Exam 1 Flashcards
When a bakery bakes bread, the baker must use yeast as there is no substitute for it. Thus, the bakery’s demand for yeast is:
Inelastic
What do OEMs do with the purchased product?
Incorporate it into their finished product
A manufacturer runs a television advertisement at the final consumer, even though the manufacturer only sells its products to organizations at the wholesale or retail level. This addresses which characteristic of business demand?
Stimulating demand
B2B demand for steel and aluminum is primarily determined by consumer demand for automobiles and appliances made using these products. Thus, the demand for aluminum can be described as:
derived
The demand for business products is based upon the demand for consumer products, This describes the concept of:
derived demand
Which of the following typically are used to maintain the buyer’s organization?
facilitating products
Which of the following do become part of the buyer’s finished product?
entering goods
B2B markets usually are much less concerned about price than consumer markets. This means that the price demand in consumer markets is relatively _____ when compared to B2B markets
elastic
Personal computers are typically considered to be:
Foundation goods
Most Coca-Cola Bottling companies produce the Diet Coke. These bottlers purchase a product NutraSweet that is incorporated directly into the product. In relation to NutraSweet, the bottlers would be considered ______.
OEMs
NAFTA stands for
North American Free Trade Agreement
You’ve outsourced your legal affairs to the same law firm since the firm opened 15 years ago. Recently, one of your delivery trucks was involved in an accident with a passenger vehicle. You are being sued by the driver of the passenger vehicle and have decided to use the same law firm to represent you that you’ve always used. What type of buying situation would this be?
complex modified rebuy
Which member of the buying center controls access and information flow to the decision-maker
Gatekeeper
Which vendor rating system would good vendors prefer that buyers use to evaluate vendor performance
cost-ratio plan
You have decided to replace the Samsung Galaxy S9s that your salespeople have been using out in the field with new Samsung Galaxy S10s. You are most likely in which type of buying situation?
modified rebuy
Which of the following contract types offers the least profit potential for a seller?
Cost-reimbursement
A firm that knows the specs of a product that it seeks will most likely issue a(n) ___ as its call-for-bids
RFQ
As per the complexity of the buying situation concept in the Buy-Grid Analysis Framework, buyers that are in New Task Buy situations most likely need the greatest help in
Recognizing the need
Which of the methods for evaluating vendor performance recognizes that not all buying criteria are of equal importance?
weighted-point plan
Extensive problem solving occurs in which buying situations
New task buy
With which of the following would you develop a lateral partnership?
Competitors
What type of exchange relationship are you most likely to develop with your customer if the complexity of the purchase is low?
transactional
According to the whale curve concept, we lost 75% of our profits with what percentage of our customers?
20%
Which of the following is likely with low-cost-to-serve customers?
electronic processing
The ability of an interfirm relationship to achieve desired objectives is known as Relationship _____
Efficacy
The number of interpersonal ties that connect the relationships is known as Relationship _____
Breadth
A high-caliber relational bond characterized by commitment and trust is called Relationship _____
Quality
The importance and complexity of the purchase are high for both you and your B2B customer. It is most likely that you enjoy a _____ exchange relationship with this customer.
collaborative
What percentage of industrial firms have a system in place to determine why a customer left?
90%
When a customer experiences a problem, what is most likely the worst outcome for the selling firm?
The customer does not complain and remains dissatisfied
Marketing Information System, 23,500 customers, what MIGHT cost you the most customers
overcharged customers
Marketing Information System, 23,500 customers, key concern
Missed delivery dates
The criteria marketers use to evaluate the degree to which the firm can effectively focus its marketing efforts on chosen segments is
Responsiveness
Typically, causal models are more reliable for:
Intermediate than for long-range forecasts
The classification of customers on a continuum range from nonuser to heavy user is an example of
micro-level segmentation
The business market can be segmented on several bases, Macro bases of segmentation center on
All of the above
Market segmentation is:
a useful tool for both business and consumer goods markets
Company sales, reported on a monthly basis for the past four years, is an example of a
seasonal index
A segmentation study found that purchasers of IBM equipment are more concerned about software support and breadth of product line and they are less concerned about absolute price and price flexibility. Thsi provides an illustration of segmentation on the basis of
key criteria
Which sales forecasting approach is effective when intimate knowledge of customer plans is important?
causal analysis
