Question 1

With purchases of approximately $14 billion annually in goods and services from thousands of suppliers, ________ is the largest business customer in this country.

Accepted Answer

A)  Dell Canada 
B)  Canadian Tire 
C)  the Canadian government 
D)  Walmart 
E)  E.B. Eddy 
A)  Dell Canada 
B)  Canadian Tire 
C)  the Canadian government 
D)  Walmart 
E)  E.B. Eddy C

Question 2

Illustrate the differences between a straight rebuy, modified rebuy, and a new task purchase.

Accepted Answer

In a straight rebuy,the purchasing department reorders on a routine basis and choose from suppliers on an "approved list." In a modified rebuy,the buyer wants to modify product specifications,prices,delivery requirements,or other terms.Lastly,in the new task purchase,a purchaser buys a product or service for the first time.For additional differences,see chapter section.

Question 3

When Magna International developed an automated after-market roof rack for the Hummer H2, they had to buy some of the materials for the first time and seek an appropriate supplier. This represents a ________ buying situation.

Accepted Answer

A)  new task 
B)  modified rebuy 
C)  straight rebuy 
D)  pioneering purchase 
E)  direct purchase 
A)  new task 
B)  modified rebuy 
C)  straight rebuy 
D)  pioneering purchase 
E)  direct purchase A

Question 4

Consider yourself as an upper-level marketing executive for a large seller of fleet trucks. Which of the following strategies would be most appropriate in reaching buying centre targets?

Accepted Answer

A)  Concentrate on key buying influencers. 
B)  Use trade-based promotions. 
C)  Begin all sales efforts with the secretarial support staff. 
D)  Use multilevel in-depth selling. 
E)  Move all operations to the Net. 
A)  Concentrate on key buying influencers. 
B)  Use trade-based promotions. 
C)  Begin all sales efforts with the secretarial support staff. 
D)  Use multilevel in-depth selling. 
E)  Move all operations to the Net.

Question 5

Product value analysis (PVA) is an approach to cost reduction in which components are studied to determine if they can be redesigned or standardized or made by cheaper methods of production.

Accepted Answer

A) True 
 B)False

Question 6

As the sales manger for a mid-size landscaping company seeking corporate contracts, Jasmine knows she must deal with every member of a buying centre. According to Webster, with respect to buying centre influences, Jasmine should remember that people are

Accepted Answer

A)  buying surrogates that must appreciate that role. 
B)  not buying products they are buying solutions to problems. 
C)  buying products that they personally will not use. 
D)  are human shopping bots. 
E)  limited in their scope of overall business operations. 
A)  buying surrogates that must appreciate that role. 
B)  not buying products they are buying solutions to problems. 
C)  buying products that they personally will not use. 
D)  are human shopping bots. 
E)  limited in their scope of overall business operations.

Question 7

Initiators are those who authorize the proposed action of deciders or buyers.

Accepted Answer

A) True 
 B)False

Question 8

Explain risk and gain sharing with the help of an example.

Accepted Answer

Student answers may vary.
Risk and gain

Question 9

The buying process begins when someone places an order with a sales representative.

Accepted Answer

A) True 
 B)False

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

Question 11

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.

Accepted Answer

A)  inelastic demand 
B)  direct purchasing 
C)  fluctuating demand 
D)  derived demand 
E)  a straight rebuy 
A)  inelastic demand 
B)  direct purchasing 
C)  fluctuating demand 
D)  derived demand 
E)  a straight rebuy

Question 12

Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier. These situations spur the ________ stage.

Accepted Answer

A)  problem recognition 
B)  general need description 
C)  order-routine specification 
D)  supplier search 
E)  performance review 
A)  problem recognition 
B)  general need description 
C)  order-routine specification 
D)  supplier search 
E)  performance review

Question 13

List the stages (buyphases) of the industrial buying process.

Accepted Answer

The major stages in the industrial buyin

Question 14

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

Question 15

The business buyer makes the fewest decisions in the ________ buying situation.

Accepted Answer

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

Question 16

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise in that this area would be what service you provide for customers.

Accepted Answer

A)  computer applications 
B)  MRO (maintenance, repair, operating) supplies 
C)  promotion management 
D)  manufacturing 
E)  database management 
A)  computer applications 
B)  MRO (maintenance, repair, operating) supplies 
C)  promotion management 
D)  manufacturing 
E)  database management

Question 17

Over time, new-buy situations become straight rebuys and routine purchase behaviour.

Accepted Answer

A) True 
 B)False

Question 18

Webster and Wind define ________ as the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

Accepted Answer

A)  inventory control 
B)  organizational buying 
C)  marketing channels 
D)  demand-oriented buying 
E)  purchasing 
A)  inventory control 
B)  organizational buying 
C)  marketing channels 
D)  demand-oriented buying 
E)  purchasing

Question 19

In systems buying, the Canadian government often solicits bids from prime contractors. What do prime contractors do?

Accepted Answer

The government solicits bids from prime

Question 20

To create and capture value, sellers need to understand business organizations' needs, resources, policies, and

Accepted Answer

A)  strategies. 
B)  demands protocols. 
C)  personnel policies. 
D)  buying procedures. 
A)  strategies. 
B)  demands protocols. 
C)  personnel policies. 
D)  buying procedures.

Exam 7: Analyzing Business Markets

With purchases of approximately $14 billion annually in goods and services from thousands of suppliers, ________ is the largest business customer in this country.

Illustrate the differences between a straight rebuy, modified rebuy, and a new task purchase.

When Magna International developed an automated after-market roof rack for the Hummer H2, they had to buy some of the materials for the first time and seek an appropriate supplier. This represents a ________ buying situation.

Consider yourself as an upper-level marketing executive for a large seller of fleet trucks. Which of the following strategies would be most appropriate in reaching buying centre targets?

Product value analysis (PVA) is an approach to cost reduction in which components are studied to determine if they can be redesigned or standardized or made by cheaper methods of production.

As the sales manger for a mid-size landscaping company seeking corporate contracts, Jasmine knows she must deal with every member of a buying centre. According to Webster, with respect to buying centre influences, Jasmine should remember that people are

Initiators are those who authorize the proposed action of deciders or buyers.

Explain risk and gain sharing with the help of an example.

The buying process begins when someone places an order with a sales representative.

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

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.

Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier. These situations spur the ________ stage.

List the stages (buyphases) of the industrial buying process.

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

The business buyer makes the fewest decisions in the ________ buying situation.

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise in that this area would be what service you provide for customers.

Over time, new-buy situations become straight rebuys and routine purchase behaviour.

Webster and Wind define ________ as the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

In systems buying, the Canadian government often solicits bids from prime contractors. What do prime contractors do?

To create and capture value, sellers need to understand business organizations' needs, resources, policies, and

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

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

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

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