Chapter 4 Flashcards
1.
Which of the following is a key difference between Business-to-Business (B2B) and Business-to-Consumer (B2C) markets?
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A) B2C markets involve larger transaction amounts.
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B) B2B markets often have fewer customers but larger order quantities
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C) B2C markets rely more on personal selling.
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D) B2B markets have shorter decision cycles.
B) B2B markets often have fewer customers but larger order quantities
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What factor can heavily influence business buying decisions because B2B buyers are often overwhelmed with choices?
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A) Strict product standards
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B) Complex buying procedures
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C) Personal relationships with salespeople
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D) Extensive technical specifications
C) Personal relationships with salespeople
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What is “derived demand” in the context of B2B markets?
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A) Demand for a product that is directly sold to consumers.
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B) Demand for a product that arises from the demand for another product
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C) Demand that fluctuates due to economic conditions.
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D) Demand that is jointly determined by two or more products.
B) Demand for a product that arises from the demand for another product
Which of the following is NOT one of the four basic categories of B2B buyers?
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A) Producers
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B) Resellers
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C) Governments
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D) Consumers
D) Consumers
What is the primary role of “influencers” in a B2B buying centre?
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A) To make the final purchasing decision.
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B) To control the flow of information to the buying centre.
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C) To provide expertise and recommendations to improve the buying decision.
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D) To use the product and provide feedback after the purchase.
C) To provide expertise and recommendations to improve the buying decision.
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In the context of B2B buying, what is an RFP?
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A) A request for payment.
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B) A review of financial performance.
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C) A request for proposals from potential suppliers
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D) A record of past purchases.
C) A request for proposals from potential suppliers
What is the main goal of ethics training for employees in B2B markets?
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A) To increase sales and profits
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B) To provide guidelines for ethical behaviour in tricky situations
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C) To encourage gift-giving to potential clients
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D) To ensure compliance with international regulations only.
B) To provide guidelines for ethical behaviour in tricky situations
What is a “straight rebuy” in B2B purchasing?
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A) A situation where a company purchases a product for the first time.
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B) A routine purchase of the same product in the same quantities from the same vendor
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C) A purchase where the buyer modifies the product specifications.
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D) A purchase made from a new supplier to create competition.
B) A routine purchase of the same product in the same quantities from the same vendor
How does e-commerce affect B2B markets?
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A) It reduces competition by limiting the number of suppliers.
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B) It makes it easier for sellers to raise prices.
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C) It increases competition and makes it difficult for sellers to raise prices
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D) It makes the location of sellers more important.
C) It increases competition and makes it difficult for sellers to raise prices
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What is the role of a “gatekeeper” in the B2B buying process?
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A) The final decision-maker.
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B) The primary user of the product.
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C) To control access to key decision-makers and information
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D) To provide technical expertise.
C) To control access to key decision-makers and information
What does “cannibalization” refer to in the context of product lines and branding?
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A) Improving an existing brand name or brand mark.
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B) Creating a new product category.
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C) When a new product reduces sales of a company’s existing products
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D) Using a brand name for a new product category.
C) When a new product reduces sales of a company’s existing products
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What are the three C’s to consider when setting a price?
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A) Control, costs, consumer
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B) Consumer, consistency, costs
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C) Customer, Competitor, Costs
C) Customer, Competitor, Costs
What are two basic pricing strategies?
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A) High-low, medium
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B) Customer based, consistent
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C) Skimming, penetration
C) Skimming, penetration
Which of the following describes “smart packaging”?
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A) Packaging that is minimalist and environmentally friendly.
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B) Packaging designed for easy opening and closing.
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C) Packaging with embedded technology that adds value to consumers or producers.
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D) Packaging that uses recycled materials.
C) Packaging with embedded technology that adds value to consumers or producers.
What is the RATER model primarily used for?
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A) Evaluating the features of a tangible product.
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B) Assessing the key dimensions of service quality
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C) Determining the total cost of ownership.
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D) Measuring brand equity.
B) Assessing the key dimensions of service quality
According to the sources, what is the best medium for repurchase and brand loyalty?
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A) Billboards
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B) TV Advertising
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C) Digital Media
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D) Public Relations
C) Digital Media
Which of the following is a challenge for B2B companies that use social networks for marketing?
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A) Social networks are too expensive to use for B2B marketing.
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B) B2B companies already know how to use social networks.
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C) Figuring out which social networks work better for what purposes
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D) It is difficult to measure the results of B2B social media marketing.
C) Figuring out which social networks work better for what purposes
What is the main benefit of a brand extension?
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A) Increasing the price of existing products
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B) Limiting the risk of new product failures
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C) Utilizing an existing brand name for a new product category
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D) Avoiding cannibalization.
C) Utilizing an existing brand name for a new product category
What is the total cost of ownership?
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A) The initial purchase price of a product
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B) The cost of maintaining a product over its lifecycle
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C) The amount paid to own, use, and dispose of a product
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D) The price paid for a product’s benefits
C) The amount paid to own, use, and dispose of a product
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What is a key difference between B2B and B2C markets?
a) B2C markets have more rigid product standards.
b) B2B markets typically involve larger dollar amounts due to more transactions.
c) B2C markets rely more on personal selling.
d) B2B markets have shorter decision cycles.
b) B2B markets typically involve larger dollar amounts due to more transactions
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Which of the following is an example of derived demand?
a) Increased consumer spending on luxury goods.
b) An increase in demand for steel due to rising automobile production.
c) A decrease in demand for coffee because of a new tea product on the market.
d) Government investment in renewable energy sources.
b) An increase in demand for steel due to rising automobile production
What are the four basic categories of B2B buyers?
a) Retailers, wholesalers, consumers, and government.
b) Producers, consumers, institutions, and retailers.
c) Producers, resellers, governments, and institutions.
d) Manufacturers, service providers, government, and consumers.
c) Producers, resellers, governments, and institutions
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What is the role of a “gatekeeper” in a buying centre?
a) To make the final purchasing decision.
b) To control the flow of information and access to key decision-makers.
c) To influence the buying decision with their technical expertise.
d) To use the product and provide feedback.
b) To control the flow of information and access to key decision-makers
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What is an RFP (Request for Proposal)?
a) A marketing strategy.
b) An invitation to submit a bid to supply a good or service.
c) A type of post-purchase evaluation.
d) A method for analysing consumer behaviour.
b) An invitation to submit a bid to supply a good or service
Which of the following is an important aspect of evaluating RFPs?
a) The vendor’s social media presence.
b) The personal relationship with the sales representative.
c) The agreed-upon criteria and the importance of each criterion.
d) The vendor’s location.
c) The agreed-upon criteria and the importance of each criterion
What is a “straight rebuy” situation?
a) Purchasing a new product for the first time.
b) Modifying a previous purchase order.
c) Buying the same product in the same quantity from the same vendor.
d) Soliciting bids from multiple sellers for a product.
c) Buying the same product in the same quantity from the same vendor
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What is the purpose of supplier scorecards?
a) To track employee performance.
b) To provide vendors with regular feedback on their performance.
c) To evaluate potential new suppliers.
d) To manage inventory levels.
b) To provide vendors with regular feedback on their performance
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What is the meaning of the term “market segments”?
a) Selling the same product to everybody.
b) How your offering’s product, price, promotion and place compare to others in the marketplace.
c) The process of plotting geographic marketing information on a map.
d) Dividing or segmenting people and organizations into different groups of potential buyers with similar characteristics
d) Dividing or segmenting people and organizations into different groups of potential buyers with similar characteristics
What are “evaluative criteria” in the context of the buying process?
a) Rules of thumb that buyers use to make quick decisions.
b) Feelings of doubt after making a purchase.
c) Certain characteristics that are important to you.
d) The steps a consumer takes when purchasing a product
c) Certain characteristics that are important to you
What is the meaning of “customer lifetime value?”
a) Thirty-second “elevator pitch” stating specific benefits a product or service offering provides a buyer.
b) A guide for marketing strategies.
c) The total monetary value of a customer over the customer’s lifetime.
d) The process of dividing or segmenting people and organizations into different groups of potential buyers
c) The total monetary value of a customer over the customer’s lifetime.
3.
What are the key components of the RATER model used to evaluate services?
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a) Reliability, Assurance, Tangibles, Empathy, Responsiveness.
b) Research, Analysis, Testing, Execution, Revision.
c) Reach, Acquisition, Retention, Engagement, Sales.
d) Resources, Activities, Tangibles, Expertise, Relationships.
a) Reliability, Assurance, Tangibles, Empathy, Responsiveness.
What is the meaning of “Value Proposition?”
a) A succinct statement of why consumers buy your brand.
b) How much marketing you can spend.
c) Setting market segments to pursue with plans.
d) Creating a preferred position of the company’s products in the minds of consumers.
a) A succinct statement of why consumers buy your brand.
A small business owner is struggling to define the unique value of their product compared to competitors. Which of the following should they develop to clarify this?
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a) A mission statement
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b) A SWOT analysis
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c) A value proposition
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d) A marketing plan
c) A value proposition
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A company is determining how to allocate resources among its various strategic business units. Which tool would be most helpful in making these decisions?
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a) SWOT analysis
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b) PEST analysis
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c) The Boston Consulting Group (BCG) Matrix
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d) Competitive analysis
c) The Boston Consulting Group (BCG) Matrix
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A marketing team needs to understand how changes in government regulations might impact their marketing plan. Which analysis should they use?
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a) SWOT analysis
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b) Competitive analysis
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c) Customer segmentation
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d) PEST analysis
d) PEST analysis
A company wants to launch a new product in a limited area to get real-world feedback before a full launch. Which forecasting method is being applied?
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a) Trend analysis
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b) Executive opinions
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c) Sales force composite
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d) Market test
d) Market test
A business is trying to improve customer satisfaction and wants to focus on key dimensions of service. Which model should they use?
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a) SWOT analysis
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b) PEST analysis
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c) RATER model
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d) BCG matrix
c) RATER model
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A company notices that customer demand fluctuates significantly based on small changes in consumer behaviour. This is an example of what?
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a) Joint demand
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b) Derived demand
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c) Fluctuating demand
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d) Price elasticity
c) Fluctuating demand
A marketing manager is trying to understand the lifestyle and values of potential customers. Which type of segmentation would be most useful?
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a) Geographic
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b) Demographic
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c) Psychographic
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d) Behavioral
c) Psychographic
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A company wants to segment its market based on the benefits customers seek from their products. Which segmentation approach is most relevant?
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a) Geographic
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b) Demographic
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c) Psychographic
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d) Behavioral
d) Behavioral
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A business is assessing its internal strengths and weaknesses along with external opportunities and threats. Which tool are they using?
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a) Marketing plan
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b) SWOT analysis
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c) Value proposition
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d) Distribution plan
b) SWOT analysis
A firm is determining the features and benefits of a new offering, as well as its pricing options. In which section of the marketing plan would this information be detailed?
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a) Executive Summary
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b) The Market
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c) The Value Proposition and Strategy
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d) Budget
c) The Value Proposition and Strategy
A consumer is making an automatic purchase decision based on past experience. What type of buying behaviour is this?
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a) Impulse buying
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b) Extended problem solving
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c) Limited problem solving
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d) Routine response behaviour
d) Routine response behaviour
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A company uses customer surveys and sales data to predict future sales. Which forecasting technique are they using?
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a) Executive opinions
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b) Judgment and survey techniques
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c) Time series techniques
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d) Market tests
b) Judgment and survey techniques
A business is assessing the degree to which its marketing plan is being implemented as intended. What is this assessment called?
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a) Marketing strategy
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b) Fidelity
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c) Marketing ROI
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d) Market segmentation
b) Fidelity
An organisation is determining which social media platform would be best for promoting their business. Which of the following should they consider?
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a) The social media platform with the most users.
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b) Having online or offline conversations with your customers about what social networks they use and where they go on the web to find information.
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c) Only using the most popular social media platforms.
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d) The social media platform that their competitors use.
b) Having online or offline conversations with your customers about what social networks they use and where they go on the web to find information.
A company is assessing different countries to expand their business and wants to understand the economic factors, demographic trends, and cultural norms. Which type of environment is the company analyzing?
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a) Micro environment
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b) Macro environment
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c) Internal environment
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d) Competitive environment
b) Macro environment
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A company is determining the criteria to classify and divide buyers into different groups. Which of the following are they establishing?
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a) Targeting segments
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b) Segmentation bases
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c) Positioning strategy
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d) Marketing mix
b) Segmentation bases
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When entering a new foreign market, a business discovers that gift-giving is expected to develop a business relationship, but the practice is considered unethical in their home country. What should the company do?
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a) Ignore the foreign market’s cultural norms and refuse to participate in gift-giving.
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b) Comply with the foreign market’s expectations by offering lavish gifts.
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c) Publicly denounce gift-giving as unethical to set a moral example.
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d) Understand the laws and regulations that apply to their firm in the foreign market and act accordingly.
d) Understand the laws and regulations that apply to their firm in the foreign market and act accordingly
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A business wants to create a thirty-second “elevator pitch” stating the specific benefits of a product or service offering and why it is superior to competing offers. Which of the following are they creating?
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a) Mission statement
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b) Value proposition
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c) Marketing plan
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d) Communication plan
b) Value proposition
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A consumer buys the same brand of coffee every week without much thought. What type of buying behaviour is this?
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a) Routine response behaviour
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b) Impulse buying
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c) Extended problem solving
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d) Limited problem solving
a) Routine response behaviour
A marketing team is using ethnography to study consumer behaviour. What does this involve?
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a) Analyzing sales data to identify trends.
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b) Conducting large-scale surveys to gather quantitative data.
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c) Observing and interacting with consumers in their natural environment.
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d) Running controlled experiments in a lab setting.
c) Observing and interacting with consumers in their natural environment
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A high-end fashion brand limits its distribution to exclusive boutiques and flagship stores. Which type of consumer offering does this represent?
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a) Convenience
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b) Shopping
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c) Unsought
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d) Specialty
d) Specialty
A business is creating a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience - and, ultimately, to drive profitable customer action. What kind of marketing is this?
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a) E-commerce
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b) Metrics and analytics
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c) Digital marketing
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d) Content marketing
d) Content marketing
Which one of the following is NOT one of the “Big Five” personality traits?
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a) Openness
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b) Conscientiousness
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c) Extraversion
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d) Conservativeness
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e) Agreeableness
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f) Neuroticism
d) Conservativeness
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What is the goal of planned obsolescence?
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a) To create more durable products.
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b) To improve a company’s sales by reducing the amount of time between repeat purchases.
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c) To reduce waste and promote sustainability.
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d) To offer longer warranties on products.
b) To improve a company’s sales by reducing the amount of time between repeat purchases
Your company has been asked to provide a bid outlining what your company is able to offer in terms of its product’s quality, price, financing, delivery and after-sales service. What is this known as?
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a) Request for proposal (RFP)
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b) Postpurchase evaluation
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c) B2B auction
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d) Buying centre
a) Request for proposal (RFP)
Your company buys the same product in the same quantities from the same vendor. What is this situation called?
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a) Straight rebuy
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b) New-buy
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c) Modified rebuy
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d) Reverse auction
a) Straight rebuy
Instead of buying a product from multiple sellers that go there to do business with the firm, your company uses a website in which a single seller sells products to many different buyers. What is this known as?
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a) Buy-side site
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b) B2B exchange
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c) B2B auction
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d) Sell-side site
d) Sell-side site
The demand for B2B products is based on what?
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a) Derived demand
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b) Fluctuating demand
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c) Joint demand
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d) Reverse auctions
a) Derived demand
