Quiz 1 June 2019, questions and answers PDF

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

Chapter 6 Business-to-Business Marketing and Organizational Buying Behaviour 1) The B2B market comprises these three groups: business, industry, and institutions. Answer: FALSE Diff: 1 Type: TF Page Ref: 129 Skill: Recall LO: 1 2) Collectively, the federal, provincial, and municipal governments form Canada's largest buying group. Answer: TRUE Diff: 2 Type: TF Page Ref: 129 Skill: Recall LO: 1 3) Budgets in institutional markets have increased significantly in the last 10 years. Answer: FALSE Diff: 2 Type: TF Page Ref: 130 Skill: Recall LO: 1 4) Government buyers have flexible buying procedures. Answer: FALSE Diff: 2 Type: TF Page Ref: 129 Skill: Recall LO: 1 5) In the B2B market there are many more buyers than in consumer markets. Answer: FALSE Diff: 1 Type: TF Page Ref: 130 Skill: Recall LO: 1 6) Purchasing a computer mainframe for a company involves a more formal decision-making process than would the purchase of a personal home computer. Answer: TRUE Diff: 2 Type: TF Page Ref: 133 Skill: Applied LO: 2 7) A B2B buying decision process usually involves only the highest-ranking company officials. Answer: FALSE Diff: 2 Type: TF Page Ref: 134-135 Skill: Recall LO: 3 8) Joint demand occurs when an industrial product can only be used in conjunction with another product. Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

Answer: TRUE Diff: 2 Type: TF Page Ref: 133 Skill: Recall LO: 2 9) The purpose of a vendor analysis is to screen potential suppliers on a variety of factors, such as their ability to provide consistent products in quantities that are needed. Answer: TRUE Diff: 1 Type: TF Page Ref: 133 Skill: Recall LO: 2 10) Location of supplier is a significant criterion in the B2B buying decision process. Answer: FALSE Diff: 2 Type: TF Page Ref: 131 Skill: Recall LO: 2 11) Buying committees follow a formal process; buying centres tend to use a more informal process. Answer: TRUE Diff: 2 Type: TF Page Ref: 134-135 Skill: Recall LO: 3 12) Those who assist in defining specifications for products that are needed are called gatekeepers. Answer: FALSE Diff: 2 Type: TF Page Ref: 135 Skill: Recall LO: 3 13) The gatekeeper controls the flow of information to others in a buying centre. Answer: TRUE Diff: 1 Type: TF Page Ref: 135 Skill: Recall LO: 3 14) When a manufacturer of consumer goods decides to enter the B2B market and market its goods to other businesses, its communications strategy should include a greater emphasis on personal selling. Answer: TRUE Diff: 3 Type: TF Page Ref: 135-136 Skill: Applied LO: 3 15) The purchasing manager decided he needed to conduct a vendor analysis. The most important question he needs to answer is which supplier can offer the best price. Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

Answer: FALSE Diff: 2 Type: TF Page Ref: 133 Skill: Applied LO: 2 16) To manufacture Maxwell House coffee, Kraft Canada needs coffee beans, plastic lids, glass or plastic jars, paper labels, and a cardboard shipping case. These requirements are an example of derived demand. Answer: FALSE Diff: 2 Type: TF Page Ref: 133 Skill: Applied LO: 2 17) The new purchasing assistant turned to the coordinator and asked him to set up a buying committee or buying centre. These terms are interchangeable. Answer: FALSE Diff: 2 Type: TF Page Ref: 134-135 Skill: Applied LO: 3 18) Government contracting opportunities are advertised online through MERX, the government electronic public tendering service. Answer: TRUE Diff: 1 Type: TF Page Ref: 129 Skill: Recall LO: 1 19) Organizational buying is defined as the decision-making process firms follow to establish what products they need to purchase and then identify, evaluate, and select a brand and supplier for those products. Answer: TRUE Diff: 1 Type: TF Page Ref: 130 Skill: Recall LO: 2 20) Cassie, the lead industrial sales rep to a major heavy equipment manufacturer, is more likely to be part of a project team than to make a proposal to deal with customers' needs on her own. Answer: TRUE Diff: 2 Type: TF Page Ref: 138 Skill: Applied LO: 3 21) A manufacturer needed to buy new high-speed filling equipment for its automatic production of sauerkraut. This is a complex purchase decision and the organization should follow a formal buying process. Answer: TRUE Diff: 2 Type: TF Page Ref: 134-136 Skill: Applied Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

LO: 3 22) A purchase of computer equipment as part of systematic upgrading throughout a company would be a complex purchase decision requiring a formal vendor analysis and a lengthy decision-making process by the buyer. Answer: FALSE Diff: 2 Type: TF Page Ref: 134-136 Skill: Applied LO: 3 23) A reorder routine would be established for expensive items that are purchased infrequently. Answer: FALSE Diff: 2 Type: TF Page Ref: 141 Skill: Recall LO: 4 24) A desire to increase overall efficiencies has lead to an increase in partnership marketing. Answer: TRUE Diff: 2 Type: TF Page Ref: 136 Skill: Recall LO: 3 25) Partnership marketing requires businesses to have ownership interests in organizations throughout the supply chain for a given product. Answer: FALSE Diff: 3 Type: TF Page Ref: 136 Skill: Recall LO: 3 26) Partnership marketing is part of supply chain management. Answer: TRUE Diff: 2 Type: TF Page Ref: 136 Skill: Recall LO: 3 27) An essential ingredient in the partnership marketing model is electronic data exchange between all partners to enhance decision making. Answer: TRUE Diff: 2 Type: TF Page Ref: 136 Skill: Recall LO: 3 28) In a partnership marketing environment, the production and marketing decisions of manufacturers, suppliers, and distributors can be directly influenced by derived demand. Answer: TRUE Diff: 2 Type: TF Page Ref: 136 Skill: Recall LO: 3 Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

29) The increasing level of competition between similar products has contributed to the partnership concept. Answer: TRUE Diff: 2 Type: TF Page Ref: 136 Skill: Recall LO: 3 30) In Canada, the federal government creates and moderates online procurement practices. Answer: FALSE Diff: 2 Type: TF Page Ref: 139 Skill: Recall LO: 4 31) Companies have banded together to establish an online marketplace to buy and sell equipment. This activity is an example of an electronic buying exchange. Answer: TRUE Diff: 2 Type: TF Page Ref: 139 Skill: Applied LO: 4 32) E-procurement is an Internet-based marketplace to supply products to end users. Answer: FALSE Diff: 2 Type: TF Page Ref: 139 Skill: Recall LO: 4 33) A supplier of cartons has recently obtained a new client. The salesperson telephoned the client to determine the procedure for accepting orders, delivery times, and return policies. She is inquiring about their reorder routine. Answer: TRUE Diff: 2 Type: TF Page Ref: 141 Skill: Applied LO: 4 34) The purchasing manager designs a system for getting input from users of recently purchased new office equipment. She is doing this to assist in conducting a meaningful supplier performance review. Answer: TRUE Diff: 2 Type: TF Page Ref: 141 Skill: Applied LO: 4 35) Identifying the characteristics and qualities of a needed item is the first step in an organization's buying decision process. Answer: FALSE Diff: 1 Type: TF Page Ref: 139 Skill: Recall Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

LO: 4 36) A quotation consists of a written document, usually from a sales representative, that states the terms of the price quoted. Answer: TRUE Diff: 1 Type: TF Page Ref: 141 Skill: Recall LO: 4 37) Which of the following is not a distinct buying group of the B2B market? A) professions B) governments C) institutions D) e-procurement E) wholesalers and retailers Answer: D Diff: 1 Type: MC Page Ref: 129 Skill: Recall LO: 1 38) The B2B market comprises A) individuals and organizations. B) only organizations. C) all public and private organizations. D) only individuals. E) only resellers of goods. Answer: A Diff: 1 Type: MC Page Ref: 128 Skill: Recall LO: 1 39) The process by which firms establish what products they need to purchase, then identify, evaluate, and select a brand and supplier is called A) a buying group. B) vendor analysis. C) organizational buying. D) professional buying. E) outsourcing. Answer: C Diff: 1 Type: MC Page Ref: 130 Skill: Recall LO: 2 40) Which of the following statements is true of the B2B market when compared to the consumer market? A) The number of buyers is smaller in the B2B market. B) The frequency of purchases is greater in the B2B market. C) Personal selling is less important in the B2B market. Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

D) Products sold tend to be less complex in the B2B market. E) Channels tend to be less direct in the B2B market. Answer: A Diff: 2 Type: MC Page Ref: 130-131 Skill: Recall LO: 2 41) The difference in marketing communications between the B2B and consumer market is the B2B market A) uses more intermediaries. B) uses more standardized products. C) relies more on personal selling and online communications. D) focuses primarily on channel promotions. E) relies heavily on public relations. Answer: C Diff: 2 Type: MC Page Ref: 131 Skill: Recall LO: 2 42) Distribution channels in B2B marketing tend to be A) very complex because of the complexity of products and services. B) long in design because of the large size of business products. C) short and direct because of the need for personal selling. D) short and direct because of the need for a quick turnaround time from order to delivery. E) a mixture of direct and traditional designs. Answer: C Diff: 2 Type: MC Page Ref: 131 Skill: Recall LO: 2 43) Demand created in the B2B market but that is ultimately created by what the final consumer wants is called A) consumer demand. B) derived demand. C) joint demand. D) supply and demand. E) modified demand. Answer: B Diff: 1 Type: MC Page Ref: 133 Skill: Recall LO: 2 44) A situation where the production and marketing of one product is dependent upon another product is called A) reciprocity. B) derived demand. C) negotiated demand. D) bilateral demand. Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

E) joint demand. Answer: E Diff: 1 Type: MC Page Ref: 133 Skill: Recall LO: 2 45) "An evaluation of a potential supplier on the basis of technological ability, consistency in meeting product specifications, overall quality, on-time delivery, and the ability to provide needed quantity" is a description of a A) purchasing proposal. B) buyer-seller agreement. C) performance evaluation. D) source supplier strategy. E) vendor analysis. Answer: E Diff: 1 Type: MC Page Ref: 133 Skill: Recall LO: 3 46) The group of individuals representing key personnel from many areas of a business operation that formally make buying decisions is referred to as a A) decision-making unit. B) buying committee. C) gatekeeping process. D) buying centre. E) joint decision process. Answer: B Diff: 2 Type: MC Page Ref: 134 Skill: Recall LO: 3 47) An informal gathering of several informed individuals throughout the company to make purchasing decisions is referred to as a A) decision-making unit. B) buying centre. C) gatekeeping process. D) joint decision process. E) buying committee. Answer: B Diff: 2 Type: MC Page Ref: 134 Skill: Recall LO: 3 48) The member of a buying centre who controls the flow of information to others in the centre is called the A) gatekeeper. B) referee. C) decider. Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

D) influencer. E) user. Answer: A Diff: 2 Type: MC Page Ref: 135 Skill: Recall LO: 3 49) The member of a buying centre who has formal or informal power to select the supplier is the A) decider. B) buyer. C) influencer. D) user. E) gatekeeper. Answer: A Diff: 2 Type: MC Page Ref: 135 Skill: Recall LO: 3 50) National food suppliers such as Metro, Sobeys, and Loblaws dominate the retail grocery industry in Canada, purchasing huge quantities of fresh, frozen, and packaged food products for their grocery stores. This example illustrates A) there are a few buyers with immense buying power in the B2B market. B) the need for self-regulation. C) the impact of the global food shortage on North America. D) the need for government intervention. E) the weakness of the grocery industry. Answer: A Diff: 2 Type: MC Page Ref: 130 Skill: Applied LO: 2 51) The system that allows a supplier to identify and locate potential target markets by providing statistical information about business activity is called A) Standard & Poor's Industrial Index. B) Findex. C) the Federal Government Classification Index. D) the Industrial Equipment Manufacturers' Classification. E) the North American Industry Classification System. Answer: E Diff: 2 Type: MC Page Ref: 131 Skill: Recall LO: 2 52) A producer of frozen soups was out of stock for two months on its Wild Mushroom soup because its supplier of wild mushrooms could not always meet their product specifications. Which of the following factors did the soup producer fail to evaluate when selecting a supplier of mushrooms? Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

A) service and services offered B) price C) reputation D) continuity of supply E) quality Answer: D Diff: 1 Type: MC Page Ref: 134 Skill: Applied LO: 3 53) A manufacturer needs a package delivered to its head office tomorrow morning at any cost. It contacted a number of couriers and chose Purolator. Purolator offered a 9 a.m. Day Starter rate guaranteeing delivery by 9 a.m. the next morning for a surcharge of $10.00 over their regular price. The manufacturer made its decision based on which of the following buying criteria? A) service and services offered B) quality C) reputation D) continuity of supply E) price Answer: A Diff: 2 Type: MC Page Ref: 134 Skill: Applied LO: 3 54) There was a shortage of manzanilla olives from Spain this year. Consequently, a Canadian olive packer had to find another supplier to ensure adequate supply. The procurement manager of the olive packing company called an informal meeting with the marketing department, asking them to taste olives from different parts of the world and to comment on which olives met their needs. This is an example of A) a quality committee. B) a buying committee. C) relationship buying. D) a buying centre. E) a modified rebuy. Answer: D Diff: 3 Type: MC Page Ref: 142 Skill: Applied LO: 4 55) To satisfy consumer want of aluminum containers for soft drinks, manufacturers have moved to widespread use of the aluminum can. Soft drink manufacturers' demand for aluminum increased dramatically. This situation is an example of A) derived demand. B) inelastic demand. C) manufacturers' demand. D) joint demand. E) elastic demand. Answer: A Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

Diff: 3 Type: MC Page Ref: 133 Skill: Applied LO: 2 56) A rise in mortgage rates has resulted in a lower demand for new housing. Consequently, there is a lower demand for building materials such as lumber, steel, and window glass. This effect is called A) derived demand. B) demand loan. C) joint demand. D) chain of demand. E) shared demand. Answer: A Diff: 3 Type: MC Page Ref: 133 Skill: Applied LO: 2 57) The Nestle Company needs coffee beans, plastic lids, glass jars, paper labels, and so on to produce Taster's Choice coffee. These needs are examples of A) joint demand. B) variable demand. C) derived demand. D) sequenced demand. E) accessories demand. Answer: A Diff: 2 Type: MC Page Ref: 133 Skill: Applied LO: 2 58) When Daimler Chrysler AG is evaluating potential suppliers of car seats based on quality, timeliness, and overall service, it is conducting a A) vendor analysis. B) supplier examination. C) supplier reliability study. D) criteria analysis. E) supplier analysis. Answer: A Diff: 2 Type: MC Page Ref: 133 Skill: Applied LO: 2 59) Darlene has the authority to select company suppliers and negotiate price with them. She is a(n) A) decider. B) gatekeeper. C) user. D) influencer. E) buyer. Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

Answer: E Diff: 1 Type: MC Page Ref: 135 Skill: Applied LO: 3 60) Jeff controls the flow of information to his colleagues in the buying centre. He is a(n) A) buyer. B) gatekeeper. C) user. D) decider. E) influencer. Answer: B Diff: 1 Type: MC Page Ref: 135 Skill: Applied LO: 3 61) What is MERX? A) the chemical industries electronic transaction service B) the municipal electronic tendering service C) the multinational electronic pharmaceutical exchange D) the online government electronic tendering service E) the multinational electronic transactions services Answer: D Diff: 1 Type: MC Page Ref: 129 Skill: Recall LO: 1 62) Which type of industries currently represent approximately 70% of Canadian economic production? A) not-for-profit sector B) wholesalers C) goods producers D) service producers E) government institutions Answer: D Diff: 3 Type: MC Page Ref: 128 Skill: Recall LO: 1 63) Which of the following is an example of outsourcing? A) hiring a company to process the organization's payroll B) establishing an internal department to process e-business transaction services C) hiring a staff of lawyers to protect the interests of the company D) purchasing equipment to manufacture parts normally provided by an outside supplier E) sending a mass mailing to wholesalers to source new business Answer: A Diff: 2 Type: MC Page Ref: 129 Skill: Recall Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing and Organizational Buying Behaviour

LO: 1 64) To identify and locate potential target markets, marketing firms use what industry classification service? A) NASA, the North American System of Assignment B) ACMIC, the American/Canadian/Mexico Industry Classification C) NABD, the North American Business Directory D) USDA, the United States Definition Assessment E) NAICS, the North American Industry Classification System Answer: E Diff: 2 Type: MC Page Ref: 131 Skill: Recall LO: 2 65) The largest buying group in Canada is A) institutions. B) professions. C) wholesalers. D) retailers. E) government. Answer: E Diff: 2 Type: MC Page Ref: 129 Skill: Recall LO: 1 66) Centralized purchasing is used primarily to A) increase the number of buyers who work with suppliers. B) improve quality of purchases. C) secure better price discounts based on volume purchases. D) increase the number of suppliers to drive price discounts. E) locate purchasing close to retail outlets. Answer: C Diff: 2 Type: MC Page Ref: 131 Skill: Recall LO: 2 67) Customers who are concerned with long-term availability of a product or service are focused on which buying criterion? A) continuity of supply B) assortment C) price D) service and services offered E) quality Answer: A Diff: 1 Type: MC Page Ref: 134 Skill: Applied LO: 3 Copyright © 2019 Pearson Canada Inc.

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THINK Marketing, 3e Chapter 6: Business-to-Business Marketing a...