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82. With regard to business products, which of the following statements is true of major equipment?
a. It is generally marketed by local industrial distributors.
b. It is sold through a longer distribution channel than accessory equipment.
c. It is often custom designed for each customer according to requirements.
d. It is less expensive and shorter-lived than accessory equipment.
83. Which of the following is true of leasing?
a. Businesses normally buy products rather than lease them, even they are very expensive.
b. Leasing allows firms to reduce capital outflow, acquire a seller’s latest products, receive better services, and gain
tax advantages.
c. Use of leasing is not encouraged in business markets.
d. Manufacturers do not use leasing in their businesses.
84. B-to-B companies use digital marketing to position their businesses as thought leaders and generate sales leads,
primarily in the form of ______.
a. communication and orders
b. banners
c. content marketing
d. promotional mix
85. Which of the following is true of consumers in consumer markets?
a. They often follow the practice of reciprocity.
b. They tend to buy in larger quantities than business consumers.
c. They approach purchasing more formally than business buyers.
d. They normally buy products rather than lease them.
86. C-Through, an optics manufacturing company, wants to focus on relationship marketing. In this case, which of the
following strategies is the best for C-Through to market its products?
a. It can use social networking sites to advertise itself to businesses.
b. It can market its products through dealers.
c. It can set the price and other conditions of sale without negotiation.
d. It can use accessory equipment and major equipment. It can enhance satisfactory services.
87. Which of the following is a similarity between raw materials and component parts?
a. Both fail to retain their identity in final products.
b. Both become part of a final product.
c. Both are unprocessed extractive products.
d. Both are more expensive than major equipment.
88. Schools, hospitals, colleges and universities, churches, labor unions, fraternal organizations, civic clubs, foundations,
and other so-called nonbusiness organizations are the components of which business market segment?
a. Federal government
b. Producers
c. Institutions
d. State, county, and city government
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89. Intix Inc. is a manufacturer of mother boards for computer systems, which sells its product to the firms which
manufacture assembled computers. Which of the following is true in this scenario?
a. A special feature of component parts is that they could not retain their identity after becoming part of the final
product.
b. The finished items are ready for assembly or are products that need very little processing before becoming part of
some other product.
c. The goods which are less expensive and shorter lived than major equipment.
d. The expense items that do not become part of a final product.
90. Which is an important basis for establishing competitive advantage and differentiating one’s company from
competitors?
a. Delivering consistent, high-quality customer service.
b. Providing a high-quality product advertised by word-of-mouth.
c. Using an automated survey to determine the postsale satisfaction of customers.
d. Giving importance only to high-end customers
91. In the context of business products, which of the following is a difference between major equipment and accessory
equipment?
a. Major equipment is often standardized, whereas accessory equipment is often custom designed for each customer.
b. Major equipment is depreciated over time, whereas accessory equipment is charged as an expense in the year it is
purchased.
c. Major equipment has a short life, whereas accessory equipment has a long life.
d. Major equipment is marketed more through advertising, whereas accessory equipment is marketed via personal
selling.
92. Companies selling to business buyers face the same challenges as all marketers of goods and services, including
determining __________.
a. the target market and deciding how best to reach it
b. supply chain efficiency
c. the activity of organizing the movement to reach end customers
d. the attractive offers of the products to buyers
93. Which of the following is a difference between purchaser and decider?
a. The purchaser actually negotiates the purchase, whereas the decider approves the selection of the supplier.
b. The purchaser approves the selection of the supplier and the decider negotiates the purchase.
c. The purchaser suggests making a purchase; the decider influences the buying decision.
d. The purchaser regulates information about the product and the decider ultimately uses the product.
94. With regard to business customers, which statement is true of institutions?
a. They are profit-oriented companies that use purchased goods to incorporate into other products.
b. They are organizations that buy finished goods and resell them for a profit.
c. They are buying units that account for the greatest volume of purchases of any customer category.
d. They are nonbusinesses in the business markets that seek to achieve goals other than the standard business goals
of profit.
95. Which of the following characteristics distinguishes business products from consumer products?
a. Physical form
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b. Intended use
c. Distribution method
d. Price
96. Outside providers who perform janitorial, advertising, legal, management consulting, marketing research, and
maintenance, are examples of ___________.
a. business supplies
b. component parts
c. users
d. business services
97. Which of the following statements is true of business services?
a. They include consumable items.
b. They include processed items.
c. Contracting an outside provider doesn’t make any sense when it costs less than hiring in-house employees.
d. They do not become part of a final product.
98. As long as smartphones are manufactured and are in demand, the demand for new apps will never die. This
exemplifies ___________ demand.
a. fluctuating
b. joint
c. derived
d. inelastic
99. In a(n) _____ situation, a purchaser wants to make a change in the original good or service.
a. initiation buy
b. straight rebuy
c. new buy
d. modified rebuy
100. _____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much
larger change in demand for the facilities and equipment needed to make the consumer product.
a. The multiplier effect
b. Reciprocity
c. Fluctuating demand
d. Inelastic demand
101. Which of the following is true about a difference between supplies and business services?
a. Supplies are consumable items, whereas business services are expense items.
b. Supplies are immoderate compared to other business goods, whereas business services are economical.
c. Supplies are part of a final product, whereas business services do not become part of a final product.
d. Supplies are custom designed for each customer, whereas business services are normally standardized.
102. Quality, service, and price are three important components of _____________.
a. evaluative criteria
b. business ethics
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c. buying centers
d. customer service
103. Which of the following statements is true of a new buy?
a. The buyer cannot afford to run out of supply.
b. It is a situation that requires a change in the original service.
c. It is a situation that is less critical and quick.
d. It is a situation that is more time-consuming than a modified rebuy.
104. Casca Paints Inc., a manufacturer of paints and emulsions, owns a user-friendly website. The website allows
customers to upload pictures of their house to help in selecting their color choices. Donnel Designs Inc., an interior
decoration firm, enters into a partnership with Casca Paints Inc. As a result, customers can now get a complete design
solution for their houses. This is an example of a _____.
a. straight rebuy
b. golden handshake
c. relationship commitment
d. strategic alliance
105. Wonder Coffee is a chain of coffee serving outlets and specializes in selling different flavors of coffee. The increase
in the price of sugar does not affect Wonder Coffee’s coffee prices very much and sales continue at their usual level.
Identify the type of demand in this scenario.
a. Inelastic demand
b. Fluctuating demand
c. Joint demand
d. Elastic demand
106. A _____ is used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other
customers.
a. consumer product
b. retail product
c. business product
d. convenience product
107. Which of the following statements is true of the North American Industry Classification System (NAICS)?
a. The system developed jointly by United states, Russia, and Mexico, provides a common industry classification
system .
b. The geographic dispersion of firms cannot be identified with the help of NAICS.
c. The more digits in an NAICS code, the more homogeneous the group.
d. Each classification is relatively heterogeneous in terms of raw material required, components used, and
manufacturing processes employed.
108. Anex Textiles, Inc. manufactures cloth and buys the chemical dyes for its use from Werth Chemicals, Inc. Werth
Chemicals, Inc., in turn, buys uniform material for its employees from Anex textiles Inc. This scenario highlights a
specific business practice known as ______________.
a. reciprocity
b. trust
c. reselling
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d. relationship commitment
109. Which of the following statements is true of processed materials?
a. They include materials such as large or expensive machines, mainframe computers, and generators.
b. They include materials such as sheet metal, chemicals, specialty steel, treated lumber, and plastics.
c. They include materials such as spark plugs, tires, and electric motors for automobiles.
d. They include materials such as lubricants, detergents, paper towels, pencils, and paper.
110. Fournotts Printing Inc. manufactures and sells photocopiers, printers, and scanners to various corporate offices. This
is an example of _____.
a. contract manufacturing
b. business marketing
c. licensing
d. franchising
111. Explain strategic alliance and the factors that contribute to its long-term survival.
112. Explain how business establishments are classified under the North American Industry Classification System
(NAICS).
113. Differentiate between major equipment and accessory equipment.
114. Explain the distribution structure followed in business markets.
115. Discuss the significance of content marketing as a trend in B-to-B Internet Marketing.
116. Discuss the importance of customer service in business marketing.
117. Describe the role of resellers who comprise one the major categories of business customers.
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Answer Key
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