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Name:
Class:
Date:
chapter 7
Page 1
Indicate whether the statement is true or false.
1. Items such as forklifts are more commonly sold as consumer goods than as business products.
a.
True
b.
False
2. Typically, more people are involved in a single business purchase decision than in a consumer purchase decision.
a.
True
b.
False
3. Businesses contract outside providers to perform janitorial, advertising, and legal services when it costs less than hiring
an employee to perform those particular tasks.
a.
True
b.
False
4. In social media marketing, awareness occurs when action is taken by a business or individual consumer that includes
everything from downloading a piece of content (like a white paper) to actually making a purchase.
a.
True
b.
False
5. Many companies offer ethics training to employees and have codes of ethics that help guide buyers and sellers in
business.
a.
True
b.
False
6. The key characteristic distinguishing business products from consumer products is their intended use, not their physical
form.
a.
True
b.
False
7. For both small and large vendors, paperwork is typically simpler and manageable than if selling at a federal level.
a.
True
b.
False
8. Price is one of the criteria against which business buyers evaluate products and suppliers.
a.
True
b.
False
9. Processed materials include capital goods such as large or expensive machines, mainframe computers, blast furnaces,
generators, airplanes, and buildings.
a.
True
b.
False
10. Fluctuating demand is the demand for two or more items used together in a final product.
a.
True
b.
False
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Class:
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chapter 7
Page 2
11. When negotiating a purchase in business marketing, final contracts are often short and precise.
a.
True
b.
False
12. A business-to-business online exchange is an electronic trading floor that provides companies with integrated links to
their customers and suppliers.
a.
True
b.
False
13. By pressurizing a supplier to sell products at very low prices, a buyer may, in effect, force the supplier to compromise
on the quality of the product.
a.
True
b.
False
14. NAICS codes can help identify firms that may be prospective users of a supplier’s goods and services and the more
identical digits in sequence in a code, the more homogeneous the group.
a.
True
b.
False
15. A practice in which business purchasers choose to buy from customers of their competitors is called reciprocity.
a.
True
b.
False
16. Ethics refers to a firm’s belief that an ongoing relationship with another firm is so important that it warrants maximum
efforts at maintaining it indefinitely.
a.
True
b.
False
17. Providing superior service to a firm’s most valuable customers is likely to result in a maximization of the total
business value generated over time.
a.
True
b.
False
18. A consumer product is also known as an industrial product.
a.
True
b.
False
19. The use of direct channels in business marketing has increased dramatically in the past decade with the introduction of
various Internet buying and selling schemes.
a.
True
b.
False
20. The size of the business market in the United States and most other countries substantially exceeds that of the
consumer market.
a.
True
b.
False
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chapter 7
Page 3
21. Derived demand means that an increase or decrease in the price of the product will significantly affect demand for the
product.
a.
True
b.
False
22. The supplies are the products which are used directly in manufacturing other products. .
a.
True
b.
False
23. In a buying center, the decider is the person who actually negotiates a purchase.
a.
True
b.
False
24. The more identical digits in the sequence of a North American Industry Classification System code among companies,
the less homogeneous that group of companies’ main manufacturing processes are.
a.
True
b.
False
25. Original equipment manufacturers or OEMs include all individuals and organizations that buy business goods and
incorporate them into the products they produce for eventual sale to other producers or to consumers.
a.
True
b.
False
26. A detailed numbering system developed by the United States, Canada, and Mexico to classify North American
business establishments by their main production processes is the NAKES system. See 7-5: The North American Industry
Classification System.
a.
True
b.
False
27. The U.S. federal government buys goods and services valued at more than $875 billion per year, making it the world’s
largest customer.
a.
True
b.
False
28. Federal, state, and local buying units account for the greatest volume of purchases of any customer category in the
United States.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
29. The aphorism “hurry up and wait” is often cited as a characteristic of marketing to __________.
a.
government agencies
b.
producers
c.
resellers
d.
institutions
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30. Which of the following statements is true of content marketing?
a.
It includes media such as videos, podcasts, webinars, and blog posts.
b.
It includes materials such as steel or lumber mills and food canners.
c.
It includes components such as spark plugs and electric motors.
d.
It includes equipment such as portable drills and microcomputers.
31. Which of the following scenarios illustrates the use of processed materials in manufacturing?
a.
No-Glut Inc. uses rice flour to manufacture its gluten-free products.
b.
Zintec Hardware Inc. uses nails to hold its ladders together.
c.
Pace Corp., an automobile company, uses magnesium alloy wheels for its high-end cars.
d.
Reldex Steel Corp. uses blast furnaces in its manufacturing process.
32. James, an administrative manager at Seal Inc., is asked to purchase 100 printers for the firm’s office. He contacts a
sales representative at Myro Distributors Inc. and places an order for 100 printers. Myro Distributors Inc. purchases the
printers from Ink Corp., a wholesaler, and delivers them to James at his office. In this scenario, Myron Distributors Inc. is
most likely to be a(n) _____.
a.
producer
b.
retailer
c.
institution
d.
manufacturer
33. Which of the following is true of distribution structure?
a.
Consumer products pass through a system that includes several producers and one wholesaler.
b.
The use of direct channels has increased in the past decade with the introduction of various Internet buying
and selling schemes.
c.
Channels of distribution for business marketing are typically longer.
d.
A manufacturer market is most common for indirect users in direct channel.
34. The most popular source of information about government procurement is ____________.
a.
FedBizOpps
b.
Commerce Business Daily
c.
NAICS
d.
AFTA
35. Felista Inc., a company which deals in dairy products, adheres to a standard of behavior for its employees, and follows
certain practices that reflect the moral principles and values held by the company, and guide the conduct of the individuals
in the company. Which practice is described in this scenario?
a.
Business ethics
b.
Corporate governance
c.
Principles of management
d.
Rules and regulations
36. GoPro is arguably one of the top non-celebrity brands on Instagram. A lot of the content they share is from customers
using their products. The GoPro page has over 10 million followers, gets hundreds of thousands of tweets, comments, and
shares on every post. This exemplifies the metric of ____________.
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a.
promotional mix
b.
marketing
c.
engagement
d.
strategy
37. Which statement is true of deciders in a buying center?
a.
They approve of the selection or brand.
b.
They make the final purchase.
c.
They influence the buying decision.
d.
They regulate the flow of information.
38. Which of the following statements is true of buyers in consumer markets versus buyers in business markets?
a.
Buyers in consumer markets tend to be insensitive to price, while buyers in business markets are very
particular about price.
b.
Buyer demand for consumer products in consumer markets is less stable than buyer demand for business
products in business markets.
c.
Buyers in consumer markets approach purchasing more informally, while buyers in business markets approach
purchasing more formally.
d.
Buyers in consumer markets involve more people in a single purchase decision, while buyers in business
markets involve less people in a single purchase decision.
39. A business relationship in which executives sit on the boards of their customers or suppliers; trade with each other
whenever possible; and often engage in joint product development, finance, and marketing activity. The following
affirmation represents____________.
a.
amae
b.
keiretsu
c.
trust
d.
commitment
40. Which of the following is a difference between component parts and supplies?
a.
Component parts require extensive processing before they become part of another product, whereas supplies
do not.
b.
Component parts are replaced items, whereas supplies are finished items.
c.
Component parts become part of a final product, whereas supplies do not.
d.
Component parts are inexpensive when compared to other business products, whereas supplies are expensive.
41. Which of the following is true regarding the number of customers in business markets?
a.
Business marketers have many more customers than consumer marketers.
b.
It is lot easier for business marketers to identify prospective buyers, monitor current customers’ needs and
levels of satisfaction.
c.
It becomes impossible for business marketers to attend to each customer in their markets.
d.
The main advantage for business marketers is that each customer becomes crucial-especially for those
manufacturers that have only one customer.
42. This category of the business market often carries thousands of items in stock and employs sales forces to call on
business customers. Who are they?
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Page 6
a.
Resellers
b.
Producers
c.
Distributors
d.
Governments
43. Inland Eastex, Inc. manufactures toothpaste. Even when the company increased the price of its toothpaste last year, the
sales did not drop. This is an example of _____.
a.
elastic demand
b.
inelastic demand
c.
derived demand
d.
joint demand
44. Which statement is true of new software applications being developed every year that provide customer information?
a.
These apps can help lower costs, increase supply chain efficiency, or enhance customer retention, loyalty, and
trust.
b.
Many business customers do not depend on these applications for marketing.
c.
Business marketing does not require vigilant adjustment to keep track of new applications and platforms.
d.
New applications are rarely developed for providing additional details of customers.
45. A product bought to satisfy an individual’s personal wants or needs is a ________ product.
a.
retail
b.
business
c.
consumer
d.
distributor
46. Some metrics like awareness, engagement, and conversion are useful for _____.
a.
increasing the success of a social media campaign
b.
just building visibility on social media
c.
gauging the pulse of the end customer
d.
attracting traffic of suppliers to the website
47. A Panasonic product comes into a market segment which includes various solutions like visual system, professional
camera, computer products, communications and security since the company caters to__________ market.
a.
a business
b.
a consumer
c.
both a business and a consumer
d.
an institutional
48. Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and
buildings, fall under the category of ____________.
a.
accessory equipment
b.
major equipment
c.
processed materials
d.
supplies
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Page 7
49. Two types of institutional purchasers exist: one type operates similarly to governments, in that the purchasing process
is influenced, determined, or administered by government units. The other type of purchasers ____________.
a.
are organized more like corporations
b.
behave more like producers
c.
operate like resellers
d.
are organized like retailer firms
50. L&T, an international manufacturer of electrical and electronic products and systems, also manufactures custom-
engineered switchboards for industrial sectors such as power, refineries, petrochemicals, and cement. In the electronic
segment, L&T offers a range of meters and provides control and automation systems for industries. The company
manufactures __________ and markets exclusively to _________.
a.
business products, business customers
b.
industrial products, final consumers
c.
consumer products, businesses
d.
consumer products, business customers
51. Which of the following statements is true of MRO (maintenance, repair, or operating) supplies?
a.
They become part of a final product.
b.
They are intangible business products.
c.
They are relatively expensive when compared to other business products.
d.
They are normally standardized items that purchasing agents routinely buy.
52. The administrative head of a company proposes to replace and revolutionize the office furniture for the employees
comfort. Which of the following roles does the administrator play in this scenario?
a.
Influencer
b.
Initiator
c.
Gatekeeper
d.
Purchaser
53. GE's instagram account shares behind-the-scenes looks at their business and employees. One post about the first
female wind technician in Western Canada received over 1,00 likes. With regard to business-to-business social media
marketing, these efforts by GE is an example of the __________ marketing metric.
a.
product adaptation
b.
engagement
c.
conversion
d.
review
54. Which of the following statements is true about the federal government?
a.
Not many goods and services are used by the federal government.
b.
Much of the federal government’s buying is decentralized.
c.
No single federal agency contracts for all the government’s requirements, and no single buyer in any agency
purchases all that the agency needs.
d.
The U.S. federal government buys goods and services worth less than $875 million per year.
55. Leo buys 5 million sheets of paper from a vendor for his printing firm. He is satisfied with the product, and he orders
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chapter 7
Page 8
the same quantity from the same vendor every week. This is most likely an example of a(n) _____.
a.
initial buy
b.
straight rebuy
c.
new buy
d.
modified rebuy
56. Taking into consideration to business relationships in Japan, which of the following best defines the term amae?
a.
It is the feeling of nurturing concern for, and dependence upon, another.
b.
It is the lack of motivation among employees in businesses.
c.
It is a legal consolidation and collaboration of companies into a single entity.
d.
It is the lack of economic competition in the market.
57. The important functions of providing credit, aggregating supplies from multiple sources, making deliveries, and
processing returns often are all carried out by ___________.
a.
resellers
b.
distributors
c.
marketers
d.
businessmen
58. At Magnira Corp., a company that manufactures fruit preserves, fruits of excellent quality are used to make jams,
jellies, and marmalades. In this scenario, the fruits are examples of _____.
a.
raw materials
b.
component parts
c.
MRO items
d.
finished goods
59. The North American Industry Classification System data can be used to:
a.
identify opportunities for new product lines.
b.
classify firms according to their number of customers.
c.
classify business establishments all over the world.
d.
identify potential new customers.
60. Which of the following statements is true of business marketing?
a.
It refers to the sale of goods and services for the purpose of personal consumption.
b.
It deals with products that are used to facilitate an organization’s operations.
c.
It has long and indirect channels of distribution.
d.
It includes selling stationeries to students.
61. Vactin Corp., a construction company, buys ten truckloads of cement for its new project. Given this information, the
cement bought is an example of a(n) _____.
a.
consumer product
b.
service product
c.
industrial product
d.
manufacture product
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62. Which statement is true of business markets?
a.
Products or services are sold for personal consumption.
b.
Goods sold in consumer markets are not sold in business markets.
c.
One customer can account for a huge volume of purchases.
d.
Relationship marketing is given the least importance.
63. Which of the following statements is true of raw materials that are used as business products?
a.
The promotion of raw materials is almost always done via mass advertising.
b.
They are usually sold in large quantities.
c.
Individual manufacturer have great flexibility in the pricing of raw materials.
d.
They are finished items that are ready for assembly.
64. Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in-house coffee shops, benefiting both
retailers. What kind of partnership does it represent?
a.
Collaboration
b.
Strategic alliance
c.
Commitment
d.
Trust
65. _____ exists when one party has confidence in an exchange partner’s reliability and integrity.
a.
Obeya
b.
Trust
c.
Keiretsu
d.
Commitment
66. A firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum
efforts at maintaining it indefinitely, is _________.
a.
trust
b.
relationship commitment
c.
a strategic alliance
d.
engagement
67. An advantage of business markets having fewer customers in comparison with consumer markets is that it
a.
reduces the attention required to be given to customers.
b.
makes it easy to identify prospective buyers.
c.
reduces the dependency on distributors for product delivery.
d.
increases product diversity.
68. The attention that social media attracts, such as the number of followers or fans and which is generally used as the first
step in the marketing funnel, and when social media is often paired with paid digital media like display advertising and
text-based ads to increase its effectiveness, is often referred to as ___________.
a.
awareness
b.
conversion
c.
engagement
d.
optimization
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69. The firms belonging to construction, manufacturing, transportation, finance, real estate, and food service industries,
fall under the category of _____________.
a.
resellers
b.
producers
c.
distributors
d.
governments
70. The ability to marshal resources, understand the buyer’s business goals, respond to requests, and be willing to be held
accountable are important characteristics specifically required in ___________.
a.
retailers
b.
purchaser
c.
sales representatives
d.
distributors
71. Fresnas Inc., an oil refinery, buys crude oil and converts it into various products such as gasoline, kerosene, and diesel.
Fresnas Inc. then sells these products to other companies or retailers. Based on this information, which segment of the
business market is most likely represented by Fresnas Inc.?
a.
Resellers
b.
Producers
c.
Distributors
d.
Marketers
72. Which statement describes a primary feature of a buying center?
a.
The composition of the buying group usually is static for all purchases.
b.
The number of people involved in a buying center varies with the complexity and importance of a purchase
decision.
c.
The average buying center includes more than 10 people.
d.
Membership and influence does not vary from company to company.
73. The NAICS (North American Industry Classification System) is a valuable tool for business marketers engaged in
analyzing, segmenting, and targeting markets in which each classification group is relatively homogenous in terms of
_______.
a.
location, type of product manufactured and problems faced
b.
raw materials required, components used, manufacturing process employed, and problems faced
c.
location of the firm, suppliers of raw materials, output of the company, problems faced
d.
raw materials, location, product manufactured, manufacturing process applied
74. Which of the following statements is true of gatekeepers in a buying center?
a.
They initiate the buying process.
b.
They have the formal power to approve the variery of product to be purchased.
c.
They regulate the flow of information.
d.
They negotiate a purchase.
75. Which of the following statements is true of relationship marketing?
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a.
For many suppliers, retaining their current customers has become a secondary focus in relationship marketing.
b.
Business suppliers use social networking sites sparingly as these sites discourage businesses from shopping for
all their needs.
c.
Loyal customers are less profitable than those who are price sensitive and perceive no difference among
brands or suppliers.
d.
Relationship marketing has become more important than before because competition has become more
intense.
76. The manager of TruColor Printers Inc. has purchased a sophisticated printing press for $1 million. Which of the
following statements is most likely to be true about the printing press?
a.
It will depreciate over its useful life.
b.
It will be charged as an expense in the year it is bought.
c.
It will be purchased by the customers through higher prices.
d.
It will be bought through retailers.
77. Which of the following statements is true of accessory equipment?
a.
It includes goods such as large or expensive machines and mainframe computers.
b.
It includes goods such as portable drills, power tools, and microcomputers.
c.
It includes goods such as lubricants, detergents, paper towels, pencils, and paper.
d.
It includes goods such as spark plugs, tires, and electric motors for automobiles.
78. Which of the following statements is a difference between wholesalers and retailers?
a.
Wholesalers use purchased goods to incorporate into other products, while retailers seek to achieve goals other
than the standard business goals of profit.
b.
Wholesalers account for the greatest volume of purchases of any customer category, while retailers buy
business products and resell them to business customers.
c.
Wholesalers sell mostly to retailers and other organizational customers, while retailers sell mainly to final
consumers.
d.
Wholesalers are often known as original equipment manufacturers, or OEMs, while retailers are often known
as buying centers.
79. Which of the following is true of a firm that acts as a consumer marketer?
a.
It can also be a business marketer.
b.
It has fewer customers than a business marketer.
c.
It excludes the sale of goods that are sold in business markets.
d.
Its customers are less geographically concentrated than business markets.
80. Tamery Corp. is engaged in marketing various goods and services. It buys products from various manufacturers and
sells them to businesses and end consumers. Given this information, Tamery Corp. is said to be selling consumer products
if:
a.
it sells books to students.
b.
it sells spare parts to automobile manufacturers.
c.
it sells laptops to an IT company.
d.
it sells printers to a partnership firm.
81. The producers, resellers, governments, and institutions are categories of customers of a ________ market.
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a.
primary
b.
secondary
c.
business
d.
consumer
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,
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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
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?
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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
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
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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
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 .
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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
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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