Questions and Answers
Gorton's buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's belongs in which of the following markets?
Which of the following markets includes wholesalers or retailers?
Which of the following markets may have complex buying procedures due in part to their public accountability?
The North American Industry Classification System is a(n) _________________.
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To estimate the purchase potential of business customers, a marketer must find a relationship between a variable available in industrial classification data, such as number of employees, and the size of ____________________.
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Commodities and raw materials are typically purchased using which method of business buying?
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ACME Corp. has ordered widgets from Wiley Widgets several times before, but now it would like Wiley Widgets to offer a lower per-unit price in exchange for a larger order. ACME is using which of the following types of business purchases?
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A price increase or decrease does not significantly alter demand for a product with ____________.
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The group of people within an organization who make business buying decisions are best described as ______________.
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Purchasing agents at ACME Corp. are looking in company files and trade directories, websites, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. They are in which of the following stages of the buying decision process?
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Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as __________________.
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Online marketing efforts make the buying process far more efficient because it ________ and _______.
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Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as __________________.
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When a business buyer invites vendors to bid to supply a specified good or service in competition with each other, with the lowest bidder winning the right to sell to the buyer, this is best described as
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An iPad is part of the ________ when bought by end users, but it is part of the __________ when a salesperson purchases it to take orders.
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What type of factors likely influenced Levi as the chief decision maker for his company to go with the supplier?
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Companies like Target and JCPenney sometimes participate in a(n) _________ for the retail industry, which acts as a neutral third party and charges a fee for providing a trading forum.
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What is Michael's role in the buying center?
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Which of the following companies would be most likely to target government markets?
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Which of the following is most likely to be a benefit of reciprocity?
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Which method of buying does Levi use?
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Suppose a church representative stops by looking for a coffee maker. She wants to buy the coffee maker with church funds and use it to brew fresh coffee for church visitors. The woman is a part of which market?
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What type of purchase is Levi using when he orders another shipment of frying pans, switching from cast iron to aluminum?
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Walmart developed an infrastructure for its supply chain called SupplierLink that it placed on the Internet. SupplierLink combines information on purchasing, inventory, negotiating, and more. This is an example of a(n) ____________________.
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Michael occupies which roles in the buying center?
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What do industry classification systems do for the marketer?
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A janitorial service firm purchases Clorox supplies to use in cleaning places like schools and office buildings. This type of customer would be an example of what type of market for Clorox?
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The sales department of a consumer products organization realized that its rivals were adopting new customer relationship management software to keep better track of their prospects. The director of the sales department decided it would also purchase the CRM software to keep up with its rivals. This is an example of what type of force affecting business buying behavior?
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_____________ and ______________ are part of the reseller market.
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Buyers of industrial equipment would most likely use sampling as their purchase method.
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FedBid is a reverse online auction site for government agencies. A reverse auction is initiated by the buyer, who invites businesses to bid to supply the specified good or service in competition with each other.
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Christina manages the accounting department of a consumer electronics firm. In this example of a buying center, Michael occupies both the buyer and the decider roles.
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NAICS is the industrial classification system used by the majority of countries across the world.
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Vendor analysis takes place during the development of the product specifications stage of the business buying decision process.
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Study Notes
Business Markets and Buying Types
- Gorton's operates in the producer market by purchasing large quantities of fish for frozen dinners.
- Reseller markets consist of wholesalers and retailers, serving as intermediate channels for goods.
- Government markets feature complex buying procedures due to public accountability.
Industry Classification Systems
- The North American Industry Classification System (NAICS) provides a standardized method to categorize industries in the U.S., Canada, and Mexico for statistical purposes.
- Marketers utilize industry classification systems to categorize organizations based on the types of goods and services they provide, aiding in market analysis.
Purchasing Potential and Buying Processes
- Marketers estimate business customers' purchasing potential by analyzing relationships between variables like the number of employees and potential customers' purchases.
- Commodities and raw materials are purchased primarily through the description method.
- A modified rebuy purchase occurs when a buyer requests different terms, like a lower unit price for a larger order.
Demand Types and Buying Center
- Products with inelastic demand show little change in demand despite price fluctuations.
- The buying center consists of individuals involved in organizational purchasing decisions, including buyers and influencers.
Stages of the Buying Decision Process
- The process includes stages such as searching for and evaluating potential products and suppliers, where purchasing agents gather information from various sources.
- Value analysis assesses product quality and cost-effectiveness to optimize purchasing decisions.
B2B E-Commerce and Auctions
- B2B e-commerce sites facilitate transactions, enabling buyers and sellers to connect for information exchange and purchases.
- A reverse auction occurs when buyers invite vendors to compete for supplying goods, awarding the contract to the lowest bidder.
Market Types and Purchasing Methods
- Consumer market and business market distinctions are crucial; products can shift between the two depending on the end-user context (e.g., an iPad).
- Institutional markets serve establishments like churches, which purchase goods for public use.
- Sampling is not typically used for industrial equipment purchases; other methods like negotiation or description are preferred.
Examples and Scenarios
- Levi's long-term relationship with his supplier leads to a description method of purchasing due to trust and familiarity.
- Environmental forces, like competitive pressures, can influence a company’s buying behavior, as seen with the sales department adopting new CRM software.
- The secretary in a buying center can act as a gatekeeper, controlling access to decision-makers like Michael in the purchasing scenario.
Miscellaneous
- Reciprocity in business relationships can lead to stronger ties, fostering mutual support and trust.
- Independent B2B exchanges provide neutral platforms for businesses to engage in trading and other transactions.
True/False Statements
- A statement clarifying that the statement about FedBid being a reverse online auction site for government agencies is true; a reverse auction is buyer-initiated.
- NAICS is not universally adopted as the primary industrial classification system worldwide, hence the statement regarding its use in most countries is false.
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Description
Test your knowledge on business markets and the different types of buying processes. This quiz covers the distinctions between producer, reseller, and government markets, as well as the role of industry classification systems. Evaluate your understanding of purchasing potential and market analysis strategies.
