80 test bank for business marketing connecting strategy relationships and learning 4th edition by dwyer

80 Test Bank for Business Marketing Connecting
Strategy Relationships and Learning 4th Edition by
Dwyer
True - False Questions
The demand is usually inelastic for a product with substitutes.
1.

True

2.

False

Business marketers must recognize that the demand for their products
and services is derived demand.
1.

True

2.

False

Being market driven implies that customer satisfaction and operational
efficiency are the order of the day for every department and individual
employee.
1.

True

2.

False

In consumer marketing, the marketer involves the consumer in the
creation and development of his/her Web site.
1.

True

2.

False

Accessory equipments are parts assembled into the final product without
further transformation.
1.

True

2.

False


Compared to families in which all members of the household are involved
in every purchase, business purchasing decisions involve one or two
people, who are at the top of the firm.
1.

True

2.

False

Business customers are larger than individual consumers, so each
business customer is more important to the financial success of the
business marketer.
1.

True

2.

False

An original equipment manufacturer purchases products or services for
its own final product.
1.

True

2.

False

For the buyer, value is equivalent to profit.
1.

True

2.

False

The dollar value of consumer purchases is larger than the dollar value of
businesses purchases.
1.

True

2.

False

The achievement and maintenance of a competitive advantage is solely
dependent upon the development of superior products.
1.

True

2.

False


Industrial distributors are organizations that purchase for consumption.
1.

True

2.

False

Channels of distribution are shorter and more direct in business
marketing than in consumer marketing.
1.

True

2.

False

Ultimately, most demand is derived from government purchases such as
arms sales.
1.

True

2.

False

Generally, business products are classified according to the type of
organization that is buying and the purpose of purchase.
1.

True

2.

False

Personal selling dominates the promotional mix employed in business
marketing.
1.

True

2.

False

Business marketing is marketing products or services to companies,
institutions and other organizations EXCEPT government bodies.
1.

True

2.

False


In the United States, the government is the largest single purchaser of
goods and services.
1.

True

2.

False

The likelihood of negotiation decreases when large orders are sold
directly by the manufacturer to the OEM buyer because changes can be
made to the product and price.
1.

True

2.

False

The size and location of customers influences the nature of business
buying.
1.

True

2.

False


Multiple Choice Questions - Page 1
Being _____ means that customer satisfaction and operational efficiency

are the order of the day for every department and individual employee or
associate.
1.

a. Product-driven

2.

b. Profit-driven

3.

c. Technology-driven

4.

D. Market-driven

5.

e. Sales-driven

Which of the following is NOT a valid reason for studying business
marketing?
1.

a. The magnitude of business marketing

2.

b. Business marketing is unique

3.

c. One type of marketing does not fit all situations

4.

d. It is an exciting area of study

5.

E. It is the same as consumer marketing

When purchasing products/services to be consumed in support of the
firm's operation, the firm is BEST described as a(n):
1.

A. User

2.

b. Institution

3.

c. Reseller

4.

d. Government agency

5.

e. Wholesaler


These members of an organization are specifically responsible for
coordinating their company's efforts at satisfying their customers.
1.

A. Salespeople

2.

b. Middle managers

3.

c. Supervisors

4.

d. Human resource personnel

5.

e. First-line managers

Government agencies tend to have complex purchasing processes

because purchasing is:
1.

a. Limited to military goods

2.

b. Solely designed to produce profits

3.

c. Solely for their own use

4.

D. Often designed to accomplish social objectives

5.

e. Largely influenced by negotiation

BASF sells fibers direct to Dupont for the manufacture of carpet and
through distributors to smaller companies. This example shows that
business marketing is characterized by _____ compared to consumer
marketing.
1.

A. Shorter distribution channels

2.

b. Marketing research

3.

c. Greater web integration

4.

d. Consumption

5.

e. Lesser emphasis on personal selling

When a company purchases a product or service to be included in its own
final product, the company is called a(n)
1.

a. Reseller


2.

b. User

3.

c. Institution

4.

D. Original equipment manufacturer

5.

e. Industrial distributor

Increasingly, organizational survival depends upon firms being:
1.

a. Individual-driven

2.

B. Market-driven

3.

c. Ideology-driven

4.

d. Product-driven

5.

e. Sales-driven

In terms of personal selling, which of the following statements is TRUE?

1.

a. A business cannot be successful through personally getting to know each
individual and coordinating the sales-purchase process

2.

B. Complex buying procedures involving many members of the buying
organization require personal selling

3.

c. Multiple personal relationships can strengthen organizational relationships and
these relationships are the responsibility of the manager

4.

d. A customer's size and a direct channel do not affect the importance of
negotiation

5.

e. Large orders sold directly by the manufacturer to the user increase the
likelihood of negotiation because changes can be made in place and promotion

Which of the following statements about buyer-seller relationships in
business marketing is TRUE?
1.

a. Strong personal and business relationships between buyer and seller are

extremely rare

2.

b. Close personal relationships exist between buyer and seller in all industries

3.

c. Personal selling is never an important element of the marketing mix


4.

d. Companies rarely enter into long-term contracts as the opportunity cost of
mistakes is high

5.

E. Many companies focus on building relationships that enable buyers and sellers
to plan jointly

All the following types of customers purchase products for consumption
EXCEPT:
1.

A. Brokers

2.

b. Original equipment manufacturers

3.

c. Hospitals

4.

d. Universities

5.

e. Users

Users are similar to final consumers in that:
1.

a. They purchase products to include in their own final product

2.

B. Satisfaction is determined through consumption

3.

c. They are primarily influenced by advertising

4.

d. The impact upon profit is not important

5.

e. They incorporate their purchases into their final product

BASF salespeople work directly with fire departments to sell the latest
fire-fighting chemicals and ensure that they are used properly. This
example shows that business marketing is characterized by _____
compared to consumer marketing.
1.

a. Longer distribution channels

2.

B. Greater emphasis on personal selling

3.

c. Varying buyer-seller relationships

4.

d. Greater web integration

5.

e. Consumption


In business marketing, large customer size and use of direct channels

increase the importance of:
1.

a. Advertising

2.

b. Distribution

3.

C. Negotiation

4.

d. Packaging

5.

e. Production

_____ means that at many organizations, individuals with complementary
expertise and skills work in teams to constantly strive to serve
organizational customers better, to innovate and to develop the means to
approach new institutional markets.
1.

a. Product-driven

2.

b. Profit-driven

3.

c. Technology-driven

4.

D. Market-driven

5.

e. Sales-driven

OEMs are BEST described as:
1.

a. End users

2.

B. Companies that consume

3.

c. Government agencies

4.

d. Firms that resell a product without making any changes

5.

e. Institutions

Business marketers do NOT sell to:
1.

a. Other companies

2.

b. Government bodies


3.

c. Institutions

4.

d. Service suppliers

5.

E. Individual consumers

In the United States:
1.

a. The state governments are the single largest consumers

2.

b. The government does not use any product it buys

3.

c. The purchasing processes used by the government are simple and easy to sell
to

4.

d. The federal government is the only government customer

5.

E. The federal government is the country's largest single landlord

Identify the largest single purchaser of products and services in the
United States.
1.

a. Wal-Mart

2.

b. Defense department

3.

C. Government

4.

d. Financial institutions

5.

e. Steel industry

All the following are ways in which business marketing differs from
consumer marketing EXCEPT:
1.

a. Its distribution channels are shorter and more direct

2.

b. It emphasizes personal selling and negotiation

3.

C. The Web is not integrated

4.

d. It employs "unique" promotional strategies

5.

e. It requires knowledge of the customer's customer


Resellers include all of the following EXCEPT:
1.

a. Wholesalers

2.

b. Dealers

3.

C. Government agencies

4.

d. Brokers

5.

e. Industrial distributors

Why is the demand for business products dependent ultimately on
individual consumers?
1.

a. Because individual consumers are larger than business customers

2.

b. Because individuals within organizations purchase for personal consumption
and consumers do not

3.

C. Because business markets consume products in the process of making other
products

4.

d. Because the buyers of business products are the final consumers

5.

e. Because of the emphasis on personal selling for business products

55 Free Test Bank for Business Marketing Connecting
Strategy Relationships and Learning 4th Edition by
Dwyer Multiple Choice Questions - Page 2
Typically, business marketers face:
1.

a. Hypothetical demand

2.

b. Highly elastic demand

3.

C. Derived demand

4.

d. Latent demand

5.

e. Primary demand


Marketing is a process by which the marketer creates:
1.

a. Derived demand

2.

b. Vision

3.

C. Value

4.

d. Volatility

5.

e. Service

Gold purchased by AT&T for use in the manufacture of
telecommunications equipment would be BEST described as a(n):
1.

A. Raw material

2.

b. Facilitating supply

3.

c. Manufactured material

4.

d. Component part

5.

e. MRO

Janitorial products, painting contractors who paint the buildings,
plumbing services and heating and air conditioning services fall under:

1.

a. MRO items

2.

b. Repair services

3.

C. Maintenance products

4.

d. Capital equipment

5.

e. Accessory equipment

Overhead cranes, blast furnaces, industrial robots and other
manufacturing equipment as well as forklifts, road graters and other
heavy construction machinery are examples of
1.

a. MRO items

2.

b. Maintenance products

3.

c. Manufactured materials

4.

d. Accessory equipment

5.

E. Capital equipment

_____ is something that provides incremental value when compared to
other offerings.
1.

A. Competitive advantage

2.

b. Value chain

3.

c. Volatility

4.

d. Demand elasticity

5.

e. Derived demand

Value is equivalent to _____ for the buyer.
1.

a. Product

2.

b. Price

3.

C. Profit

4.

d. Distribution

5.

e. Cost

Marketing is BEST described as a(n) _____ process.
1.

a. Sales

2.

b. Profit-maximizing

3.

c. Cost-minimizing

4.

D. Integrative

5.

e. Internal

Value
1.

a. Is equivalent to profit for a seller


2.

B. Is the perception of how much the buyer benefited beyond what was invested in
a product

3.

c. Is the reason why an organization is created

4.

d. Is based on some general need that has been identified in the market

5.

e. Is the recognition of a need and the means to satisfy it

Policies designed to encourage the growth of minority- or women-owned
businesses as well as small businesses are examples of _____ policies
that influence government purchasing.
1.

A. Social objective

2.

b. Environmental objective

3.

c. Economic objective

4.

d. Business objective

5.

e. Protectionist

Facilitating products:
1.

2.

A. Aid the company's achievement of its objectives, but are not part of the final
product
b. Are parts assembled into the final product without further transformation

3.

c. Include raw and manufactured materials, component parts or OEM parts and
assemblies

4.

d. Are parts assembled to make a component for installation into the final product
by another company

5.

e. Are parts assembled into the final product without further transformation

Business marketers must recognize that the demand for their products
and services is _____ demand, which means that demand for their
products and services results from the demand for their customers'

products and services.
1.

A. Derived

2.

b. Concentrated


3.

c. Limited

4.

d. Direct

5.

e. Conditional

Sometimes, a company purchases OEM parts and assembles these to
make a component for installation into the final product by another
company. The component may then be called a(n)
1.

a. Facilitating product

2.

b. Manufactured material

3.

c. Installation

4.

D. Subassembly

5.

e. MRO item

As one moves further away from the consumer market, derived demand
can cause wide swings in demand, called
1.

a. Inelasticity

2.

B. Volatility

3.

c. Make-or-buy

4.

d. Deficiency

5.

e. Dissolution

Which of following business customers provide services similar to those
delivered by wholesalers and retailers of consumer goods?
1.

a. OEMs

2.

b. Government agencies

3.

c. Institutions

4.

d. Private contractors

5.

E. Industrial distributors

The system of value creation is also known as:
1.

a. Organizational value

2.

b. Quality process

3.

C. A value chain

4.

d. Competitive advantage

5.

e. Core competency

Large, expensive items used in the production process are BEST
classified as:
1.

A. Capital equipment

2.

b. OEMs

3.

c. Accessory equipment

4.

d. MROs

5.

e. Manufactured materials

Industrial products having no substitutes typically face:
1.

A. Inelastic demand

2.

b. Volatile demand

3.

c. Elastic demand

4.

d. Stable demand

5.

e. Unitary demand

Raw materials
1.

A. Are sold to OEMs for use in the products they manufacture

2.

b. Are parts assembled into the final product without further transformation

3.

c. Facilitate a firm's achievement of its objectives, but are not part of the final
product

4.

d. Are also called installations


5.

e. Are products sold to users for use in the company's operations

The percentage change in sales relative to the percentage change in price
is:
1.

a. Volatile demand

2.

b. Market demand

3.

c. Final demand

4.

D. Demand elasticity

5.

e. Price elasticity

Parts that may be assembled into a final product without further
processing are BEST described as:
1.

a. Capital equipment

2.

b. Manufactured materials

3.

c. Raw materials

4.

d. MROs

5.

E. OEM parts

Facilitating supplies:
1.

a. Are also called OEM products

2.

b. Refer to products sold to users for use in the company's final product

3.

c. Are materials processed only to the point required for economic handling and
distribution

4.

d. Are parts assembled into the final product without further transformation

5.

E. Support company efforts but are not part of the final product

The hiring of an advertising agency would be BEST descried as the
purchase of a(n):
1.

a. Operating supply


2.

B. Facilitating service

3.

c. Component part

4.

d. MRO

5.

e. Accessory

Computers used to facilitate the company's achievement of its objectives,
but not part of the final product would be BEST described as:
1.

a. OEM parts

2.

b. Component parts

3.

C. Accessory equipment

4.

d. Raw materials

5.

e. Subassembly

A key raw material for technology-driven companies is:
1.

a. MRO item

2.

B. Personnel

3.

c. Steel

4.

d. Accessory equipment

5.

e. Location

All of the following are part of the marketing mix EXCEPT:
1.

a. Product

2.

b. Promotion

3.

c. Place

4.

D. Process

5.

e. Price

What is an important difference between accessory and capital equipment
when it comes to marketing the equipment to users?
1.

a. Accessory equipment is part of the organization's final product while capital
equipment facilitates the organization's activities

2.

B. Capital equipment is much more expensive and its purchase may involve more
members of the organization than purchase of accessory equipment

3.

c. Accessory equipment demand is derived from the demand for consumer
products

4.

d. Marketing requirements for accessory equipment are different as more
members of the organization must be reached by marketing efforts

5.

e. Capital equipment is ordered on a more regular basis than accessory
equipment

In business markets, products are generally classified on the basis of:
1.

a. Price

2.

b. Durability

3.

C. Type of purchaser and reason for purchase

4.

d. Size and weight of product

5.

e. Type of promotion employed

Compared to the typical household buying, the organizational purchasing
process:
1.

a. Involves lesser number of people

2.

b. Rarely involves checks and controls

3.

c. Arises from implicit negotiation, expertise and habit

4.

D. Is more complex

5.

e. Uses crude cost accounting systems and cash flow management


Gates Controls may purchase plastic casing, a component part, from
Plastech and parts from Metric Devices and then put these components
together into a tachometer that is sold to GM. GM would then put the
tachometer into its cars or trucks. GM may refer to the part as a(n)
1.

A. Assembly

2.

b. Manufactured material

3.

c. Accessory equipment

4.

d. Capital equipment

5.

e. MRO item

Which of the following product types has been transformed from the raw
material and requires further processing before use?
1.

a. OEM

2.

B. Manufactured material

3.

c. Component part

4.

d. Capital equipment

5.

e. MRO

Products purchased for use in the firm's operations are usually called:
1.

a. OEM parts

2.

b. Capital goods

3.

c. Accessory equipments

4.

D. MRO items

5.

e. Component parts

Compared to individual consumers, business customers:
1.

a. Have less stringent standards for judging a vendor

2.

b. Are more in number


3.

C. Are more likely to be geographically concentrated

4.

d. Have lower purchasing power

5.

e. Are less important to the financial success of the business marketer

Free Text Questions
How does greater web integration help business marketing and why is
this better than consumer marketing?
Answer Given

One unique aspect of business marketing is how the web is used. The web
becomes the backbone of a supplier/customer communication network that
enables customers to track shipment information, order products at prices and
terms agreed to by the salesperson and buyer and access other account
information that helps manage the supply process. In contrast to this form of
integration is consumer marketing, where the marketer does not involve the
consumer in the creation and development of the site and therefore the marketer
must advertise to drive traffic to it.

Write a short note on how business marketing differs from consumer
marketing?
Answer Given

Business marketing differs in that channels of distribution are shorter and more

direct, there is more emphasis on personal selling and negotiation, the Web is fully
integrated and complex buying processes result in unique promotional strategies.
Relationships are also different between buyer and seller when both are
organizations than when one is an individual consumer.

Compare and contrast accessory and capital equipment?
Answer Given

Hand tools, such as sanders, routers, portable saws and other light tools, are
called accessory equipment. Capital equipment, also called installations, refers to
large equipment used in the production process that requires significant financial
investment. The difference between accessory and capital equipment is important
when it comes to marketing the equipment to users. Capital equipment is much
more expensive and its purchase may involve more members of the organization
than purchase of accessory equipment. Marketing requirements are different as
more members of the organization must be reached by marketing efforts.


Write a short note on integrative nature of business marketing?
Answer Given

A high degree of interaction and cooperation is needed among members of a
value chain. Each member is both buyer and seller to other members of the chain,
which often results in a different form of relationship between buyer and seller
than in consumer markets. Customer retention and relationship building are
important elements of success in today's business marketing environment. For
relationships to be strong, the entire organization must be dedicated to solving the
needs and satisfying the wants of each business partner. Careful internal
integration and coordination are needed in relationship-building strategies.

Compare and contrast derived demand in business marketing and
consumer marketing?
Answer Given

Business marketers must recognize that the demand for their products and
services is derived demand; that is, demand for their products and services is
derived from the demand for their customers' products and services. Ultimately,
most demand is derived from consumer demand, the exception being demand
derived from government purchases such as arms sales. For suppliers to
manufacturers of consumer products, the issue of derived demand may not be too
great. In this situation, there is virtually a one-to-one relationship; for every
consumer product purchased, there is a one-to-one relationship with the supplier
of a component of that product.