Question 1

If Ampex Support Systems is the single supplier for a local manufacturing company's MRO (maintenance, repair, operating) supplies and needs, Ampex Support Systems would then be considered as providing ________ for the manufacturer.

Accepted Answer

Systems contracting refers to an arrangement where a single supplier provides a comprehensive service or product package to a client, covering a specific range of needs such as maintenance, repair, and operating supplies, which fits the scenario described.

Question 2

The total demand for many business goods and services is not much affected by price changes. Thus, this demand is ________.

Accepted Answer

The characteristic of demand mentioned in the question - that it is not much affected by price changes - indicates that the demand is inelastic. Choice A - 'derived' - is not related to the given characteristic of demand. Choice B - 'fluctuating' - implies that demand changes frequently, which is not the case here. Choice D - 'accelerated' - is not a term used to describe demand elasticity. Choice E - 'multiple' - is not a relevant term in this context.

Question 3

In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying centre.

Accepted Answer

Gatekeepers are those who control the flow of information to members of the buying centre. They can prevent sellers or information from reaching other members of the buying centre. Approvers are those who approve the purchase decision made by the buying centre. Buyers are those who make the actual purchase. Initiators are those who start the purchasing process by identifying a need. Deciders are those who make the final decision on which product or service to purchase.

Question 4

Consider yourself as an upper-level marketing executive for a large seller of fleet trucks. Which of the following strategies would be most appropriate in reaching buying centre targets?

Accepted Answer

The answer of Consider yourself as an upper-level marketing executive...

Question 5

The typical buying centre has a minimum of ________ members.

Accepted Answer

The answer of The typical buying centre has a minimum...

Question 6

Which of the following is a challenge in which business marketers differ from the consumer marketers?

Accepted Answer

Geographically concentrated buyers is a challenge that specifically applies to business marketers more than consumer marketers. Business marketers may struggle to reach a limited number of buyers who are located in specific locations, while consumer marketers have a wider audience to target.

Question 7

Think about what you have learned about a buying centre. If you performed the role of the ________, you would be the person that has the power to prevent sellers or information from them in reaching other members of the buying centre.

Accepted Answer

The gatekeeper is the person in the buying center who controls the flow of information to other members of the buying center. They can prevent sellers or information from reaching other members of the buying center, making them a crucial role in the buying process. Therefore, the best choice for the given scenario is E - Gatekeeper.

Question 8

Small sellers concentrate their marketing efforts on reaching

Accepted Answer

Small sellers often focus their marketing efforts on key buying influencers because these individuals have a significant impact on the purchasing decision, even if they are not the final decision-makers. Influencing these individuals can lead to successful sales outcomes.

Question 9

As the sales manger for a mid-size landscaping company seeking corporate contracts, Jasmine knows she must deal with every member of a buying centre. According to Webster, with respect to buying centre influences, Jasmine should remember that people are

Accepted Answer

According to Webster, people in a buying centre are not just buying products, but solutions to problems they are facing. As a result, it is essential for Jasmine to understand the diverse needs and goals of each member of the buying centre to provide effective solution-oriented products and services.

Question 10

According to Patrick J. Robinson, the eight stages in the business buying-decision process are known as ________.

Accepted Answer

The eight stages in the business buying-decision process are known as buyphases, as stated in the question. The other options (buybacks, buyouts, buyables, and buyoffs) are not typically used to describe the stages in the business buying-decision process.

Question 11

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise in that this area would be what service you provide for customers.

Accepted Answer

MRO (maintenance, repair, operating) supplies are the main area of expertise for systems contracting businesses, as they provide these supplies to customers.

Question 12

VIA Rail relies primarily on a few major ________ to supply major systems and components.

Accepted Answer

VIA Rail relies primarily on major systems suppliers to supply major systems and components.

Question 13

In the purchasing decision process, the ________ are those who request that something be purchased. They may be users or others in the organization.

Accepted Answer

The initiators in the purchasing decision process are those who request that something be purchased. They may be users or others in the organization who have identified a need for a product or service.

Question 14

________ is a key industrial marketing strategy in bidding to build large-scale industrial products (e.g., dams, pipelines, et cetera).

Accepted Answer

Systems selling is often used in industrial marketing when bidding to build large-scale industrial products. Systems selling involves providing a complete solution to the customer's needs, including the design, installation, and maintenance of the system. This approach can help to differentiate the company from competitors and provide added value to the customer.

Question 15

________ is composed of all those individuals and groups who participate in the purchasing decision-making process, who share some common goals and the risks arising from their decisions.

Accepted Answer

The description fits the concept of buying centre which refers to the group of individuals and organizations involved in the decision-making process for purchasing products or services. These groups share common goals and risks associated with their decisions. The buying centre typically includes decision-makers, influencers, buyers, gatekeepers, and users.

Question 16

Webster cautions that ultimately, ________ make purchasing decisions.

Accepted Answer

Webster emphasizes that it is individuals, rather than organizations as a whole, who ultimately make purchasing decisions.

Question 17

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage.

Accepted Answer

The answer of In reordering office supplies, the only stages...

Question 18

When ICI Explosives formulated a safer way to ship explosives for quarries, which form of solution selling was the company performing?

Accepted Answer

ICI Explosives was formulating a solution to decrease customer risk by providing a safer way to ship explosives for quarries. This falls under the category of solutions to decrease customer risk.

Question 19

If a supplier signs an agreement with a customer that states $350 000 in savings will be earned by the customer over the next 18 months in an exchange for a ten-fold increase in the customer's share of supplies ordered by the customer, the two parties will have participated in what is called

Accepted Answer

The agreement between the supplier and customer involves both parties sharing the risks and gains of the increased supplies ordered by the customer. The promise of $350,000 in savings for the customer is the potential gain, and the supplier's ten-fold increase in supplies is the risk they are taking on to achieve that gain. This is an example of risk and gain sharing. The other options do not accurately describe the nature of the agreement between the two parties.

Question 20

Some customers are willing to handle price-oriented buyers by setting a lower price, but establishing restrictive conditions. One of these could be

Accepted Answer

By limiting the quantity of the product that can be purchased, the seller can still offer a lower price but restrict the buyer from taking advantage of the lower price and stocking up on too much inventory. This protects the seller's profit margins and ensures that they are still making a profit despite offering a lower price.

Quiz 7: Analyzing Business Markets