Test Bank For Marketing Real People Real Choices 7 E7th Edition

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Marketing: Real People, Real Choices, 7e (Solomon / Marshall / Stuart)
Chapter 6 Business-to-Business Markets: How and Why Organizations Buy
1) ________ is the marketing of goods and services that businesses and other organizations buy
for purposes other than personal consumption.
A) Business-to-business marketing
B) Just in time (JIT) marketing
C) Single sourcing
D) Retailing
E) Outsourcing
Answer: A
Diff: 1 Page Ref: 158
Skill: Concept
Objective: 6-1 Understanding business-to-business markets, demand, and customers
2) Another name for business-to-business markets is ________.

A) derived markets
B) functional markets
C) B2C markets
D) C2C markets
E) organizational markets
Answer: E
Skill: Concept
3) Business-to-business markets do NOT include ________.

A) manufacturers
B) wholesalers
C) end consumers
D) retailers
E) government agencies
Answer: C
Skill: Concept
1
Copyright © 2012 Pearson Education, Inc.
4) Business-to-business marketing differs from consumer marketing in that business-to-business
marketing ________.
A) is targeted at many individual and household customers
B) relies upon frequent impulse purchases
C) emphasizes advertising more than any other element of the promotion mix
D) typically involves competitive bidding and price negotiations
E) usually has one person involved in purchase decisions
Answer: D
Skill: Concept
5) Organizational markets differ from consumer markets in that organizational markets

________.
A) have a high number of purchases that are low risk and low cost
B) have derived demand
C) are not geographically concentrated
D) have a single individual in the role of decision maker
E) involve more frequent purchases
Answer: B
Skill: Concept
6) Which of the following statements about organizational markets is NOT true?

A) Some consumers are included in the market.
B) The size of purchases made in organizational markets is much larger than those made in
consumer markets.
C) Organizational markets are geographically concentrated.
D) Organizational markets have a narrow customer base and a small number of buyers.
E) Most demand for organizational products is derived and inelastic.
Answer: A
Skill: Concept
7) Which of the following statements about organizational markets is true?

A) The average purchase size in organizational markets is much smaller than the average
purchase size in the consumer market.
B) Demand for products in the organizational market is derived from demand for consumer
products.
C) Most demand for organizational markets is fixed.
D) Organizational marketers have a broad customer base and a large number of buyers.
E) Joint demand is not a factor.
Answer: B
Skill: Concept
2
8) ________ purchases are much greater than ________ purchases, both in the quantity of items
ordered and how much they cost.
A) Business; consumer
B) Organizational; nonorganizational
C) Online; offline
D) Not-for-profit; for-profit
E) Joint; derived
Answer: A
Skill: Concept
9) Many B2B marketers can take advantage of the ________ of business customers, focusing
their sale efforts and perhaps even locating their distribution centers in a single region.
A) geographic concentration
B) mass media consumption
C) multiple requirements
D) fluctuating demand
E) organizational changes
Answer: A
Skill: Concept
10) Most demand for business-to-business products is ________.

A) derived, inelastic, fluctuating, and joint
B) derived, elastic, fixed, and joint
C) derived, inelastic, static, and dependent on the macroenvironment
D) independent of all consumer market influences
E) competitive, derived, fluctuating, and elastic
Answer: A
Skill: Concept
11) The success of one company in one industry may depend on another company in a different
industry. This dependence creates ________.
A) inelastic demand
B) value-added demand
C) derived demand
D) micro-dependent demand
E) elasticity
Answer: C
Skill: Concept
3
12) When a product has ________ demand, an increase or decrease in the price of the product
has little or no effect on the demand for the product.
A) elastic
B) joint
C) derived
D) inelastic
E) fixed
Answer: D
Skill: Concept
13) Demand in B2B markets is mostly ________ because what a firm sells is often just one of
the many parts or materials that go into producing the consumer product.
A) elastic
B) static
C) fixed
D) inelastic
E) fluctuating
Answer: D
Skill: Concept
14) One year many customers' machinery wears out and needs to be replaced. The following year
no customers need new machinery. This is an example of ________ demand.
A) inelastic
B) fluctuating
C) elastic
D) consumer
E) static
Answer: B
Skill: Concept
15) ________ occurs when two or more goods are necessary to create a product.
A) Inelastic demand
B) Fluctuating demand
C) Joint demand
D) Elastic demand
E) Economic demand
Answer: C
Skill: Concept
4
16) The major classes of business-to-business customers are ________.
A) producers, retailers, and consumers
B) resellers and governments
C) organizations, producers, and manufacturers
D) producers, resellers, and organizations
E) consumers and retailers
Answer: D
Skill: Concept
17) Computer maker Dell and Marriott hotels are both examples of which type of business-to-
business customer?
A) resellers
B) resuppliers
C) organizations
D) producers
E) distributors
Answer: D
Skill: Concept
18) ________ are B2B customers for raw materials.

A) Resellers
B) Resuppliers
C) Retailers
D) Producers
E) End consumers
Answer: D
Skill: Concept
19) ________ do not actually produce goods, but they do provide their customers with the time,
place, and possession utility by making goods available when and where consumers want them.
A) Resellers
B) End users
C) Not-for-profit organizations
D) Producers
E) Buying centers
Answer: A
Skill: Concept
5
20) Walmart buys toothpaste, peanuts, and shoes to sell in its stores. Walmart is a ________.
A) producer
B) not-for-profit organization
C) consumer
D) facilitator
E) reseller
Answer: E
Skill: Concept
21) Governments are just about the only customers for certain products, such as jet fighters. The
government is a(n) ________.
A) end user
B) organization
C) gatekeeper
D) facilitator
E) reseller
Answer: B
Skill: Concept
22) Which of the following make up the largest single business and organizational market in the
United States?
A) raw material markets
B) producer markets
C) not-for-profit markets
D) e-commerce markets
E) government markets
Answer: E
Skill: Concept
23) Not-for-profit institutions such as the Salvation Army and the Red Cross belong to the
________ class of B2B consumers.
A) raw material
B) producer
C) organization
D) commerce
E) reseller
Answer: C
Skill: Concept
6
24) Which of the following is most likely to have an unprofessional or part-time buyer who
needs more advice and assistance from marketers before and after a sale?
A) a reseller
B) a mass producer
C) a foreign government
D) a state government
E) a not-for-profit institution
Answer: E
Skill: Concept
25) Which of the following statements does NOT apply to the North American Industry
Classification System (NAICS)?
A) NAICS is a numerical coding of industries developed by NAFTA countries.
B) NAICS can be used by firms to assess potential markets.
C) NAICS replaced the Standard Industrial Classification (SIC) system.
D) NAICS can be used to find new customers.
E) NAICS is a consumer buying directory for North America.
Answer: E
Skill: Concept
26) The North American Industry Classification System (NAICS) ________.

A) is a replacement for the Better Business Bureau
B) was developed in Europe
C) includes information about industries in Mexico, Canada, and the United States
D) uses a two-digit code that sorts industries into subsectors
E) is a listing of consumer products
Answer: C
Skill: Concept
27) Business-to-business (B2B) e-commerce ________.

A) links marketers directly to their business customers
B) has little effect on the way businesses operate
C) does not rely upon the Internet
D) has only two simple forms
E) is conducted almost exclusively through private exchanges
Answer: A
AACSB: Use of information technology
Skill: Concept
Objective: 6-2 Business-to-business e-commerce and social media
7
28) Business-to-business ________ refers to Internet exchanges between two or more businesses
or organizations.
A) social media
B) outsourcing
C) e-commerce
D) reciprocity
E) buyclass
Answer: C
Skill: Concept
29) Which of the following is the simplest form of B2B e-commerce?

A) online catalogs
B) reciprocal sites
C) intranets
D) extranets
E) private exchanges
Answer: A
Skill: Concept
30) Many companies maintain ________, which are internal corporate computer networks that
use Internet technology to link company departments, employees, and databases.
A) Web sites
B) search engines
C) extranets
D) intranets
E) private exchanges
Answer: D
Skill: Concept
8
31) An intranet would NOT be used for which of the following?
A) videoconferencing
B) communicating with geographically dispersed branches of an organization
C) training employees
D) distributing internal documents
E) communicating with the supplier network
Answer: E
Skill: Concept
32) A company uses a(n) ________ to allow certain suppliers, customers, and others outside the
organization to access its internal system.
A) corporate Web site
B) search engine
C) extranet
D) private exchange
E) intranet
Answer: C
Skill: Concept
33) A(n) ________ can be especially useful for companies that need to have secure
communications with their dealers, distributors, and/or franchisees.
A) intranet
B) social networking site
C) extranet
D) virtual trade show
E) buying center
Answer: C
Skill: Concept
9
34) A company could reasonably expect use of both an intranet and extranet to ________.
A) facilitate collaboration with external business partners
B) save the company money
C) increase traffic to the company's Web site
D) replace the use of professional networking sites
E) improve internal communications among employees
Answer: B
Skill: Concept
35) Prudential Health Care's ________ allows its corporate customers to enroll new employees
and check eligibility and claim status themselves.
A) private exchange
B) extranet
C) intranet
D) professional network
E) reciprocity arrangement
Answer: B
Skill: Concept
36) A(n) ________ is a system that links invited groups of suppliers and partners over the Web,
allowing companies to collaborate with suppliers they trust without having to share sensitive
information with others.
A) corporate Web site
B) search engine
C) intranet
D) private exchange
E) professional network
Answer: D
Skill: Concept
10
37) Both B2C and B2B e-commerce companies are making sure that only authorized individuals
are allowed to access a site and place an order. These companies are concerned with ________.
A) single sourcing
B) straight rebuys
C) security issues
D) private exchanges
E) search engines
Answer: C
Skill: Concept
38) Nicknames, birthdates, and spouses' names are all examples of obvious ________.
A) firewalls
B) encryptions
C) sniffers
D) passwords
E) blogs
Answer: D
Skill: Concept
39) Firewalls and encryption are both ________.

A) common safeguards for Internet transactions
B) common authentication systems for intranets
C) types of sniffers used by hackers
D) types of passwords used by employees
E) tools for corporate espionage
Answer: A
Skill: Concept
11
40) A(n) ________ is a combination of hardware and software that ensures only authorized
individuals gain entry into a computer system.
A) password
B) firewall
C) sniffer
D) encryption
E) virus
Answer: B
Skill: Concept
41) A(n) ________ monitors and controls all traffic between the Internet and an intranet to
restrict access.
A) private exchange
B) firewall
C) encryption
D) sniffer
E) password
Answer: B
Skill: Concept
42) To purchase an item from an Internet site, you will be asked to provide a credit card number.
Because of ________, a computer hacker who intercepts this number as it is being sent to the
seller would likely see £D¥$&0PDJLJL, or something equally as meaningless.
A) decoding
B) back-translation
C) encryption
D) the firewall
E) reverse encoding
Answer: C
Skill: Concept
12
43) ________ means scrambling a message so that only another individual or computer with the
right "key" for deciphering it can unscramble it.
A) Back-translation
B) Encryption
C) Authentication
D) Reverse encoding
E) Sniffing
Answer: B
Skill: Concept
44) Which of the following would most likely be used by a hacker to intercept and read online
communications?
A) back-translation
B) encryption
C) a sniffer
D) authentication
E) a firewall
Answer: C
Skill: Concept
45) Which of the following are tools used by hackers and Internet criminals to disrupt individual
computers and entire company systems?
A) encryption and authentication
B) worms and viruses
C) sniffers and webinars
D) firewalls and decoders
E) passwords and private exchanges
Answer: B
Skill: Concept
13
46) LinkedIn, Twitter, and Facebook are all examples of ________.
A) viral techniques
B) professional networking sites
C) social networking sites
D) private exchanges
E) Webinars
Answer: C
Skill: Concept
47) According to research, social media channels are most effective to reach and engage business
prospects at ________.
A) large government buying centers
B) large multinational companies
C) independent producers
D) small not-for-profits
E) mid-to-large-size companies
Answer: E
Skill: Concept
48) According to recent research, which one of the following are business buyers least likely to
use for business purposes?
A) webinars
B) podcasts
C) LinkedIn
D) Twitter
E) online ratings and reviews
Answer: D
Skill: Concept
14
49) Which of the following is geared primarily to corporate professionals?
A) Facebook
B) Twitter
C) podcasts
D) LinkedIn
E) blogs
Answer: D
Skill: Concept
50) Which of the following describes an advantage of LinkedIn?

A) It was created by college students for college students.
B) It facilitates quality introductions among business people.
C) It provides comparative information on industries in NAFTA countries.
D) It is a private exchange connecting buyers and suppliers.
E) It allows approved partners to access a company's intranet.
Answer: B
Skill: Concept
51) A(n) ________ identifies the degree of effort required of the firm's personnel to collect
information and make a purchase decision.
A) needs hierarchy
B) purchase continuum
C) buy class framework
D) buying center continuum
E) need-response framework
Answer: C
Skill: Concept
Objective: 6-3 Business buying situations and the business buying decision process
52) Straight rebuys ________.

A) are the most complex of purchase types because they require customer relationship
management
B) are more complex than new-task buys
C) often involve products with low risks
D) involve recruiting new vendors
E) are the B2B version of comparison shopping in the consumer market
Answer: C
Skill: Concept
15
53) A modified rebuy ________.
A) requires more time and effort than straight rebuys
B) is the B2B version an impulse purchase in the consumer market
C) requires more time and effort than new-task buying
D) occurs whenever a company reorders a product from an original supplier
E) involves only one role in the buying center
Answer: A
Skill: Concept
54) A new-task buy ________.

A) requires less time and effort than a modified rebuy
B) cannot be used if the buyer uses single sourcing
C) is characterized by uncertainty and high risk
D) is similar to routine decision making in the consumer market
E) begins with a SWOT analysis
Answer: C
Skill: Concept
55) Which of the following is a job title for a professional buyer?

A) gatekeeper
B) procurement officer
C) initiator
D) influencer
E) sales manager
Answer: B
Skill: Concept
56) The group of people in the organization who participate in the purchase decision-making
process is referred to as the ________.
A) buyer institution
B) resource center
C) buying center
D) purchasing hierarchy
E) purchasing office
Answer: C
Skill: Concept
16
57) Which of the following statements about buying centers is true?
A) The buying center is like a standing committee.
B) The buying center roles are specified on the organizational chart.
C) The most commonly found buying center has six employees, one to assume each of the
buying center's roles.
D) An individual's role in the buying center does not change.
E) The members of a buying center typically participate in a cross-functional team.
Answer: E
Skill: Concept
58) The ________ is the member of the buying center who actually needs the product.
A) initiator
B) gatekeeper
C) decider
D) user
E) influencer
Answer: D
Skill: Concept
59) The ________ is the member of the buying center who controls the flow of information to
other members.
A) initiator
B) gatekeeper
C) decider
D) user
E) influencer
Answer: B
Skill: Concept
60) The ________ is the member of the buying center who makes the final decision.
A) buyer
B) gatekeeper
C) decider
D) user
E) influencer
Answer: C
Skill: Concept
17
61) Which member of the buying center typically has the most power?
A) buyer
B) gatekeeper
C) decider
D) initiator
E) influencer
Answer: C
Skill: Concept
62) The ________ is the member of the buying center whose primary function is handling the
details of the transaction.
A) buyer
B) gatekeeper
C) decider
D) initiator
E) influencer
Answer: A
Skill: Concept
63) The first step in the business buying decision process is ________.
A) recognize the problem
B) current vendor analysis
C) search for information
D) select the supplier
E) evaluate the alternatives
Answer: A
Skill: Concept
64) When a business needs to make a complex purchase, it is most likely to form a buying center
during the ________ stage of the business buying decision process.
A) problem recognition
B) vendor analysis
C) information search
D) supplier selection
E) alternative evaluation
Answer: A
Skill: Concept
18
65) Business buyers often develop ________, which are written descriptions of the quality, size,
weight, warranty, and delivery requirements for a purchase.
A) requests for quotations
B) requests for proposals
C) vendor analyses
D) product specifications
E) evaluative metrics
Answer: D
Skill: Concept
66) What is the next step in the business buying decision process after the product specifications
are written?
A) obtain written or verbal bids
B) evaluate alternatives
C) scan trade publications
D) evaluate vendors
E) set price ceiling
Answer: A
Skill: Concept
67) During the ________ stage of the business buying decision process, the buying center
assesses the proposals.
A) obtain written or verbal bids
B) alternative evaluation
C) product selection
D) information search
E) problem recognition
Answer: B
Skill: Concept
68) During the ________ stage of the business buying decision process, total spending for the
product is considered.
A) request for proposal
B) information search
C) alternative evaluation
E) product selection
Answer: C
Skill: Concept
19
69) Which of the following statements about the product and supplier selection stage of the
business buying decision process is true?
A) Price is the only factor businesses consider before making a purchase decision.
B) Even companies that have adopted a total quality management approach consider price to be
the most important determinant of who to buy from.
C) Before making a purchase decision, many businesses consider quality, reliability, durability,
and after-the-sale service, as well as price.
D) Because after-the-sale service is a negotiation point, it is not considered at this stage of the
business buying decision process.
E) Price and warranty are the only two factors businesses consider before making a purchase
decision.
Answer: C
Skill: Concept
70) For complex purchases, the buying center will typically decide what type of sourcing to use
in the ________ stage of the business buying decision process.
B) information search
C) alternative evaluation
D) product and supplier selection
E) postpurchase evaluation
Answer: D
Skill: Concept
71) Which of the following is an advantage of using single sourcing?

A) Suppliers are more likely to remain cost-competitive.
B) Buyers are less reliant on one firm to deliver the needed goods without interruption.
C) The buyer and seller agree to be each other's customers.
D) Consistency of quality of materials input into the product process is greater.
E) Buyers have other suppliers to fall back on if one supplier fails.
Answer: D
Skill: Concept
20
72) A vehicle manufacturer often won't buy a new product from a supplier unless the supplier's
competitors are also capable of making the same item. The manufacturer is using ________.
A) single sourcing
B) crowdsourcing
C) multiple sourcing
D) customer reference programming
E) reciprocity
Answer: C
Skill: Concept
73) Sometimes supplier selection is based on ________, which means a buyer and a seller agree
to purchase each other's goods and services even though the terms of the sales may not be the
best available.
A) requisition
B) reciprocity
C) customer references
D) outsourcing
E) reverse marketing
Answer: B
Skill: Concept
74) ________ occurs when firms obtain outside vendors to provide goods or services that might
otherwise be supplied in-house.
A) Outsourcing
B) Reverse marketing
C) Crowdsourcing
D) Multiple sourcing
E) Insourcing
Answer: A
Skill: Concept
75) ________ is a business practice in which a buyer shapes a supplier's products and operations
to satisfy its needs.
A) Reciprocity
B) Functionalization
C) Reverse marketing
D) Bottom-up marketing
E) Crowdsourcing
Answer: C
Skill: Concept
21
76) Which of the following is NOT an example of business-to-business marketing?
A) Scott Sign Systems sells interior signs to an Alabama resort.
B) A municipal government buys chemicals for its city swimming pools.
C) Sue buys a gift for her mother.
D) A Canadian software company buys airline tickets to send a group of salespeople to make a
presentation to a heavy equipment manufacturer in Japan.
E) Airmark sells a vinyl printing press to a manufacturer of plastic bags.
Answer: C
AACSB: Analytic skills
Skill: Application
77) Many businesses today are abandoning traditional business attire and allowing their
employees to come to work in business casual that typically does not include ties, cufflinks, or
business suits. There has been a decrease in the sale of silk ties as a result of this cultural trend. A
decrease in consumer demand for silk ties has led to a decrease in demand for silk because the
demand for silk is ________.
A) independent
B) micro-dependent
C) derived
D) inelastic
E) fixed
Answer: C
Skill: Application
78) A sign company creates and prints the full-sized vinyl sheets that make it quick and easy to
change the promotion on a billboard. If a change in the price of petroleum (a necessary
ingredient for the production of plastic) forced manufacturers of vinyl sheets to increase their
price by 20 percent, the company would still need to buy the same amount to meet its customers'
needs. Therefore, demand for vinyl sheets by companies that use this product to create billboard
ads is ________.
A) elastic
B) joint
C) independent
D) inelastic
E) fixed
Answer: D
Skill: Application
22
79) A Miami restaurant has created atmosphere through its subtle use of blue and green lighting,
ceiling fans over each table, and frozen drinks. If its electrical energy supplier raises its prices,
the restaurant will most likely ________.
A) continue its present operation because it has an elastic demand for electricity
B) ask other Miami restaurants to create a derived demand for cheaper electricity
C) decide to find other ways to use electricity
D) continue its present operation because it has an inelastic demand for electricity
E) remove its lighting, turn off its fans, and economize on its use of electricity
Answer: D
AACSB: Reflective thinking skills
Skill: Application
80) A rifle manufacturer needs muzzles, trigger mechanisms, and wooden gunstocks to produce
rifles. Without these items the manufacturer cannot produce its rifles. It will reduce its demand
for trigger mechanisms and gunstocks if suppliers are unable to sell the muzzles it needs. This is
an example of ________ demand.
A) reverse
B) synergistic
C) joint
D) reciprocal
E) inelastic
Answer: C
Skill: Application
81) PPG Industries buys silicon and uses it to manufacture glass for windows. PPG is a
________.
A) producer
B) not-for-profit
C) consumer
D) facilitator
E) reseller
Answer: A
Skill: Application
23
82) In terms of organizational markets, discount stores are examples of ________.
A) resellers
B) resuppliers
C) not-for-profit markets
D) producers
E) facilitating agents
Answer: A
Skill: Application
83) The city of St. Louis buys a golf turf mower for maintaining the city's golf course in Forest
Park. The city of St. Louis is in the ________ class of business customers.
A) reseller
B) producer
C) consumer
D) facilitator
E) government
Answer: E
Skill: Application
84) The Metropolitan Museum of Modern Art buys office supplies. In doing so, the Museum is
acting as a member of the ________ business customer class.
A) producer
B) organization
C) consumer
D) facilitator
E) reseller
Answer: B
Skill: Application
24
85) Celarix.com is an Internet company that helps other businesses operating on the Internet
handle distribution bottlenecks by offering software that manages tariffs and exchange rates for
companies that ship internationally. Celarix.com engages in ________.
A) business-to-consumer e-commerce
B) reciprocal activities
C) reverse marketing
D) consumer-to-business e-commerce
E) business-to-business e-commerce
Answer: E
Skill: Application
86) Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate
sharing of expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial
and marketing advice. It also allows Pace retailers to ask their suppliers about product usage,
deliveries, and warranties, and it allows suppliers to send new-product information directly to
Pace retailers. Pace Hardware is using a(n) ________.
A) intranet
B) search engine
C) extranet
D) sniffer
E) crowdsource
Answer: C
Skill: Application
87) Aeroxchange.com was founded by thirteen airline companies as a Web site where the
companies could purchase all the goods and services for their operations, excluding aircraft and
fuel. Selected suppliers were invited to partner with these airlines at this site. Items that are
traded through Aeroxchange include a wide range of airline-specific products and services, such
as engine components and maintenance. Aeroxchange is an example of a(n) ________.
A) Web link
B) search engine
C) intranet
D) private exchange
E) crowdsource
Answer: D
Skill: Application
25
88) The Green Awning is a flower and gift store. When its owner purchases the green foam used
in the bottom of vases of cut flowers, floral tape used in flower arrangements, and gift cards, she
is most likely making a ________.
A) straight rebuy
B) complex-task purchase
C) modified rebuy
D) new-task buy
E) gatekeeping buy
Answer: A
Skill: Application
89) When a dentist's office manager orders latex gloves, disposable masks, file folders, and
complementary toothbrushes to give to patients, he is most likely making a(n) ________.
A) straight rebuy
B) complex-task purchase
C) modified rebuy
D) new-task purchase
E) intranet exchange
Answer: A
Skill: Application
90) Although much of the equipment used by dentists is thrown away after one use, many of the
instruments used to clean teeth, fill cavities, and deal with impactions and other dental problems
are made of steel and must be sterilized. A dentist is considering replacing his conventional
steam sterilizer with a chemical sterilizer that cleans without rusting or corroding instruments.
Because the dentist is already familiar with sterilizers, he is looking to find the best price
possible on a chemical sterilizer. He is engaged in a ________.
A) straight rebuy
B) customer-reference purchase
C) modified rebuy
D) reciprocal purchase
E) reverse marketing purchase
Answer: C
Skill: Application
26
91) Worthington Farm raises chickens. For years, it has used wooden coops to haul its poultry to
market. The owner of the farm needs to buy some replacement coops and is considering buying
plastic coops that are slightly more expensive than wooden ones but much easier to clean after
use. This purchase of coops is an example of a ________.
A) straight rebuy
B) customer-reference purchase
C) modified rebuy
D) reciprocal purchase
E) reverse marketing purchase
Answer: C
Skill: Application
92) A city decided to build a stadium to hold 19,000 people. It was a difficult decision because
the city already had a 70,000 seat dome. City planners convinced the people of the city that the
older dome was too large for most touring shows and better suited for sporting events. In terms
of the buyclass framework, the decision to build a new stadium was a ________.
A) simple-task purchase
B) new-task buy
C) simplified rebuy
D) rebuy
E) not-for-profit purchase
Answer: B
Skill: Application
93) When a company's professional buyer considered a ________ of a plant to house a new
distribution center, he spent a lot of time and effort researching information because this
purchase decision was very high-risk, complex task.
A) new-task buy
B) modified rebuy
C) reciprocal purchase
D) straight rebuy
E) simplified rebuy
Answer: A
Skill: Application
27
94) A trucking company is considering purchasing new trucks that are powered by ethanol
instead of diesel fuel. In terms of the buying center, the truck drivers who must make sure that
the trucks' fuel tanks do not run out of fuel are the ________.
A) initiators
B) liaisons
C) agents
D) users
E) gatekeepers
Answer: D
Skill: Application
95) A patient of Dr. Albrecht told the dentist he needed to buy a machine that would sterilize his
tools without using any water because water tends to cause the tools to rust or corrode over time.
In terms of the buying center, the patient had the role of ________.
A) decider
B) liaison
C) agent
D) user
E) influencer
Answer: E
Skill: Application
96) A patient of Dr. Albrecht told the dentist he needed to buy a machine that would sterilize his
dental tools without using any water because water tends to cause the tools to rust or corrode
over time. Dr. Albrecht, who runs a solo practice in a small town, located some articles on the
chemical sterilizer and read about how the suggested machine works. After gathering more
information and talking to salespeople, Dr. Albrecht placed his order for the machine. In terms of
the buying center, Dr. Albrecht had the role of ________.
A) liaison
B) decider
C) agent
D) expert
E) researcher
Answer: B
Skill: Application
28
97) Don Brady is responsible for obtaining price quotations from various vendors. After
reviewing them, Don then determines whether or not to include the vendor on the approved
vendor list. Don apparently plays two roles in the buying center, that of ________ and ________.
A) user; buyer
B) buyer; influencer
C) buyer; user
D) decider; buyer
E) gatekeeper; influencer
Answer: D
Skill: Application
98) Worthington Farm raises chickens. For years, it has used wooden coops to haul its poultry to
market. When Bob Worthington went to reuse some of his coops, he noticed many of them could
not be sufficiently cleaned for reuse and ought to be replaced. Worthington was at which stage of
the business buying process?
B) vendor analysis
C) information search
D) information evaluation
E) product selection
Answer: A
Skill: Application
99) John Herr's company has standardized the size of its paper bags so that each bag can be used
in five to seven different store departments. This approach to cost reduction likely took place in
the ________ stage of the business buying process.
B) buying center formation
C) product specification
E) request for proposal
Answer: C
Skill: Application
29
100) Johnson Controls, Inc. produces the seats for the Dodge Neon. Although Johnson initially
was able to meet Dodge's cost target, it was not able to meet its safety, weight, and comfort
specifications. Engineers from Dodge visited the Johnson plant and worked with its design
people to create a seat that met all of the technical requirements at a cost that both could agree
on. Johnson Controls and Dodge engaged in ________.
A) reciprocity
B) functionalization
C) reverse marketing
D) crowdsourcing
E) multiple sourcing
Answer: C
Skill: Application
101) Another name for business-to-business markets is organizational markets.

Answer: TRUE
Skill: Concept
102) Business marketers have a broad customer base and a large number of buyers compared to
consumer marketers.
Answer: FALSE
Skill: Concept
103) Business markets tend to be more geographically concentrated than consumer markets.
Answer: TRUE
Skill: Concept
104) Inelastic demand for a product means that if the product's price goes up, demand for it
increases, but if a product's price goes down, demand decreases.
Answer: FALSE
Skill: Concept
105) Fluctuating demand in business markets can be partially explained by the infrequency of the
purchases.
Answer: TRUE
Skill: Concept
30
106) Joint demand occurs when three or more goods are necessary to create a product.
Answer: FALSE
Skill: Concept
107) Producers and resellers perform the same function in the business marketplace.
Answer: FALSE
Skill: Concept
108) Suppliers, customers, and employees have ready access to a company's intranet.
Answer: FALSE
Skill: Concept
109) The intranet and the extranet serve the same function for a company.
Answer: FALSE
Skill: Concept
110) To keep customer records secure, B2B e-commerce sites use authentication.
Answer: TRUE
Skill: Concept
111) To increase security of their Internet sites and transactions, most companies now use
encryption software to assign employee passwords.
Answer: FALSE
Skill: Concept
112) Companies can use firewalls within their intranets to allow only designated employees
access to certain parts of the system.
Answer: TRUE
Skill: Concept
31
113) Without encryption, it would be easy for unethical people using the computer to get your
credit card number.
Answer: TRUE
Skill: Concept
114) Webinars and podcasts are among the most popular social media resources that business
people use for information.
Answer: TRUE
Skill: Concept
115) Virtual trade shows are becoming popular in the B2B world because more visitors attend
virtual trade shows than in-person events.
Answer: FALSE
Skill: Concept
116) The buying center is not a place at all, but rather the group of people in an organization who
participate in the purchase decision-making process.
Answer: TRUE
Skill: Concept
117) A participant in a buying center can only assume one role for any single purchase decision.
Answer: FALSE
Skill: Concept
118) The buying center role of gatekeeper does not exist in not-for-profit organizations.
Answer: FALSE
Skill: Concept
119) Problem recognition is the first step in the buying decision process in the business market.
Answer: TRUE
Skill: Concept
32
120) Suppliers are more likely to stay price competitive when the purchasing company uses
single sourcing than when it uses multiple sourcing.
Answer: FALSE
Skill: Concept
121) PPG Industries is a producer of glass for windows. It sells products in the consumer market.
Answer: FALSE
Skill: Application
122) GolfSeb.com, a popular site for golfing enthusiasts to trade tips and war stories about the
best courses and the toughest holes, is an example of B2B e-commerce.
Answer: FALSE
Skill: Application
123) Paperspace.com is a place where invited paper manufacturers and pulp mill operations
around the world can collaborate and trade with one another. Paperspace.com is an example of a
private exchange.
Answer: TRUE
Skill: Application
124) In terms of the buyclass framework, the purchase of paper towels and toilet paper to restock
an employee restroom would be an example of a modified rebuy.
Answer: FALSE
Skill: Application
125) The individual who develops the product specifications for a complex product would likely
assume the role of influencer in the buying center.
Answer: TRUE
Skill: Application
33
126) How are consumer demand and business-to-business demand of goods and services related?
Answer: Consumer demand is based on a direct connection between a need and the satisfaction
of that need. Business customers do not purchase goods and services to satisfy their own needs.
Business-to-business demand is derived demand because a business's demand for goods and
services comes either directly or indirectly from the consumers' demand. Therefore, in each
purchasing decision, the consumers' demand is important.
Skill: Application
127) Why are materials that represent only a small percentage of the total cost of manufacturing
a product more likely to have inelastic demand than major components?
Answer: Inelastic demand means the demand stays the same for a component no matter how its
price changes. For a smaller component part, the costs of finding a new supplier would probably
outweigh any benefits to be gained from paying less. As the price of the component part
becomes a larger percentage of the item, there is a point where it is cost-effective to find a new,
less expensive supplier.
Skill: Application
128) Explain the North American Industry Classification System (NAICS). How do companies
use it?
Answer: The North American Industry Classification System (NAICS) is a numerical coding of
industries developed by the United States, Canada, and Mexico so that the North American Free
Trade Agreement (NAFTA) countries could compare economic and financial statistics. The
NAICS reports the number of firms, the total dollar amount of sales, the number of employees,
and the growth rate for industries, all broken down by geographic regions. Firms may use the
NAICS to assess potential markets, compare themselves to competitors, and to find new
customers within existing markets.
Skill: Application
34
129) Explain the advantages a firm may achieve through engaging in B2B e-commerce.
Answer: B2B commerce includes the exchange of information, goods, services, and payments
between businesses using Internet technology. Businesses can link directly with their suppliers,
factories, distributors, and customers, greatly improving the efficiency of the processes of
ordering and delivering goods, tracking sales, and getting customer feedback. Companies use
their Internet sites to deliver online technical support, product information, and customer service
to corporate customers. This helps companies save money and create deeper relationships with
their customers. B2B e-commerce also saves companies time and money by reducing necessary
travel time, as employees can interact with far-flung customers online rather than face-to-face.
Diff: 2 Page Ref: 165-166
Skill: Application
130) What is the difference between extranets and intranets? Discuss how each system is used.
Answer: An intranet is an internal corporate network that uses Internet technology to link
company departments, employees, and databases. Intranets give only authorized employees
access. They allow companies to process internal transactions with greater control, consistency,
and efficiency because of the security measures that can be used. When a company allows
certain suppliers, customers, and others outside the organization to access its internal system, it
uses an extranet. Extranets are especially useful for companies that need to have secure
communications with dealers, distributors, and/or franchisees.
Skill: Application
131) Discuss the security issues of B2B e-commerce and how companies address those issues.
Answer: The major security threats B2B e-commerce companies face include hackers
destroying company records or stealing trade secrets, ensuring authentication and making
transactions secure, employees giving unauthorized access to company systems, and systems
infected with worms and viruses. Companies use several safety measures to address these
problems. Firewalls are combinations of hardware and software that allow only authorized
individuals access to company computer systems. Through encryption software, companies
scramble messages so that only those with the right decoder "key" can read the message. Such
encryption software is used to protect private customer information, such as credit card numbers,
from hackers using sniffer programs to intercept and read messages.
Skill: Application
35
132) Compare the three business-to-business buyclasses.
Answer: The three business-to-business buyclasses are straight rebuys, modified rebuys, and
new-task buys. A straight rebuy is a routine purchase of items that a business-to-business
customer regularly needs. The buyer has purchased the same items many times before and
routinely reorders them when supplies are low. A modified rebuy occurs when a firm wants to
shop around for suppliers with better prices, quality, or delivery times. This situation also can
occur when the organization has new needs for products it already buys. A new-task buy requires
the buyer to start from scratch to gather information on purchase specifications. This situation
requires the most effort of buyers and offers the most opportunity for new sellers.
Skill: Application
133) Briefly describe the roles in the buying center.

Answer: The text identifies six buying center roles. (1) Initiator recognizes a need exists. (2)
User uses the product. (3) Gatekeeper controls the flow of information to other members of the
buying center. (4) Influencer affects the purchase decision by dispensing advice or sharing
expertise. (5) Decider makes the final purchase decision. (6) Buyer has the responsibility for
executing the purchase.
Skill: Application
134) How does the problem recognition stage of the business buying decision process differ for
straight rebuys and new-task buys?
Answer: For straight rebuy purchases, this step may occur because the company has run out of
paper, pens, or garbage bags. In this case, the order is placed and the decision-making process
ends. The need for new-task purchases often occurs because the firm wants to enhance its
operations in some way or take advantage of some new opportunity. For new-task purchases,
problem recognition is simply the first stage in a multi-stage process that ends with postpurchase
evaluation.
Skill: Application
36
135) What are the steps in the business-to-business buying decision process? Discuss how they
are different from the steps in the consumer decision process.
Answer: Steps in the business-to-business buying decision process are problem recognition,
information search, evaluation of alternatives, product and supplier selection, and postpurchase
evaluation. In the first step of the B2B buying process, a firm may form a buying center.
Multiple individuals are involved in the buying decision process. Business buyers conduct a
much more thorough information search than consumers do. They also develop product
specifications and obtain bids from potential suppliers during this step. Much more negotiation is
typically involved in the alternative evaluation stage of the B2B buying process. Also, the B2B
buying process often includes formal presentations and product demonstrations by potential
suppliers. Unlike consumers, B2B buyers must decide on what type of sourcing to use for a
purchase in the product and supplier selection stage. Finally, the B2B postpurchase evaluation is
much more formal than the consumer postpurchase evaluation.
Skill: Application
136) A consumer products company contracts with several advertising agencies to promote its
brands at home and around the globe. An opera buys costumes, sets, and programs. Mister's
Diner buys a case of canned peas from JQ's Wholesale Club. The U.S. government places an
order for 3,000 new computers. What does each of the transactions have in common? Explain.
Answer: These transactions are examples of business-to-business marketing, the marketing of
goods and services that businesses and other organizations buy for purposes other than personal
consumption.
Skill: Application
137) Porsche purchases thousands of different parts such as stereos to manufacture their cars.
Explain derived demand in this situation.
Answer: Porsche's demand for car stereos is derived from the consumer demand for Porsche
cars in this example.
Skill: Application
37
138) Why is the demand in business-to-business markets mostly inelastic?
Answer: The demand in business-to-business markets is mostly inelastic because what is being
sold is often just one of the many parts or materials that go into producing the consumer product.
It is not unusual for a large increase in a business product's price to have little effect on the final
consumer product's price.
Skill: Application
139) What is the difference between producers and resellers?

Answer: Producers purchase products for the production of other goods and services that they in
turn sell to make a profit, while resellers buy finished goods for the purpose of reselling, renting,
or leasing to other businesses. Resellers do not produce goods but do provide time, place, and
possession utility to their customers.
Skill: Application
140) Tri Restaurant, Inc. is the parent company of three chains of restaurants. How might Tri
Restaurant, Inc. utilize the company extranet?
Answer: A company uses an extranet to allow certain suppliers, customers, and others outside
the organization to access its internal system. Tri Restaurant could use its extranet to
communicate with and place orders with its food and restaurant supply vendors.
Skill: Application
141) How might a company in the B2B market use a private exchange?
Answer: A private exchange allows companies to collaborate with chosen suppliers in a secure
exchange of certain company information.
Skill: Application
142) Identify and then explain which of the three business-to-business buyclasses applies to the
following scenario. Although companies have purchased printers and copiers before, Xerox now
offers them a multitasking machine that prints, copies, scans, and faxes.
Answer: This is a modified rebuy. The firm has already purchased similar machinery, but this
purchase now involves a machine with new functions.
Skill: Application
38
143) Identify and then explain which of the three business-to-business buyclasses applies to the
following scenario. A growing business that needs an advertising agency for the first time seeks
exhaustive information from several agencies before selecting one.
Answer: This is a new-task buy because this firm had not previously utilized the services of an
ad agency.
Skill: Application
144) Why is the new-task buy situation both a great opportunity and a challenge for a marketer?
Answer: In a new-task buy, decision participants put forth substantial effort to collect
information and so are positioned to be influenced by a marketer's message; these situations are
likely to be competitive, as other marketers also want to establish a relationship with the buyer.
Skill: Application
145) In what type of purchase would one person most likely assume all or most buying center
roles?
Answer: One person will likely play all roles in purchasing routine products and services, or a
straight rebuy, in a small organization.
Skill: Application
146) Explain the buyer center role of the influencer.

Answer: An influencer provides advice and expertise, and may help define specifications and
provide information for evaluating alternatives.
Skill: Application
147) How does reverse marketing work?

Answer: Reverse marketing changes the marketing process. Instead of sellers trying to identify
potential customers, buyers try to find suppliers capable of producing specific, needed products,
and then attempt to convince the suppliers to contract to make the products.
Skill: Application
39
Test Bank for Marketing: Real People, Real Choices, 7/E7th Edition
148) Identify an advantage and disadvantage of implementing multiple sourcing.

Answer: Multiple sourcing means buying a product from several different suppliers. Under this
system, suppliers are more likely to remain price competitive. And if one supplier has problems
with delivery, the firm has others to fall back on. One of the disadvantages to purchasing from
multiple sources is that a firm may not have much clout with a supplier when it comes to
negotiating prices and contract terms. Also, having many suppliers increases the firm's
administrative costs because it has more invoices to pay, more contracts to negotiate, and more
salespeople to see than if it used a single source.
Skill: Application
149) Why might a company use crowdsourcing?

Answer: When a company has a complex problem that cannot be solved by its own employees
or partners, the company may call on outsiders from around the world to create possible
solutions.
Skill: Application
150) Identify two postpurchase evaluation metrics that may be used in the B2B buying process.
Answer: Postpurchase evaluation metrics include satisfaction, quality, customer engagement,
purchase intentions, and promptness and effectiveness of problem resolution.
Skill: Application
40
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What are the three types of business buying situations?

What are the three types of business buying situations?

What are the roles in a business buying center?

What are the roles in a business buying center?

Test Bank for Marketing: Real People, Real Choices, 7/E7th Edition

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2) Another name for business-to-business markets is ________.

3) Business-to-business markets do NOT include ________.

5) Organizational markets differ from consumer markets in that organizational markets

6) Which of the following statements about organizational markets is NOT true?

7) Which of the following statements about organizational markets is true?

10) Most demand for business-to-business products is ________.

18) ________ are B2B customers for raw materials.

26) The North American Industry Classification System (NAICS) ________.

27) Business-to-business (B2B) e-commerce ________.

29) Which of the following is the simplest form of B2B e-commerce?

39) Firewalls and encryption are both ________.

50) Which of the following describes an advantage of LinkedIn?

52) Straight rebuys ________.

54) A new-task buy ________.

55) Which of the following is a job title for a professional buyer?

71) Which of the following is an advantage of using single sourcing?

101) Another name for business-to-business markets is organizational markets.

133) Briefly describe the roles in the buying center.

139) What is the difference between producers and resellers?

146) Explain the buyer center role of the influencer.

147) How does reverse marketing work?

148) Identify an advantage and disadvantage of implementing multiple sourcing.

149) Why might a company use crowdsourcing?

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