Question 1

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

Accepted Answer

A)   channel consolidation
B)   systems buying
C)   vertical buying
D)   horizontal buying
E)   supply buyingF) C) and D)
G) B) and C)

Question 2

Asiaworth Pte Ltd is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________.

Accepted Answer

A)   modified rebuy
B)   regular buy
C)   straight rebuy
D)   new rebuy
E)   new taskF) C) and E)
G) C) and D)

Question 3

How do business marketers target firms?

Accepted Answer

Business marketers may divide the market...

Question 4

In the ________ method for assessing customer value, company engineers use laboratory tests to estimate the product's performance characteristics. However, this ignores the fact that in different applications, the product will have different economic value.

Accepted Answer

A)   internal engineering assessment
B)   importance ratings
C)   field value-in-use assessment
D)   benchmarking
E)   conjoint analysisF) A) and D)
G) A) and E)

Question 5

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

Accepted Answer

A)   straight rebuy
B)   modified rebuy
C)   new task
D)   secondary purchase
E)   procure-to-payF) A) and E)
G) A) and D)

Question 6

A good illustration of a member of the institutional market would be Boeing because it is a member of the aviation institution structure.

Accepted Answer

A) True 
 B)False

Question 7

In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying center.

Accepted Answer

A)   approvers
B)   buyers
C)   initiators
D)   gatekeepers
E)   decidersF) A) and C)
G) C) and D)

Question 8

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

Accepted Answer

A)   consumer packaged-goods companies
B)   government organizations
C)   health services vendors
D)   educational institutions
E)   householdsF) A) and C)
G) A) and E)

Question 9

The business buyer has to make the fewest decisions when involved in a ________.

Accepted Answer

A)   modified rebuy
B)   regular buy
C)   straight rebuy
D)   new rebuy
E)   new taskF) A) and D)
G) C) and D)

Question 10

In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance.

Accepted Answer

A)   basic buying and selling
B)   bare bones
C)   contractual transaction
D)   customer supply
E)   collaborativeF) C) and D)
G) A) and C)

Question 11

In which of the following is a person performing the role of an approver?

Accepted Answer

A)   Dan decides on the product requirements and makes the final choice of suppliers.
B)   Leo has the authority to pick out the supplier and negotiate the terms of purchase.
C)   Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives.
D)   LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG.
E)   Dana authorizes the actions of the deciders and buyers in LKG.F) All of the above
G) A) and E)

Question 12

Which type of buying situation would be preferred if the management wants to minimize decision-making time and effort?

Accepted Answer

The business buyer makes the f...

Question 13

Which of the following is true for business marketers?

Accepted Answer

A)   They deal with more and larger buyers than consumer marketers.
B)   They deal with more and smaller buyers than consumer marketers.
C)   They deal with fewer and larger buyers than consumer marketers.
D)   They deal with fewer and smaller buyers than consumer marketers.
E)   They deal with the same kind of buyers as consumer marketers.F) C) and E)
G) A) and B)

Question 14

What is the composition of the buying center?

Accepted Answer

A buying center is composed of "all thos...

Question 15

Which of the following is a step in the straight rebuy buyclass?

Accepted Answer

A)   problem recognition
B)   general need description
C)   product specification
D)   supplier search
E)   proposal solicitationF) D) and E)
G) C) and D)

Question 16

In the ________ method for assessing customer value, customers are shown a "benchmark" offering and then a new market offering. They are asked how much more they would pay for the new offering or how much less they would pay if certain features were removed from the benchmark offering.

Accepted Answer

A)   internal engineering assessment
B)   importance ratings
C)   field value-in-use assessment
D)   benchmarking
E)   conjoint analysisF) A) and C)
G) B) and E)

Question 17

Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics.

Accepted Answer

The characteristics of business markets ...

Question 18

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Accepted Answer

A) True 
 B)False

Question 19

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments.

Accepted Answer

A) True 
 B)False

Question 20

In the purchasing decision process, the ________ are those who request that something be purchased. They may be users or others in the organization.

Accepted Answer

A)   users
B)   initiators
C)   influencers
D)   deciders
E)   approversF) A) and C)
G) A) and B)

Exam 7: Analyzing Business Markets

How do business marketers target firms?

Correct AnswerverifiedBusiness marketers may divide the market...View AnswerShow Answer

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

Correct AnswerverifiedShow Answer

In the ________ method for assessing customer value, customers are shown a "benchmark" offering and then a new market offering. They are asked how much more they would pay for the new offering or how much less they would pay if certain features were removed from the benchmark offering.

Correct AnswerverifiedShow Answer

Which of the following is true for business marketers?

Correct AnswerverifiedShow Answer

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

Correct AnswerverifiedShow Answer

Which of the following is a step in the straight rebuy buyclass?

Correct AnswerverifiedShow Answer

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments.

Correct AnswerverifiedShow Answer

In the ________ method for assessing customer value, company engineers use laboratory tests to estimate the product's performance characteristics. However, this ignores the fact that in different applications, the product will have different economic value.

Correct AnswerverifiedShow Answer

Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics.

Correct AnswerverifiedThe characteristics of business markets ...View AnswerShow Answer

In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying center.

Correct AnswerverifiedShow Answer

In which of the following is a person performing the role of an approver?

Correct AnswerverifiedShow Answer

In the purchasing decision process, the ________ are those who request that something be purchased. They may be users or others in the organization.

Correct AnswerverifiedShow Answer

What is the composition of the buying center?

Correct AnswerverifiedA buying center is composed of "all thos...View AnswerShow Answer

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

Correct AnswerverifiedShow Answer

Asiaworth Pte Ltd is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________.

Correct AnswerverifiedShow Answer

Which type of buying situation would be preferred if the management wants to minimize decision-making time and effort?

Correct AnswerverifiedThe business buyer makes the f...View AnswerShow Answer

In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance.

Correct AnswerverifiedShow Answer

A good illustration of a member of the institutional market would be Boeing because it is a member of the aviation institution structure.

Correct AnswerverifiedShow Answer

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Correct AnswerverifiedShow Answer

The business buyer has to make the fewest decisions when involved in a ________.

Correct AnswerverifiedShow Answer

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Business marketers may divide the market...
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The characteristics of business markets ...
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A buying center is composed of "all thos...
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The business buyer makes the f...
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Correct Answer
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Correct Answer
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