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c. Your company’s salespeople basically have two groups of decision makers to impress: the chefs and the
managers.
d. The high turnover of chefs and managers in the restaurants your team deals with makes your job more
challenging.
105. Robbie is a purchasing agent for a large corporation, and he’s just sent out a request for proposals from five different
software developers, asking them to bid on a new project. Samantha, an account manager for one of the software
developers, calls Robbie and asks to meet with him to clarify the specifications of the project. In which stage of the
organizational buying process are they?
a. Recognizing a problem or opportunity
b. Defining the characteristics of the needed product
c. Evaluating proposals and selecting suppliers
d. Obtaining feedback and evaluating performance
106. 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.
107. Amy works for a small business firm that specializes in the home furnishing design business. She is the head of the
textiles department and coordinates with 25 textile manufacturers around the world to ensure that her firm has the best
supplies on the market. Each quarter, Amy 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’s opinions, especially since the
company’s profits have continually increased for 10 years. This year, however, the company’s overhead costs have
increased, and Amy and her team need to figure out why. Which of the following can be said is a drawback of having
Amy to serve in the role described above?
a. Amy controls all of the information about which types of textiles the firm should purchase.
b. Amy lacks formal authority when it comes to making decisions about the company’s budget.
c. Amy is inexperienced and makes poor choices that impact the firm’s bottom line negatively.
d. Amy’s decision to work with international buying centers has led to an increase in the firm’s overhead costs.
e. Amy has to surrender her power to more influential team members when it comes to making purchase decisions.
108. 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.
109. 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.
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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. Many companies purchase from several vendors, and require bids from each before choosing one among them. A
skilled marketer understands the client’s ____________ like this, and considers these processes when formulating a
marketing proposal.
a. interpersonal influences
b. systems factors
c. organizational factors
d. environmental factors
112. 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 and state and federal governments
d. Institutions such as hospitals and churches
113. The segmentation of the B2B marketplace based on how business purchasers will use the product is called:
a. segmentation by purchasing category.
b. segmentation by customer type.
c. segmentation by end-use application.
d. segmentation by demographic characteristics.
114. 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.
115. At Kroger’s corporate headquarters, you play a key role in the process of purchasing baked goods, such as breads,
tortillas, and baked desserts. Which of the following activities indicates that you are a buyer?
a. You are helping the manager of the in-house bakery revise her list of products that will be made on site.
b. You have selected Thomas’ as your main supplier of English muffins and bagels.
c. You are collecting data on various brands of gluten-free baked goods, such as Udi’s and Food for Life.
d. You have just signed off on the coming year’s budget for grocery purchases.
116. You play an essential role in the purchasing process at AutoZone Auto Parts. Which of the following activities
indicates that you are a decider?
a. You have scheduled an appointment for the Duralast sales rep to meet with your supervisor.
b. You are in the process of researching the best location for the next new AutoZone retail outlet.
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c. You have selected Bosch as the company’s primary supplier of spark plugs.
d. You’ve just given the final approval on 14 purchase requests.
117. You’re the owner of Jackson Electricians, and you often write proposals to sell your services to construction
companies and contractors. You’ve heard that Wyoming Commercial Builders fired the electrician firm it worked with on
its last big project because the electricians made countless mistakes, resulting in numerous code violations and huge fines.
You’d like to win the contract for all of the electrical work on Wyoming’s next big project, so in this context, which factor
should you emphasize in your proposal?
a. Your company’s quality guarantee
b. Your company’s ability to comply with regulatory codes
c. Your company’s exceptional reputation in the industry
d. Your company’s cost-saving measures
118. You’ve just started a new job as the marketing director for a company that makes and sells printing presses. On your
first day, the sales manager storms into your office and demands your help with a long-time, valued customer. Because
you understand the importance of product in the B2B market, you:
a. brainstorm ways to reach a higher decision maker within the customer’s organization.
b. discuss how your company can make the custom specifications the customer needs.
c. figure out how to eliminate the intermediaries involved in the sales process.
d. get personally involved in the promotion process.
119. On your certified organic farm, you grow a variety of herbs and spices, which you then process and package as
seasoning mixes for a couple of nearby food product manufacturers. If you wanted to increase revenue by expanding into
another market category, which would be your best option?
a. Start selling your seasoning mixes to the public at farmers’ markets in the area.
b. Start selling your seasoning mixes to area restaurants for use in food preparation.
c. Start selling your fresh herbs to area restaurants for use in food preparation.
d. Start growing organic vegetables in addition to the herbs and spices.
120. 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
121. You’re the Chief Marketing Officer of SalonCentric, a wholesaler of hair and beauty products sold to licensed
beauticians and cosmeticians through brick-and-mortar stores across the United States. You want to increase revenue by
expanding into another market category. What is your best option?
a. Open your stores to the public so you can sell retail.
b. Start selling related equipment, such as barber chairs and pedicure chairs, to your target market.
c. Make an agreement with one of your suppliers to sell private label SalonCentric products.
d. Start producing hair dye that will be sold to hair color manufacturers.
122. 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.
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a. commercial market
b. trade industries
c. institutions
d. governmental organizations
123. 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
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.
124. 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 a wide variety of organizations that often have diverse buying practices.
d. acquire products mainly to indirectly support the production of other goods and services.
125. You’re the sales and marketing director for All Weather Tire, a manufacturer of tires sold through tire stores and
garages across the country. At the next annual meeting with all of your salespeople, you want to encourage them to focus
their selling efforts on those customers with the greatest buying power. What is the number one thing you think the
salespeople need to know in order to prioritize their customers?
a. Customers’ type, specifically tire store or garage
b. Customers’ geographic locations
c. Customers’ annual revenues
d. Customers’ average annual volume of tire sales
126. 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
127. Valery has just started a new job as a purchasing agent for a pharmaceutical research lab, and one of his first tasks is
to order some new microscopes. Which of the following is NOT a form of interpersonal influence likely to impact
Valery’s decision?
a. The researchers’ explanations of how they’ll use the microscopes
b. His supervisor’s verbal list of the company’s preferred suppliers
c. His supervisor’s instructions on how to process an order
d. A research device sales rep’s description of why her products are superior to others
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128. 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
129. Paolo sells telephone systems for medium and large businesses. He’s just heard through the grapevine that InfoTech,
a company with about 500 employees, will soon be in the market for a new telephone system, and he would love to land
the account. Which of the following organizational factors is least likely to help Paolo earn this business?
a. Knowing InfoTech’s proposed budget for the system
b. Understanding how InfoTech’s purchasing process works
c. Identifying the key decision makers within InfoTech
d. Discovering what InfoTech decision makers look for in a proposal
130. What is the purpose of B2B market segmentation?
a. To discover how prospective customers will be using your products and services
b. To establish how to define and describe prospective customers
c. To identify the prospective customers with the greatest sales potential
d. To establish your prospective customers’ unique needs
131. Which of the following is the best example of a typical B2B buyer-seller relationship?
a. Mark meets with Diane over lunch once each quarter to discuss her needs for mini-vans for her courier service.
b. Mark sells cars to Steve for his family, three in the last five years!
c. Diane fields phone calls from various individuals who need a courier service now and then.
d. Steve, who enjoys sculpting in his free time, orders his art materials from an online wholesaler.
132. At Kroger’s corporate headquarters, you work as the assistant to the baked goods buyer. Which of the following
activities is NOT a routine part of your role as a gatekeeper?
a. Choosing which sales representatives will get meetings with your supervisor.
b. Gathering and reviewing product information on baked goods.
c. Monitoring the sales of new products across all Kroger stores and reporting your findings to your boss.
d. Meeting with sales representatives.
133. Consumers are demanding more and better services from retailers these days, and you’ve recognized this as an
opportunity. You can envision businesses—everything from grocery stores to office supply stores to dry cleaners—hiring
your company to deliver orders to their customers. You obviously want to market your company to the businesses that are
most likely to use your service, so which of these demographic characteristics should you use to segment your prospects?
a. Geographic location
b. Reputation and standing in the community
c. Number of employees
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d. Number of products they offer
134. You’re a partner at O’Leary, Ford, and Bradley Legal Services, and one of your responsibilities is to get new business
for your law firm. You’ve heard from a friend that a mid-sized corporation in your city has terminated their agreement
with their old law firm and is looking for a new one that’s a better fit for their needs. What do you expect them to do next,
and how should you respond?
a. As they’ll be searching for qualified potential service providers, you should hope they’ll consider your firm’s
services.
b. As they’ll be gathering and analyzing proposals, you should prepare a written presentation about your firm’s
services.
c. As they are just now recognizing a need, you should ask for a meeting and help them define what they’re looking
for in their next service provider.
d. As they’ll be searching for qualified potential service providers, you should ask for a meeting with the decision
makers to make them aware of your firm.
135. 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
136. 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
137. As the marketing manager for a lumber company, you’ve set a goal to work closely with the salespeople to ensure
excellent buyer-seller relationships with the company’s customers. Which of the following is a sign you’re succeeding?
a. Your customers routinely praise the high quality and great value of your products.
b. Many of the company’s customers have been working with you for 15 years or more.
c. You have built a healthy business on only six key customers.
d. You personally know the decision makers within each organization you do business with.
138. 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.
139. Great news! You’re on the phone with the operations manager of a group of five office parks in the Pacific
Northwest, and she’s telling you that you’ve been awarded the contract to become their new paint supplier. She asks,
“Where do we go from here?” How do you respond?
a. Working with her and the maintenance manager to determine what their needs are.
b. Thanking her for the business and letting her know you‘re available to her anytime.
c. Sending her a list of current clients and offering to provide references.
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d. Introducing her to your company’s online ordering system and asking if this will work for her.
140. You thought winning the contract to supply floral arrangements for the exclusive, high-end Regal Hotel was going to
be great for your business, but now it seems like it’s more trouble than it’s worth. You’ve been inundated with random
phone calls, texts, and emails from the hotel manager, the maintenance manager, and seemingly every other employee
containing all kinds of comments and complaints. What is the problem, and what is the best way to solve it?
a. You and the decision maker at Regal need to develop an order routine that works for both of you.
b. You and the decision maker at Regal did not clearly communicate your respective needs during the proposal
stage, so you should terminate the contract.
c. Regal did not accurately define their requirements before requesting a proposal, so you should ask for a complete
contract review and renegotiation.
d. You and the decision maker at Regal need to establish a formal evaluation and feedback process that works for
both of you.
Indicate one or more answer choices that best complete the statement or answer the question.
141. 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. organizational.
b. external.
c. environmental.
d. interpersonal.
142. Describe the major approaches used by marketers to segment business-to–business markets.
143. What distinguishes the business buying process from the consumer buying process? What do B2B marketers need to
understand about organizational buying behavior?
144. Differentiate between B2B marketing and consumer product marketing.
145. Explain the different roles played by business center participants in the purchasing decision process.
146. What are the stages involved in an organizational buying process?
147. Name any product sold by a reseller and describe (a) who the customer for the product is and (b) at least three types
of organizations in the commercial market that contribute components used in producing the product.
148. Come up with a business concept for the B2B market, and describe how you would segment prospective customers
for this business. Specifically, which type of segmentation would you use? Which criteria would you use for
segmentation, and why?
149. What are the different criteria involved in the selection of a vendor in a business buying process?
150. Explain the four components of business-to-business markets.
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Answer Key
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