Deck 6: Understanding Organizations As Customers

Question 1

firm that reprocesses a good or service it buys before selling the product again to the next buyer is referred to as a(n)

A) industrial firm.
B) reseller firm.
C) government agency.
D) wholesaler.
E) retailer.

Answer 1

A

Question 2

Organizational buyers can be divided into three different markets,which are

A) industrial, wholesaler, and retailer markets.
B) industrial, retailer, and government markets.
C) retailer, manufacturer, and government markets.
D) industrial, government, and ultimate consumer.
E) industrial, reseller, and government markets.

Answer 2

E

Question 3

Manufacturers,wholesalers,retailers,and government agencies that buy goods and services for their own use or for resale are referred to as

A) multinational buyers.
B) resellers.
C) organizational buyers.
D) ultimate consumers.
E) institutional buyers.

Answer 3

C

Question 4

Which of the following types of firms comprises an industrial market?

A) retailer
B) mining
C) wholesaler
D) state government
E) NASA

Question 5

business market is also referred to as

A) a transactional market.
B) a corporate market.
C) organizational buyers.
D) a reseller market.
E) an industrial market.

Question 6

marketing of goods and services to companies,governments,or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others,is referred to as __________.

A) integrated marketing
B) institutional marketing
C) business marketing
D) reseller marketing
E) organizational marketing

Question 7

Which of these statements regarding organizational buyers is most accurate?

A) Wholesalers and retailers resell the goods they buy without reprocessing them.
B) Wholesalers and retailers alter the products they sell to meet the specific needs of their customers prior to sale.
C) Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers.
D) Ultimate consumers can be considered organizational buyers when they purchase in large quantities or make long-term purchase agreements.
E) Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers.

Question 8

Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell?

A) retailers
B) wholesalers
C) manufacturers' agents
D) manufacturers
E) ultimate consumers

Question 9

industrial firm

A) is one that is independently owned and takes title to the merchandise it sells.
B) buys physical products and resells them again without any reprocessing.
C) deals exclusively with federal, state, and local governments.
D) in some way reprocesses a good or service it buys before selling it again to the next buyer.
E) only produces a product, not a service.

Question 10

Business marketing refers to

A) the marketing of goods and services to companies, governments, or ultimate consumers for use in the creation of goods and services.
B) the marketing of goods and services to not-for-profit organizations at a reduced fee or nominal cost for use in the creation of goods and services that they can produce and market to others.
C) the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.
D) the marketing of services in the area of intellectual property such as legal, financial, or creative consulting.
E) the marketing of an idea to create interest or generate goodwill, not just for an individual brand but also for an entire industry or product class.

Question 11

of the following are organizational buyers EXCEPT:

A) industrial firms.
B) government units.
C) ultimate consumers.
D) resellers.
E) wholesalers.

Question 12

size and number of JCPenney catalogs designed and mailed to consumers would determine how much paper JCPMedia would need to buy.This is an example of __________.

A) derived demand
B) reciprocity
C) a tying agreement
D) a transactional sale
E) elastic supply

Question 13

Mining companies,farms,financial services,and fisheries are all examples of

A) consumer markets.
B) cooperative markets.
C) reseller markets.
D) industrial markets.
E) government markets.

Question 14

Which of the following statements represents an organizational buyer?

A) A local baker buys sugar at the grocery store to make cookies with his children at home.
B) A dentist buys a new Samsung SmartTV 65-inch 3D LED HDTV for her den.
C) Mr. Langley hires a housecleaning service to clean his apartment.
D) The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.
E) The city mayor rents a tuxedo to wear to his daughter's wedding.

Question 15

select a paper supplier,JCPMedia looks at its capabilities to deliver-on-time-selected grades of paper,the availability of specific types of paper,and price.This examination would be done during JCPMedia's __________.

A) procurement analysis
B) break-even analysis
C) value analysis
D) database search
E) social audit

Question 16

Organizational buyers refer to

A) manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for resale.
B) manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
C) manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for their own use.
D) firms that buy physical products and resell them again without any reprocessing.
E) firms that in some way reprocess a product or service they buy before selling it again to the next buyer.

Question 17

Nagele,the senior procurement agent at JCPMedia,purchases tons of publication paper annually at a cost of hundreds of millions of dollars.Which role in the JCPenney buying center does Ms.Nagele perform?

A) user
B) gatekeeper
C) influencer
D) buyer
E) decider

Question 18

JCPMedia

A) creates the in-store signage, point-of-purchase displays, and store atmospherics for JCPenney.
B) is an in-house advertising agency for JCPenney.
C) is the print and paper purchasing arm of JCPenney.
D) is the website developer who created JCPenney's Facebook presence.
E) buys the media space to run TV ads and print ads for JCPenney.

Question 19

Organizational buyers include manufacturers,wholesalers,retailers,and government agencies that

A) purchase exclusively from one supplier.
B) are exempt from state and local taxes.
C) sell directly to ultimate consumers.
D) sell goods and services for their own use.
E) buy goods and services for their own use or resale.

Question 20

JCPMedia buys paper,it considers suppliers' forest management and other environmental practices.A supplier's view of its __________ is an important selection criterion for JCPMedia.

A) profit responsibility
B) societal responsibility
C) ecological accountability
D) environmental autonomy
E) stakeholder responsibility

Question 21

terms of organizational buyers,Amazon.com,Lands' End,and JCPenney would all be generally classified as __________.

A) government units
B) resellers
C) manufacturers
D) wholesalers
E) industrial firms

Question 22

Archer Daniels Midland Co.(ADM)is the world's largest cocoa-bean processor.It buys cocoa beans and converts them into cocoa powder and cocoa butter,which it then sells to companies like Hershey's that manufacture consumer products containing chocolate.ADM is operating in a(n)__________ market.

A) consumer
B) government
C) service
D) reseller
E) industrial

Question 23

Federal,state,and local agencies that buy goods and services for the constituents they serve are referred to as

A) industrial markets.
B) reseller markets.
C) consumer markets.
D) government units.
E) global markets.

Question 24

International trade statistics indicate the largest exporting industries in the United States focus on __________.

A) ultimate consumers
B) organizational buyers
C) governmental agencies
D) domestic consumers
E) foreign consumers

Question 25

Corporation,a marketer of Photostat products used in the graphic arts field,buys photo sensitized paper from Eastman Kodak Company,packages it with the Photostat brand name,and sells it directly to amateur photographers.In this context,Itex Corporation is most accurately classified as a

A) manufacturer.
B) reseller.
C) service provider.
D) wholesaler.
E) industrial firm.

Question 26

S.-based Pratt & Whitney sells aircraft engines to Europe's Airbus S.A.S.,which in turn sells passenger airplanes to Japan Airlines that fly businesspeople around the world.This is an example of

A) the product life cycle.
B) reseller dynamics.
C) a global organizational market.
D) ISO 9000.
E) the business cycle.

Question 27

Amtrak,the U.S.passenger train service,purchases train cars from Siemens,a German manufacturing company.This purchase is an example of

A) the product life cycle.
B) global organizational markets.
C) market dynamics.
D) reciprocity.
E) supplier development.

Question 28

S.-based Pratt and Whitney manufactures the Rocketdyne rocket engine used in the launch vehicles made by Lockheed-Martin and deployed in communication and weather satellites as well as space vehicles like the Mars Rover.These transactions are examples of

A) reciprocity.
B) market dynamics.
C) global organizational markets.
D) ISO 9000 initiatives.
E) supplier development.

Question 29

Therapeutic buys medical supplies and services from a variety of suppliers for people with hemophilia and other related blood diseases.When Apex sells directly to a person who is a hemophiliac,it would most accurately be classified as a(n)__________.

A) industrial service provider
B) health care manufacturer
C) reseller
D) industrial firm
E) government agency

Question 30

Louisiana State University buys new laptops for its faculty,it is operating as a(n)

A) industrial market.
B) business market.
C) government unit.
D) consumer market.
E) service provider.

Question 31

services market sells diverse services such as legal advice,auto repair,and dry cleaning.Along with finance,insurance,and real estate businesses,and transportation,__________ and public utility firms,and not-for-profit organizations; These firms represent about 75 percent of all industrial firms.

A) wholesalers
B) retailers
C) government units
D) communication
E) educational institutions

Question 32

services market sells diverse services such as legal advice,auto repair,and dry cleaning.Along with __________,insurance,and real estate businesses,and transportation,communication and public utility firms,and not for profit,these firms represent about 75 percent of all industrial firms.

A) finance
B) wholesalers
C) retailers
D) government units
E) educational institutions

Question 33

the Federal Aviation Administration (FAA)purchases radars for 22 major air traffic control centers in the U.S.,it is operating as a(n)

A) government unit.
B) industrial market.
C) business market.
D) consumer market.
E) service provider.

Question 34

Which of the following is a service business within the industrial market?

A) retailing
B) mining
C) finance
D) government
E) farming

Question 35

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys.It sells these manufactured products to hospitals,nursing homes,and retailers of health care products.Graham-Field Health Products operates in a(n)__________ market.

A) consumer
B) government
C) service
D) industrial
E) reseller

Question 36

__________ comprise the highest percentage of firms in industrial markets.

A) Manufacturing firms
B) Construction firms
C) Agricultural firms
D) Mining companies
E) Service companies

Question 37

High Frozen Foods is a distributor for McDonalds.It also bakes the buns used by McDonalds in several states.It purchases flour,yeast,and sesame seeds,manufactures the buns,and then ships them to McDonalds' stores.Mile High Frozen Foods is operating in a(n)__________ market.

A) consumer
B) government
C) industrial
D) service
E) reseller

Question 38

reseller market includes

A) manufacturers.
B) logistics and supply chain providers.
C) government agencies.
D) end-user service providers.
E) retailers and wholesalers.

Question 39

Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as

A) industrial firms.
B) reseller firms.
C) government agencies.
D) consumer product firms.
E) nonprofit firms.

Question 40

services market sells diverse services such as legal advice,auto repair,and dry cleaning.Along with finance,insurance,real estate businesses,and __________,communication and public utility firms,as well as not-for-profit organizations,these firms represent about 75 percent of all industrial firms.

A) wholesalers
B) transportation
C) retailers
D) government units
E) educational institutions

Question 41

NAICS Logo
Figure 6-1 above is the logo for the NAICS,which provides common industry definitions for

A) Canada, England, and the United States.
B) North America, Asia, and Europe.
C) North America, Central America, and South America.
D) Canada, England, Australia.
E) Canada, Mexico, and the United States.

Question 42

NAICS is consistent with the International Standard Industrial Classification of All Economic Activities,which is published by the __________ to facilitate measurement of global economic activity.

A) United Nations (UN)
B) European Union (EU)
C) International Standards Organization (ISO)
D) North American Free Trade Agreement (NAFTA)
E) North American Product Classification System (NAPCS)

Question 43

North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The third digit designates a(n)

A) industry subsector.
B) industry group.
C) specific industry.
D) individual country-level national industry.
E) sector of the economy.

Question 44

North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The sixth digit designates a(n)

A) industry subsector.
B) industry group.
C) specific industry.
D) individual country-level national industry.
E) sector of the economy.

Question 45

the breakdown for the NAICS code based on Figure 6-1 above,"C" represents the

A) two-digit industry sector code
B) three-digit industry subsector code
C) four-digit industry group code
D) five-digit industry code
E) six-digit U.S. national industry code

Question 46

North American Industry Classification System (NAICS)provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

A) European Union (EU).
B) United Nations (UN).
C) North American Free Trade Agreement (NAFTA).
D) North Atlantic Treaty Organization (NATO).
E) USCANMEX.

Question 47

North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The fifth digit designates a(n)

A) industry subsector.
B) industry group.
C) specific industry.
D) individual country-level national industry.
E) sector of the economy.

Question 48

North American Industry Classification System (NAICS)permits a firm to

A) find the NAICS codes of its present customers and then obtain NAICS-coded lists for similar firms.
B) learn the names of the purchasing agents of all prospective customers.
C) sell to any company within North America as long as it is not a monopoly.
D) engage in benchmarking with companies manufacturing and/or marketing similar products.
E) conduct an industry-wide SWOT analysis to determine internal strengths and weaknesses of current and prospective competitors.

Question 49

the breakdown for the NAICS code based on Figure 6-1 above,"D" represents the

A) two-digit industry sector code
B) three-digit industry subsector code
C) four-digit industry group code
D) five-digit industry code
E) six-digit U.S. national industry code

Question 50

Figure 6-1
Based on Figure 6-1 above,what is the NAICS code for cable and other subscription programming?

A) 511
B) 5152
C) 51512
D) 51520
E) 511515

Question 51

disadvantage of the North American Industry Classification System (NAICS)systems is that

A) it only lists the top ten firms in any particular industry.
B) it is too difficult and confusing to read.
C) it only covers organizations with sales in excess of (US) $1 million.
D) it makes it possible to find how the firm's customers are coded.
E) five-digit national industry codes are not always available for all three countries.

Question 52

Figure 6-1
Based on Figure 6-1 above,what is MOST LIKELY the industry sector represented by NAICS code 51?

A) manufacturing
B) fisheries
C) information
D) publishing
E) retailing

Question 53

North American Industry Classification System (NAICS)

A) provides common industry definitions for North America, Central America, and South America to measure economic activity in these three Western Hemispheric areas.
B) provides common industry definitions between Canada the United States to measure economic activity and reduce barriers of trade for cross-border firms.
C) provides a classification system for products and services that is consistent across Canada, Mexico, and the United States.
D) provides a classification system for products and services that is consistent across North America, Central America, and South America to measure economic activity in these three Western Hemispheric areas.
E) provides common industry definitions for Canada, Mexico, and the United States to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

Question 54

North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The first two digits designate a(n)

A) subsector of the economy.
B) industry group.
C) specific industry.
D) individual country-level national industry.
E) sector of the economy.

Question 55

Which of the following statements about the North American Industry Classification System (NAICS)is most accurate?

A) After being used for more than 50 years, the NAICS was replaced by the Standard Industrial Classification (SIC) system.
B) The NAICS permits comparability across countries but does not accurately measure new or emerging industries.
C) One drawback to the NAICS is that its industry classifications are inconsistent with the International Standards Organization.
D) The NAICS groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies.
E) The NAICS is a five-digit code that allows comparison of industries even when information is limited.

Question 56

North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The fourth digit designates a(n)

A) industry subsector.
B) industry group.
C) specific industry.
D) individual country-level national industry.
E) sector of the economy.

Question 57

NAICS Logo
acronym of the NAICS logo above stands for

A) National Association of Industrial Compliance Standards.
B) National Association of Industrial Communication Systems.
C) North American Industrial Computer Standards.
D) North American Industry Classification System.
E) North Atlantic Industrial Classification System.

Question 58

the breakdown for the NAICS code based on Figure 6-1 above,"A" represents the

A) two-digit industry sector code
B) three-digit industry subsector code
C) four-digit industry group code
D) five-digit industry code
E) six-digit U.S. national industry code

Question 59

the breakdown for the NAICS code based on Figure 6-1 above,"B" represents the

A) two-digit industry sector code
B) three-digit industry subsector code
C) four-digit industry group code
D) five-digit industry code
E) six-digit U.S. national industry code

Question 60

system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA),is referred to as the

A) Standard Industrial Code System (SICS).
B) United Nations Central Product Classification System (UNCPCS).
C) Free Trade Classification System (FTCS).
D) North American Industry Classification System (NAICS).
E) Federal System of International Organizations (FSIO).

Question 61

Which of the following statements accurately characterizes buying behavior in organizational markets?

A) Organizational buying behavior is similar to consumer buying behavior since individuals are involved in both processes.
B) Demand for industrial products is elastic instead of inelastic or derived because companies, not ultimate consumers, determine the quantity of goods produced.
C) Fewer customers typically exist in organizational markets than in consumer markets.
D) Purchase orders much more frequent but they are usually small.
E) Forecasting is not as important in organizational buying as in consumer buying.

Question 62

Concert Staging Company provides the stage,the roof system,and the lighting and sound for outdoor concerts and theaters.It is typically hired by the organization sponsoring the event.When the economy slows down,consumers are more likely to save their money for a rainy day rather than buy a concert or theater ticket.The number of concert and theater events determines how many times the company gets to provide its services.Demand for the services provided by Concert Staging Company is a result of __________ demand.

A) derived
B) unitized
C) industrial
D) applied
E) reseller

Question 63

Unfortunately,the NAICS system will not allow marketing managers to gather information about

A) import competition in domestic markets.
B) geographic distribution of industries.
C) market share in a pure competition environment.
D) demand for goods and services.
E) data on industries that are oligopolies.

Question 64

Derived demand means the demand for industrial products and services is driven by,or derived from,the

A) NAICS statistical models.
B) gross national product.
C) demand for consumer goods and services.
D) demand for industrial goods and services.
E) demand for government goods and services.

Question 65

there is a prolonged downturn in U.S.passenger air travel,a number of U.S.airlines would very likely cancel some of their orders for new planes.The relationship between passenger air travel and the demand for new planes is referred to as

A) ultimate consumer demand.
B) derived demand.
C) manufacturer demand.
D) reseller demand.
E) the price-inelasticity of demand.

Question 66

During late summer and early fall,there is a large demand for containers located in Asia that are used to ship consumer goods from Asia to the United States in time for the holiday selling season.The demand for these containers is referred to as __________ demand.

A) unitized
B) derived
C) reseller
D) applied
E) implied

Question 67

might a marketing manager for a manufacturer of turboprop engines,used in private jet planes,use the NAICS to help her with marketing planning?

A) Record the NAICS numbers for each of her firm's best customers and then obtain lists of companies with the same NAICS numbers.
B) Go to a library and find the NAICS numbers for all government units-federal, state, and local.
C) Identify all NAICS numbers that reflect the classifications of her firm's customers and compare them to previous SIC codes.
D) Poll her field sales organization to see if her company's sales representatives know what NAICS numbers mean.
E) Forgo using the NAICS system because it is a dated concept that has no current usefulness.

Question 68

Which of the following possible characteristics of consumer buying is LEAST LIKELY to enter into an organizational buying decision?

A) comparison of product performance with expectations
B) purchase decisions based on the highest overall evaluation
C) alternatives evaluated on important criteria
D) information gathered from internal and external searches
E) problem recognition triggered by self-actualization motives

Question 69

demand for industrial products and services that is driven by demand for consumer products and services is referred to as

A) derivative marketing.
B) derived demand.
C) derived supply.
D) demand elasticity.
E) sequential demand.

Question 70

the organizational buying process,important product or service characteristics include multiple buying influences,a predominance of raw and semifinished goods,and

A) delivery time, technical assistance, and postsale service.
B) low price, buyer incentives, and extended contracts.
C) buyer incentives, technical assistance, and exclusive contracts.
D) quantity discounts, delivery time, and exclusive contracts.
E) low price, buyer incentives, and post-sale service.

Question 71

Important buying process characteristics in organizational buying behavior include which of the following?

A) Few large transactions are made over the Internet due to concerns of industrial espionage.
B) Negotiations, purchases, and delivery occur in real time at an accelerated rate.
C) There are often reciprocal arrangements and negotiations between buyers and sellers.
D) Most purchases are made through government-licensed negotiators.
E) Direct selling to organizational buyers is the rule.

Question 72

Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves,freezers,and refrigerators.The demand for Spruceland pallets would be classified as

A) reactive demand, which is tied to the sales of appliances, not the sale of the pallets.
B) derived demand, which is tied to the sales of appliances, but independent of the sales of pallets.
C) derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances.
D) inelastic demand, which is tied to the cost of the components of the pallets.
E) elastic demand, which is tied to the cost of the components of the pallets.

Question 73

Because orders in organizational buying are typically much larger than in consumer buying,buyers must often __________ when the order is above a specific amount,such as $5,000.

A) pay estimated sales taxes in advance
B) move up the time required to execute a purchase agreement
C) get competitive bids from at least three prospective suppliers
D) forgo the purchase
E) forgo identifying the members of the supplying center and their roles in the selling process

Question 74

Important market characteristics in organizational buying behavior include which of the following?

A) unlimited markets but orders are becoming progressively smaller
B) diminishing international opportunities as more firms enter the market
C) more customers placing progressively smaller orders
D) fewer customers but with larger orders
E) a market that functions independently of consumer demand

Question 75

are the research director of a major marketing research consulting firm.You need to select an NAICS code that gives you the most detail about the competitors in a client's industry.Which of the following levels of classification would provide the greatest detail?

A) Code 512
B) Code 5175
C) Code 51721
D) Code 517212
E) Code 5172122

Question 76

Important product or service characteristics in organizational buying behavior include which of the following?

A) A heavy emphasis is placed on quantity price discounts.
B) A heavy emphasis is placed on delivery time, technical assistance, and postsale service.
C) Direct selling to organizational buyers is the rule.
D) Market sensitive pricing and sales incentives are used.
E) Online buying over the Internet is widespread.

Question 77

Which of the following statements about organizational buying compared to consumer buying is MOST accurate?

A) Perceived risk is lower in organizational buying.
B) Brand loyalty exists in both organizational and consumer buying.
C) Most organizational buying decisions are low-involvement ones.
D) Organizational buyers are more influenced by lifestyle factors.
E) Derived demand is more important in consumer buying.

Question 78

Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.

A) applied
B) unitized
C) industrial
D) derived
E) consumer

Question 79

Derived demand refers to

A) a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price.
B) the demand for industrial products and services that is driven by the demand for consumer products and services.
C) the relationship between total revenue and total cost to determine profitability at various levels of output.
D) the point on a demand curve where supply and demand intersect.
E) the percentage change in quantity demanded relative to a percentage change in price.

Question 80

Important marketing mix characteristics in organizational buying behavior include which of the following?

A) Few large transactions are made over the Internet due to concerns of industrial espionage.
B) Products must be easily adaptable in form and function to accommodate consumer tastes.
C) Negotiations, purchases, and delivery occur in real time at an accelerated rate.
D) Direct selling to organizational buyers is the rule, and distribution is very important.
E) Many of the goods purchased are raw and semifinished.