Chapter 7 Business Marketing PDF

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Chapter 7 - Business Marketing 1. A product is defined as a business product rather than consumer good on the basis of which of the following? a. intended use b. physical characteristics c. price d. distribution method ANSWER: a 2. Fournotts Printing Inc. manufactures and sells photocopiers, printers, and scanners to various corporate

offices. What is this an example of? a. contract manufacturing b. business marketing c. licensing d. franchising ANSWER: b 3. Which of the following best characterizes business marketing? a. It refers to the sale of goods and services for the purpose of personal

consumption. b. It deals with products that are used to facilitate an organization's operations. c. It has long and indirect channels of distribution. d. It sets the price and other conditions of sale without chances for negotiations. ANSWER: b 4. What is used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers? a. a consumer product b. a shopping product c. a business product d. a convenience product ANSWER: c 5. Vactin Corp., a construction company, buys ten truckloads of cement for its new construction project. Given

this information, what is the cement an example of? a. a consumer product b. a service product c. an industrial product d. an unsought product ANSWER: c

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Chapter 7 - Business Marketing 6. Tamery Corp. is engaged in marketing various goods and services. It buys goods from various manufacturers

and sells them to businesses and end consumers. Given this information, in which of the following cases would Tamery Corp. be said to be selling consumer products? a. if it sells books to students b. if it sells spare parts to automobile manufacturers c. if it sells laptops to a hotel d. if it sells printers to a partnership firm ANSWER: a 7. Which of the following characteristics distinguishes business products from consumer products? a. physical form b. intended use c. distribution method d. price ANSWER: b 8. Which of the following best describes business-to-business marketing? a. It is marketing products or services sold for personal consumption. b. It involves marketing goods that are sold in consumer markets. c. It involves matching capabilities between two businesses. d. In business-to-business marketing, relationship marketing is given little

importance. ANSWER: c 9. Which of the following is business marketing NOT used for? a. to become part of another product b. to manufacture other products c. for personal consumption d. to facilitate the normal operations of an organization ANSWER: c 10. What needs to be in place for a business market to meet its customers’ needs? a. trust, mutual respect, and satisfying company goals b. advertising c. personal selling d. public relations ANSWER: a 11. What do companies need to think about in business marketing? a. Neither the seller nor the buyer can afford to be passive. b. The buyer is most important in the process. Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing c. The seller is the most important in the process. d. The buyer and the seller play small roles in the selling process. ANSWER: a 12. How does B2B differ from consumer marketing? a. In B2B, the nature of relationships and interactions could last for years. b. In B2B there are few avenues for effective advertising of organizational goods. c. Most buyers prefer meeting face to face with salespeople. d. Many organizational products in B2B are complex and require expertise on the

salesperson’s part. ANSWER: a 13. Which of the following best describes relationship marketing? a.For many suppliers, retaining their current customers has become a secondary

focus in relationship marketing. b.Business suppliers use social networking sites sparingly as these sites discourage businesses from shopping for all their needs. c.Loyal customers are less profitable than those who are price sensitive and perceive no difference among brands or suppliers. d.Relationship marketing has become more important than before because competition is becoming more intense. ANSWER: d 14. C-Through, an optics-manufacturing company, wants to focus on relationship marketing. In this case, which of the following strategies should C-Through adopt? a. It should use social networking sites to advertise itself to businesses. b. It should market its products through dealers. c. It should set the price and other conditions of sale without negotiation. d. It should use accessory equipment and major equipment. ANSWER: a 15. What exists when one party has confidence in an exchange partner's reliability and integrity? a. obeya b. trust c. keiretsu d. commitment ANSWER: b 16. In the context of business relationships in Japan, which of the following best defines the term amae? a. It is the feeling of nurturing concern for, and dependence upon, another. b. It is the lack of motivation among employees in businesses. Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing c. It is a legal consolidation and collaboration of companies into a single entity. d. It is the lack of economic competition in the market. ANSWER: a 17. Dave Smith has been sent to Japan by Microsoft Corp. Microsoft’s objective is to grow its business in Japan, where reciprocity and personal relationships are prominent. What kind of development do these two characteristics contribute to? a. global ventures b. amae c. agricola d. keiretsu ANSWER: b 18. What is the best definition of a business-to-business interaction? a. interrupting customers b. interacting with customers c. a one-off transaction d. getting the customer’s attention ANSWER: b 19. What is the Canadian Marketing Association’s definition of business marketing? a. a network of buyers b. a network of buyers and sellers c. a challenging network to be in today d. NAFTA ANSWER: b 20. What is the best definition of a sales approach? a. sales and selling to companies b. focus on generating leads c. persuasion techniques d. understanding the problems of a customer ANSWER: b 21. What is the best definition of the marketing management approach? a. sales and selling to companies b. focus on generating leads c. persuasion techniques d. understanding that the customer has the same needs ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing 22. What is the best definition of the network approach? a. sales and selling to companies b. focus on generating leads c. persuasion techniques d. understanding the external forces that have an impact on businesses ANSWER: d 23. What is a keiretsu? a.a type of strategic alliance commonly found in Japan b.a method of business e-commerce found in Asia c.an Internet site that offers its customers access to various languages that they

can use to conduct their business d.a form of relationship marketing that is illegal in Canada ANSWER: a 24. What does guanxi loosely mean? a. friendships and trust b. relationships c. an understanding to make business happen d. unwillingness to interact with other firms ANSWER: b 25. Why did the Canadian government create Networks of Centres of Excellence? a. to build friendship and trust b. to bring together government and industry funding c. to build better trade negotiations d. to understand how other countries do business ANSWER: b 26. Fresnas Inc., an oil refinery, buys crude oil and converts it into various products such as gasoline, kerosene,

and diesel fuel. Fresnas Inc., then, sells these products to other companies or retailers. Based on this information, which segment of the business market is most likely represented by Fresnas Inc.? a. resellers b. producers c. distributors d. governments ANSWER: b 27. Which Canadian network brings together leading Canadian researchers and national youth-serving

organizations? a. Networks of Centre and Excellence Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing b. WITS c. PREVNet d. RCMP ANSWER: c 28. The number of companies ordering airplanes from Boeing has dropped. After some research, Boeing found out that the number of consumers flying had also dropped. What type of demand was this a result of? a. elastic demand b. inelastic demand c. joint demand d. derived demand ANSWER: d 29. The demand for polyethylene film used to wrap meat in supermarkets is dependent on consumers’ demand for meat. This is an example of which type of demand? a. inelastic demand b. derived demand c. joint demand d. elastic demand ANSWER: b 30. Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different consumer

magazines. Consumer magazine sales determine how much paper Inland Eastex sells. This is an example of which type of demand? a. joint demand b. inelastic demand c. elastic demand d. derived demand ANSWER: d 31. Challenger Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes last

year, the sales did not drop. What is this an example of? a. elastic demand b. inelastic demand c. derived demand d. joint demand ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing 32. Nutrimax Cookies Inc. buys around three tons of raw materials every year. If the demand for its cookies increases next year, the company might need to buy more raw materials to meet the demand. What does this example illustrate? a. inelastic demand b. joint demand c. elastic demand d. fluctuating demand ANSWER: d 33. When the demand for packaged beer fell by 8 percent in one year, the demand for aluminum beer cans and

glass beer bottles also fell. This demand for beer containers is an example of which type of demand? a. fluctuating demand b. inelastic demand c. elastic demand d. derived demand ANSWER: d 34. 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 Bàbolina Tetra hen also declined. Which type of demand is this an example of? a. derived demand b. elastic demand c. multiplying demand d. bundled demand ANSWER: a 35. An acute shortage of heavy-duty tires is threatening to disrupt operations in mining and construction sites around the world. According to one mine operator, “I’ve got the coal and market, and I have the trucks to haul the coal, but I don’t have the tires. I’d be willing to pay double the price if I could get the tires I need.” What type of demand is the demand for heavy-duty tires in this example? a. joint demand b. inelastic demand c. elastic demand d. congruent demand ANSWER: b 36. When an increase or decrease in the price of the product will not significantly affect demand for the product, what is the demand for the product? Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing a. responsive demand b. elastic demand c. inelastic demand d. derived demand ANSWER: c 37. During the first years of this century, the number of packages arriving at households has more than doubled. An increase in the price of the cardboard boxes in which these packages are shipped will have little effect on the amount of shipping done; the demand for the boxes will continue to increase. What type of demand is the demand for the cardboard boxes? a. resistant demand b. inelastic demand c. derived demand d. elastic demand ANSWER: b 38. Although the price of a chemical added to paint to protect surfaces from mould and mildew has almost doubled, the price of paint only rose an average of 5 percent, and the demand for both paint and the chemical that eliminates mould and mildew remained stable. What is the demand for this chemical? a. elastic b. derived c. bundled d. inelastic ANSWER: d 39. When two or more items are used in combination to produce a final product, which type of demand are they

said to have? a. derived demand b. inelastic demand c. joint demand d. fluctuating demand ANSWER: c 40. 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. Which type of demand do the products in this situation have? a. inelastic demand b. joint demand c. elastic demand d. congruent demand Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing ANSWER: b 41. Which of the following pairs of products best illustrates the concept of joint demand? a. a pumpkin and the set of tools used to carve it b. a thermometer and a barometer c. a grandfather clock pendulum and a grandfather clock case d. canola oil and sunflower oil ANSWER: c 42. There was a spike in the sales of the new iPhone. This resulted in an even larger increase in demand for the

machinery and equipment needed to manufacture the iPhones. What is this a result of? a. the demand fluctuation principle b. the joint demand principle c. the inelastic demand effect d. the multiplier effect ANSWER: d 43. What is the benefit of having fewer customers in business markets in comparison with consumer markets? a. It reduces the attention required to be given to customers. b. It makes it easy to identify prospective buyers. c. It reduces the importance of relationships. d. It increases product diversity. ANSWER: b 44. What characteristics do buyers in business markets exhibit? a. They are insensitive to price. b. They are located throughout Canada. c. They are more geographically concentrated than consumers. d. They are involved with only a few negotiations. ANSWER: c 45. Pammi was looking for a new car. She has heard that the Car Mecca was the place to go. Many car

companies including Ford, Volkswagen, Honda, and Toyota all sell at the Car Mecca. What is this an example of in the business market? a. reciprocity b. purchasing in much smaller quantities c. buying more products that have a reduced probability of being affected by derived demand d. geographic concentration ANSWER: d

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Chapter 7 - Business Marketing 46. Commonplace in business marketing, what is the term for the bargaining between buyers and sellers on product specifications, delivery dates, payment terms, and other pricing matters? a. negotiation b. need mediation c. customerization d. purchase arbitration ANSWER: a 47. Tommy ran a warehouse selling nuts and bolts to car mechanics. After his own car broke down, Tommy decided to use a mechanic called Raymond. Raymond actually happened to be one of Tommy’s customers at the warehouse. What is this an example of? a. working to create purchase arbitration b. opening oneself up to prosecution for illegal activities c. practising reciprocity d. trying to eliminate derived demand barriers ANSWER: c 48. Creative Graphics has just moved into a new building. The owner wants to landscape the front of the

building and build an employee picnic area on the side. When looking for a landscaper, the owner looked no further than his own customer list. He chose to use the services of a landscaper that had hired Creative Graphics to print a recent promotional brochure. The purchase by Creative Graphics is which of the following? a. an example of nested demand b. an example of an illegal influence c. a normal business practice called reciprocity d. unethical by all standards ANSWER: c 49. Which of the following occurs when a bakery decides to buy its office supplies from a company that

regularly buys muffins and pastries for its employees? a. reciprocity b. joint demand c. elastic demand d. disintermediation ANSWER: a 50. Pruitt sells embroidery machines used to embroider logos, names, and other designs on shirts, caps, umbrellas, etc., to people in the personalization business. The machines range in price from $39,000 to $75,000. He wants to stimulate business among some of his customers who cannot afford to buy his embroidery machines, but whose businesses would benefit from the use of one. Which of the following actions is most appropriate in this example? Copyright Cengage Learning. Powered by Cognero.

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Chapter 7 - Business Marketing a. develop leasing options for business customers b. create full and complete reciprocity to ensure customer cash flow c. manage derived demand to keep the customers’ demand at the highest possible

levels d. set up a straight-rebuy ordering system ANSWER: a 51. Which of the following is the best example of major equipment? a. a baseball stadium b. a checkout

counter c. a lifeguard stand d. a file cabinet ANSWER: a 52. Parking garages, $500,000 printing presses, privately owned warehouses, and oil-well drilling platforms are

depreciated over time rather than expensed in the year they are purchased. How are these classified? a. as processed materials b. as accessory equipment c. as major equipment d. as supplies ANSWER: c 53. A company that installs and maintains signs along major highways has a truck equipped with a 50-metre

crane that is capable of lifting up to 15 tons. The company’s accountant depreciated the value of the vehicle over several years. What type of business product is the truck with a crane? a. major equipment b. component part c. processed material d. fabricating item ANSWER: a 54. Because they are not expensive, have short useful lives, and are frequently purchased from local distributors, how are store mannequins, notebook computers, fax machines, and grocery carts typically classified? a. as accessory equipment b. as mobile equipment c. as component parts d. as supplies ANSWER: a

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Chapter 7 - Business Marketing 55. Because they are shown as expenses on the yearly accounting statements, what are firearms, computers,

printers, fax machines, and patrol vehicles for a police department? a. mobile installations b. component parts c. accessory equipment d. supplies ANSWER: c 56. Which of the following is the best example of accessory equipment? a. a parking lot b. a store display

rack c. car batteries d. a river barge ANSWER: b 57. Why is it important that marketers understand the classification of the business product they are selling? a. because OEM markets often act just like the consumer markets b. because promotion and distribution strategies tend to vary depending upon the

type of product c. because distribution channels are almost always direct for all business selling d. because raw materials demonstrate extreme flexibility in pricing ANSWER: b 58. What is the term for finished items ready for assembly or products that need very little processing before

they become a part of some other product? a. supplies b. raw materials c. accessory equipment d. component parts ANSWER: d 59. Which of the following customers ...