Question 1

Businesses contract outside providers to perform janitorial, advertising, and legal services as it costs less than hiring an employee to perform the particular task.

Accepted Answer

A) True 
 B)False

Question 2

The use of direct channels in business marketing has increased dramatically in the past decade with the introduction of various Internet buying and selling schemes.

Accepted Answer

A) True 
 B)False

Question 3

Inland Eastex Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes last year, the sales did not drop. This is an example of _____.

Accepted Answer

A)  elastic demand
B)  inelastic demand
C)  derived demand
D)  joint demand

Question 4

Which of the following statements is true of content marketing?

Accepted Answer

A)  It includes media such as videos, podcasts, webinars, and blog posts.
B)  It includes materials such as steel or lumber mills and food canners.
C)  It includes components such as spark plugs and electric motors.
D)  It includes equipment such as portable drills and microcomputers.

Question 5

Federal, state, and local buying units account for the greatest volume of purchases of any customer category in the United States.

Accepted Answer

A) True 
 B)False

Question 6

The more digits in a North American Industry Classification System code, the less homogeneous a group will be.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is a difference between buyers in consumer markets and buyers in business markets?

Accepted Answer

A)  Buyers in consumer markets tend to be insensitive to price, while buyers in business markets are very particular about price.
B)  Buyers in consumer markets generate less stable demand trends, while buyers in business markets generate more stable demand trends.
C)  Buyers in consumer markets approach purchasing more informally, while buyers in business markets approach purchasing more formally.
D)  Buyers in consumer markets involve more people in a single purchase decision, while buyers in business markets involve less people in a single purchase decision.

Question 8

Explain the distribution structure followed in business markets.

Accepted Answer

Answers will vary. Many consumer product...

Question 9

A practice whereby business purchasers choose to buy from customers of their competitors is called reciprocity.

Accepted Answer

A) True 
 B)False

Question 10

In the context of business customers, which of the following statements is true of institutions?

Accepted Answer

A)  They are profit-oriented companies that use purchased goods to incorporate into other products.
B)  They are organizations that buy finished goods and resell them for a profit.
C)  They are buying units that account for the greatest volume of purchases of any customer category.
D)  They are business markets that seek to achieve goals other than the standard business goals of profit.

Question 11

Which of the following statements is true of business marketing?

Accepted Answer

A)  It refers to the sale of goods and services for the purpose of personal consumption.
B)  It deals with products that are used to facilitate an organization's operations.
C)  It has long and indirect channels of distribution.
D)  It includes selling stationaries to students.

Question 12

Which of the following statements is a difference between wholesalers and retailers?

Accepted Answer

A)  Wholesalers use purchased goods to incorporate into other products, while retailers seek to achieve goals other than the standard business goals of profit.
B)  Wholesalers account for the greatest volume of purchases of any customer category, while retailers buy business products and resell them to business customers.
C)  Wholesalers sell mostly to retailers and other organizational customers, while retailers sell mainly to final consumers.
D)  Wholesalers are often known as original equipment manufacturers, or OEMs, while retailers are often known as buying centers.

Question 13

In the context of categories of business customers, describe the role of resellers.

Accepted Answer

Answers will vary. The reseller market i...

Question 14

_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Accepted Answer

A)  The multiplier effect
B)  Reciprocity
C)  The conversion rate
D)  Frequency

Question 15

Which of the following statements is true of the North American Industry Classification System (NAICS) ?

Accepted Answer

A)  Each classification group in NAICS is heterogeneous in terms of the components used.
B)  The geographic dispersion of firms cannot be identified with the help of NAICS.
C)  The more the digits in an NAICS code, the more homogeneous the group.
D)  Goods- or service-producing firms grouped under NAICS use different production processes.

Question 16

In the context of business products, which of the following statements is true of major equipment?

Accepted Answer

A)  It is marketed by local industrial distributors.
B)  It is sold through a longer distribution channel than accessory equipment.
C)  It is often custom designed for each customer according to requirements.
D)  It is less expensive and shorter-lived than accessory equipment.

Question 17

In the context of negotiations, final contracts are often short and precise.

Accepted Answer

A) True 
 B)False

Question 18

Nutrimax Cookies Inc. buys around three tons of raw materials every year. If the demand for its cookies increases next year, the company might need to buy more raw materials in order to meet the increased demand. This illustrates _____.

Accepted Answer

A)  inelastic demand
B)  joint demand
C)  elastic demand
D)  fluctuating demand

Question 19

Which of the following statements is true of accessory equipment?

Accepted Answer

A)  It includes goods such as large or expensive machines and mainframe computers.
B)  It includes goods such as portable drills, power tools, and microcomputers.
C)  It includes goods such as lubricants, detergents, paper towels, pencils, and paper.
D)  It includes goods such as spark plugs, tires, and electric motors for automobiles.

Question 20

In the context of business products, which of the following is a difference between major equipment and accessory equipment?

Accepted Answer

A)  Major equipment is often standardized, whereas accessory equipment is often custom designed for each customer.
B)  Major equipment is depreciated over time, whereas accessory equipment is charged as an expense in the year it is purchased.
C)  Major equipment has a short life, whereas accessory equipment has a long life.
D)  Major equipment is marketed more through advertising, whereas accessory equipment is marketed via personal selling.

Exam 7: Business Marketing

Nutrimax Cookies Inc. buys around three tons of raw materials every year. If the demand for its cookies increases next year, the company might need to buy more raw materials in order to meet the increased demand. This illustrates _____.

Correct AnswerverifiedShow Answer

Which of the following statements is true of the North American Industry Classification System (NAICS) ?

Correct AnswerverifiedShow Answer

In the context of business products, which of the following is a difference between major equipment and accessory equipment?

Correct AnswerverifiedShow Answer

Which of the following statements is a difference between buyers in consumer markets and buyers in business markets?

Correct AnswerverifiedShow Answer

Businesses contract outside providers to perform janitorial, advertising, and legal services as it costs less than hiring an employee to perform the particular task.

Correct AnswerverifiedShow Answer

Which of the following statements is a difference between wholesalers and retailers?

Correct AnswerverifiedShow Answer

The more digits in a North American Industry Classification System code, the less homogeneous a group will be.

Correct AnswerverifiedShow Answer

Which of the following statements is true of accessory equipment?

Correct AnswerverifiedShow Answer

A practice whereby business purchasers choose to buy from customers of their competitors is called reciprocity.

Correct AnswerverifiedShow Answer

_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Correct AnswerverifiedShow Answer

Inland Eastex Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes last year, the sales did not drop. This is an example of _____.

Correct AnswerverifiedShow Answer

In the context of business products, which of the following statements is true of major equipment?

Correct AnswerverifiedShow Answer

Which of the following statements is true of business marketing?

Correct AnswerverifiedShow Answer

In the context of business customers, which of the following statements is true of institutions?

Correct AnswerverifiedShow Answer

The use of direct channels in business marketing has increased dramatically in the past decade with the introduction of various Internet buying and selling schemes.

Correct AnswerverifiedShow Answer

Explain the distribution structure followed in business markets.

Correct AnswerverifiedAnswers will vary. Many consumer product...View AnswerShow Answer

In the context of categories of business customers, describe the role of resellers.

Correct AnswerverifiedAnswers will vary. The reseller market i...View AnswerShow Answer

Federal, state, and local buying units account for the greatest volume of purchases of any customer category in the United States.

Correct AnswerverifiedShow Answer

In the context of negotiations, final contracts are often short and precise.

Correct AnswerverifiedShow Answer

Which of the following statements is true of content marketing?

Correct AnswerverifiedShow Answer

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Answers will vary. Many consumer product...
View Answer

Correct Answer
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Answers will vary. The reseller market i...
View Answer

Correct Answer
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