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Marketing Chapter 7 Multiple Choice

15 Questions
Management Quizzes & Trivia

Marketing terms chapter 7 multiple-choice

Questions and Answers
  • 1. 
    Which of the following is a business or organizational customer?
    • A. 

      Producers of goods and services.

    • B. 

      A retailer.

    • C. 

      A wholesaler.

    • D. 

      A government agency.

    • E. 

      All of the above are business and organizational customers.

  • 2. 
    In comparison to the buying of final consumers, the purchasing of organizational buyers:
    • A. 

      Is strictly economic and not at all emotional.

    • B. 

      Is always based on competitive bids from multiple suppliers.

    • C. 

      Leans basically toward economy, quality, and dependability.

    • D. 

      Is even less predictable.

    • E. 

      Both a and c are true statements.

  • 3. 
    • A. 

      Users.

    • B. 

      Buyers.

    • C. 

      Gatekeepers.

    • D. 

      Deciders.

    • E. 

      All of the above.

  • 4. 
    A large manufacturer is about to purchase a large supply of an unfamiliar chemical that will be used in the production of an important new product.  What kind of buying would the company be most likely to do?
    • A. 

      New-task buying

    • B. 

      Straight rebuy buying

    • C. 

      Modified rebuy buying

  • 5. 
    Close buyer-seller relationships in business markets can
    • A. 

      Lower total costs because of shared tasks.

    • B. 

      Reduce flexibility because of long-term commitments.

    • C. 

      Provide customers with inventory exactly when it's needed.

    • D. 

      Involve changes in a firm's product and procedures to satisfy just one customer.

    • E. 

      All of the above.

  • 6. 
    Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve:
    • A. 

      A reverse auction.

    • B. 

      A procurement site.

    • C. 

      Negotiated contracts.

    • D. 

      Competitive bids.

    • E. 

      All of the above.

  • 7. 
    An automobile manufacturer's practice of buying some of its raw materials from other manufacturers who in turn buy from it is an example of:
    • A. 

      A procurement site.

    • B. 

      Vendor analysis.

    • C. 

      Specification buying.

    • D. 

      Being "open to buy."

    • E. 

      Reciprocity.

  • 8. 
    People from sales, production, quality control, and finance are working with the purchasing department to select a new supplier.  The sales manager wants to select a supplier that is also a customer for some of the firm's own products.  The sales manager
    • A. 

      Is a gatekeeper.

    • B. 

      Is more likely to get his way if his company is located in Japan instead of the U.S.

    • C. 

      Is trying to use vendor analysis to his advantage.

    • D. 

      Is not a member of the buying center, so he can be ignored.

    • E. 

      None of the above.

  • 9. 
    B2B e-commerce sites include:
    • A. 

      Online marketplaces.

    • B. 

      Catalog sites.

    • C. 

      Collaboration hubs.

    • D. 

      Procurement sites.

    • E. 

      All of the above.

  • 10. 
    Which of the following NAICS codes would provide the most specific information about a sub-category of an industry?
    • A. 

      31

    • B. 

      315

    • C. 

      3152

    • D. 

      Cannot be determined without additional information.

  • 11. 
    If you obtain a customer's four digit NAICS code, you should know that:
    • A. 

      This firm might be manufacturing quite different products than other firms with the same number.

    • B. 

      The firm may also have a five digit code.

    • C. 

      A number of other firms probably have the same code.

    • D. 

      The firm may also have a six digit code.

    • E. 

      All of the above are true.

  • 12. 
    As contrasted with manufacturers, producers of services are:
    • A. 

      More geographically spread out.

    • B. 

      Growing fast domestically and internationally.

    • C. 

      More numerous.

    • D. 

      All of the above.

    • E. 

      None of the above.

  • 13. 
    • A. 

      In most retail operations, a "resident buyer" runs his own department--and his decision is final.

    • B. 

      Most retail buyers see themselves as purchasing agents for their target customers.

    • C. 

      Retail buyers make most purchases as straight rebuys.

    • D. 

      A retail buyer is usually "open to buy" only when s/he has not spent all of the budgeted funds.

    • E. 

      Resident buyers are independent buying agents who help producers and middlemen reach each other inexpensively.

  • 14. 
    Which of the following statements about bidding for government business is TRUE?
    • A. 

      Government buying needs are hard to identify--and their primary concern is with finding the lowest price.

    • B. 

      Government buyers avoid using negotiated contracts since they must purchase at a pre-set price.

    • C. 

      A government buyer may be forced to accept the lowest bid that meets the specifications.

    • D. 

      The biggest job of the government buyer is to locate enough potential suppliers so the bidding procedure works efficiently.

    • E. 

      All of the above are true statements.

  • 15. 
    The Foreign Corrupt Practices Act:
    • A. 

      Prohibits U.S. firms from paying bribes to foreign officials.

    • B. 

      Levies stiff penalties against people who pay bribes.

    • C. 

      Exempts managers whose agents secretly pay bribes.

    • D. 

      Was amended to allow small grease money payments if they are customary in that country.

    • E. 

      All of the above.