Chapter 6 – Analyzing Business Markets

Topics: Marketing, Psychographic, Market segmentation Pages: 99 (23854 words) Published: November 11, 2008
Chapter 6 – Analyzing Business Markets

True/False Questions

1. SAP is a German software company that helps businesses automate their finance and management systems. True (easy) pp. 101–102

2. Organizational buying is the decision-process by which organizations establish and satisfy their needs for goods and services. True (moderate) p. 102

3. Mining, manufacturing, banking, and distribution services are all considered part of the business market. True (easy) p. 102

4. Schools and prisons are considered institutional buying organizations and they tend to have captive clienteles and limited budgets. True (moderate) p. 102

5. Characteristics of business markets include that there are more buyers and larger buyers. False (moderate) p. 103, Table 6.1

6. When compared to the consumer market, the demand for goods and services in the business market is derived. True (moderate) p. 103, Table 6.1

7. In selling to the government, the contract is always awarded to the lowest bidder. False (difficult) p. 104

8. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation. True (moderate) p. 104

9. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation. True (moderate) p. 104

10. A “straight rebuy” is a more complex process than a “new task” because the firm is limited to an approved list of vendors. False (moderate) pp. 104–105

11. One key thing to keep in mind when marketing across cultural boundaries is that all people are NOT basically alike. True (moderate) p. 107

12. A secretary who prevents salespersons from contacting users or deciders is playing a gatekeeper role. True (easy) p. 107

13. Interpersonal factors have almost no influence in business purchasing decisions. False (moderate) p. 107

14. The business buying process is influenced by environmental, organizational, and individual factors. True (moderate) p. 107

15. Reading an advertisement about a new business service in a trade magazine to which the purchasing agent subscribes would be an example of how a problem might be recognized in an organizational setting. True (moderate) p. 109

16. Even if a supplier firm has the capacity to deliver a business product or service, that supplier might NOT be allowed to submit a proposal in the buying process. True (difficult) p. 110

17. When responding to a request for a written proposal, a business marketer should remember the document is primarily a technical document explaining the features of the product. False (moderate) p. 110

18. Product value analysis can involve determining which components can be made cheaper through redesign or standardization, while keeping the same performance level of those components. True (moderate) p. 110

19. In the negotiation process, if the potential supplier is faced with the lower price of a competitor, he or she should always lower his/her price. False (moderate) p. 111

20. A blanket contract or stockless purchase plan establishes a long-term relationship in which the buyer promises to buy all the stock of a particular seller at agreed-upon prices. False (moderate) p. 111

Multiple Choice Questions

21. The business market differs from the consumer market in that __________. a. more mass media are used to communicate with the business market b. it is a much larger market with many more buyers than the consumer market c. it is a much smaller market in dollar volume than the consumer market d. more product customization takes place in the consumer market e. it acquires goods or services in order to use them for another purpose, as opposed to acquiring goods or services for personal consumption (difficult) p. 102

22. Organizational buying is __________.
a. the process by which organizations recognize their needs for goods and services b. a way a company can produce a greater variety of high-quality products at lower cost, in less...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Business Market Essay
  • International Business Chapter 6 Quiz Essay
  • Unit 6 Business Decision Making Essay
  • Chapter 1 – Business Markets and Business Marketing Essay
  • Essay on Analyzing Market Segments
  • chapter 6 Essay
  • Chapter 6 Essay

Become a StudyMode Member

Sign Up - It's Free