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Choose the one alternative that best completes the statement or answers the question. 1)
________ decision-making process by which formal organizations establish the need for purchased refers products and services and identify, evaluate, and choose among alternative brands and suppliers. to the A)
Marketing B)
channels
Organization al buying C)
Corporate D)
retailing
Brand E)
auditing
2)
The consists of all the organizations that acquire goods and services used in the production of ________ other products or services that are sold, rented, or supplied to others. A)
business B)
market
consumer C)
market
e-commerce market D)
global E)
market
A 3)
How
convince B)
target consumers that the firm's products are as good as those of competitors
convince C)
convince D)
target consumers that the firm's products are different from those of competitors
convince E)
convince
target customers that all the products in the market are equivalent Answer:
4)
Which
They deal B)
They deal C)
They deal D)
They deal E)
They deal with the same kind of buyers as consumer marketers. Answer:
5)
Which of the
following is a challenge in which business marketers differ from the consumer marketers? A)
identifying C)
calculating E)
C 6)
Ultimat t of steel sold to General Motors depends on the consumers' demand for GM cars and ely, the trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most amoun pertinent? A)
derived B)
demand
inelastic C)
demand
geographic D)
demand
relational E)
demand
static
demand Answer:
7)
The
demand for business goods is ultimately derived from the demand for ________. A)
raw materials B)
consumer C)
goods
services D)
business E)
solutions
e-commerce Answer:
B 8)
A given increase in consumer demand can lead to a much larger percentage increase in the demand percen for plant and equipment necessary to produce the additional output. Economists refer to this as tage ________. A)
derived B)
demand
inelastic C)
demand
the D)
acceleration effect
a straight E)
rebuy
the sales
cycle Answer:
9)
The total
demand for many business goods and services is not much affected by price changes. Thus, this demand is ________. A)
derived B)
fluctuating C)
accelerated D)
multiple E)
inelastic Answer:
10)
The sing department buys office supplies on a routine basis from a pre-approved list of suppliers. purcha This type of purchase is classified as a ________. A)
straight B)
rebuy
modified C)
rebuy
new task D)
secondary E)
purchase
procure-topay Answer:
11)
Someti rise of only 10% in consumer demand can cause as much as a 200% rise in business demand mes a for products for the next period. This is an example of ________. A)
inelastic B)
demand
direct C)
purchasing
fluctuating D)
demand
derived E)
demand
12)
Shoe are not going to buy much more leather if the price of leather falls, nor will they buy much less manufa leather if the price rises, unless they can find satisfactory substitutes. This is an example of cturers ________. A)
inelastic B)
demand
direct C)
purchasing
the D)
acceleration effect
a modified E)
rebuy
13)
Kenilw Inc. is shifting from its rented four-room office to a standalone office building owned by orth the company itself. This can be classified as a ________. A)
modified B)
rebuy
regular buy C)
straight D)
rebuy
new rebuy E)
14)
In a purchasing situation, the buyer wants to make some change to existing product ________ specifications, prices, delivery requirements, or other terms. A)
new rebuy B)
regular buy C)
straight D)
rebuy
modified E)
rebuy
D 15)
The
business buyer has to make the fewest decisions when involved in a ________. A)
modified B)
rebuy
regular buy C)
straight D)
rebuy
new rebuy E)
C 16)
considered to be an in-supplier for a lawn mower manufacturer. However, recently the lawn mower company has put out a memo to in- and out-suppliers indicating that it would like to change product specifications and delivery schedules. Which of the following buying situations is most likely to be in operation given this data? A)
straight B)
rebuy
single rebuy C)
rakeback D)
rebuy
system buy E)
modified
rebuy Answer:
17)
Orica es in the market for commercial explosives. The company recently changed its business Inc. model from just selling explosives to managing an entire blast in a quarry. This customer-solutioncompet based approach to the sale of explosives is an example of ________. A)
systems B)
selling
straight C)
rebuying
customer D)
referencing
derived E)
demand
channel
consolidation Answer:
A 18)
If you d to go into the systems contracting business, which of the following categories would decide constitute your main area of expertise, the service you provide for customers? A)
computer B)
applications
database C)
management
manufacturin g D)
promotion E)
management
MRO
19)
Many ss buyers prefer to buy a total solution to a problem from one seller. This process is also busine known as ________. A)
channel B)
consolidation
systems C)
buying
vertical D)
buying
horizontal E)
buying
supply
buying Answer:
20)
Xerox offers
a ________ approach to prospective clients when it offers a complete turnkey solution, including the operation and management of the client's information and communication need. A)
guided B)
selling
fair trading C)
systems D)
buying
cross-selling E)
local
purchasing Answer:
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1)
Busines markets have several characteristics that contrast sharply with those of consumer markets. Name s and briefly characterize five of those characteristics. Answer:
The characteristics of business markets as compared to consumer markets are: (1) fewer, larger buyers, (2) close suppliercustomer relationship, (3) professional purchasing, (4) multiple buying influences, (5) multiple sales calls, (6) derived demand, (7) inelastic demand, (8) fluctuating demand, (9) geographically concentrated buyers, and (10) direct purchasing. See chapter section for brief characterizations .
2)
Explain how fluctuating demand impacts business markets differently from consumer markets. Answer:
The demand for business goods and services tends to be more volatile than the demand for consumer goods and services. A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce additional output. Economists refer to this as the acceleration effect.
3)
Illustrat e the differences between a straight rebuy, modified rebuy, and a new-task purchase. Answer:
In a straight rebuy, the purchasing department reorders on a routine basis and choose from suppliers on an approved list. In a modified rebuy, the buyer wants to modify product specifications, prices, delivery requirements, or other terms. Lastly, in the new-task purchase, a purchaser buys a product or service for the first time.
5)
Systems buying involves buying a total solution to a problem from one seller. Systems contracting is a variant of systems selling in which a single supplier provides the buyer with his entire requirement for maintenance, repair, and operating supplies. During the contract period, the supplier manages the customer's inventory.