Question 1

Shortly after former stockbroker Cooper Skanda decided to open a florist shop, he was looking for multitasking software. He wanted it to handle his accounts receivable, provide him with tax information, and make it easy to place wire orders for flower deliveries. He looked at several packages aimed at making retailing easier. Many he discarded because they were not industry-specific. He finally settled on a software package called Your Floral Expert CPA, which was in the middle price range. The purchase of this software was an example of a _____ purchase.

Accepted Answer

A)   straight rebuy
B)   specialty
C)   reciprocity
D)   modified rebuy
E)   new-task buying

Question 2

Which of the following products will probably reach a horizontal business market rather than a vertical business market?

Accepted Answer

A)   uniforms for UPS drivers
B)   protective eyewear
C)   automatic bowling pinspotters
D)   blast furnaces
E)   kidney dialysis machines

Question 3

Which of the following purchases does NOT involve a business user?

Accepted Answer

A)   Dr. Born buys a new dental chair for her office.
B)   An interior designer buys a new tablecloth for her dining room table.
C)   A retail store owner buys poster board to make signs for her office.
D)   A university president orders a worktable for his office.
E)   A convenience store owner places an order to have his soda vending machine restocked.

Question 4

Straight-rebuy purchases are typically low-involvement situations for the buyer.

Accepted Answer

A) True 
 B)False

Question 5

Peninsula Iron Works rebuilds band saw wheels used to cut tree trunks into lumber at a fraction of the cost of buying a new system. Since the only companies that can use the services of Peninsula are those in the timber business, Peninsula can be said to have a(n)  _____ business market.

Accepted Answer

A)   vertical
B)   indirect
C)   elastic
D)   horizontal
E)   regulated

Question 6

On which element of the promotional mix do sellers of business products place a greater emphasis than do sellers of consumer products?

Accepted Answer

A)   sales promotion
B)   advertising
C)   publicity
D)   public relations
E)   personal selling

Question 7

For a manufacturer of mannequins, a good activity indicator of buying power would be the total number of retailers in its market area that use mannequins in store displays.

Accepted Answer

A) True 
 B)False

Question 8

A product is said to have a vertical business market if:

Accepted Answer

A)   demand for the product is elastic.
B)   demand for the product does not fluctuate.
C)   it is usable by many industries.
D)   it is handled by several middlemen before reaching its final buyer.
E)   it is usable by only one or two industries.

Question 9

Norske Skog is a global supplier of publication paper with mills and sales offices on five continents. The Norwegian company's core business is newsprint and magazine paper for its 2,300 customers worldwide. It has a partnership with many of its customers and develops special paper grades in co-operation with its customers. Sarah DeJohn, its chief executive, announced the company would be downsizing in 2003 due to falling demand for paper. (Demand for publication paper is affected by economic activity in the market and printed media advertising revenue.) 
-Without considering the economic environment, the purchase of newsprint by an established newspaper publisher would most likely be classified as a _____ purchase.

Accepted Answer

A)   specialty
B)   straight rebuy
C)   reciprocity
D)   modified rebuy
E)   new-task buying

Question 10

The business market:

Accepted Answer

A)   is significantly smaller than the consumer market in terms of total sales volume.
B)   is significantly smaller than the consumer market in terms of number of firms involved.
C)   does not exist as a separate entity from the consumer market.
D)   caters to the ultimate consumer.
E)   is accurately described by none of the above.

Question 11

The acceleration principle is used to explain:

Accepted Answer

A)   a widely fluctuating demand for business goods.
B)   how to calculate the activity indicator of buying power.
C)   how demand is derived.
D)   the concentration of buying power in a relatively few firms.
E)   reductions in pure unit production costs when total quantity produced increases.

Question 12

Unlike a buyer in the consumer market, an industrial buyer:

Accepted Answer

A)   is not worried about dependability of supply.
B)   avoids reciprocal arrangements.
C)   typically has larger average order sizes.
D)   rarely buys directly from the producer.
E)   is unaffected by multiple buying influences.

Question 13

Which of the following pieces of information would be most likely to be used as an activity indicator to estimate the demand for equipment to pick cotton in Georgia?

Accepted Answer

A)   the total number of farm equipment retailers in Georgia
B)   the total number of acres of cotton planted during the past 12 months in Georgia
C)   the total number of farmers in Georgia
D)   the total number of cotton picking equipment manufacturers in the South
E)   the total expenditure for cotton picking equipment in Georgia for the past 12 months

Question 14

According to the text, resellers, such as a shoe store, a music store, and a bookstore, create _____ utility.

Accepted Answer

A)   form, time, and place
B)   form, time, place, and possession
C)   possession, time, and place
D)   time and place
E)   form and possession

Question 15

Brugg Wire Rope makes elevator cable. It only sells to elevator manufacturers and installers. Therefore, it has a _____ business market.

Accepted Answer

A)   vertical
B)   direct
C)   indirect
D)   horizontal
E)   linear

Question 16

Which of the following is NOT one of the roles people assume in the buying center?

Accepted Answer

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

Question 17

The Potato Board advertises to get people to eat more potatoes. If as a result of the ad consumers eat more potatoes, then farmers must grow more potatoes. The producers of fertilizers, irrigation systems, and storage bins for potatoes must also manufacture more to satisfy the increased demand. This shows how consumer demand can trigger _____ in the business market.

Accepted Answer

A)   reciprocity
B)   derived demand
C)   fluctuating demand
D)   elastic demand
E)   multiple buying influence

Question 18

Securing the right product at the right price at the right time is important for three reasons. One of those reasons is:

Accepted Answer

A)   the fact firms are dealing with fewer suppliers
B)   the use of countertrades.
C)   the fact companies are making more and buying less
D)   the fact that there is zero tolerance for production error
E)   the use of outsourcing

Question 19

Disintermediation:

Accepted Answer

A)   is the term used to describe the relationship between wholesalers and resellers.
B)   refers to the activities that have to take place when a product that is ordinarily sold to ultimate consumers is sold to business users.
C)   refers to all the techniques used for shortening the distribution channels.
D)   is the term used for the replacement of some traditional intermediaries with Internet-based selling.
E)   refers to the collective services performed by facilitating intermediaries.

Question 20

The drop cloth the painter brought to cover the statues outside the museum while he painted the museum's columns is an example of a consumer product.

Accepted Answer

A) True 
 B)False

Exam 5: Business Markets and Buying Behavior

Straight-rebuy purchases are typically low-involvement situations for the buyer.

Correct Answer
verified

According to the text, resellers, such as a shoe store, a music store, and a bookstore, create _____ utility.

Correct Answer
verified

Which of the following purchases does NOT involve a business user?

Correct Answer
verified

Which of the following pieces of information would be most likely to be used as an activity indicator to estimate the demand for equipment to pick cotton in Georgia?

Correct Answer
verified

The business market:

Correct Answer
verified

Peninsula Iron Works rebuilds band saw wheels used to cut tree trunks into lumber at a fraction of the cost of buying a new system. Since the only companies that can use the services of Peninsula are those in the timber business, Peninsula can be said to have a(n) _____ business market.

Correct Answer
verified

A product is said to have a vertical business market if:

Correct Answer
verified

Disintermediation:

Correct Answer
verified

For a manufacturer of mannequins, a good activity indicator of buying power would be the total number of retailers in its market area that use mannequins in store displays.

Correct Answer
verified

Brugg Wire Rope makes elevator cable. It only sells to elevator manufacturers and installers. Therefore, it has a _____ business market.

Correct Answer
verified

Correct Answer
verified

Securing the right product at the right price at the right time is important for three reasons. One of those reasons is:

Correct Answer
verified

The drop cloth the painter brought to cover the statues outside the museum while he painted the museum's columns is an example of a consumer product.

Correct Answer
verified

Which of the following is NOT one of the roles people assume in the buying center?

Correct Answer
verified

Correct Answer
verified

Unlike a buyer in the consumer market, an industrial buyer:

Correct Answer
verified

On which element of the promotional mix do sellers of business products place a greater emphasis than do sellers of consumer products?

Correct Answer
verified

Which of the following products will probably reach a horizontal business market rather than a vertical business market?

Correct Answer
verified

The acceleration principle is used to explain:

Correct Answer
verified

Correct Answer
verified

Exam 5: Business Markets and Buying Behavior

Straight-rebuy purchases are typically low-involvement situations for the buyer.

Correct AnswerverifiedShow Answer

According to the text, resellers, such as a shoe store, a music store, and a bookstore, create _____ utility.

Correct AnswerverifiedShow Answer

Which of the following purchases does NOT involve a business user?

Correct AnswerverifiedShow Answer

Which of the following pieces of information would be most likely to be used as an activity indicator to estimate the demand for equipment to pick cotton in Georgia?

Correct AnswerverifiedShow Answer

The business market:

Correct AnswerverifiedShow Answer

Peninsula Iron Works rebuilds band saw wheels used to cut tree trunks into lumber at a fraction of the cost of buying a new system. Since the only companies that can use the services of Peninsula are those in the timber business, Peninsula can be said to have a(n) _____ business market.

Correct AnswerverifiedShow Answer

A product is said to have a vertical business market if:

Correct AnswerverifiedShow Answer

Disintermediation:

Correct AnswerverifiedShow Answer

For a manufacturer of mannequins, a good activity indicator of buying power would be the total number of retailers in its market area that use mannequins in store displays.

Correct AnswerverifiedShow Answer

Brugg Wire Rope makes elevator cable. It only sells to elevator manufacturers and installers. Therefore, it has a _____ business market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Securing the right product at the right price at the right time is important for three reasons. One of those reasons is:

Correct AnswerverifiedShow Answer

The drop cloth the painter brought to cover the statues outside the museum while he painted the museum's columns is an example of a consumer product.

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the roles people assume in the buying center?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Unlike a buyer in the consumer market, an industrial buyer:

Correct AnswerverifiedShow Answer

On which element of the promotional mix do sellers of business products place a greater emphasis than do sellers of consumer products?

Correct AnswerverifiedShow Answer

Which of the following products will probably reach a horizontal business market rather than a vertical business market?

Correct AnswerverifiedShow Answer

The acceleration principle is used to explain:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified