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(Download PDF) Marketing International 17th Edition Hult Test Bank Full Chapter
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Chapter 8—Business Markets and Buying Behavior
ESSAY
1. What are the four major types of business markets, and what are the characteristics of each?
ANS:
Answer not provided.
ANS:
Answer not provided.
3. What are some of the major concerns of business customers in making purchase decisions?
ANS:
Answer not provided.
4. What factors affect the purchase method that business customers choose?
ANS:
Answer not provided.
5. Compare and contrast the three major types of purchases made by business customers.
ANS:
Answer not provided.
6. Discuss how demand for business products differs from demand for consumer products.
ANS:
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Answer not provided.
ANS:
Answer not provided.
8. Explain how purchase decisions for business products may be influenced by persons in a buying
center.
ANS:
Answer not provided.
9. Draw and label the framework that represents the business buying decision process and the factors that
influence it.
ANS:
Answer not provided.
10. In what ways do environmental factors affect the business buying decision process?
ANS:
Answer not provided.
11. How do a firm's objectives affect the business buying decision process?
ANS:
Answer not provided.
12. Discuss how interpersonal factors influence the business buying decision process.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS:
Answer not provided.
13. How do individual factors affect the business buying decision process?
ANS:
Answer not provided.
14. Compare and contrast the consumer buying decision process and the business buying decision process.
ANS:
Answer not provided.
15. In what ways can an industrial classification system be used by business marketers to analyze target
markets?
ANS:
Answer not provided.
16. What are the major advantages of the North American Industry Classification System (NAICS)
compared to the Standard Industrial Classification (SIC) system?
ANS:
Answer not provided.
SHORT ANSWER
17. A(n) ____________________ market consists of individuals or groups that purchase products for
resale, use in production, or daily operations.
ANS:
business
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PTS: 1 DIF: Difficulty: Easy OBJ: LO: 08-01
NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
MULTIPLE CHOICE
18. The three purposes for which individuals or groups can use products in order for it to be considered a
business market are
a. use in daily operations, end consumption, and resale.
b. direct use in producing other products, company travel, and end consumption.
c. resale, use in daily operations, and direct use in producing other products.
d. governmental, institutional, and reseller purposes.
e. making other products, selling to other businesses, making component parts.
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
19. In business markets, individuals or groups purchase products for one of three purposes. These
purposes are
a. resale, wholesale, and direct use.
b. wholesale, direct use, and use in producing other products.
c. resale, wholesale, and use in producing other products.
d. resale, direct use in producing other products, and use in general daily operations.
e. use in general daily operations, wholesale, and resale.
ANS: D PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
20. When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of
what type of market for electrical wire?
a. Resale
b. Wholesale
c. Customer
d. Consumer
e. Business
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
21. Business markets are typically divided into four categories. These categories are
a. retailers, wholesalers, services, and nonprofit firms.
b. producer, manufacturer, reseller, and government.
c. producer, reseller, government, and institutional.
d. manufacturer, wholesaler, retailer, and services.
e. reseller, retailer, government, and institutional.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
22. Individuals and business organizations that purchase products for the purpose of making a profit either
by using the products to produce other products or by using them in their operations are classified as
____ markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
23. An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n)
____ market.
a. consumer
b. producer
c. reseller
d. government
e. institutional
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
24. Individuals and business organizations that buy finished goods and resell them to make a profit
without changing the physical characteristics of the product are classified as ____ markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
ANS: E PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
25. ____ buy products from manufacturers and then resell the products to other firms in the distribution
system.
a. Retailers
b. Producers
c. Distributors
d. Warehouses
e. Wholesalers
ANS: E PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
26. Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that
includes some profit, and then sells the fruit and vegetables to the people in and around Centerville.
Mike's would be classified as part of a ____ market.
a. consumer
b. producer
c. government
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
d. reseller
e. wholesaler
ANS: D PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Application
27. Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of
manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc.
The company would be part of what type of business market?
a. Reseller
b. Producer
c. Consumer
d. Government
e. Supply
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
28. Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for
use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a
buyer in a(n) ____ market.
a. producer
b. government
c. reseller
d. construction
e. institutional
ANS: A PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
29. Retailers like Target and Kmart are considered to be members of which business market?
a. Reseller
b. Customer
c. Producer
d. Institutional
e. Services
ANS: A PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
KEY: Bloom's: Comprehension
31. Because retailers have to be concerned with product selection, price, and space, they often evaluate
products on the basis of
a. their markup.
b. sales per square foot of selling area.
c. how many of the product they can fit in a certain amount of space.
d. profit per dollar of selling price.
e. the reliability of the supplier.
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
32. Which type of business market tends to have the most complex buying procedures?
a. Reseller
b. Institutional
c. Retailer
d. Government
e. Producer
ANS: D PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
33. When the city of Chicago buys iPadsTM for its restaurant inspectors to use during their visits, the
purchase from Apple would be considered
a. a regulatory sale.
b. a reseller purchase.
c. a government purchase.
d. a producer purchase.
e. an institutional sale.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic | BUSPROG: Reflective Thinking
STA: DISC: Strategy KEY: Bloom's: Application
34. The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large
school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government
market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to
a. make a presentation appointment with the state.
b. quote prices to the purchasing department.
c. advertise in the capital city.
d. negotiate with the state.
e. secure a slot on the list of qualified bidders.
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
35. About what percentage of the annual U.S. gross domestic product is government spending?
a. 2 percent
b. 10 percent
c. 20 percent
d. 30 percent
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
e. 50 percent
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
36. A friend of yours starts his own business. He would like to expand his client base to include the
government, but he believes his small business would be ignored. Based on your knowledge from the
text, you tell him
a. that he's absolutely right, the government doesn't deal with small businesses.
b. although the government will deal with small businesses, he will never make a profit off a
government contract.
c. that any government, federal, state, or local would laugh at the size of his business.
d. the government rarely considers new suppliers when making purchasing decisions.
e. the government buys products from all sizes of business, but there is some red tape.
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
37. The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of
buying procedure is the government most likely to use?
a. The government will request bids from all companies on its qualified bidder list.
b. It will contact whatever company made the last jets and have them develop the new ones.
c. Ads will be placed in the top five circulated U.S. newspapers for a company to produce
the jets.
d. The government will select a few firms and enter into negotiations with them until the
contract is awarded.
e. The contract will go to the first company that submits a reasonable bid for the desired jets.
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
38. Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is
part of a(n) ____ market.
a. producer
b. consumer
c. reseller
d. institutional
e. government
ANS: D PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
39. When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and
the Red Cross make purchases for goods and services to use in their daily operations, they would be
considered to be _______ buyers.
a. corporate
b. government
c. institutional
d. producer
e. nonprofit
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-01 NAT: BUSPROG: Reflective Thinking STA: DISC: Customer
KEY: Bloom's: Comprehension
44. Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to
spray its warehouse for insects periodically. This practice is an example of
a. cost-benefit trading.
b. cooperative selling.
c. reciprocity.
d. supplier agreements.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
e. modified rebuy purchase.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic
STA: DISC: Strategy | DISC: Customer KEY: Bloom's: Application
46. Jason owns a small landscaping business called GreenScapes. When buying a new pickup truck for
his landscaping business, Jason negotiated with Palmetto Dodge, a dealer, with the agreement that
GreenScapes would be the service company Palmetto Dodge used for all of its landscaping needs.
This is an example of
a. a new task purchase.
b. a straight rebuy.
c. a modified rebuy.
d. reciprocity.
e. a straight purchase.
ANS: D PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Reflective Thinking
STA: DISC: Strategy | DISC: Customer KEY: Bloom's: Application
48. Many suppliers and their customers invest time and resources to build and maintain mutually
beneficial relationships which are often called
a. partnerships.
b. co-ops.
c. monopolies.
d. reciprocity.
e. alliances.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
49. Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a
mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely
manner. Raython and Thames's relationship could be best characterized as a(n)
a. reciprocity agreement.
b. partnership.
c. intra-organizational group.
d. alliance.
e. tying arrangement.
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
50. Which of the following is true with respect to buyers in business markets?
a. Business buyers always act rationally when making purchases for their company.
b. Business customers tend to be less informed about the products they purchase than
consumer buyers.
c. Business customers demand detailed information about a product's quality, features, or
technical specifications.
d. Business customers are no different than buyers in consumer markets.
e. Business customers tend to buy products from their friends and contacts with business
suppliers.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
51. When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a
variety of factors. Which one of the following is least likely to concern this buyer?
a. Does the quality of the goods meet company specifications?
b. Does the supplier consistently deliver on time?
c. Does the supplier also sell to my competitors?
d. Does the supplier offer the services required?
e. Does the price meet company budget requirements?
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
53. Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms
develop standards for ____ in order to achieve their quality goals.
a. how many different suppliers they use
b. how many parts can fail
c. controlling when shipments will arrive
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
d. the percentage of defects allowed
e. how long the parts should last
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
54. All of the following are important concerns of business customers except
a. achieving a specific level of quality in the products offered to target markets.
b. obtaining a level of quality that meets specifications.
c. obtaining products that exceed specifications to ensure the best possible product
performance.
d. obtaining products for which the quality level is consistent.
e. supporting customers with services they expect.
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Comprehension
55. Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This
upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called
a. descriptions.
b. product features.
c. criterion.
d. purchase requests.
e. specifications.
ANS: E PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
56. Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its
business accounts. How should the firm monitor the level of service these customers receive?
a. Develop a code of service.
b. Set service objectives.
c. Formally survey customers.
d. Specify service uniformity.
e. Stress truthfulness with employees.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Application
57. Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the
quality of service it provides. How should Johnson's identify these expectations?
a. Conduct market research.
b. Use management judgment.
c. Trace existing service levels.
d. Stress quality service with employees.
e. Train employees better.
ANS: A PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Application
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
58. A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for
Pillsbury will most likely use which buying method?
a. Description
b. Inspection
c. Sampling
d. Negotiation
e. Selection
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
59. Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He
would most likely base his purchase decision on ____ of the alternative machines.
a. descriptions
b. inspections
c. a sampling
d. specifications
e. reputations
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
60. Which method of business buying is most likely to be used when the products being purchased are
standardized based on certain characteristics?
a. Homogeneous selection
b. Inspection
c. Description
d. Sampling
e. Negotiation
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
61. A representative product taken from a lot or batch, evaluated, and purchased refers to
a. homogeneous selection.
b. description.
c. trust.
d. negotiated inspection.
e. sampling.
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
62. Which method of business buying is necessary when products are highly homogeneous and
examination of each item is not feasible?
a. Negotiation
b. Sampling
c. Description
d. Inspection
e. Homogeneous selection
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
63. St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances.
The hospital compiles a description of the project and then asks sellers to submit bids. After
determining the most attractive bids, the hospital will then work with two or three companies to
determine who will get the contract. This is an example of using ____ for a purchase decision.
a. sampling
b. negotiation
c. inspection
d. elimination
e. description
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Pricing
KEY: Bloom's: Application
64. Which of the following products is most likely to be purchased on the basis of contract negotiation?
a. Eggs
b. Office supplies
c. Used cars
d. A custom-made bulldozer
e. Wheat
ANS: D PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Pricing
KEY: Bloom's: Knowledge
65. Most business purchases can be classified as belonging to one of three types:
a. delinquent, repetitive, or delivered.
b. repetitive, new-task, or modified rebuy.
c. modified rebuy, new-task, or straight rebuy.
d. delinquent, new-task, or reciprocal.
e. rebuy, reciprocal, or delayed.
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Knowledge
66. The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the
trousers purchased from this supplier have not changed and have been bought every six months, in
seven different sizes. This example is called a
a. new-product purchase..
b. repetitive purchase.
c. straight rebuy.
d. modified rebuy.
e. standard order.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
KEY: Bloom's: Application
67. When a business is making its initial purchase of an item to be used to perform a new job, it is known
as a ____ purchase.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
a. straight rebuy
b. reciprocal
c. delayed
d. new-task
e. modified rebuy
ANS: D PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
68. Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of
company cars as part of its sales compensation package. For Perry Supply, these vehicles would
represent a ____ purchase.
a. modified rebuy
b. straight rebuy
c. new-task
d. reevaluated
e. repetitive
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
69. Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to
place its next order for another five machines, management wonders if additional features may be
needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts
represent a ____ purchase.
a. new-task
b. repetitive
c. straight rebuy
d. repetitive order
e. modified rebuy
ANS: E PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
70. A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how
much soft drink syrup the store will need. The restaurant's orders are an example of which type of
business purchase?
a. New-task
b. Modified rebuy
c. Straight rebuy
d. Bid
e. Negotiated
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
71. Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical
weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time
Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type
of purchase does this week’s purchase represent?
a. New-task
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
b. Repetitive
c. Institutional
d. Straight rebuy
e. Modified rebuy
ANS: E PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
KEY: Bloom's: Application
72. The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area.
The owners of Eagle Pawn have recently purchased a new software system designed to better track
their inventory. Now that they have had the system for a couple of months, they have decided to
upgrade to a newer version. The original purchase is an example of a(an) ________, while the current
purchase will be a(an) _____.
a. new task; modified rebuy
b. new task; continued new-task
c. contractual; modified rebuy
d. new task; straight rebuy
e. negotiated task; modified rebuy
ANS: A PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-02 NAT: BUSPROG: Reflective Thinking
STA: DISC: Product | DISC: Strategy KEY: Bloom's: Application
74. The fact that business customers purchase products to be used directly or indirectly in the production
of goods and services to satisfy customers' needs means that demand for business products is
a. joint.
b. economically stable.
c. derived.
d. inelastic.
e. more fluctuating.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Comprehension
75. Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the
company's business has declined because of the overall decrease in consumer demand for new cars. In
this case, the demand for Goodyear's tire products is said to be ____ since it depends on the demand
for new cars.
a. inelastic
b. fluctuating
c. derived
d. elastic
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
e. nonderived
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
76. Demand for business products is characterized as derived. From what is the demand derived?
a. Industrial demand
b. Modified demand
c. Demand for consumer products
d. Future product demand
e. The business cycle
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
77. All of the following describe the demand for business products except
a. elastic.
b. derived.
c. joint.
d. inelastic.
e. fluctuating.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
78. ____ is(are) a major threat to the sales success of jointly demanded products.
a. Price changes
b. Shortages
c. Economic instability
d. Inventory buildup
e. Proliferation of brands
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
e. supply for a given product cannot keep pace with the demand for it.
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
81. Christoff’s Lawn & Lot is a small business that provides landscaping and grass cutting services in the
spring and summer. Christoff’s usually contracts with customers on an annual basis, with the terms set
out at the beginning of the season. This year, the area experienced a significant amount of rain,
causing the grass to grow more quickly. Christoff’s was required to cut the grass every time it grew 2
inches, and no matter how many times it needed cutting, the customer paid the same monthly amount
based on the original contract. The price of gas has now grown by 35% causing Christoff’s to pay
more for their supplies. The demand for gas despite its price represents ________ demand for
Christoff’s Lawn & Lot.
a. elastic
b. inelastic
c. derived
d. joint
e. separate
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-03 NAT: BUSPROG: Reflective Thinking
STA: DISC: Customer | DISC: Pricing KEY: Bloom's: Application
82. In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is
ordering have increased $37.50 in price since the last order. South Side proceeds with the order,
confident that it can pass on the price increase to future customers. This is an example of business
products having ____ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
83. Demand for a business product is ____ when two or more items are used in combination to produce a
product.
a. inelastic
b. joint
c. fluctuating
d. derived
e. partnered
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
84. King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As
King places its order for truck tires with Michelin, it must also place an order for valve stems and
balancing weights for the tires. Such business products are characterized as having ____ demand.
a. derived
b. inelastic
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
c. joint
d. fluctuating
e. higher
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
85. When certain consumer products are in high demand, producers might buy extra materials and
equipment and when demand subsides, producers will cut back on their material purchases. This
describes ____ demand.
a. joint
b. inelastic
c. consumer
d. fluctuating
e. derived
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
87. In a buying center, purchasing agents or purchasing managers are also known as
a. gatekeepers.
b. deciders.
c. buyers.
d. users.
e. influencers.
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-04 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
88. The group of people within a business who are involved in making business buying decisions is
referred to as
a. the new-task team.
b. negotiators.
c. purchasing agents.
d. deciders.
e. the buying center.
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-04 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Comprehension
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
89. Your university has decided to purchase new computers for all of the computer labs on campus.
Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy.
However, for this purchase he as asked members of the student senate to give input on the purchase
decision. In this instance, the student senate would be acting as a(n) ____, while the purchasing agent
is a(an) ______.
a. user; buyer.
b. user; gatekeeper.
c. user; decider.
d. influencer; decider.
e. influencer; gatekeeper.
ANS: D PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-04 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
KEY: Bloom's: Application
90. Barry Gluckman of WP International, a major marketer of word-processing software, calls the
secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to
discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase
decision.
a. gatekeeper
b. buyer
c. decider
d. buying center captain
e. order giver
ANS: A PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-04 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
91. As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital
management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart
monitors. Sophie knows that she needs to be friendly with the administrative assistants in the
management offices in order to make sure that H & L’s information brochures and new product
diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge
that administrative assistants are often ________ in the buying decision process.
a. gatekeepers
b. users
c. influencers
d. buyers
e. controllers
ANS: A PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-04 NAT: BUSPROG: Reflective Thinking
STA: DISC: Strategy | DISC: Customer KEY: Bloom's: Application
92. The stages of the business buying decision process, in order, are
a. recognizing the problem, establishing product specifications, searching for products and
evaluating possible suppliers, selecting suppliers and products, and evaluating
performance.
b. recognizing the problem, searching for products and evaluating possible suppliers,
selecting suppliers and products, establishing product specifications, and evaluating
performance.
c. recognizing the problem, selecting suppliers and products, evaluating performance,
establishing product specifications, and searching for substitute products.
d. establishing product specifications, recognizing the problem, searching for products,
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
evaluating possible products and suppliers, selecting suppliers and products, and
evaluating performance.
e. establishing product specifications, searching for products, selecting suppliers and
products, evaluating performance, recognizing the problem, and evaluating possible
products and suppliers.
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
94. In its purchase of desktop business computers, Albertson's asked that potential suppliers provide
information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it
finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance,
the firm would need to modify which aspect of the purchase process?
a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-05 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
KEY: Bloom's: Application
95. After deciding to order replacement parts for aging machinery, the buyer for a construction company
examines catalogs and trade publications looking for these parts. The buyer is at which stage in the
business buying decision process?
a. Problem recognition
b. Product specification
c. Product-supplier search and evaluation
d. Product-supplier selection
e. Product-supplier post-evaluation
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
97. Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is
considering a machine that doesn't have as many functions but is available at a considerably lower
price than her current machine. She is engaged in ____ analysis.
a. vendor
b. downsizing
c. strategic
d. value
e. profit
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Application
98. During the search for products and evaluating possible suppliers stage of the business buying decision
process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly
item reduction in order to acquire the product in the most cost-effective way.
a. cost
b. value
c. profit
d. strategic
e. SWOT
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
99. ____ analysis is a systematic evaluation of current and potential suppliers that focuses on many
dimensions including price, product quality, delivery service, product dependability, and overall
company reliability.
a. Value
b. Vendor
c. Buying center
d. Strategic
e. Cost
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
100. An organization that decides to buy all of a certain part from the same company is using
a. single-supplier purchasing.
b. multiple sourcing.
c. same vendor analysis.
d. straight rebuy.
e. sole sourcing.
ANS: E PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
101. What are the four major categories of factors that influence business buying decisions?
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
a. Environmental, organizational, interpersonal, and individual
b. Environmental, organizational, psychological, and individual
c. Environmental, psychological, individual, and technological
d. Technological, organizational, environmental, and interpersonal
e. Environmental, organizational, technological, and individual
ANS: A PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
103. A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows
the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example
of ____ influence on the business buying decision process.
a. environmental
b. organizational
c. interpersonal
d. individual
e. demographic
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
105. Compared with the SIC system, the North American Industry Classification System (NAICS) will
a. look at many industries at one time.
b. be used throughout the world.
c. contain the most up-to-date information for the NAFTA partners.
d. provide less information about service industries.
e. generate statistics that will not be useful in comparing countries.
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-06 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
106. Which one of the following countries will not be included in the data presented in the new industry
classification system that is replacing the SIC?
a. Mexico
b. Canada
c. United States
d. Japan
e. All but one NAFTA country
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-06 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
107. Analysis of business input-output data by the federal government allows the government to have a
better understanding of the
a. cash flows that exist among industries.
b. raw materials and labor required to produce a given product.
c. amount of reinvestment that different industries use.
d. types of industries that purchase particular products.
e. growth projections for a given industry.
ANS: D PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-06 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Comprehension
109. Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty
firms in his territory that have some potential for using sizable quantities of his firm's products.
Wanting to be as efficient as possible, Ben looks in
a. Sales & Marketing Management.
b. an SIC listing.
c. the Census of Business.
d. the Census of Manufacturers.
e. Standard & Poor's Register.
ANS: E PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-06 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
Scenario 8.1
Use the following to answer the questions.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing
the production facility, it has a need for various pieces of equipment, including the perpetual assembly
belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division
is inquiring about who will be needed for input on the purchasing decision. Samsung has already
contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales
representatives.
110. Refer to Scenario 8.1. What type of business purchase is Samsung undertaking?
a. Modified rebuy
b. Straight rebuy
c. New-task
d. Straight purchase
e. New rebuy
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
111. Refer to Scenario 8.1. Which of the following groups should Samsung not include in its buying center
for the new equipment?
a. Purchasing agents at Samsung
b. Eventual users within Samsung
c. Potential future Samsung customers
d. Gatekeepers within Samsung
e. Senior managers at Samsung
ANS: C PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-04 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
112. Refer to Scenario 8.1. What was the first step of the buying decision process that Samsung went
through when looking for the quasi-assembly pods?
a. Searching for products and suppliers
b. Selecting and ordering the most appropriate product
c. Recognizing the problem or need
d. Establishing product specifications
e. Evaluating the product relative to specifications
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
113. Refer to Scenario 8.1. There are many factors that would influence Samsung's business buying
decisions. Which one of the following would not?
a. Environmental
b. Organizational
c. Interpersonal
d. Demographic
e. Individual
ANS: D PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Application
Scenario 8.2
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and
4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers
in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors
and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research
also shows that most of the dealers who sell directly to individual consumers are in the midwestern
states, while dealers who sell to small business landscaping companies tend to be located in the
northeastern states. Company executives are considering expansion of its distribution to markets in the
Midwest.
114. Refer to Scenario 8.2. When Precision Brake sells to the individual dealers, they would be considered
which of the following business types?
a. Producer
b. Reseller
c. Government
d. Institutional
e. Covert
ANS: B PTS: 1 DIF: Difficulty: Challenging
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Application
115. Refer to Scenario 8.2. Given the type of business market in which Precision Brake is currently
operating, which group would it be least likely to sell to?
a. Producers
b. Governments
c. Retailers
d. Consumers
e. Institutions
ANS: D PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Application
116. Refer to Scenario 8.2. When Precision Brake's sales team calls on tractor manufacturing companies,
the meetings typically include the engineers who design the tractors. In this situation, the engineers
would most likely be considered to be ____, part of the buying center.
a. gatekeepers
b. influencers
c. users
d. buyers
e. controllers
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-04 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
117. Refer to Scenario 8.2. Last year, Precision Brake's sales to the manufacturers of lawn tractors declined,
partially due to the fact that more consumers were hiring small landscaping businesses to cut their
grass. This decline in sales for Precision Brake is an example of
a. Product scarcity
b. Joint demand
c. Derived demand
d. Reciprocity demand
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
e. Inelastic demand
ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Application
TRUE/FALSE
118. Buyers in producer markets purchase either raw materials or semifinished products.
119. The four categories of consumer markets are producer, reseller, government, and institutional.
120. The owner of a trucking business, who buys gasoline from the nearby service station for the company
trucks, is a part of a business market.
124. Reseller markets consist of intermediaries that buy finished goods and resell them for profit.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-01 NAT: BUSPROG: Analytic STA: DISC: Customer
KEY: Bloom's: Knowledge
126. There is little or no difference between wholesalers' customers and retailers' customers.
128. The increase in government purchases has resulted partly from the increase in the number of services
provided by the government.
129. Government markets, although complicated in their requirements, can be very lucrative.
131. Orders placed by business customers are usually smaller and more numerous than consumer sales.
132. It is customary for contracts for raw materials and components to be negotiated semiannually.
133. Reciprocal dealing is widespread because it is one of the few avenues not regulated by the FTC, and it
facilitates optimal purchases.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
134. Ultimate consumers are generally more rational than business customers.
135. Business customers generally seek to obtain detailed information about a product before purchasing it.
136. Business customers are forced to satisfy personal goals in pursuits that lie outside their jobs.
137. Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by
helping their firms achieve organizational objectives.
138. When purchasing products, business customers are especially concerned about quality, service, price,
and supplier relationships.
139. One very important consideration for business purchases is the type of packaging used.
140. Price is of concern to a business marketer primarily because of its psychological impact on purchasing
agents.
141. If a business product exceeds specifications, so much the better; the customer can then be assured of
obtaining a minimum level of acceptability.
142. In some cases, the types of services offered by a supplier may constitute a primary advantage over
suppliers of similar products.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-02 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
143. On-time delivery is crucial to a business customer, since a late delivery may hold up a production line
or cause the firm to lose sales.
144. Inspection refers to a purchasing method in which a representative unit is taken from a lot and
evaluated, and the buying decision is based on the conclusions.
145. A new-task purchase is one in which the business makes an initial purchase of a new item.
146. Of the three types of business purchases, the straight rebuy purchase usually requires the most
information.
148. In the long run, business demand becomes totally unrelated to consumer demand.
149. The demand for many business products is inelastic at the industry level.
150. For business products, the concept of inelasticity of demand applies equally to industry demand for the
product and to demand for an individual supplier.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OBJ: LO: 08-03 NAT: BUSPROG: Analytic STA: DISC: Product
KEY: Bloom's: Knowledge
152. When the major component of an item experiences a price increase, the demand for the item may
become more elastic.
153. Sometimes initial demand for a business product will drop following a price cut if buyers believe that
further price reductions are forthcoming.
154. In industries in which price changes occur frequently, demand fluctuations have practically been
eliminated since buyers have become used to these changes and have learned to ignore them.
155. A fall in consumer demand for a product is likely to result in increased buying from suppliers as
consumer goods producers replenish depleted inventories and gear up for the next surge in consumer
demand.
156. The factors that influence business buying behavior are the same as those that influence consumer
buying behavior.
157. All companies, no matter what their size or market position, maintain only one buying center.
158. Problem recognition can be stimulated by external sources, such as trade shows or sales
representatives.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 08-04 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
159. In the buying decision process, one of the activities included in the search for products and suppliers is
examining catalogs and trade publications.
160. Specific details regarding terms, credit arrangements, and technical assistance are worked out during
the product specification stage of the buying decision process.
161. Value analysis focuses primarily on the examination of the cost of products relative to design, quality,
and materials used.
162. Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a
variety of dimensions including price, product quality, delivery service, product availability, and
overall company reliability.
163. The fourth stage in the business buying decision process is that of searching for products and suppliers.
164. Feedback acquired during the fifth stage of the business buying decision process is kept on file but not
used as a reference for future business purchase decisions.
165. The five-stage business buying decision process is used primarily for routine, straight rebuy purchases.
166. Interpersonal dynamics are easy to observe and simple for the marketer to assess.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 08-05 NAT: BUSPROG: Analytic STA: DISC: Strategy
KEY: Bloom's: Knowledge
167. The North American Industry Classification System includes all three NAFTA partners.
168. The old Standard Industrial Classification system is more comprehensive than NAICS.
169. All three NAFTA countries will convert to the NAICS over the next few years.
170. NAICS provides less information about service industries and high-tech products than did the SIC
system.
171. After finding out which industries purchase the major portion of an industry's output, the next step is to
begin production.
172. To obtain the names of specific potential customers, the business marketer is well advised to employ
the services of a commercial data company, since this is both cheaper and faster than any other
method.
173. Industrial classification systems allow marketers to divide business customers into groups based
mainly on the types of goods and services provided.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OBJ: LO: 08-06 NAT: BUSPROG: Analytic STA: DISC: Marketing Plan
KEY: Bloom's: Knowledge
175. When trying to estimate the purchases of a potential business customer, it is reasonable to suppose that
there is a relationship between the size of the potential customer's purchases and a variable such as the
number of personnel employed by the customer.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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ribs R are made of bamboo pieces, ¹⁄₁₆ in. square, 5 in. long for the
front plane, and 6 in. for the rear. These are bound and glued on top
of the spars, 3 in. apart. They are given a slight upward curve. The
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Fig. 1
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Procure two clear, straight-grained blocks of white pine, 8 in. long,
1¹⁄₂ in. wide, and ³⁄₄ in. thick. Draw a diagonal line on one block from
opposite corners, as shown at S, Fig. 3, then on the other block T,
draw the line in an opposite direction. Turn the blocks over and draw
opposite diagonals, as shown by the dotted lines. Draw a circle on
each side exactly in the center, ¹⁄₂ in. in diameter. Drill ¹⁄₁₆-in. holes
through the centers of the circles for the propeller shafts. The wood
is then cut down to the lines drawn, leaving only enough material so
that they will not break easily. The face of the blades should be flat
and the back rounded. Leave plenty of stock near the hub. After the
faces have been finished, the blades are shaped as shown at U. The
propellers should be finished with sandpaper to make them perfectly
smooth, as much of the success of the model will depend upon
them. It will be a good plan to shellac them, and also the frame and
the alighting gear. Aluminum paint costs but little, and it makes a fine
finish for a model aeroplane.
The propeller shafts V, Fig. 1, 2, and 4, are cut from bicycle
spokes. An eye for the rubber band is bent in the spoke, about 2 in.
from the threaded end. The end having the threads is run through
the bearing block C, Fig. 4, and the propeller fastened on with a
small washer on each side of it by means of two nuts, W, cut from a
bicycle nipple. These nuts may be turned up tightly with pliers.
The planes are covered with tissue paper put on tightly over the
tops of the ribs, using a flour paste. The planes are movably fixed on
the motor bases A by tying at the four points of contact with rubber
bands. This makes it possible to adjust the fore-and-aft balance of
the machine by changing the position of the planes.
The motive power, which is the most important part of the entire
machine, consists of rubber bands. There are three ways of
obtaining these bands. It is best, if possible, to purchase them from
an aeroplane supply house. In this case, procure about 100 ft. of ¹⁄₁₆-
in. square rubber, 50 ft. for each side. These are wound closely
between the hooks X. This rubber can be taken from a golf ball. It
will require about 40 strands of this rubber, which is removed by
cutting into the ball, on each propeller. Another way of obtaining the
bands is to purchase No. 19 rubber bands and loop them together,
chain-fashion, to make them long enough to reach between the
hooks without stretching. About 30 strands on each propeller will be
sufficient. The hooks X are made in the shape of the letter “S,” to
provide a way for taking out the rubber bands quickly. To prevent the
hooks from cutting the rubber, slip some ¹⁄₁₆-in. rubber tubing over
them. The rubber bands, or motor, when not in use, should be kept
in a cool, dark place and powdered with French chalk to prevent the
parts from sticking together.
Fig. 2
The Alighting Gear is Made Entirely of Bamboo and Attached to the Under
Side of the Motor Frame
With the model complete, flying is the next thing in order. With a
machine as large as this one, quite a field will be necessary to give it
a good flight. Test the plane by gliding it, that is, holding it up by the
propellers and bearing blocks on a level with your head and throwing
it forward on an even keel. Shift the planes forward or back until it
balances and comes to the ground lightly.
Winding up the propellers is accomplished by means of an eye
inserted in the chuck of an ordinary hand drill. While an assistant
grasps the propellers and motor bearings the rubber is unhooked
from the front of the machine and hooked into the eye in the drill.
Stretch the rubber out for about 10 ft., and as it is wound up, let it
draw back gradually. Wind up the propellers in opposite directions,
turning them from 400 to 800 revolutions. Be sure to wind both
propellers the same number of turns, as this will assure a straight
flight.
Fig. 3
The Most Difficult Part of Making the Propellers can be Overcome with a
Little Patience
If the machine fails to rise, move the forward plane toward the
front. If it climbs up suddenly and hangs in the air and falls back on
its tail, move it toward the back.
After the novelty of overland flights has worn off, try flights over the
water. To do this the wheels must be removed and four pontoons put
in their place, as shown by the dotted lines in Fig. 2. The pontoons
are made over a light frame, constructed as shown in Fig. 5. The
frame pieces are bamboo, ¹⁄₈ in. square. Each one is 8 in. long, 4 in.
wide, and 2 in. deep. The covering consists of writing paper glued in
place, after which the whole surface is covered with melted paraffin
to make it water-tight.
Fig. 5
Framework for Constructing Pontoons by Covering Them with Writing
Paper Soaked in Paraffin
Trammel Points Made of a Nail and a Brass Strip to Fit the Bar
Cut two pieces of brass, 4¹⁄₄ in. long, and straighten them with a
wood or rawhide mallet on a surface plate. Draw center lines both
ways through each piece and lay out the openings for the bar with a
sharp scriber, and make a center-punch mark for the ¹⁄₈-in. hole that
is to be drilled at the intersection of the center lines. Mark the lines
where the piece is to be bent, and with a pair of dividers lay out the
ends and shape them with a file.
The center hole and bar openings are next drilled, and the latter
finished by filing. It is better to plane up a short piece of hard wood,
¹⁄₄ by ¹³⁄₁₆ in., and use it as a gauge in filing the rectangular openings
than to try to make them by measurement. Polish the brass pieces
with a piece of fine emery cloth or paper, rubbing it in straight lines
lengthwise of the stock.
The bending is done by clamping the pieces in a vise and bending
first one side and then the other on the lines indicated. This will
require some care, as the upper ends should be 1¹⁄₄ in. apart on the
inside when the bending is complete. To insure the same angle on
both sides, a template of wood is used, and the pieces are carefully
bent to fit it.
The holes for the points are reamed tapering from the inside,
where they are riveted in place. The points are filed to shape and
polished, which is best accomplished in a lathe. Clamp one of the
points in an upright position in a vise with the shouldered end up.
Slip one of the brass pieces in place and rivet by upsetting the
projecting end with a light hammer.—Contributed by J. A. Shelly,
Brooklyn, N. Y.
Seeding Bare Spots on Lawns
A lawn that shows patches of grass with bare spots, or only partly
covered with grass can be sown with seed that will fill the uncovered
places by using the tool illustrated. It is made of a block of wood, 1
in. thick, into which several large nails are driven so that their ends
project about 1¹⁄₂ in. Another block is fastened on top of the nail
heads to keep them from pushing out of their holes. A handle is
attached to the latter block.
The tool is used by driving it into the earth where there is no grass,
or in thin places, and the grass seed is sprinkled into the holes. In
raking over the lawn the young grass is not so apt to be torn out and
destroyed before it gets a good root.—Contributed by Edmund H.
Trabold, Orange, N. J.
A Porch Swing
A Porch Swing Having a Rail That Incloses the Person Sitting in It
The seat of the swing consists of a board, 30 in. long, 14 in. wide,
and 1 in. thick, with holes bored in each corner for the ropes. The rail
at the top is made of four oak pieces, two of them 30 in. long, for the
sides, and the other two 18 in. long, for the ends; all 3 in. wide and
⁷⁄₈ in. thick. The ends of these pieces are finished rounding, and
holes are bored in them for the supporting ropes. The supports for
the rails consist of four pieces of ³⁄₄-in. pipe, 15 in. long. The ropes
are run through the holes in the ends of the rails, down through the
pipes and through the holes in the seat board, where they are
knotted.
A rope tied to a convenient post or screw hook makes a handy
way to give motion by pulling. To get into the swing, raise one of the
side rails on the rope.—Contributed by Ward M. Mills, Bakersfield,
Cal.
¶Cover the top and side of ice in a refrigerator with a piece of Canton
flannel, and the ice will last longer.
Sheepshank Knot Used to Recover Rope
Only a Small Portion of the Rope will be Left on the Projection