Exam 5: Business-To-Business Markets: How and Why Organizations Buy?

________ purchases are much greater than ________ purchases, both in the quantity of items ordered and how much they cost.

The ________ is the member of the buying centre who controls the flow of information to other members.

Porsche purchases thousands of different parts such as stereos to manufacture their cars.Explain derived demand in this situation.

When a company's professional buyer considered a ________ of a plant to house a new distribution centre, he spent a lot of time and effort researching information because this purchase decision was very high-risk, complex task.

Johnson Controls, Inc.produces the seats for the Dodge Neon.Although Johnson initially was able to meet Dodge's cost target, it was not able to meet its safety, weight, and comfort specifications.Engineers from Dodge visited the Johnson plant and worked with its design people to create a seat that met all of the technical requirements at a cost that both could agree on.Johnson Controls and Dodge engaged in ________.

________ occurs when two or more goods are necessary to create a product.

________ is a business practice in which a buyer shapes a supplier's products and operations to satisfy its needs.

Business-to-business marketing differs from consumer marketing in that business-to-business marketing ________.

The Metropolitan Museum of Modern Art buys office supplies.In doing so, the Museum is acting as a member of the ________ business customer class.

Business markets tend to be more geographically concentrated than consumer markets.

During the ________ stage of the business buying decision process, the buying centre assesses the proposals.

Which of the following is NOT an example of business-to-business marketing?

Although much of the equipment used by dentists is thrown away after one use, many of the instruments used to clean teeth, fill cavities, and deal with impactions and other dental problems are made of steel and must be sterilized.A dentist is considering replacing his conventional steam sterilizer with a chemical sterilizer that cleans without rusting or corroding instruments.Because the dentist is already familiar with sterilizers, he is looking to find the best price possible on a chemical sterilizer.He is engaged in a ________.

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise.It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice.It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and it allows suppliers to send new-product information directly to Pace retailers.Pace Hardware is using a(n) ________.

Why might a company use crowdsourcing?

Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.

A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel.In terms of the buying centre, the truck drivers who must make sure that the trucks' fuel tanks do not run out of fuel are the ________.

Fluctuating demand in business markets can be partially explained by the infrequency of the purchases.

Worthington Farm raises chickens.For years, it has used wooden coops to haul its poultry to market.The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use.This purchase of coops is an example of a ________.

Why are materials that represent only a small percentage of the total cost of manufacturing a product more likely to have inelastic demand than major components?