Ch. 7 - Business Marketing

Question 1

Business marketing (industrial, business-to-business, B-to-B, or B2B marketing)

Answer 1

The marketing of goods and services to individuals and organizations for purposes other than personal consumption

Question 2

Business product (industrial product)

Answer 2

A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers

Question 3

Consumer product

Answer 3

A product bought to satisfy an individual’s personal wants or needs

Question 4

Business-to-business electronic commerce (B-to-B or B2B e-commerce)

Answer 4

The use of the internet to facilitate the exchange of goods, services, and information between organizations

Question 5

Stickiness

Answer 5

A measure of a Web site’s effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit (site reach)

Question 6

Strategic alliance (strategic partnership)

Answer 6

A cooperative agreement between business firms

Question 7

Relationship commitment

Answer 7

A firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely

Question 8

Trust

Answer 8

The condition that exists when one party has confidence in an exchange partner’s reliability and integrity

Question 9

Keiretsu

Answer 9

A network of interlocking corporate affiliates

Question 10

Original equipment manufacturers (OEMs)

Answer 10

Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers

Question 11

North American Industry Classification System (NAICS)

Answer 11

A detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes

Question 12

Derived demand

Answer 12

The demand for business products

Question 13

Joint demand

Answer 13

The demand for business products

Question 14

Multiplier effect (accelerator principle)

Answer 14

Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product

Question 15

Business-to-business online exchange

Answer 15

And electronic trading floor that provides companies with integrated links to their customers and suppliers

Question 16

Reciprocity

Answer 16

A practice whereby business purchasers choose to buy from their own customers

Question 17

Major equipment (installations)

Answer 17

Capitol goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

Question 18

Accessory quipment

Answer 18

Goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

Question 19

Raw materials

Answer 19

unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish

Question 20

Component parts

Answer 20

Either finished items ready for assembly or products that need very little processing before becoming part of some other product

Question 21

Processed materials

Answer 21

Products used directly in manufacturing other products

Question 22

Supplies

Answer 22

Consumable items that do not become part of the final product

Question 23

Business services

Answer 23

Expense items that do not become part of a final product

Question 24

Buying center

Answer 24

All those people in an organization who become involved in the purchase decision

Question 25

New Buy

Answer 25

A situation requiring the purchase of a product for the first time

Question 26

Modified rebuy

Answer 26

A situation in which the purchaser wants some change in the original good or service

Question 27

Straight rebuy

Answer 27

A situation in which the purchaser reorders the same goods or services without without looking for new information or investigating other suppliers