Chapter 7

1. _____ is the marketing of goods and services to individuals and organizations for

purposes other than personal consumption.

a. Secondary marketing

b. Interactive marketing

c. Business marketing

d. Highlevel marketing

e. Industrial marketing

C
2. A product is defined as a business product rather than a consumer good on the basis of

its:

a. intended use.

b. physical characteristics.

c. price.

d. distribution method.

e. tangible attributes.

A
3. Business marketing does NOT include goods and services that:

a. become part of another product.

b. are used to manufacture other products.

c. are used for personal consumption.

d. facilitate the normal operations of an organization.

e. are acquired for resale.

C
4. Which of the following is the best example of a sale that could only take place in the

business market?

a. A professor is purchasing a Mac to use at home

b. A music store owner is ordering the newest Elvis Ultimate Live collection DVD for her

mother

c. A teen is purchasing ringtones to use on her phone

d. A librarian is purchasing new books for the school’s library

e. All of these are examples of business sales

D
5. The Solar Group, a Mississippibased mailbox manufacturer, sells mailboxes to

contractors who are building megasubdivisions, to hardware stores, and directly to new

homeowners. What kind of products is Solar Group selling?

a. Business products only

b. Both business and consumer goods

c. Installations

d. Consumer goods only

e. Supplies

B
6. The largest percentage of BtoB social media spending goes toward creating:

a. viral videos

b. customer community

c. podcasts

d. blogs

e. webinars

B
7. Which of the following tools is particularly effective for BtoB marketers to use for

product demonstration?

a. text messaging

b. social networking sites

c. blogs

d. mobile marketing

e. video

E
8. _____ relates to the fact that customers who have made a purchase lately are more likely

to purchase again in the near future than customers who haven’t purchased for a while.

a. External search traffic

b. Effective reach

c. Stickiness

d. Recency

e. Effective frequency

D
9. _____ is a measure of a Web site’s effectiveness and is calculated by multiplying the

frequency of visits times the duration of a visit times the number of pages viewed during each visit.

a. Effective reach

b. Effective frequency

c. Gross rating points

d. Interactiveness

e. Stickiness

E
10. All of the following are current roles of the Internet in business marketing EXCEPT:

a. reduce costs.

b. eliminate distributors.

c. build channel partnerships and trust.

d. brand building and development.

e. integrate online and traditional media.

B
11. The elimination of intermediaries such as wholesalers or distributors from a marketing

channel is referred to as:

a. disintermediation.

b. disassociation.

c. unencumbrance.

d. demarketing.

e. selective retention.

A
12. Before tollfree telephone numbers and the Internet were used as commercial tools,

passengers usually purchased airline tickets from travel agents. Travel agents no longer receive a

commission from the airlines for selling tickets to consumers. This is an example of:

a. reintermediation.

b. disassociation.

c. disintermediation.

d. discrimination.

e. transference.

C
13. The reintroduction of an intermediary between producers and users is called:

a. disintermediation.

b. reinstatement.

c. selective retention.

d. reestablishment.

e. reintermediation.

E
14. A cooperative agreement between business firms is called a:

a. shared capital contract.

b. global partner development strategy.

c. strategic alliance.

d. joint contract.

e. comarketing effort.

C
15. IBM and Cisco work together to provide banks with the products and services they

need to manage their multiple locations. In other words, the two companies have joined in a:

a. retail cooperative.

b. direct investment venture.

c. transactional relationship.

d. strategic alliance.

e. synergistic relationship.

D
16. Sometimes a _____ is created for the purpose of sharing resources. This was why the

Donnelly Corporation, a company that designs, manufactures, and markets automotive parts, joined

with Applied Films Laboratory, Inc. to manufacture and supply the world market with coated glass

for liquid crystal displays (LCDs).

a. shared capital contract

b. global partner development strategy

c. strategic alliance

d. cobranding effort

e. market cooperative

C
17. In the early 2000s, Levi Strauss invested millions of dollars to develop a website on

which they could sell jeans directly to consumers. However, the effort was unsuccessful and the

company switched course, announcing that jeans would be sold only through its retailer partners.

This is an example of:

a. recency

b. reintermediation

c. keiretsu

d. disintermediation

e. reinstatement

B
18. Which of the following means that a firm believes an ongoing relationship with some

other firm is so important that it warrants maximum efforts at maintaining it indefinitely?

a. Amae

b. Trust

c. Relationship quality

d. Strategic alliance

e. Relationship commitment

E
19. DHL maintains a strategic alliance with UPS because it has confidence in UPS’s

reliability and integrity. This condition is referred to as:

a. tTrust.

b. tomo.

c. commitment.

d. Amae.

e. reciprocity.

A
20. In Japan, reciprocity and personal relationships contribute to the development of:

a. global ventures.

b. amae.

c. agricola.

d. keiretsu.

e. an independent network of small retailers.

B
21. A keiretsu is a(n):

a. type of strategic alliance commonly found in Japan.

b. method of business ecommerce found in Asia.

c. Internet site that offers its customers access to various languages that they can use to

conduct their business.

d. form of relationship marketing that is illegal in the United States.

e. Bribe.

A
22. A particular segment of the business market includes those individuals and

organizations that purchase goods and services for the purpose of making a profit. They achieve this

goal by using purchased goods and services to make other goods, to become part of other goods, or

to facilitate the daily operations of the organization. This group is called the _____ segment of the

business market.

a. institution

b. reseller

c. wholesaler

d. producer

e. government

D
23. According to the text, another commonly used name for producers is:

a. fabricators.

b. installers.

c. original equipment manufacturers.

d. product providers.

e. component networks.

C
24. Corn refiners buy shelled corn and convert it into a variety of products, including high-
fructose corn syrup. The refiners then sell the syrup to soda and food product companies for use in

foods and beverages. The corn refiners represent the _____ sector of the business market.

a. channel

b. reseller

c. producer

d. government

e. distributor

C
25. Southern Fireworks Manufacture Company in Liuyang, China, provides fireworks for

companies in America such as Premier Pyrotechnics in Richland, Missouri. This means that

Southern is a(n):

a. installer of original materials.

b. demand company.

c. reseller.

d. government buyer.

e. OEM.

E
26. Caterpillar, Inc., a manufacturer of earthmoving equipment, uses completed drivetrains

(engines/transmissions/axles), drivetrain components, electronic controls, hydraulic and

electrohydraulic components and systems, cooling systems, and undercarriage track systems

produced by other organizations in its manufacturing process. Caterpillar is an example of a(n):

a. fabricator.

b. installer.

c. original equipment manufacturer.

d. product provider.

e. component network.

C
27. Businesses that buy finished goods and sell them for a profit are called:

a. inventory carriers.

b. producers.

c. distribution networks.

d. resellers.

e. business facilitators.

D
28. In the past 24 years, Mothers Work has grown from a small, mailorder catalog

business headquartered inside the founder’s home to the world’s largest seller of maternity apparel,

with nearly 1,600 locations. In terms of the business market, Mothers Work would be best classified

as a(n):

a. reseller.

b. producer.

c. distribution network.

d. inventory carrier.

e. business facilitator.

A
29. Hensley Poultry is a wholesaler that buys poultry food and health products from

Provini, Inc., feeding systems from Big Dutchman, Inc., and incubation systems from Copca Corp.

Hensley then sells those products to poultry producers and farmers’ cooperatives in Iowa. Hensley

Poultry could be best classified as a(n):

a. producer.

b. distribution network.

c. inventory carrier.

d. specialty retailer.

e. reseller.

E
30. The U.S. government is:

a. not a business market segment.

b. the world’s largest single customer.

c. an organization accounting for over 50 percent of the U.S. gross national product.

d. mainly a military equipment purchaser.

e. using one centralized purchasing office for the entire government.

B
31. Which of the following statements about the government business market is

CORRECT?

a. Only large vendors with annual sales of more than $20 million are authorized to sell to the

federal government; small vendors are restricted to the state and local government market.

b. The Office of Management and Budget is the federal agency that contracts for all the U.S.

government’s buying requirements.

c. Selling to states, counties, and cities can be less frustrating for both small and large vendors

than selling to the federal government.

d. The president of the United States must personally authorize all federal government

purchases.

e. Contracts for government purchases are rarely put out for bid.

C
32. Which of the following NAICS codes designates an economic subsector?

a. 33

b. 334

c. 3346

d. 33461

e. 334611

B
33. One segment of the business market has primary goals that differ from the ordinary

business goals such as profit, market share, or return on investment. This segment includes many

schools, churches, and civic clubs. Which business market is this?

a. Institutions

b. OEMs

c. Services

d. Providers

e. Resellers

A
34. Which of the following is the BEST example of an institution market?

a. The federal government

b. eBay

c. Claire’s Boutique

d. Hillsdale United Methodist Church

e. Starbucks

D
35. Organon Teknina sells inexpensive equipment to detect Escherichia coli, listeria, or

salmonella bacteria in food. The company serves notforprofit institutions that need to regularly

check food quality. Organon Teknina would be LEAST likely to sell to:

a. The Montgomery County school system.

b. Cincinnati Children’s Hospital.

c. Taco Bell.

d. A chain of churchsponsored retirement homes.

e. American Red Cross emergency shelter kitchens.

C
36. What would a U.S. company that manufactures the lighted signs used in amusement

parks, at outdoor sports arenas, for restaurant promotion, and by state departments of transportation

on the sides of roads use to facilitate its market segmentation and targeting if it wanted data that

were readily available and usable?

a. A large amount of marketing research, including scanner data and focus groups

b. Other competing firms as a strategic alliance referral service

c. Government bidding processes

d. The North American Industry Classification System

e. Derived demand

D
37. The government uses a system called NAICS to classify North American business

establishments. NAICS stands for:

a. NonAmerican Industry Classification System.

b. North and South American Institutional Coding Services.

c. NonAmerican Industrial Corporation System.

d. North American Institution Code System.

e. North American Industry Classification System.

E
38. Imagine that you are the research director of a major industrial marketing firm. You

need to select an NAICS code that defines the most homogeneous group of companies in a particular

group of highly competitive companies. Which of the following codes might you use?

a. 7432

b. 532

c. 19

d. 7

e. 999

A
39. NAICS data are helpful for analyzing, segmenting, and targeting markets. The system

was developed by:

a. large manufacturers in United States and Mexico that produce similar goods.

b. the North American Free Trade Agreement partners.

c. Brazil, Chile, Argentina, Canada, and the United States working together in a joint venture.

d. the SIC committee.

e. the U.S. government.

B
40. Managers can use the NAICS data to:

a. create a more focused mission statement.

b. eliminate risk.

c. classify consumer behavior.

d. identify potential new customers.

e. determine purchase motives.

D
41. All of the following are demand characteristics of business markets EXCEPT:

a. inelastic demand.

b. fluctuating demand.

c. joint demand.

d. stable demand.

e. derived demand.

D
42. The demand for consumer goods often affects the demand for business products. This

characteristic of business markets is called _____ demand.

a. elastic

b. inelastic

c. fluctuating

d. derived

e. joint

D
43. Inland Eastex manufactures a heavy paper stock that is used for printing covers for

many different types and sizes of consumer magazines. Consumer magazine sales determine how

much paper Inland Eastex sells. This is an example of _____ demand.

a. joint

b. inelastic

c. elastic

d. congruent

e. derived

E
44. As the demand for VCR players has fallen, so has the demand for blank VHS tapes

because the demand for VHS tapes is an example of a(n) _____ demand.

a. joint

b. inelastic

c. elastic

d. fluctuating

e. derived

E
45. Bàbolina Tetra is a Hungarian company that has genetically created a chicken that is

guaranteed to produce uniform brown eggs with strong shells. It breeds and sells young chicks to

farmers all over Europe who want to sell eggs in local markets. When consumers began to worry

about cholesterol content and stopped eating as many eggs, the demand for the Tetra hen also

declined. This would be an example of _____ demand.

a. derived

b. elastic

c. multiplying

d. bundled

e. inelastic

A
46. When two or more items are used in combination to produce a final product, they are

said to have _____ demand.

a. derived

b. inelastic

c. joint

d. fluctuating

e. elastic

C
47. Apple iTunes has sold over five billion downloads. Without iTunes, the demand for the

Apple iPod line of products would be small. Without the musicians, there would be no iTunes. In

this situation, a condition of _____ demand exists.

a. bundled

b. incremental

c. functional

d. developmental

e. joint

E
48. A decline in the availability of bicycle handle bars will decrease Huffy Bicycle

Company’s production of bicycles. Decreased production in turn reduces Huffy’s demand for

bicycle seats. This is because the products in this situation have _____ demand.

a. inelastic

b. joint

c. elastic

d. congruent

e. derived

B
49. When demand for a product is _____, an increase or decrease in the price of the

product will not significantly affect demand for the product.

a. responsive

b. elastic

c. inelastic

d. derived

e. bundled

C
50. Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford.

A sudden jump in the price of rubber and its substitutes has forced Lanover and other wiper blades

manufacturers to double the price of the blades. This increase in price has not affected sales volume

for wiper blades. The price change did not change demand for the blades because demand for this

product by business customers is:

a. inelastic.

b. secure.

c. bundled.

d. elastic.

e. resistant.

A
51. Due to rapidly rising overhead costs and increases in raw material prices, Framarx

Corporation was forced to raise the price of its waxed and coated paper by 35 percent. (The paper is

used between frozen hamburger patties to keep the patties from freezing together.) Framarx is the

leading manufacturer in this industry, and its competitors will follow suit. While the sales force for

Framarx believes the price increase will result in a drop in sales, its marketing manager disagrees

because the demand for the waxed and coated paper is more than likely:

a. resistant.

b. inelastic.

c. derived.

d. elastic.

e. bundled.

B
52. Salt is an important ingredient in many soups produced by Campbell’s. If the price of

salt rises, Campbell’s will not likely reduce the amount of salt it purchases from salt suppliers,

because salt is such a crucial ingredient. Therefore, you know the demand for salt is:

a. resistant.

b. inelastic.

c. derived.

d. elastic.

e. bundled.

B
53. Although the price of a chemical added to paint to protect surfaces from mold and

mildew has almost doubled, the price of paint has risen an average of only 5 percent, and the demand

for both paint and the chemical that eliminates mold and mildew has remained stable. The demand

for this chemical is:

a. elastic.

b. derived.

c. bundled.

d. inelastic.

e. change resistant.

D
54. As a result of the _____, a small increase or decrease in consumer demand can produce

a much larger change in demand for the facilities and equipment needed to manufacture the

consumer product.

a. demand fluctuation principle

b. joint demand principle or division effect

c. inelastic demand effect

d. multiplier effect

e. derived force effect

D
55. Electric cars will increase the demand for electricity, which will then dramatically

increase demand for the equipment needed to provide consumers with the electricity. This dramatic

increase is due to the:

a. demand fluctuator principle.

b. joint demand principle or division effect.

c. inelastic demand effect.

d. circumlocution effect.

e. accelerator principle.

E
56. Jif is the bestselling brand of peanut butter in the country. The manufacturer purchases

large quantities of peanuts every year to manufacturer its product. This order size is an example of

_____ and would give Jif an advantage over other buyers of peanuts.

a. purchase volume

b. joint demand

c. fluctuating demand

d. sales volume

e. multiplier effect

A
57. Buyers in the business market tend to _____ than buyers in the consumer market.

a. use reciprocity less

b. purchase in much smaller quantities

c. buy more products that have a reduced probability of being affected by derived demand

d. generate more stable demand trends

e. be much more geographically concentrated

E
58. Kaplan Construction needs a backhoe for a job, so Donna Kaplan decides to lease the

equipment from Premier Leasing Services. In this case:

a. Kaplan is the licensee.

b. Premier is the lessee.

c. Kaplan is the licensor.

d. Premier is the lessor.

e. Kaplan is the lessor.

D
59. The distribution structure in business marketing typically:

a. includes at least one wholesaler.

b. is direct.

c. is complex and multistage.

d. uses a threestep channel.

e. uses retail distributors.

B
60. _____ is commonplace in business marketing and can sometimes occur over several

months.

a. Negotiation

b. Need mediation

c. Customerization

d. Purchase arbitration

e. Disintermediation

A
61. If a business needs a particular good or service and decides to look among its own

customers for a provider of that good or service, the business is:

a. working to create purchase arbitration.

b. opening itself up to prosecution for illegal activities.

c. acting unethically.

d. trying to eliminate derived demand barriers.

e. practicing reciprocity.

E
62. General Motors buys engines for use in its vehicles from BorgWarner, which in turn

buys many of the vehicles it needs from GM. This is an example of:

a. nested demand.

b. derived demand.

c. reciprocity.

d. elastic demand.

e. circular buying.

C
63. _____ occurs when a deli decides to buy its office supplies from a company that

regularly buys sandwiches for its employees.

a. Reciprocity

b. Joint demand

c. Elastic demand

d. Derived demand

e. Bidding conformity

A
64. Which of the following statements does NOT describe the business market?

a. Business buying decisions are usually made independently by a purchasing agent, while

consumer buying decisions are made jointly.

b. Business customers tend to be more geographically concentrated, and customers in

consumer markets tend to be more geographically dispersed.

c. The channel of distribution is more often direct for business markets than for consumer

markets.

d. Purchasing by businesses is a more formal process than it is in consumer markets.

e. Business marketers tend to have far fewer customers than consumer marketers.

A
65. _____ is the primary promotional method for the sale of all business products.

a. Direct mail

b. Advertising

c. Personal selling

d. Public relations

e. Trade promotions

C
66. Which type of business product includes such capital goods as large or expensive

machines, mainframe computers, blast furnaces, generators, airplanes, and buildings?

a. Major equipment

b. Raw materials

c. Component parts

d. Accessory equipment

e. Investment goods

A
67. Major equipment goods such as machines, mainframe computers, and buildings are

also referred to as:

a. investment goods

b. necessity goods

c. capital components

d. strategic goods

e. installations

E
68. Which of the following is the BEST example of an installation?

a. A baseball stadium

b. A checkout counter

c. A lifeguard stand

d. A file cabinet

e. Original artwork

A
69. Products such as parking garages, mainframe computers, privately owned office

buildings, and streetcleaning equipment are depreciated over time rather than expensed in the year

they are purchased. These are classified as:

a. processed materials.

b. accessory equipment.

c. major equipment.

d. supplies.

e. component parts.

C
70. Claas is Europe’s largest manufacturer of combine harvesters. As farming becomes

more professional and more intensive, farmers are buying more sophisticated machines, which Claas

can supply. The expensive machines sold by Claas would be examples of:

a. Installations.

b. component parts.

c. accessory equipment.

d. processed materials.

e. minor equipment.

A
71. TruColor Printers has purchased a Heidelberg printing press with autoblanket wash

and chilled rollers for $2.2 million. The company will depreciate the value of the printing press over

several years. The printing press would be considered:

a. major equipment.

b. a component part.

c. processed material.

d. a fabricating item.

e. accessory equipment.

A
72. Which type of business product represents goods, such as portable tools and office

equipment that are less expensive and shorterlived than major equipment?

a. Accessory equipment

b. Component parts

c. Processed goods

d. Supplies

e. Intermediate goods

A
73. Copying machines, personal computers, and fax machines are typically classified as

_____ because they are not expensive, have short useful lives, and are frequently purchased from

local distributors.

a. accessory equipment

b. mobile equipment

c. component parts

d. processed materials

e. supplies

A
74. For Renovation Remodeling Company, wrenches, drills, and circular saws are all

examples of _____ because they are shown as expenses on the yearly accounting statements.

a. mobile installation

b. component part

c. processed material

d. supply

e. accessory equipment

E
75. Which of the following is the BEST example of accessory equipment?

a. A parking lot

b. A store display rack

c. Accounting services

d. A river barge

e. Light bulbs

B
76. Unprocessed extractive or agricultural products, such as copper, peanuts, soybean,

bauxite, fruits, ore, and so on, that become part of finished products are examples of:

a. supplies.

b. OEM parts.

c. component parts.

d. processed materials.

e. raw materials.

E
77. One brand of tomato sauce advertises that the tomatoes it uses are processed within 24

hours of being picked to ensure product freshness. The fresh tomatoes it buys from growers are

examples of:

a. OEM parts.

b. raw materials.

c. component parts.

d. processed materials.

e. supplies.

B
78. Hazelwood Farms provides local restaurants with organic fruits and vegetables that

have been grown without the use of pesticides or chemical fertilizers. Hazelfield Farms is a supplier

of:

a. accessory parts.

b. supplies.

c. raw materials.

d. unprocessed extractive products.

e. processed materials.

C
79. All of the following are considered types of business products EXCEPT:

a. raw materials.

b. convenience goods.

c. major equipment.

d. accessory equipment.

e. component parts.

B
80. Finished items ready for assembly, or products that need very little processing before

they become a part of some other product, are called:

a. supplies.

b. raw materials.

c. accessory equipment.

d. processed materials.

e. component parts.

E
81. There are two important markets for many component parts: the original equipment

market and the _____ market.

a. replacement

b. processed materials

c. accessory

d. raw materials

e. integrated parts

A
82. Within the business market, roller belts that are purchased by vacuum manufacturers

are examples of:

a. supplies.

b. raw materials.

c. accessory equipment.

d. processed materials.

e. component parts.

E
83. PAS Systems has developed an unobtrusive flashlightalcohol detector. The flashlight

readings are inadmissible in court but are used by police officers to decide whether to hold someone

for a sobriety test. Each one costs $600. The manufacturer assembles a breathalyzer from one

supplier with a slightly modified flashlight case from another supplier to make the new product. The

breathalyzer and the flashlight case are examples of:

a. major equipment.

b. component parts.

c. processed materials.

d. integrated parts.

e. accessory equipment.

B
84. Products that have had some processing are used directly in the production of other

products, and do not retain their identity in the final product are called:

a. raw materials.

b. supplies.

c. processed materials.

d. component parts.

e. replacement parts.

C
85. NoGlut is a small company that manufactures several glutenfree products for

consumers who cannot digest this substance. For this manufacturer, rice flour, which will be used in

its manufacturing process, is:

a. accessory equipment.

b. fabricating material.

c. a component part.

d. an integrated material.

e. processed material.

E
86. A dog food manufacturer purchases processed meat byproducts that it uses in the

manufacture of a dry dog food. These processed meat byproducts are examples of:

a. raw materials.

b. OEM products.

c. processed materials.

d. component parts.

e. replacement parts.

C
87. One way processed materials differ from component parts is that processed materials:

a. do not retain their identity in final products.

b. are always much cheaper than component parts.

c. have had some processing.

d. do not become part of a final product.

e. All of the above are true.

A
88. _____ are consumable, inexpensive, and often standardized items that do not become

part of the final product.

a. Processed materials

b. Supplies

c. Provisions

d. Accessory equipment

e. Replacement parts

B
89. Another name for business supplies like pens, paper, and file folders is:

a. processing goods.

b. components.

c. OEM parts.

d. MRO items.

e. accessories.

D
90. At an accounting firm, the secretary orders printer cartridges, cases of paper, paper

clips, and other small items. These items would be classified as:

a. replacement parts.

b. provisions.

c. OEM parts.

d. accessory equipment.

e. supplies.

E
91. Business services:

a. are capital items.

b. are never outsourced.

c. are not used in reciprocity arrangements.

d. typically become part of the finished product.

e. are expense items.

E
92. A dentist hired a janitorial service to clean her office every evening. The janitorial

service provided the dentist with:

a. OEMs.

b. processed services.

c. business services.

d. accessory services.

e. service supplies.

C
93. The Barter Company, (TBC), located in Kennesaw, Georgia, acts as a broker between

companies that want to trade products or services. Companies must be a TBC member, and there is a

onetime fee to join. TBC charges a brokerage fee on each transaction facilitated. This company is

an example of a(n):

a. service integrator.

b. job source.

c. business service.

d. extended service.

e. component service.

C
94. The _____ is the set of all persons in an organization who become involved in the

purchasing process.

a. buying center

b. stakeholder committee

c. ad hoc purchasing staff

d. board of directors

e. comptroller’s staff

A
95. The buying center:

a. will be composed of the same decision makers as long as the purchasing process lasts.

b. is typically on the formal organizational chart under the VP for operations.

c. requires all purchasing participants to be employed by the purchasing department.

d. refers to all those organizational members who become involved in the purchasing process.

e. regularly generates formal announcements of who is in the buying center.

D
96. Which of the following statements about buying centers is true?

a. The most efficient buying centers have no more than five members.

b. No one individual should assume more than two buying center roles.

c. Buying centers are clearly labeled on all organizational charts.

d. Complex purchase situations usually have fewer people involved in the buying center than

less complex purchases.

e. Membership and influence in a buying center vary from company to company.

E
97. The _____ is the member of the buying center who regulates the flow of information.

a. decider

b. influencer

c. purchaser

d. gatekeeper

e. user

D
98. Bob works for the Zinn Plumbing Company. After struggling with a particularly

difficult job one day, he tells his supervisor, Miguel, that if he’d had a special type of wrench he

could have finished the job much more quickly. Bob asks Miguel if the company would be willing to

purchase the wrench. Miguel agrees that the wrench would be a good purchase, so the next day he

approaches the company owner, Phyllis Zinn, and lays out for her all the reasons why the new

wrench should be purchased. After listening to Miguel’s presentation, Phyllis agrees that the wrench

should be purchased and authorizes Miguel to pick one up from the plumbing parts distributor that

afternoon. In this scenario:

a. Miguel is both the buyer and the decider.

b. Bob is both the influencer and the user.

c. Miguel is both the gatekeeper and the influencer.

d. Phyllis is both the initiator and the decider.

e. Both Bob and Miguel are initiators, and Phyllis is the influencer.

C
99. You have started raising your first litter of AKCregistered Chihuahuas. You want to

sell your puppies to Pets and People, the locally owned and operated pet store. How do you find the

buyer?

a. Look at the formal organization chart of the company.

b. Get a copy of Pets and People’s phone directory, where all buying center members are

listed.

c. Contact the store and probe to see who is in charge of buying.

d. Locate the decider at Pets and People.

e. Wait for Pets and People to call you when they hear about your new breeding program.

C
100. All of the following are roles found within a buying center EXCEPT:

a. influencers.

b. gatekeepers.

c. suppliers.

d. users.

e. initiators.

C
101. Harold works as a new business manager for a manufacturer of marine lubricants. He

often talks to several different people before he locates someone who can give him a purchase order

or a refusal. In terms of the buying center, he has the most trouble identifying the _____ for his

services.

a. decider

b. influencer

c. purchaser

d. gatekeeper

e. user

A
102. The three most important evaluative criteria for businesstobusiness purchases are

quality, price, and:

a. competitive offers.

b. service.

c. reliability.

d. assurance.

e. existing relationships.

B
103. In terms of how business buyers evaluate products and suppliers, the most important

criterion is:

a. price.

b. behavior.

c. quality.

d. personal relationships.

e. reciprocity.

C
104. Business buyers use a variety of criteria to evaluate alternative products and suppliers.

The three most important criteria, in order of importance, are:

a. price, sales support, and service.

b. quality, service, and price.

c. reputation, price, and capability.

d. price, delivery time, and product reliability.

e. service, quality, and reputation.

B
105. The Beaumont Homeowner’s Association had to replace its pool pump. They asked

two local companies—Thompson Pools and Southern Pool and Spa Company—for quotes on

replacing the pump. Beaumont negotiated with both companies and quickly decided to buy from

Thompson Pools because its quote was $200 cheaper in its labor estimate. Which evaluative criterion

appears to have been most important in making this purchase decision?

a. Price

b. Familiarity with the product

c. Reliability

d. The availability of replacement parts

e. Buyer/seller relationship

A
106. A _____ is a situation requiring the purchase of a product for the first time.

a. straight rebuy

b. value buy

c. modified rebuy

d. new buy

e. makeorbuy

D
107. A new buy situation refers to the:

a. setting of new standards for current vendors.

b. establishment of a new buying center.

c. resolution of new conflict between buyer and seller.

d. search for replacement vendors for standard, currently used parts.

e. purchase of a product or service when a new demand arises.

E
108. A university is considering the purchase of a Webbased course delivery system due

to increased demand for online courses and degrees. Since the school has not offered online courses

before, what type of buying situation does this represent for the school?

a. Value engineering task

b. Modified rebuy

c. Straight rebuy

d. New buy

e. Derived rebuy

D
109. A small police department wants to buy a machine with which it can perform alcohol

breath tests. It has never had this capability before but feels it is an essential tool as the community

grows. The machine costs about $5,000, which is almost 75 percent of the department’s entire

supply budget. This purchase would be an example of a(n) _____ situation.

a. extensive buying

b. lowinvolvement buying

c. new buy

d. modified rebuy

e. straight rebuy

C
110. A _____ situation is normally less critical and less timeconsuming than a new buy

situation but does require some change in the original good or service.

a. synergistic rebuy

b. value buy

c. negotiated rebuy

d. modified rebuy

e. makeorbuy

D
111. Apple, Inc. wants a faster microprocessor for its new Macs. Apple most likely

engaged in a:

a. value engineering task.

b. modified rebuy.

c. straight rebuy.

d. new process.

e. new buy.

B
112. A dentist hired a janitorial service to clean her office every evening. The original

contract called for the janitorial service to dust, mop all floors, and vacuum the rugs. After six

months, the dentist decided to renegotiate the contract with the janitorial service to include cleaning

the office bathroom and washing the office windows as well as the original tasks. The renegotiated

contract is an example of a:

a. contingency buy.

b. modified rebuy.

c. negotiated buying system.

d. straight rebuy.

e. newbuy situation.

B
113. Axel Spring AG, one of Europe’s largest newspaper publishers, with 10,000

employees and more than 150 papers in 30 countries, announced it would switch its entire operation

from PCs to Macs. Axel decided to make a switch to Apple because the company’s layout work was

already being done by Macs and the Macs were more userfriendly, more elegant, and cheaper to

maintain than they had been in the past. This is an example of a:

a. new buy.

b. value buy.

c. straight rebuy.

d. modified rebuy.

e. makeorbuy.

D
114. Which of the following is the best example of a modified rebuy situation?

a. The purchase of a replacement hamster as the class mascot

b. Bidding on a new high school multipurpose gymnasium to replace one built in 1963

c. The purchase of three largescreen computer monitors to replace smaller monitors

d. The annual purchase of calendar refills for the desks of all company executives

e. The monthly updating of computer virus protection

C
115. A routine purchasing situation in which the purchaser is not looking for new

information or other suppliers is called a:

a. modified rebuy.

b. value buy.

c. synergistic buy.

d. straight rebuy.

e. makeorbuy.

D
116. Leo buys coffee weekly for his espresso shop. This purchase is most likely an

example of a(n) _____ situation.

a. needrelated buy

b. limited rebuy

c. straight rebuy

d. rebuy sourcing

e. institution buy

C
117. A professor sent the following memo to his department chair for his authorization:

Glen: I need to purchase a camera, Mac computer, and microphone for the selling center lab #2 just like we

did for lab #1. This buying situation should be described as a:

a. makeorbuy.

b. value buy.

c. new buy.

d. modified rebuy.

e. straight rebuy.

E
118. Purchasing contracts are commonly used in which type of buying situations?

a. Reciprocal

b. Straight rebuy

c. New buy

d. Extended rebuy

e. Modified rebuy

B
119. Which of the following is becoming increasingly more important in business

marketing strategies?

a. Customer service

b. Price collusion

c. Ethnocentrism

d. The divider effect

e. Competitive advertising

A
117. A professor sent the following memo to his department chair for his authorization:

Glen: I need to purchase a camera, Mac computer, and microphone for the selling center lab #2 just like we

did for lab #1. This buying situation should be described as a:

a. makeorbuy.

b. value buy.

c. new buy.

d. modified rebuy.

e. straight rebuy.

E
118. Purchasing contracts are commonly used in which type of buying situations?

a. Reciprocal

b. Straight rebuy

c. New buy

d. Extended rebuy

e. Modified rebuy

14. A cooperative agreement between business firms is called a:

a. shared capital contract.

b. global partner development strategy.

c. strategic alliance.

d. joint contract.

e. comarketing effort.

C