58. Electric cars will increase the demand for electricity, which will then dramatically increase demand for
the equipment needed to provide consumers with the electricity. This dramatic increase is due to the:
a.
demand fluctuator principle
b.
joint demand principle or division effect
c.
inelastic demand effect
d.
circumlocution effect
e.
accelerator principle
59. Jif is the best-selling brand of peanut butter in the country. The manufacturer purchases large
quantities of peanuts every year to manufacturer its product. This order size is an example of _____
and would give Jif an advantage over other buyers of peanuts.
a.
purchase volume
b.
joint demand
c.
fluctuating demand
d.
sales volume
e.
multiplier effect
60. Buyers in the business market tend to _____ than buyers in the consumer market.
a.
use reciprocity less
b.
purchase in much smaller quantities
c.
buy more products that have a reduced probability of being affected by derived demand
d.
generate more stable demand trends
e.
be much more geographically concentrated
61. The distribution structure in business marketing typically:
a.
includes at least one wholesaler
b.
is direct
c.
is complex and multistage
d.
uses a three-step channel
e.
uses retail distributors
62. _____ is commonplace in business marketing and can sometimes occur over several months.
a.
Negotiation
b.
Need mediation
c.
Customerization
d.
Purchase arbitration
e.
Disintermediation
63. If a business needs a particular good or service and decides to look among its own customers for a
provider of that good or service, the business is:
a.
working to create purchase arbitration
b.
opening itself up to prosecution for illegal activities
c.
acting unethically
d.
trying to eliminate derived demand barriers
e.
practicing reciprocity
64. General Motors buys engines for use in its vehicles from BorgWarner, which in turn buys many of the
vehicles it needs from GM. This is an example of:
a.
nested demand
b.
derived demand
c.
reciprocity
d.
elastic demand
e.
circular buying
65. _____ occurs when a deli decides to buy its office supplies from a company that regularly buys
sandwiches for its employees.
a.
Reciprocity
b.
Joint demand
c.
Elastic demand
d.
Derived demand
e.
Bidding conformity
66. Which of the following statements does NOT describe the business market?
a.
Organizational buying decisions are usually made independently by a purchasing agent
while consumer buying decisions are made jointly.
b.
Business customers tend to be more geographically concentrated, and customers in
consumer markets tend to be more geographically dispersed.
c.
The channel of distribution is more often direct for business markets than for consumer
markets.
d.
Purchasing by businesses is a more formal process than it is in consumer markets.
e.
Business marketers tend to have far fewer customers than consumer marketers.
67. _____ is the primary promotional method for the sale of all business products.
a.
Direct mail
b.
Advertising
c.
Personal selling
d.
Public relations
e.
Trade promotions
68. Kaplan Construction needs a backhoe for a job, so Donna Kaplan decides to lease the equipment from
Premier Leasing Services. In this case:
a.
Kaplan is the licensee
b.
Premier is the lessee
c.
Kaplan is the licensor
d.
Premier is the lessor
e.
Kaplan is the lessor
69. Personal selling is pervasive in organizational markets because:
a.
most of the situations involve fairly low cost items
b.
there are few avenues for effective advertising of organizational goods
c.
organizational salespeople seldom speak the language of their customers
d.
it is the most inexpensive method of promotion
e.
many organizational products are complex and require expertise on the salesperson’s part
70. All of the following are considered types of business products EXCEPT:
a.
raw materials.
b.
convenience goods
c.
major equipment
d.
accessory equipment
e.
component parts
71. Which type of business product includes such capital goods as large or expensive machines,
mainframe computers, blast furnaces, generators, airplanes, and buildings?
a.
Major equipment
b.
Raw materials
c.
Component parts
d.
Accessory equipment
e.
Investment goods
72. Major equipment goods, such as machines, mainframe computers, and buildings are also referred to as:
a.
investment goods
b.
necessity goods
c.
capital components
d.
strategic goods
e.
installations
73. Which of the following is the BEST example of an installation?
a.
A baseball stadium
b.
A checkout counter
c.
A lifeguard stand
d.
A file cabinet
e.
Original artwork
74. Products such as parking garages, mainframe computers, privately owned office buildings, and
street-cleaning equipment are depreciated over time rather than expensed in the year they are
purchased. These are classified as:
a.
processed materials
b.
accessory equipment
c.
major equipment
d.
supplies
e.
component parts
75. Claas is Europe’s largest manufacturer of combine harvesters. As farming becomes more professional
and more intensive, farmers are buying more sophisticated machines, which Claas can supply. The
expensive machines sold by Claas would be examples of:
a.
installations
b.
component parts
c.
accessory equipment
d.
processed materials
e.
minor equipment
76. TruColor Printers has purchased a Heidelberg printing press with auto-blanket wash and chilled rollers
for $2.2 million. The company will depreciate the value of the printing press over several years. The
printing press would be considered:
a.
Major equipment
b.
Component part
c.
Processed material
d.
Fabricating item
e.
Accessory equipment
77. Which type of business product represents goods, such as portable tools and office equipment, that are
less expensive and shorter-lived than major equipment?
a.
Accessory equipment
b.
Component parts
c.
Processed goods
d.
Supplies
e.
Intermediate goods
78. Copying machines, personal computers, and fax machines are typically classified as _____ because
they are not expensive, have short useful lives, and are frequently purchased from local distributors.
a.
accessory equipment
b.
mobile equipment
c.
component parts
d.
processed materials
e.
supplies
79. For Renovation Remodeling Company, wrenches, drills, and circular saws are all examples of _____
because they are shown as expenses on the yearly accounting statements.
a.
mobile installation
b.
component part
c.
processed material
d.
supply
e.
accessory equipment
80. Which of the following is the BEST example of accessory equipment?
a.
a parking lot
b.
a store display rack
c.
accounting services
d.
a river barge
e.
light bulbs
81. Unprocessed extractive or agricultural products, such as copper, peanuts, soybean, bauxite, fruits, ore,
and so on, that become part of finished products are examples of:
a.
supplies
b.
OEM parts
c.
component parts
d.
processed materials
e.
raw materials
82. One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being
picked to ensure product freshness. The fresh tomatoes it buys from growers are examples of:
a.
OEM parts
b.
raw materials
c.
component parts
d.
processed materials
e.
supplies
83. Hazelfield Farms provides local restaurants with organic fruits and vegetables that have been grown
without the use of pesticides or chemical fertilizers. Hazelfield Farms is a supplier of:
a.
accessory parts
b.
supplies
c.
raw materials
d.
unprocessed extractive products
e.
processed materials
84. Finished items ready for assembly or products that need very little processing before they become a
part of some other product are called:
a.
supplies
b.
raw materials
c.
accessory equipment
d.
processed materials
e.
component parts
85. Within the business market, roller belts that are purchased by vacuum manufacturers are examples of:
a.
supplies
b.
raw materials
c.
accessory equipment
d.
processed materials
e.
component parts
86. PAS Systems has developed an unobtrusive flashlight-alcohol detector. The flashlight readings are
inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety
test. Each one costs $600. The manufacturer assembles a breathalyzer from one supplier with a slightly
modified flashlight case from another supplier to make the new product. The breathalyzer and the
flashlight case are examples of:
a.
major equipment
b.
component parts
c.
processed materials
d.
integrated parts
e.
accessory equipment
87. There are two important markets for many component parts: the original equipment market and the
_____ market.
a.
replacement
b.
processed materials
c.
accessory
d.
raw materials
e.
integrated parts
88. Products that have had some processing, are used directly in the production of other products, and do
not retain their identity in the final product are called:
a.
raw materials
b.
supplies
c.
processed materials
d.
component parts
e.
replacement parts
89. No-Glut is a small company that manufactures several gluten-free products for consumers who cannot
digest this substance. For this manufacturer, rice flour, which will be used in its manufacturing
process, is a(n)
a.
accessory equipment
b.
fabricating material
c.
component part
d.
integrated material
e.
processed material
90. A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a
dry dog food. These processed meat by-products are examples of:
a.
raw materials
b.
OEM products
c.
processed materials
d.
component parts
e.
replacement parts
91. One way processed materials differ from component parts is that processed materials:
a.
do not retain their identity in final products
b.
are always much cheaper than component parts
c.
have had some processing
d.
do not become part of a final product
e.
All of the above are true.
92. _____ are consumable, inexpensive, and often standardized items that do not become part of the final
product.
a.
Processed materials
b.
Supplies
c.
Provisions
d.
Accessory equipment
e.
Replacement parts
93. At an accounting firm, the secretary orders printer cartridges, cases of paper, paper clips, and other
small items. These items would be classified as:
a.
replacement parts
b.
provisions
c.
OEM parts
d.
accessory equipment
e.
supplies
94. Another name for business supplies like pens, paper, and file folders is:
a.
processing goods
b.
components
c.
OEM parts
d.
MRO items
e.
accessories
95. Business services:
a.
are capital items
b.
are never outsourced
c.
are not used in reciprocity arrangements
d.
typically become part of the finished product
e.
are expense items
96. A dentist hired a janitorial service to clean her office every evening. The janitorial service provided the
dentist with:
a.
OEMs
b.
processed services
c.
business services
d.
accessory services
e.
service supplies
97. The Barter Company (TBC) located in Kennesaw, Georgia acts as a broker between companies that
want to trade products or services. Companies must be a TBC member, and there is a one-time fee to
join. TBC charges a brokerage fee on each transaction facilitated. TBC is an example of a (n):
a.
service integrator
b.
job source
c.
business service
d.
extended service
e.
component service
98. The _____ is the set of all persons in an organization who become involved in the purchasing process.
a.
buying center
b.
stakeholder committee
c.
ad hoc purchasing staff
d.
board of directors
e.
comptroller’s staff
99. The buying center:
a.
will be composed of the same decision makers as long as the purchasing process lasts
b.
is typically on the formal organizational chart under the vice-president for operations
c.
requires all purchasing participants to be employed by the purchasing department
d.
refers to all those organizational members who become involved in the purchasing process
e.
regularly generates formal announcements of who is in the buying center
100. Which of the following statements about buying centers is true?
a.
The most efficient buying centers have no more than five members.
b.
No one individual should assume more than two buying center roles.
c.
Buying centers are clearly labeled on all organizational charts.
d.
Complex purchase situations usually have fewer people involved in the buying center than
less complex purchases.
e.
Membership and influence in a buying center vary from company to company.
101. You have started raising your first litter of AKC registered Chihuahuas. You want to sell your puppies
to the locally owned and operated pet store, Pets and People. How do you find the buyer?
a.
Look at the formal organization chart of the company.
b.
Get a copy of Pets and People’s phone directory, where all buying center members are
listed.
c.
Contact the store and probe to see who is in charge of buying
d.
Locate the decider at Pet and People
e.
Wait for Pets and People to call you when they will hear about your new breeding
program
102. All of the following are roles found within a buying center EXCEPT:
a.
influencers
b.
gatekeepers
c.
suppliers
d.
users
e.
initiators
103. Harold works as a new business manager for a manufacturer of marine lubricants. He often talks to
several different people before he locates someone who can give him a purchase order or a refusal. In
terms of the buying center, he has the most trouble identifying the _____ for his services.
a.
decider
b.
influencer
c.
purchaser
d.
gatekeeper
e.
user
104. The _____ is the member of the buying center who regulates the flow of information.
a.
decider
b.
influencer
c.
purchaser
d.
gatekeeper
e.
user
105. Bob works for the Zinn Plumbing Company. After struggling with a particularly difficult job one day,
he tells his supervisor, Miguel, that if he’d had a special type of wrench he could have finished the job
much more quickly. Bob asks Miguel if the company would be willing to purchase the wrench. Miguel
agrees that the wrench would be a good purchase, so the next day he approaches the company owner,
Phyllis Zinn, and lays out for her all the reasons why the new wrench should be purchased. After
listening to Miguel’s presentation, Phyllis agrees that the wrench should be purchased and authorizes
Miguel to pick one up from the plumbing parts distributor that afternoon. In this scenario:
a.
Miguel is both the buyer and the decider
b.
Bob is both the influencer and the user
c.
Miguel is both the gatekeeper and the influencer
d.
Phyllis is both the initiator and the decider
e.
Both Bob and Miguel are initiators, and Phyllis is the influencer
106. The three most important evaluative criteria for business-to-business purchases are quality, price, and:
a.
competitive offers
b.
service
c.
reliability
d.
assurance
e.
existing relationships
107. In terms of how business buyers evaluate products and suppliers, the most important criterion is:
a.
price
b.
behavior
c.
quality
d.
personal relationships
e.
reciprocity
108. Business buyers use a variety of criteria to evaluate alternative products and suppliers. The three most
important criteria, in order of importance, are usually:
a.
price, sales support, and service
b.
quality, service, and price
c.
reputation, price, and capability
d.
price, delivery time, and product reliability
e.
service, quality, and reputation
109. The Beaumont Homeowner’s Association had to replace its pool pump. They asked two local
companies—Thompson Pools and Southern Pool and Spa Company—for quotes on replacing the
pump. Beaumont negotiated with both companies and quickly decided to buy from the Thompson Pool
because its quote was $200 cheaper in its labor estimate. Which evaluative criterion appears to have
been most important in making this purchase decision?
a.
Price
b.
Familiarity with the product
c.
Reliability
d.
The availability of replacement parts
e.
Buyer/seller relationship
110. A _____ is a situation requiring the purchase of a product for the first time.
a.
straight rebuy
b.
value buy
c.
modified rebuy
d.
new buy
e.
make-or-buy
111. A new-buy situation refers to the:
a.
setting of new standards for current vendors
b.
establishment of a new buying center
c.
resolution of new conflict between buyer and seller
d.
search for replacement vendors for standard, currently used parts
e.
purchase of a product or service when a new demand arises
112. A university is considering the purchase of a Web-based course delivery system due to increased
demand for online courses and degrees. Since the school has not offered online courses before, what
type of buying situation does this represent for the school?
a.
Value engineering task
b.
Modified rebuy
c.
Straight rebuy
d.
New buy
e.
Derived rebuy
113. A small police department wants to buy a machine with which it can perform alcohol breath tests. It
has never had this capability before but feels it is an essential tool as the community grows. The
machine costs about $5,000, which is almost 75 percent of the department’s entire supply budget. This
purchase would be an example of a(n) _____ situation.
a.
extensive buying
b.
low-involvement buying
c.
new-buy
d.
modified-rebuy
e.
straight-rebuy
114. A _____ situation is normally less critical and less time-consuming than a new-buy situation but does
require some change in the original good or service.
a.
synergistic rebuy
b.
value buy
c.
negotiated rebuy
d.
modified rebuy
e.
make-or-buy
115. Apple Inc. wanted a faster microprocessor for its new Macs. Apple Inc. most likely engaged in a:
a.
value engineering task
b.
modified rebuy
c.
straight rebuy
d.
new process
e.
new buy
116. A dentist hired a janitorial service to clean her office every evening. The original contract called for
the janitorial service to dust, mop all floors, and vacuum the rugs. After six months, the dentist decided
to renegotiate the contract with the janitorial service to include cleaning the office bathroom and
washing the office windows as well as the original tasks. The renegotiated contract is an example of a:
a. contingency buy
a.
modified rebuy
c.
straight rebuy
b.
negotiated buying system
d.
new-buy situation
117. Axel Spring AG, one of Europe’s largest newspaper publishers, with 10,000 employees and more than
150 papers in 30 countries, announced it would switch its entire operation from PCs to Macs. Axel
decided to make a switch to Apple because the company’s layout work was already being done by
Macs and the Macs were more user friendly, more elegant, and cheaper to maintain than they had been
in the past. This is an example of a:
a.
new buy
b.
value buy
c.
straight rebuy
d.
modified rebuy
e.
make-or-buy
118. Which of the following is the best example of a modified-rebuy situation?
a.
The purchase of a replacement hamster as the class mascot
b.
Bidding on a new high school multi-purpose gymnasium to replace one built in 1963
c.
The purchase of three large screen computer monitors to replace smaller monitors
d.
The annual purchase of calendar refills for the desks of all company executives
e.
The monthly updating of computer virus protection
119. A routine purchasing situation in which the purchaser is not looking for new information or at other
suppliers is called a:
a.
modified rebuy
b.
value buy
c.
synergistic buy
d.
straight rebuy
e.
make-or-buy
120. Leo buys coffee weekly for his espresso shop. This purchase is most likely an example of a(n) _____
situation.
a.
need-related buy
b.
limited-rebuy
c.
straight-rebuy
d.
rebuy sourcing
e.
institution-buy
121. A professor sent the following memo to his department chair for his authorization:
Glen:
I need to purchase a camera, Mac computer, and microphone for the selling center lab #2 just like we
did for lab #1.
This buying situation should be described as a:
a.
make-or-buy
b.
value buy
c.
new buy
d.
modified rebuy
e.
straight rebuy
122. Purchasing contracts are commonly used in which type of buying situations?
a.
Reciprocal
b.
Straight-rebuy
c.
New-buy
d.
Extended-rebuy
e.
Modified-rebuy
123. Texas Instruments (TI) has developed a detailed Values and Ethics Statement and Code of Business
Conduct. Why did they choose to create this?
a.
Because it makes TI look good
b.
TI’s suppliers will only buy from them if they have this statement
c.
U. S. law requires a code of ethics
d.
Consumers demand ethical practices
e.
A code of ethics helps guide buyers and sellers and overall helps the company to follow
ethical practices
124. Which of the following is becoming increasingly more important in business marketing strategies?
a.
Customer service
b.
Price collusion
c.
Ethnocentrism
d.
The divider effect
e.
Competitive advertising
125. Refer to Etruscan Railing Company. Etruscan Railing sells:
a.
consumer products