Exam 8: Business Markets and Buying Behavior

Scenario 8.2 Use the following to answer the questions. Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's.It also sells its products to independent repair centers,dealers,and other wholesalers in the northeast and southern states.Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky,Tennessee,and Alabama.Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states,while dealers who sell to small business landscaping companies tend to be located in the northeastern states.Company executives are considering expansion of its distribution to markets in the Midwest. -Refer to Scenario 8.2.Given the type of business market in which Precision Brake is currently operating,which group would it be least likely to sell to?

Industrial demand derives from consumer demand.

A fall in consumer demand for a product is likely to result in increased buying from suppliers as consumer goods producers replenish depleted inventories and gear up for the next surge in consumer demand.

Analysis of business input-output data by the federal government allows the government to have a better understanding of the

Institutional markets include state prisons.

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ____ markets.

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?

The five-stage business buying decision process is used primarily for routine,straight rebuy purchases.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

The North American Industry Classification System includes all three NAFTA partners.

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called

Jason owns a small landscaping business called GreenScapes.When buying a new pickup truck for his landscaping business,Jason negotiated with Palmetto Dodge,a dealer,with the agreement that GreenScapes would be the service company Palmetto Dodge used for all of its landscaping needs.This is an example of

When the city of Chicago buys iPadsᵀᴹ for its restaurant inspectors to use during their visits,the purchase from Apple would be considered

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers.This upholstery must have a set of characteristics that is expressed by Volkswagen.This set is called

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price,product quality,delivery service,product dependability,and overall company reliability.

The factors that influence business buying behavior are the same as those that influence consumer buying behavior.

St.Jude's Hospital decides to redo its kitchen with new flooring,cabinets,counters,and appliances.The hospital compiles a description of the project and then asks sellers to submit bids.After determining the most attractive bids,the hospital will then work with two or three companies to determine who will get the contract.This is an example of using ____ for a purchase decision.

All companies,no matter what their size or market position,maintain only one buying center.

Demand for business products is characterized as derived.From what is the demand derived?