees’ comments about the easiest and best products to work with
d. Reporters’ media coverage of fashion industry events
82. You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people
and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are
a bit of a stretch. What’s the best way to segment these prospects so that you can focus on those with the greatest potential
first?
a. Sort by personal characteristics, such as age and income level.
b. Sort by customer type, such as restaurants, grocery stores, and food product manufacturers.
c. Sort by customer type, such as commercial and reseller.
d. Sort by end-use application, such as food preparation versus food product production.
83. 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
84. In the IT department of a large corporation, Gary is responsible for purchasing software for all of the departments
within the company. Which organizational factor has the biggest impact on his buying decisions?
a. How a downturn in company revenues might affect his budget
b. An upcoming release of a new version of software commonly used in the company
c. The documentation he’s required to provide when seeking approval from his supervisor before making a purchase
d. How persuasive Stephanie—the cute software sales rep—was in making her most recent presentation
85. Bradan is originally from Ireland, and occasionally he imports wool clothing from Ireland for sale in clothing stores
throughout the mid-Atlantic region of the United States. Which of the following environmental factors would signal that
it’s time for Bradan to import another shipment from Ireland?
a. An economic downturn in the United States causes a decline in consumer spending
b. Bradan implements a better system for receiving and tracking orders
c. The U.S. government lowers the taxes it levies on imported wool clothing
d. Bradan’s wife, Emma, notes that winter is coming and wool scarves tend to sell best then
86. Delhaise, a leading service provider in the 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
87. 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.
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d. generally involves purchase of highly standardized products.
88. 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
89. For many years, General Motors manufactured two versions of the same basic vehicle: the Humvee, used by the U.S.
military, and the Hummer, available to the public. Because of this product, GM was part of both the ___ and ___ B2B
markets.
a. commercial; government
b. reseller; government
c. reseller; institutional
d. government; institutional
90. Megan is looking for a graphic designer to create her company’s next annual report, so she is reviewing portfolios
from about a dozen different designers. Now she needs to choose five, and ask each one to submit a written proposal
describing their ideas, process, timeline, and fees. Which of the following actions will have the greatest interpersonal
influence on her choice of five designers?
a. Her boss, Sabrina, gives her a budget to work with.
b. Her coworker, Jenna, explains that the designer they used last year was reasonably priced and excellent to work
with.
c. The VP of the company reminds her that he needs to see at least three written proposals before helping her choose
a designer.
d. Her unemployed boyfriend, Ty, asks if he can submit a proposal, even though he’s not a designer.
91. 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
92. 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.
93. You’re an account manager for a company that makes highly customized laser-cutting machine tools. One of your
long-time customers, Claymore Custom Cabinetry, has indicated that they might be in the market for a new laser cutter for
cutting granite countertops as demand for these custom products has been steadily increasing. What do you do to
encourage them to take the next step?
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a. Offer to help them define the exact specifications of the laser cutter
b. Write up a proposal for the new laser cutter
c. Schedule a meeting so you can review your proposal with Bill Claymore
d. Ask them what your competitors are offering so you can be competitive
94. For more than 20 years, your company has been working closely with the U.S. military to design and build unmanned
drones. Now that your products have become so well known, you feel it’s time to capitalize on their popularity by selling
to a different market category. What would be your best option?
a. Design a new model of drone for use in law enforcement.
b. Promote your military-grade drones to foreign governments.
c. Design a new model of drone for hobbyists.
d. Expand the number of models available to the U.S. government.
95. 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
96. 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. Fourth stage
97. This could make your career! You’re a sales rep for a packaging supplier that produces bags, boxes, and other
packaging for retailers, and you’ve got a meeting with the packaging buyer for Target. Which organizational factor do you
most need to learn about in your meeting with this buyer so you can win this account?
a. Whose opinions matter most to the buyer
b. How your pricing structure fits with Target’s expectations
c. Whether purchasing decisions are centralized or delegated to geographic units
d. Whether Target requires product customization
98. 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.
99. 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
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c. organizational factors
d. merchandisers and category advisors
e. impulse factors
100. 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
101. Chris works for Aon, a large commercial brokerage company that serves as the intermediary between customers who
need risk or insurance coverage and firms that 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
102. 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.
d. systems integration.
103. At American Military Uniforms, Inc., workers sew dozens of different uniform styles that are sold under contract to
the U.S. Army, Navy, Marines, Air Force, and Coast Guard. The sewing machines and lights in the factory require a
tremendous amount of electrical energy, which is supplied by Northern Power Corporation. In this context, AMU’s
purchase of electricity from Northern Power belongs to the _____ component of the business-to–business market.
a. commercial market
b. trade industries
c. institutions
d. governmental organizations
104. You worked your way through college managing a restaurant, and now you’re the marketing manager for a company
that sells fresh produce to restaurants. What have you observed about distribution now that you’re working in a B2B
context?
a. There are fewer players, as you’re no longer directly concerned with the ultimate consumers.
b. Product variation is essential because you have to be able to meet your customers’ individual needs.