Question 1

For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier.

Accepted Answer

A) True 
 B)False

Question 2

NAICS provides less information about service industries and high-tech products than did the SIC system.

Accepted Answer

A) True 
 B)False

Question 3

The stages of the business buying decision process, in order, are

Accepted Answer

A)   recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.
B)   recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance.
C)   recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products.
D)   establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance.
E)   establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.F) B) and D)
G) B) and C)

Question 4

Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following products is most likely to be purchased on the basis of contract negotiation?

Accepted Answer

A)   Eggs
B)   Office supplies
C)   Used cars
D)   A custom-made bulldozer
E)   WheatF) D) and E)
G) A) and B)

Question 6

In what ways do environmental factors affect the business buying decision process?

Accepted Answer

Environmental factors include competitiv...

Question 7

Fred is the purchasing manager at Marc's Auto Body and places orders for routine products such as office supplies and items needed for service and repair of vehicles. He typically purchases tools from the Snap-On dealer and orders a variety of nuts, bolts, and hardware from Grainger. He really likes purchasing from Grainger since he can utilize their website where he has an intranet portal to easily place orders and receive a company discount. Grainger makes it easy and convenient as well by providing a list of previously purchased items that Fred can select and simply click "reorder." What type of purchase process does Fred use when buying these items from Grainger?

Accepted Answer

A)   straight rebuy
B)   modified rebuy
C)   new-task purchase
D)   contracted purchaseE) B) and C)
F) C) and D)

Question 8

Demand for business products can be characterized in four ways; describe these four characteristics and compare and contrast their attributes.

Accepted Answer

Demand for business products (also calle...

Question 9

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Accepted Answer

A)   gatekeeper
B)   buyer
C)   decider
D)   buying center captain
E)   order giverF) A) and D)
G) B) and C)

Question 10

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase.

Accepted Answer

A)   modified rebuy
B)   straight rebuy
C)   new-task
D)   reevaluated
E)   repetitiveF) A) and C)
G) A) and B)

Question 11

To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method.

Accepted Answer

A) True 
 B)False

Question 12

Despite its usefulness, industrial classification data pose some disadvantages. Which of the following is an example of a limitation of the North American Industry Classification System (NAICS) ?

Accepted Answer

A)   Frito Lay maintains its own network of logistics and supply chain services and often shifts products to other Frito Lay manufacturing facilities. The NAICS could overstate the shipments since it has no way to account for products that are shipped between two establishments within the same firm.
B)   The NAICS categories the industry into 20 sectors which is fewer than provided by the SIC system.
C)   The NAICS data is provided every 10 years, so the results are not very current.
D)   The NAICS data is less current than the SIC system.E) A) and D)
F) None of the above

Question 13

Value analysis focuses primarily on the examination of the cost of products relative to design, quality, and materials used.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)   a new task purchase.
B)   a straight rebuy.
C)   a modified rebuy.
D)   reciprocity.
E)   a straight purchase.F) All of the above
G) B) and E)

Question 15

Buyers in producer markets purchase either raw materials or semifinished products.

Accepted Answer

A) True 
 B)False

Question 16

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

Accepted Answer

A)   New-task
B)   Modified rebuy
C)   Straight rebuy
D)   Bid
E)   NegotiatedF) D) and E)
G) A) and E)

Question 17

After finding out which industries purchase the major portion of an industry's output, the next step is to begin production

Accepted Answer

A) True 
 B)False

Question 18

What are the two ways governments make purchases?

Accepted Answer

A)   Cash or credit
B)   Contracting previous suppliers and bids
C)   Bids and negotiated contracts
D)   Lottery system and contract negotiations
E)   Request for new purchases and recurring ordersF) C) and D)
G) A) and B)

Question 19

Retailers like Target and Kmart are considered to be members of which business market?

Accepted Answer

A)   Reseller
B)   Customer
C)   Producer
D)   Institutional
E)   ServicesF) D) and E)
G) B) and D)

Question 20

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

Accepted Answer

A)   use in daily operations, end consumption, and resale.
B)   direct use in producing other products, company travel, and end consumption.
C)   resale, use in daily operations, and direct use in producing other products.
D)   governmental, institutional, and reseller purposes.
E)   making other products, selling to other businesses, making component parts.F) None of the above
G) C) and D)

Exam 7: Business Markets and Buying Behavior

After finding out which industries purchase the major portion of an industry's output, the next step is to begin production

Correct Answer
verified

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase.

Correct Answer
verified

Retailers like Target and Kmart are considered to be members of which business market?

Correct Answer
verified

Value analysis focuses primarily on the examination of the cost of products relative to design, quality, and materials used.

Correct Answer
verified

To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method.

Correct Answer
verified

NAICS provides less information about service industries and high-tech products than did the SIC system.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Buyers in producer markets purchase either raw materials or semifinished products.

Correct Answer
verified

In what ways do environmental factors affect the business buying decision process?

Correct Answer
verified
Environmental factors include competitiv...
View Answer

The stages of the business buying decision process, in order, are

Correct Answer
verified

Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives.

Correct Answer
verified

What are the two ways governments make purchases?

Correct Answer
verified

For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier.

Correct Answer
verified

Demand for business products can be characterized in four ways; describe these four characteristics and compare and contrast their attributes.

Correct Answer
verified
Demand for business products (also calle...
View Answer

Despite its usefulness, industrial classification data pose some disadvantages. Which of the following is an example of a limitation of the North American Industry Classification System (NAICS) ?

Correct Answer
verified

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Correct Answer
verified

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

Correct Answer
verified

Which of the following products is most likely to be purchased on the basis of contract negotiation?

Correct Answer
verified

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

Correct Answer
verified

Exam 7: Business Markets and Buying Behavior

After finding out which industries purchase the major portion of an industry's output, the next step is to begin production

Correct AnswerverifiedShow Answer

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase.

Correct AnswerverifiedShow Answer

Retailers like Target and Kmart are considered to be members of which business market?

Correct AnswerverifiedShow Answer

Value analysis focuses primarily on the examination of the cost of products relative to design, quality, and materials used.

Correct AnswerverifiedShow Answer

To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method.

Correct AnswerverifiedShow Answer

NAICS provides less information about service industries and high-tech products than did the SIC system.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Buyers in producer markets purchase either raw materials or semifinished products.

Correct AnswerverifiedShow Answer

In what ways do environmental factors affect the business buying decision process?

Correct AnswerverifiedEnvironmental factors include competitiv...View AnswerShow Answer

The stages of the business buying decision process, in order, are

Correct AnswerverifiedShow Answer

Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives.

Correct AnswerverifiedShow Answer

What are the two ways governments make purchases?

Correct AnswerverifiedShow Answer

For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier.

Correct AnswerverifiedShow Answer

Demand for business products can be characterized in four ways; describe these four characteristics and compare and contrast their attributes.

Correct AnswerverifiedDemand for business products (also calle...View AnswerShow Answer

Despite its usefulness, industrial classification data pose some disadvantages. Which of the following is an example of a limitation of the North American Industry Classification System (NAICS) ?

Correct AnswerverifiedShow Answer

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following products is most likely to be purchased on the basis of contract negotiation?

Correct AnswerverifiedShow Answer

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

Correct AnswerverifiedShow Answer

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verified
Environmental factors include competitiv...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Demand for business products (also calle...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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