Question 1

Which of the following is true for business marketers?

Accepted Answer

A)  They deal with more and larger buyers than consumer marketers. 
B)  They deal with more and smaller buyers than consumer marketers. 
C)  They deal with fewer and larger buyers than consumer marketers. 
D)  They deal with fewer and smaller buyers than consumer marketers. 
E)  They deal with the same kind of buyers as consumer marketers. 
A)  They deal with more and larger buyers than consumer marketers. 
B)  They deal with more and smaller buyers than consumer marketers. 
C)  They deal with fewer and larger buyers than consumer marketers. 
D)  They deal with fewer and smaller buyers than consumer marketers. 
E)  They deal with the same kind of buyers as consumer marketers.

Question 2

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

Accepted Answer

A)  straight rebuy 
B)  modified rebuy 
C)  new task 
D)  secondary purchase 
E)  procure-to-pay 
A)  straight rebuy 
B)  modified rebuy 
C)  new task 
D)  secondary purchase 
E)  procure-to-pay

Question 3

In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying center.

Accepted Answer

A)  approvers 
B)  buyers 
C)  initiators 
D)  gatekeepers 
E)  deciders 
A)  approvers 
B)  buyers 
C)  initiators 
D)  gatekeepers 
E)  deciders

Question 4

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

Accepted Answer

A)  consumer packaged-goods companies 
B)  government organizations 
C)  health services vendors 
D)  educational institutions 
E)  households 
A)  consumer packaged-goods companies 
B)  government organizations 
C)  health services vendors 
D)  educational institutions 
E)  households

Question 5

What is the composition of the buying center?

Accepted Answer

A buying center is composed of "all thos

Question 6

Asiaworth Pte Ltd is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________.

Accepted Answer

A)  modified rebuy 
B)  regular buy 
C)  straight rebuy 
D)  new rebuy 
E)  new task 
A)  modified rebuy 
B)  regular buy 
C)  straight rebuy 
D)  new rebuy 
E)  new task

Question 7

Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics.

Accepted Answer

The characteristics of business markets

Question 8

In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance.

Accepted Answer

A)  basic buying and selling 
B)  bare bones 
C)  contractual transaction 
D)  customer supply 
E)  collaborative 
A)  basic buying and selling 
B)  bare bones 
C)  contractual transaction 
D)  customer supply 
E)  collaborative

Question 9

In which of the following is a person performing the role of an approver?

Accepted Answer

A)  Dan decides on the product requirements and makes the final choice of suppliers. 
B)  Leo has the authority to pick out the supplier and negotiate the terms of purchase. 
C)  Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. 
D)  LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. 
E)  Dana authorizes the actions of the deciders and buyers in LKG. 
A)  Dan decides on the product requirements and makes the final choice of suppliers. 
B)  Leo has the authority to pick out the supplier and negotiate the terms of purchase. 
C)  Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. 
D)  LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. 
E)  Dana authorizes the actions of the deciders and buyers in LKG.

Question 10

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

Accepted Answer

A)  channel consolidation 
B)  systems buying 
C)  vertical buying 
D)  horizontal buying 
E)  supply buying 
A)  channel consolidation 
B)  systems buying 
C)  vertical buying 
D)  horizontal buying 
E)  supply buying

Question 11

In the purchasing decision process, the ________ are those who request that something be purchased. They may be users or others in the organization.

Accepted Answer

A)  users 
B)  initiators 
C)  influencers 
D)  deciders 
E)  approvers 
A)  users 
B)  initiators 
C)  influencers 
D)  deciders 
E)  approvers

Question 12

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments.

Accepted Answer

A) True 
 B)False

Question 13

The business buyer has to make the fewest decisions when involved in a ________.

Accepted Answer

A)  modified rebuy 
B)  regular buy 
C)  straight rebuy 
D)  new rebuy 
E)  new task 
A)  modified rebuy 
B)  regular buy 
C)  straight rebuy 
D)  new rebuy 
E)  new task

Question 14

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Accepted Answer

A) True 
 B)False

Question 15

Which type of buying situation would be preferred if the management wants to minimize decision-making time and effort?

Accepted Answer

The business buyer makes the f

Question 16

In the ________ method for assessing customer value, company engineers use laboratory tests to estimate the product's performance characteristics. However, this ignores the fact that in different applications, the product will have different economic value.

Accepted Answer

A)  internal engineering assessment 
B)  importance ratings 
C)  field value-in-use assessment 
D)  benchmarking 
E)  conjoint analysis 
A)  internal engineering assessment 
B)  importance ratings 
C)  field value-in-use assessment 
D)  benchmarking 
E)  conjoint analysis

Question 17

How do business marketers target firms?

Accepted Answer

Business marketers may divide the market

Question 18

In the ________ method for assessing customer value, customers are shown a "benchmark" offering and then a new market offering. They are asked how much more they would pay for the new offering or how much less they would pay if certain features were removed from the benchmark offering.

Accepted Answer

A)  internal engineering assessment 
B)  importance ratings 
C)  field value-in-use assessment 
D)  benchmarking 
E)  conjoint analysis 
A)  internal engineering assessment 
B)  importance ratings 
C)  field value-in-use assessment 
D)  benchmarking 
E)  conjoint analysis

Question 19

Which of the following is a step in the straight rebuy buyclass?

Accepted Answer

A)  problem recognition 
B)  general need description 
C)  product specification 
D)  supplier search 
E)  proposal solicitation 
A)  problem recognition 
B)  general need description 
C)  product specification 
D)  supplier search 
E)  proposal solicitation

Question 20

A good illustration of a member of the institutional market would be Boeing because it is a member of the aviation institution structure.

Accepted Answer

A) True 
 B)False

Exam 7: Analyzing Business Markets

Which of the following is true for business marketers?

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying center.

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

What is the composition of the buying center?

Asiaworth Pte Ltd is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________.

Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics.

In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance.

In which of the following is a person performing the role of an approver?

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

In the purchasing decision process, the ________ are those who request that something be purchased. They may be users or others in the organization.

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments.

The business buyer has to make the fewest decisions when involved in a ________.

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Which type of buying situation would be preferred if the management wants to minimize decision-making time and effort?

In the ________ method for assessing customer value, company engineers use laboratory tests to estimate the product's performance characteristics. However, this ignores the fact that in different applications, the product will have different economic value.

How do business marketers target firms?

In the ________ method for assessing customer value, customers are shown a "benchmark" offering and then a new market offering. They are asked how much more they would pay for the new offering or how much less they would pay if certain features were removed from the benchmark offering.

Which of the following is a step in the straight rebuy buyclass?

A good illustration of a member of the institutional market would be Boeing because it is a member of the aviation institution structure.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events, and Public Relations

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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