Marketing: Real People, Real Choices

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
Type: MC
Page Reference: 150
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 1
Type: MC
Page Reference: 150
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
3) Business-to-business markets do NOT include ________.
a. manufacturers
b. wholesalers
c. end consumers
d. retailers
e. government agencies
Answer: c
Diff: 1
Type: MC
Page Reference: 150
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm

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Marketing: Real People, Real Choices

4) Business-to-business marketing differs from consumer marketing in that business-tobusiness 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
Diff: 2
Type: MC
Page Reference: 152
Topic: Factors that make a difference in Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 152
Topic: Factors that make a difference in Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
6) Which of the following statements about organizational markets is NOT true?
a. End 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
Diff: 2
Type: MC
Page Reference: 152
Topic: Factors that make a difference in Business markets
Skill: Concept
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Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 152
Topic: Factors that make a difference in Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 152
Topic: Factors that make a difference in Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
9) Many B2B marketers can take advantage of the ________ of business customers,
focusing their sale efforts and perhaps even locating their distribution centres in a single
region.
a. geographic concentration
b. mass media consumption
c. multiple requirements
d. fluctuating demand
e. organizational changes
Answer: a
Diff: 2
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Type: MC
Page Reference: 153
Topic: Factors that make a difference in Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
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Diff: 2
Type: MC
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 154
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 154
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
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Marketing: Real People, Real Choices

Answer: c
Diff: 1
Type: MC
Page Reference: 154
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
18) ________ are B2B customers for raw materials.
a. Resellers
b. Resuppliers
c. Retailers
d. Producers
e. End consumers
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Answer: d
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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 centres
Answer: a
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
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Marketing: Real People, Real Choices

c. gatekeeper
d. facilitator
e. reseller
Answer: b
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
22) Which of the following make up the largest single business and organizational market
in the Canada?
a. raw material markets
b. producer markets
c. not-for-profit markets
d. e-commerce markets
e. government markets
Answer: e
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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?
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a. a reseller
b. a mass producer
c. a foreign government
d. a state government
e. a not-for-profit institution
Answer: e
Diff: 2
Type: MC
Page Reference: 156
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 156
Topic: North American Industry Classification System
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 156
Topic: North American Industry Classification System
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
27) Business-to-business (B2B) e-commerce ________.
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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
Diff: 2
Type: MC
Page Reference: 157
Topic: Business-to-business (B2B) e-commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media

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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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 3
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
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Objective: 5-2 Business-to-business e-commerce and social media

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 centre
Answer: c
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
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Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
38) Nicknames, birthdates, and spouses' names are all examples of obvious ________.
a. firewalls
b. encryptions
c. sniffers
d. passwords
e. blogs
Answer: d
Diff: 2
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Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
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Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
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Marketing: Real People, Real Choices

d. authentication
e. a firewall
Answer: c
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: The Dark side of B2B Commerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 159
Topic: B2B and Social media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
47) According to research, social media channels are most effective to reach and engage
business prospects at ________.
a. large government buying centres
b. large multinational companies
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Marketing: Real People, Real Choices

c. independent producers
d. small not-for-profits
e. mid-to-large-size companies
Answer: e
Diff: 2
Type: MC
Page Reference: 159
Topic: B2B and Social media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 159
Topic: B2B and Social media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
49) Which of the following is geared primarily to corporate professionals?
a. Facebook
b. Twitter
c. podcasts
d. LinkedIn
e. blogs
Answer: d
Diff: 2
Type: MC
Page Reference: 159
Topic: B2B and Social media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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.
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Marketing: Real People, Real Choices

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
Diff: 2
Type: MC
Page Reference: 159
Topic: B2B and Social media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
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 centre continuum
e. need-response framework
Answer: c
Diff: 2
Type: MC
Page Reference: 160
Topic: The Buyclass Framework
Skill: Concept
Objective: 5-3 Business buying Situations and 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
Diff: 2
Type: MC
Page Reference: 161
Topic: The Buyclass Framework
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
53) A modified rebuy ________.
a. requires more time and effort than straight rebuys
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Marketing: Real People, Real Choices

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 centre
Answer: a
Diff: 2
Type: MC
Page Reference: 161
Topic: The Buyclass Framework
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 162
Topic: The Buyclass Framework
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 162
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
56) The group of people in the organization who participate in the purchase decisionmaking process is referred to as the ________.
a. buyer institution
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Marketing: Real People, Real Choices

b. resource centre
c. buying centre
d. purchasing hierarchy
e. purchasing office
Answer: c
Diff: 2
Type: MC
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
57) Which of the following statements about buying centres is true?
a. The buying centre is like a standing committee.
b. The buying centre roles are specified on the organizational chart.
c. The most commonly found buying centre has six employees, one to assume each of the
buying centre's roles.
d. An individual's role in the buying centre does not change.
e. The members of a buying centre typically participate in a cross-functional team.
Answer: e
Diff: 2
Type: MC
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
58) The ________ is the member of the buying centre who actually needs the product.
a. initiator
b. gatekeeper
c. decider
d. user
e. influencer
Answer: d
Diff: 2
Type: MC
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
59) The ________ is the member of the buying centre who controls the flow of
information to other members.
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Marketing: Real People, Real Choices

a. initiator
b. gatekeeper
c. decider
d. user
e. influencer
Answer: b
Diff: 2
Type: MC
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
60) The ________ is the member of the buying centre who makes the final decision.
a. buyer
b. gatekeeper
c. decider
d. user
e. influencer
Answer: c
Diff: 2
Type: MC
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
61) Which member of the buying centre typically has the most power?
a. buyer
b. gatekeeper
c. decider
d. initiator
e. influencer
Answer: c
Diff: 2
Type: MC
Page Reference: 164
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
62) The ________ is the member of the buying centre whose primary function is
handling the details of the transaction.
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Marketing: Real People, Real Choices

a. buyer
b. gatekeeper
c. decider
d. initiator
e. influencer
Answer: a
Diff: 2
Type: MC
Page Reference: 164
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
64) When a business needs to make a complex purchase, it is most likely to form a
buying centre 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
Diff: 2
Type: MC
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process

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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
Diff: 2
Type: MC
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 3
Type: MC
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
67) During the ________ stage of the business buying decision process, the buying centre
assesses the proposals.
a. obtain written or verbal bids
b. alternative evaluation
c. product selection
d. information search
e. problem recognition
Answer: b
Diff: 2
Type: MC
Page Reference: 165
Topic: Business Buying Decision Process
Skill: Concept
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Objective: 5-3 Business buying Situations and business Buying Decision Process
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
d. supplier selection
e. product selection
Answer: c
Diff: 2
Type: MC
Page Reference: 165
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 167
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
70) For complex purchases, the buying centre will typically decide what type of sourcing
to use in the ________ stage of the business buying decision process.
a. problem recognition
b. information search
c. alternative evaluation
d. product and supplier selection
e. postpurchase evaluation

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Answer: d
Diff: 2
Type: MC
Page Reference: 166
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 167
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 167
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
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d. outsourcing
e. reverse marketing
Answer: b
Diff: 2
Type: MC
Page Reference: 167
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 2
Type: MC
Page Reference: 167
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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
Diff: 3
Type: MC
Page Reference: 168
Topic: Business Buying Decision Process
Skill: Concept
Objective: 5-3 Business buying Situations and business Buying Decision Process
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.
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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
Diff: 2
Type: MC
Page Reference: 150
Topic: Business markets
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 153
Topic: B2B Demand
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
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Type: MC
Page Reference: 153
Topic: B2B Demand
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 153
Topic: B2B Demand
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 154
Topic: B2B Demand
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
81) PPG Industries buys silicon and uses it to manufacture glass for windows. PPG is a
________.
a. producer
b. not-for-profit
c. consumer
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d. facilitator
e. reseller
Answer: a
Diff: 3
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 3
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
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c. consumer
d. facilitator
e. reseller
Answer: b
Diff: 3
Type: MC
Page Reference: 155
Topic: Types of B2B Customers
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
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Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 2
Type: MC
Page Reference: 158
Topic: Intranets, Extranets and Private Exchanges
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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
Diff: 3
Type: MC
Page Reference: 161
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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
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d. new-task purchase
e. intranet exchange
Answer: a
Diff: 3
Type: MC
Page Reference: 161
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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
Diff: 3
Type: MC
Page Reference: 161
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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
Diff: 3
Type: MC
Page Reference: 161
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Topic: The Buyclass Framework

Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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
Diff: 3
Type: MC
Page Reference: 162
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
93) When a company's professional buyer considered a ________ of a plant to house a
new distribution centre, 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
Diff: 3
Type: MC
Page Reference: 162
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
94) A trucking company is considering purchasing new trucks that are powered by
ethanol instead of diesel fuel. In terms of the buying centre, 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
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d. users
e. gatekeepers
Answer: d
Diff: 3
Type: MC
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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 centre, the patient had the role of ________.
a. decider
b. liaison
c. agent
d. user
e. influencer
Answer: e
Diff: 3
Type: MC
Page Reference: 164
Topic: Professional Buyers and Buying Centres
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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 centre, Dr. Albrecht had the role of
________.
a. liaison
b. decider
c. agent
d. expert
e. researcher
Answer: b
Diff: 3
Type: MC
Page Reference: 164
Topic: Professional Buyers and Buying Centres
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Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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 centre, that of
________ and ________.
a. user; buyer
b. buyer; influencer
c. buyer; user
d. decider; buyer
e. gatekeeper; influencer
Answer: d
Diff: 3
Type: MC
Page Reference: 164
Topic: Professional Buyers and Buying Centres
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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?
a. problem recognition
b. vendor analysis
c. information search
d. information evaluation
e. product selection
Answer: a
Diff: 3
Type: MC
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
a. problem recognition
b. buying centre formation
c. product specification
d. supplier selection
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e. request for proposal

Answer: c
Diff: 3
Type: MC
Page Reference: 165
Topic: Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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
Diff: 3
Type: MC
Page Reference: 168
Topic: Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
101) Another name for business-to-business markets is organizational markets.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 150
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
102) Business marketers have a broad customer base and a large number of buyers
compared to consumer marketers.
a. True
b. False

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Answer: b
Diff: 1
Type: TF
Page Reference: 150
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
103) Business markets tend to be more geographically concentrated than consumer
markets.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 152
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
105) Fluctuating demand in business markets can be partially explained by the
infrequency of the purchases.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 154
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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106) Joint demand occurs when three or more goods are necessary to create a product.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 154
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
107) Producers and resellers perform the same function in the business marketplace.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 155
Topic: Types of B2B Customers
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
108) Suppliers, customers, and employees have ready access to a company's intranet.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
109) The intranet and the extranet serve the same function for a company.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
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Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
110) To keep customer records secure, B2B e-commerce sites use authentication.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 158
Topic: The Dark side of B2B ecommerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
111) To increase security of their Internet sites and transactions, most companies now use
encryption software to assign employee passwords.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 158
Topic: The Dark side of B2B ecommerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
112) Companies can use firewalls within their intranets to allow only designated
employees access to certain parts of the system.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 158
Topic: The Dark side of B2B ecommerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
113) Without encryption, it would be easy for unethical people using the computer to get
your credit card number.
a. True
b. False

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Answer: a
Diff: 2
Type: TF
Page Reference: 158
Topic: The Dark side of B2B ecommerce
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
114) Webinars and podcasts are among the most popular social media resources that
business people use for information.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 158
Topic: B2B and Social Media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
115) Virtual trade shows are becoming popular in the B2B world because more visitors
attend virtual trade shows than in-person events.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 158
Topic: B2B and Social Media
Skill: Concept
Objective: 5-2 Business-to-business e-commerce and social media
116) The buying centre is not a place at all, but rather the group of people in an
organization who participate in the purchase decision-making process.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 162
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying situations and the business buying decision process
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117) A participant in a buying centre can only assume one role for any single purchase
decision.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 162
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying situations and the business buying decision process
118) The buying centre role of gatekeeper does not exist in not-for-profit organizations.
a. True
b. False
Answer: b
Diff: 1
Type: TF
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Concept
Objective: 5-3 Business buying situations and the business buying decision process
119) Problem recognition is the first step in the buying decision process in the business
market.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 162
Topic: The Business Buying Decision process
Skill: Concept
Objective: 5-3 Business buying situations and the business buying decision process
120) Suppliers are more likely to stay price competitive when the purchasing company
uses single sourcing than when it uses multiple sourcing.
a. True
b. False
Answer: b
Diff: 3
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Type: TF
Page Reference: 167
Topic: The Business Buying Decision process
Skill: Concept
Objective: 5-3 Business buying situations and the business buying decision process
121) PPG Industries is a producer of glass for windows. It sells products in the consumer
market.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 167
Topic: The Business Buying Decision process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 159
Topic: B2B and Social Media
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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.
a. True
b. False
Answer: a
Diff: 3
Type: TF
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media

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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.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 160
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
125) The individual who develops the product specifications for a complex product
would likely assume the role of influencer in the buying centre.
a. True
b. False
Answer: a
Diff: 3
Type: TF
Page Reference: 164
Topic: Professional Buyers and Buying Centres
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
Diff: 1
Type: ES
Page Reference: 152
Topic: Business markets
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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?

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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 costeffective to find a new, less expensive supplier.
Diff: 1
Type: ES
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.
Diff: 1
Type: ES
Page Reference: 156
Topic: The North American Industry Classification System
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.

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Diff: 2
Type: ES
Page Reference: 157
Topic: Business-to-business e-commerce
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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.
Diff: 2
Type: ES
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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.
Diff: 2
Type: ES
Page Reference: 155
Topic: The dark side of B2B Commerce
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Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
132) Compare the three business-to-business buyclasses.
Answer:
The three business-to-business buyclasses are straight rebuys, modified rebuys, and newtask 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.
Diff: 3
Type: ES
Page Reference: 161-162
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
133) Briefly describe the roles in the buying centre.
Answer:
The text identifies six buying centre 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 centre. (4) Influencer affects the purchase decision by dispensing advice or
sharing expertise. (5) Decider makes the final purchase decision. (5) Buyer has the
responsibility for executing the purchase.
Diff: 3
Type: ES
Page Reference: 163-164
Topic: Professional Buyers and Buying Centres
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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
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enhance its operations in some way or take advantage of some new opportunity. For newtask purchases, problem recognition is simply the first stage in a multi-stage process that
ends with postpurchase evaluation.
Diff: 3
Type: ES
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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 centre. 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.
Diff: 3
Type: ES
Page Reference: 164
Topic: Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.

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Diff: 2
Type: ES
Page Reference: 150
Topic: Business markets
Skill: Application
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.
Diff: 2
Type: ES
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.
Diff: 2
Type: ES
Page Reference: 153
Topic: B2B Demand
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.
Diff: 2
Type: ES
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Page Reference: 155

Topic: Types of B2B Customers
Skill: Concept
Objective: 5-1 Business markets:Buying and Selling when customer is another firm
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.
Diff: 2
Type: ES
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
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.
Diff: 2
Type: ES
Page Reference: 157
Topic: Intranets, Extranets and Private Exchanges
Skill: Application
Objective: 5-2 Business-to-business e-commerce and social media
142) Identify and then explain which of the three business-to-business buy classes 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.
Diff: 3
Type: ES
Page Reference: 161-162
Topic: The Buyclass Framework
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Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
Diff: 3
Type: ES
Page Reference: 161
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
Diff: 3
Type: ES
Page Reference: 161-162
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
145) In what type of purchase would one person most likely assume all or most buying
centre roles?
Answer:
One person will likely play all roles in purchasing routine products and services, or a
straight rebuy, in a small organization.
Diff: 3
Type: ES
Page Reference: 161-162
Topic: The Buyclass Framework
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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146) Explain the buyer centre role of the influencer.

Answer:
An influencer provides advice and expertise, and may help define specifications and
provide information for evaluating alternatives.
Diff: 3
Type: ES
Page Reference: 163
Topic: Professional Buyers and Buying Centres
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
Diff: 3
Type: ES
Page Reference: 168
Topic: The Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
Diff: 3
Type: ES
Page Reference: 167
Topic: The Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process

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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.
Diff: 3
Type: ES
Page Reference: 167
Topic: The Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process
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.
Diff: 3
Type: ES
Page Reference: 168
Topic: The Business Buying Decision Process
Skill: Application
Objective: 5-3 Business buying situations and the business buying decision process

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