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Chapter 7: Analyzing Business Markets
Concept Check Quiz
Concept Check Quiz
This activity contains 22 questions.
Derived demand refers to the fact that the demand for business goods is
ultimately derived from the demand for _____.
industrial goods
staple goods
consumer goods
institutional goods
farm goods
In the _____ situation the buyer has to determine product specifications, price
limits, delivery terms and times, service terms, payment terms, order
quantities, acceptable suppliers and the selected supplier.
straight rebuy
modified rebuy
direct rebuy
indirect rebuy
new task
One variant of systems selling is _____ where a single supplier provides the
buyer with his or her entire requirement of MRO (maintenance, repair,
operating) supplies.
prime contracting
second-tier contracting
systems contracting
purchase contracting
supplies contracting
The decision making unit of a buying organization is called the ________.
price center
buying center
cost center
management center
influence center
An _____ is user that requests that something be purchased.
initiator
influencer
decider
buyer
gatekeeper
People who authorize the proposed actions of buyers are known as _____.
initiators
approvers
gatekeepers
deciders
strategic orientation
The buyer-supplier relationship characterized by relatively simple, routine
exchanges with moderately high levels of cooperation and information
exchange is called _____.
basic buying and selling
bare bones buying and selling
contractual transaction
mutually adaptive
customer is king
The buyer-supplier relationship characterized by a close cooperative
relationship where the seller adapts to meet the customers needs without
expecting much adaptation or change on the part of the customer in exchange
is called _____.
basic buying and selling
bare bones buying and selling
contractual transaction
mutually adaptive
customer is king
The _____ market consists of schools, hospitals, nursing homes and prisons.
organizational
government
institutional
business
consumer
A form of cheating or under-supply relative to an explicit or implicit contract is
known as _____.
hot dealing
opportunism
buy backing
order selling
tie-in buying
The business market consists of all organizations that acquire goods and
services used in the production of other products or services that are sold,
rented, or supplied to others.
True
False
More than half of United States business buyers are concentrated in seven
states.
True
False
The demand for business goods and services tends to be more volatile than the
demand for consumer goods and services.
True
False
Business buyers often buy from intermediaries rather than directly from the
manufacturer.
True
False
Straight rebuy purchases are generally routine.
True
False
The buying process begins when someone recognizes a problem or need.
True
False
During the supplier search stage of the buying process the buyer invites
qualified suppliers to submit proposals.
True
False
After selecting suppliers the buyer negotiates the final order, listing the
technical specifications, the quantity needed, the expected time of delivery and
so on.
True
False
The last stage in the industrial buying process is supplier selection.
True
False
The buying objective for institutional markets is not for profit.
True
False
Home
Chapter 7: Analyzing Business Markets
Concept Challenge Quiz
Concept Challenge Quiz
This activity contains 22 questions.
A recent study found that it generally takes _____ sales calls to close an
average business sale.
two
two and a half
three
four and a half
five
The demand for business products generally isn't affected much by price
changes in the short run. This type of demand is called _____.
elastic demand
inelastic demand
stable demand
unitary demand
derived demand
Mass media are the most important communication tool during the _____
stage of new task buying.
awareness
interest
evaluation
trial
adoption
Salespeople have their greatest impact during the _____ stage of new task
buying.
awareness
interest
evaluation
trial
adoption
_____ is a key industrial marketing strategy in bidding to build large scale
industrial projects.
Contract selling
Approval selling
Systems selling
Bid selling
MRO selling
People who have the power to keep sellers from reaching decision makers are
known as ________.
buyers
influencers
approvers
gatekeepers
deciders
E-hubs are centered around vertical hubs and ________ hubs.
technical
functional
logistical
e-value
lead-centered
The "total cost of ownership" is also referred to as ________.
life-cycle cost
total-centric cost
customer-centered cost
share-of-wallet cost
total-variable cost
Blanket contracts are sometimes called ________.
sell forward plans
sell through plans
stockless purchase plans
customer focused plans
inventory reduction plans
________ are buyers of goods and services who often require suppliers to
submit bids and who often award contracts to the lowest bidder.
Institutional organizations
Government organizations
Non-profit organizations
Health care organizations
Profit-seeking organizations
Business marketers normally deal with many more and smaller buyers than the
consumer marketer does.
True
False
Over time new-buy situations become straight rebuys.
True
False
The business buyer makes the most decisions in the straight rebuy situation.
True
False
The typical buying center has a minimum of five or six members and often has
dozens.
True
False
Product value analysis is an approach to cost reduction in which components
are studied to determine if they can be redesigned or standardized or made by
cheaper methods of production.
True
False
E-procurement involves more than acquiring software: it requires changing
purchasing strategy and structure.
True
False
Because the stock is held by the seller, routine contracts are sometimes called
stockless purchase plans.
True
False
blanket contracts.
When companies shift the ordering responsibility to their suppliers, this is
called supplier-managed inventory.
True
False
vendor-managed inventory.
Supply market dynamism affects buyer-seller relationships.
True
False
Because their spending decisions are subject to public review, government
organizations require considerable paperwork from suppliers.
True
False