Question 1

When Goodyear sells replacement tires to final consumers, its potential market includes millions of car owners around the world. But its fate in business markets depends on getting orders from only a handful of large automakers. This represents the difference in ________ between business and consumer markets.
A) types of decisions
B) derived demand
C) market structure
D) the decision process
E) nature of the buying unit

Accepted Answer

The difference in market structure between business and consumer markets is highlighted by Goodyear's situation. In consumer markets, the potential market includes millions of individual customers worldwide, while in business markets, success depends on securing orders from a few large automakers, indicating a more concentrated market structure.

Question 2

________ is the degree to which an innovation fits the values and experiences of potential consumers.
A) Relative advantage
B) Divisibility
C) Complexity
D) Compatibility
E) Communicability

Accepted Answer

Compatibility refers to the degree to which an innovation fits the values and experiences of potential consumers. It is an important factor that affects the adoption of new products or services. If an innovation is compatible with the existing beliefs, values, and experiences of potential consumers, it is more likely to be adopted than an innovation that is not compatible.

Question 3

Which of the following statements about buying centers is true?
A) The buying center is not a fixed and formally identified unit within a buying organization.
B) Roles in the buying center are specified in the organizational chart of a firm.
C) The CEO of an organization is always the decision maker in a buying center.
D) An individual's role in a buying center does not change with time.
E) All buying centers involve formal participants.

Accepted Answer

The buying center is not a fixed and formally identified unit within a buying organization. It is a group of individuals, both formal and informal, who participate in the purchasing decision-making process. The composition of the buying center may change depending on the specific buying situation.

Question 4

________ is the degree to which the results of using an innovation can be observed or described to others.
A) Relative advantage
B) Compatibility
C) Complexity
D) Divisibility
E) Communicability

Accepted Answer

Communicability is the degree to which the results of using an innovation can be observed or described to others. It relates to how easy it is to communicate the benefits of the innovation to others, which can impact its adoption and diffusion.

Question 5

Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.
A) types of decisions
B) derived demand
C) market structure
D) the decision process
E) nature of the buying unit

Accepted Answer

Corning's promotion to final consumers is aimed at increasing demand for digital devices made with Gorilla Glass. This illustrates derived demand, where demand for one product (Gorilla Glass) is derived from demand for another product (digital devices).

Question 6

________ is the degree to which an innovation may be tried on a limited basis.
A) Divisibility
B) Compatibility
C) Communicability
D) Relative advantage
E) Complexity

Accepted Answer

Divisibility refers to the degree to which an innovation can be tried and tested on a limited basis, without committing to a full adoption of the innovation. This allows potential adopters to assess the benefits and feasibility of the innovation before fully committing to it.

Question 7

Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.

Accepted Answer

The answer of Early mainstream adopters are opinion leaders in...

Question 8

A business marketer normally deals with far fewer buyers than a consumer marketer.

Accepted Answer

Business marketers typically target other businesses (B2B) and therefore have a smaller pool of potential buyers compared to consumer marketers who target individual consumers (B2C) and have a larger market size.

Question 9

A small increase in consumer demand can cause a large increase in business demand.

Accepted Answer

This is true because an increase in consumer demand can lead to increased sales for businesses, which in turn can cause them to order more supplies, hire more workers, and increase production. This creates a multiplier effect, with the initial increase in consumer demand causing a larger increase in overall business activity.

Question 10

A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n)________.
A) modified rebuy
B) new-task situation
C) straight rebuy
D) dual distribution channel
E) exclusive distribution channel

Accepted Answer

A modified rebuy situation involves a business buyer considering a change in product specifications, terms or suppliers while maintaining some elements of the previous purchasing arrangement. This is different from a straight rebuy where the buyer simply reorders the same products from the same supplier, or a new-task situation where the buyer is making a first-time purchase of a new product or service. Dual distribution channel and exclusive distribution channel refer to marketing and sales strategies, and are not relevant to the buying situation described.

Question 11

________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.
A) Modified rebuy
B) Straight rebuy
C) New task buying
D) Systems selling
E) Supplier development

Accepted Answer

Systems selling is the business strategy where buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers. This strategy requires the seller to have a deep understanding of the customer's needs and offer a tailor-made solution that integrates all necessary components.

Question 12

The business buying process tends to be shorter and less formal than the consumer buying process.

Accepted Answer

The business buying process tends to be longer and more formal than the consumer buying process, as it typically involves multiple decision-makers and can involve complex negotiations and contracts.

Question 13

Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ________ of the innovation.
A) relative advantage
B) compatibility
C) complexity
D) divisibility
E) communicability

Accepted Answer

The word "difficult" in the statement implies that people might perceive electric cars as complex and therefore difficult to maneuver. The term complexity refers to the degree of difficulty or simplicity associated with the use of an innovation, and this factor is known to significantly affect the rate of adoption. In this case, the perception of complexity regarding electric cars may slow down their adoption rate.

Question 14

Identify and describe the stages in the adoption process of a new product.

Accepted Answer

The answer of Identify and describe the stages in the...

Question 15

Identify the product characteristics that influence the rate of adoption of a product. Explain how each characteristic affects the rate of adoption.

Accepted Answer

The answer of Identify the product characteristics that influence the...

Question 16

In a straight rebuy, a buyer ________.
A) wants to obtain the same product from a lower-priced supplier
B) reorders something without any modifications
C) considers a product or service for the first time
D) needs a modified product to suit new requirements
E) finds new ways to add value to the same product

Accepted Answer

In a straight rebuy, the buyer simply reorders the same product without any modifications. Option A would be a case of modified rebuy as the buyer wants to obtain the same product from a lower-priced supplier. Option C refers to a new task as the buyer is considering a product or service for the first time. Option D would again be a modified rebuy as the buyer needs a modified product to suit new requirements. Option E is also not applicable as it refers to finding new ways to add value to the same product, which is not the case in a straight rebuy.

Question 17

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n)________.
A) modified rebuy
B) new task situation
C) straight rebuy
D) dual distribution system
E) exclusive distribution system

Accepted Answer

This situation describes a straight rebuy, where the company is consistently purchasing the same products from the same vendor with little or no decision-making involved. A modified rebuy would involve some changes or modifications to the existing purchase, while a new task situation would involve a new purchase that requires extensive decision-making. Dual and exclusive distribution systems are not relevant to this scenario.

Question 18

Interpersonal factors are a major influence on business buyer behavior.

Accepted Answer

Interpersonal factors, such as personal relationships, communication, and trust, can greatly impact the buying decisions and behavior of business buyers.

Question 19

Early mainstream adopters are venturesome and typically try new ideas at some risk.

Accepted Answer

Early mainstream adopters, also known as the early majority, are more cautious and pragmatic, adopting new ideas just before the average person and after the innovators and early adopters, who are more venturesome.

Question 20

Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.

Accepted Answer

Tom is not an innovator if he only adopts new technology after it has been adopted by his friends and family. An innovator is someone who is among the first to adopt a new technology.

Quiz 5: Understanding Consumer and Business Buyer Behavior

________ is the degree to which an innovation fits the values and experiences of potential consumers.

Which of the following statements about buying centers is true?

________ is the degree to which the results of using an innovation can be observed or described to others.

Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.

________ is the degree to which an innovation may be tried on a limited basis.

Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.

A business marketer normally deals with far fewer buyers than a consumer marketer.

A small increase in consumer demand can cause a large increase in business demand.

A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n) ________.

________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.

The business buying process tends to be shorter and less formal than the consumer buying process.

Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ________ of the innovation.

Identify and describe the stages in the adoption process of a new product.

Identify the product characteristics that influence the rate of adoption of a product. Explain how each characteristic affects the rate of adoption.

In a straight rebuy, a buyer ________.

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.

Interpersonal factors are a major influence on business buyer behavior.

Early mainstream adopters are venturesome and typically try new ideas at some risk.

Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.