b.
business products
c.
supplies
d.
consumer and business products
e.
major equipment
126. Refer to Etruscan Railing Company. When Etruscan sells railing to contractors to use in building
loading docks in accordance with federal government regulations, it is selling to:
a.
government
b.
institutions
c.
resellers
d.
producers
e.
consumers
127. Refer to Etruscan Railing Company. When Etruscan sells railings to refurbish a private university’s
football stadium, it is selling to a(n):
a.
intermediary
b.
institution
c.
reseller
d.
producer
e.
consumer
128. Refer to Etruscan Railing Company. Etruscan has experienced a strong increase in railing sales as a
result of the growth of college football. This increase in the demand for railings as a result of the
demand for new football stadiums is called _____ demand.
a.
joint
b.
derived
c.
inelastic
d.
fluctuating
e.
elastic
129. Refer to Etruscan Railing Company. Companies that make bicycle racks for bike safekeeping in public
places receive the railing as 30-foot lengths of pipe. For these companies, Etruscan railing is classified
as:
a.
supplies
b.
accessory equipment
c.
an installation
d.
processed material
e.
raw material
The Federal Aviation Administration has been struggling for several years with antiquated systems,
and all it takes is a single failure on one piece of the system to shut down the entire air-traffic control
system for several hours, resulting in significant snarls at major airports. The most recent failure
occurred in the FAA’s core telecommunications network, called the Federal Telecommunications
Infrastructure (FTI), which is managed by Harris Corporation. Marc Raimondi, a spokesperson for
Harris Corporation, said, “The FTI system has proven to be one of the most reliable and secure
communications networks operating within the civilian government.” Snafus like this have been
happening with alarming frequency, prompting Congress to demand the FAA and its contractors to do
more to prevent these malfunctions. The problem is that the FAA has been using a patchwork
approach by updating with modern hardware and software on old systems instead of a complete
overhaul of the system. The FAA’s next generation of modernization will rely on satellite-based
networks instead of phone lines and data cables. The FAA is waiting for White House approval on
whether it will have the funds to take this next step.
130. Refer to Federal Aviation Administration. The FAA is what type of business buyer?
a.
producer
b.
reseller
c.
government
d.
institution
e.
unbiased
131. Refer to Federal Aviation Administration. The company that wins the contract to develop the
satellite-based system for the FAA will have to purchase satellites and mainframe computers for this
system. These types of products are best described as which type of business product?
a.
raw materials
b.
processed materials
c.
accessory equipment
d.
business equipment
e.
major equipment
132. Refer to Federal Aviation Administration. Harris Corporation provides which type of business product
to the FAA?
a.
major equipment
b.
accessory equipment
c.
raw materials
d.
business services
e.
component parts
133. Refer to Federal Aviation Administration. Ultimately, The FAA must get authority from the President
to spend the billions of dollars necessary to upgrade the system because Congress must authorize the
funds and the President must approve that authorization. In terms of the buying center, the President is
the:
a.
initiator
b.
gatekeeper
c.
purchaser
d.
decider
e.
user
134. Refer to Federal Aviation Administration. When the FAA purchases a satellite-based system, this will
be a situation in which it is purchasing an entire system, not just a modified part or new vendor for
existing parts. Basically, this is a situation in which the FAA will be purchasing a system for the first
time and is referred to as a(n):
a.
straight rebuy
b.
modified rebuy
c.
new buy
d.
original equipment purchase
e.
primary purchase
Boise Cascade comprises two businesses. Boise Cascade Building Materials Distribution is one of the
largest wholesale building materials distributors in the United States. The firm’s 33 distribution
facilities market a wide range of building products and services to retail lumber dealers, home
improvement centers, and industrial accounts nationwide. Boise Cascade Wood Products
manufactures plywood, lumber, particleboard, and engineered wood products (laminated veneer
lumber, I-joists, and laminated beams) at 20 manufacturing facilities in the United States and Canada.
The firm’s wood products are used primarily in housing, industrial construction, and a variety of
manufactured products. Our wood products are sold to retail lumber dealers, home centers specializing
in the do-it-yourself market, and industrial customers.
135. Refer to Boise Cascade. Boise Cascade sells:
a.
consumer products
b.
business products
c.
supplies
d.
consumer and business products
e.
installations
136. Refer to Boise Cascade. Boise Cascade’s excellent supplier relationships allow the company to provide
the best value on the top brands in the industry. Because Boise Cascade has confidence in its suppliers’
reliability and integrity, a high degree of _____ exists between the firm and the suppliers.
a.
trust
b.
tomo
c.
amae
d.
reciprocity
e.
derived demand
137. Refer to Boise Cascade. Home Depot purchases large amounts of plywood and lumber from Boise
Cascade, which it sells to contractors and others in the building trade. For classification purposes,
Home Depot would be which type of customer?
a.
Producer
b.
Reseller
c.
Government
d.
Institution
e.
Wholesaler
138. Refer to Boise Cascade. When the demand for new housing is high, the _____ demand for the products
manufactured by Boise Cascade is also high. This is an example of:
a.
joint demand
b.
inelastic demand
c.
derived demand
d.
fluctuating demand
e.
elastic demand
139. Refer to Boise Cascade. The plywood, lumber, particleboard, and engineered wood products
manufactured by Boise Cascade would be bet classified as:
a.
processed materials
b.
accessory equipment
c.
installations
d.
supplies
e.
component parts
Dirt is not dirt when it comes to baseball fields. About two-thirds of the pro baseball fields got their
dirt from a dirt farm in New Jersey called Partac Peat. The company markets a secret mix for the
infield (resilient), the warning track (extra crunchy), and the pitcher’s mounds (firm). Mounds come in
red, brown, orange, and gray colors. Roger Bossard, the White Sox head groundskeeper, scouted
nationwide for dirt before settling on the mix provided by Partac Peat. (He uses sand under the grassy
areas of the playing field.)
140. Refer to Baseball Dirt. Some of the dirt sold by Partac Peat is used to make clay tennis court surfaces.
As the number of people playing tennis increases so does the demand for new clay courts and,
therefore, the demand for Partac Peat. This occurs because the demand for Partac Peat is:
a.
inelastic
b.
intangible
c.
heterogeneous
d.
derived
e.
elastic
141. Refer to Baseball Dirt. An increase in the price of Partac Peat’s dirt will not affect the demand for the
product because many groundskeepers believe there is no substitute for the product. Thus, demand for
Partac Peat’s secret mix is:
a.
inelastic
b.
intangible
c.
heterogeneous
d.
synergistic
e.
elastic
142. Refer to Baseball Dirt. Because Partac Peat is a business product, the primary promotional method
used for its sale is:
a.
trade promotions
b.
slotting allowances
c.
personal selling
d.
advertising in consumer magazines
e.
publicity
143. Refer to Baseball Dirt. What type of business product would Partac Peat’s dirt be since it is used in the
making of baseball fields?
a.
equipment
b.
accessory equipment
c.
capital item
d.
processed materials
e.
component parts
144. Refer to Baseball Dirt. Roger Bossard, the White Sox head groundskeeper, most likely did NOT
assume which of the following buying center roles since he has the authority to buy whatever is
needed to make the baseball field the best playing surface possible?
a.
Gatekeeper
b.
Decider
c.
Evaluator
d.
Influencer
e.
Initiator
145. Refer to Baseball Dirt. The first time Roger Bossard purchased Partac Peat’s secret mix, it was most
likely an example of which type of buying situation?
a.
Modified rebuy
b.
New buy
c.
Habitual buying decision
d.
Buying heuristics
e.
Straight rebuy
One common Christmas tradition in many households is the Claxton fruitcake. The fruitcake bakery in
Claxton, Georgia, makes about 6 million pounds of fruitcake annually and has $12 million in sales.
One fruitcake batch weighs 375 pounds. About 70 percent of that weight is fruits and nuts. A single
batch is divided into 34 loaf pans that hold 11 pounds each. Loaves are cooked for 100 minutes at 375
degrees. The bakery can cook 6,000 pounds at a time. During the baking season (August-December),
the bakery uses a tractor-trailer load of raisins each day. The suggested retail price of a one-pound
Claxton fruitcake is $3.69.
146. Refer to Claxton Fruitcakes. Because demand for raisins to bake into the fruitcakes does not change on
the basis of the price fluctuations of dried fruits, Claxton’s demand for raisins is an example of _____
demand.
a.
inelastic
b.
derived
c.
fluctuating
d.
elastic
e.
joint
147. Refer to Claxton Fruitcakes. In terms of business-to-business products, the large ovens in which the
cakes are baked are examples of:
a.
component parts
b.
MRO equipment
c.
specialty equipment
d.
processed supplies
e.
major equipment
148. Refer to Claxton Fruitcakes. In terms of business-to-business products, the flour used in fruitcakes is
an example of:
a.
OEM supplies
b.
installations
c.
MRO supplies
d.
processed materials
e.
accessory supplies
149. Refer to Claxton Fruitcakes. Any company that purchased Claxton fruitcakes to give to its customers
would treat this purchase like any other purchase and evaluate the cake and the company in terms of:
a.
demand, value, and promotion
b.
quality, service, and price
c.
order time and delivery time
d.
customer relationships, costs, and ethical behavior
e.
time requirements, order speed, and customer reactions
150. Refer to Claxton Fruitcakes. For a corporation that has been giving its key customers Claxton
fruitcakes since 1950, placing the order for cakes to be delivered this year would be an example of a
_____ because some negotiation about price and quantity must occur each year.
a.
new buy
b.
contingency buy
c.
modified rebuy
d.
situational buy
e.
straight rebuy
151. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. This is an example of _____.
a.
business marketing
b.
consumer marketing
c.
Internet marketing
d.
retail marketing
e.
complex marketing
152. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. The business market consists of four categories of business customers. Rock-Tenn’s
customers are an example of a:
a.
producers
b.
resellers
c.
governments
d.
institutions
e.
all of the above
153. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. Rock-Tenn buys paper, wood chips, and supplies from companies to make its
cartons. Rock-Tenn would be considered a(n):
a.
FAQ
b.
NAICS
c.
OEM
d.
NP
e.
LOL
154. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. As long as there is a demand for Dunkin’ Donuts, there will be demand for their
dozen-donut cartons, which will ensure demand for paper to manufacture into cartons. This is an
example of _____ demand.
a.
derived
b.
inelastic
c.
joint
d.
consumer
e.
upward
155. Refer to Rock-Tenn. The demand for Rock-Tenn’s cardboard cartons depends on how many Dunkin’
Donuts, Chick-fil-A waffle fries, and Chinese take-out meals consumers order. This is an example of
_____ demand.
a.
inelastic
b.
derived
c.
joint
d.
fluctuating
e.
elastic
156. Refer to Rock-Tenn. Rock-Tenn makes paper products for companies to use in their product and
service offerings. As demand for their products increased due to rising plastic prices, Rock-Tenn had
to acquire other plants and equipment to help in its business. This is an example of the:
a.
customer accelerator
b.
volume principle
c.
growing principle
d.
marketing effect
e.
multiplier effect
157. Refer to Rock-Tenn. Power tools used to maintain the machinery that produces cartons would be an
example of:
a.
major equipment
b.
accessory equipment
c.
raw materials
d.
component parts
e.
processed materials
158. Refer to Rock-Tenn. Lubricants used to maintain the machinery that produces cartons would be an
example of:
a.
major equipment
b.
accessory equipment
c.
raw materials
d.
supplies
e.
processed materials
159. Refer to Rock-Tenn. A paper producing company sales representative wants to do business with
Rock-Tenn. The representative needs to locate the person who actually negotiates the purchase, in
other words, the _____ in the buying center.
a.
influencer
b.
gatekeeper
c.
decider
d.
purchaser
e.
user
160. Refer to Rock-Tenn. A sales representative from a paper producing company calls on Rock-Tenn
routinely every month to review their ordering needs. The monthly sale of paper to Rock-Tenn would
constitute a:
a.
new buy
b.
modified rebuy
c.
straight rebuy
d.
modified new buy
e.
straight new buy
ESSAY
1. What is business marketing, and what distinguishes business products from consumer products?
2. The use of the Internet to facilitate activities between organizations has evolved and grown rapidly
throughout its short history. Define B2B e-commerce and describe the various tools that B-to–B
marketers are using online. Also discuss the evolution of e-business initiatives.
3. Discuss how businesses measure online success.
4. Discuss the difference between disintermediation and reintermediation. Why has Internet
disintermediation occurred less frequently than many expected?
5. What is a strategic alliance? How is it linked to relationship marketing?
6. Briefly describe the four major categories of customers in business marketing. Give examples of
companies or organizations in each category.
7. Describe the reseller market. Why do businesses use the services of business product distributors?
8. Discuss how institutional customers differ from other types of business customers such as producers or
resellers. Give two points of differentiation.
9. A Brazilian manufacturer of solar cells used as a renewable source of energy in all types of structures
would like to begin distribution and sales in the United States, Canada, and Mexico. The manufacturer
has hired you to investigate NAICS data for such products in North America. What is the NAICS
system? What other helpful kinds of information can be found in this source?
10. Explain the four ways demand in business markets differs from demand in consumer markets.
11. Name and briefly describe five of the major differences between business and consumer markets.
12. What is reciprocity? Is it illegal or unethical? Why or why not?
13. Briefly define and describe each of the categories of business goods and services. Give two specific
examples of goods or services that fit into each category.
14. What is a buying center? What are some implications of buying centers to the marketing manager?
15. Assume you are the vice-president of marketing in a medium-sized company that includes the
following departments: marketing, finance, purchasing, data processing, and production. The sales
force manager has mentioned to you that one of the salespersons thought a Web-based salesforce
automation service would help the sales force become more efficient. The sales manager requests that
this service be purchased. Illustrate the six buying decision roles that would take place for the purchase
of this service.
16. Business buyers use a variety of criteria to evaluate alternative products and suppliers. Name and
define specific aspects of the three most important criteria.
17. Cascade Landscaping Service (CLS) has decided to purchase computer-assisted-design (CAD)
software for landscape design. Describe the conditions under which each of the three business buying
situations would take place.
18. Why is customer service an important factor in business marketing?
19. You overhear a salesperson saying, “I don’t do anything with my straight-rebuy customers because
they don’t expect any service.” Comment on his statement.