Question 1

Organizational buyers include manufacturers, wholesalers, retailers, and government agencies

Accepted Answer

Organizational buyers are entities that buy goods and services for their own use or for resale. This includes manufacturers who buy raw materials and components to produce their own products, wholesalers who buy in bulk and sell to retailers, retailers who buy products for resale to consumers, and government agencies that purchase goods and services for their own use. The fact that these buyers may purchase from multiple suppliers or have certain tax exemptions does not define them as organizational buyers. The number of employees an entity has is also irrelevant to whether or not they are an organizational buyer.

Question 2

The highest percentage of firms in industrial markets are classified as

Accepted Answer

Service firms typically make up the largest percentage of firms in industrial markets due to the broad range of services they provide across various sectors.

Question 3

The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as

Accepted Answer

Business marketing involves selling products or services to other companies, governments or not-for-profit organizations for their own use in creating goods or services to offer to others. This is different from consumer marketing where products are sold directly to the end user.

Question 4

When JCPMedia buys paper, it considers the supplier's forest management practices and its environmental practices.How the supplier assumes its __________ is important in the selection of a paper supplier for JCPMedia.

Accepted Answer

JCPMedia considers the supplier's societal responsibility, which includes forest management and environmental practices, when selecting a paper supplier.

Question 5

A business market is also referred to as

Accepted Answer

A business market is also known as an industrial market because it involves transactions and relationships between businesses or organizations that are involved in producing or distributing goods or services.

Question 6

Kim Nagele, the senior procurement agent at JCPMedia purchases tons of publication paper annually at a cost of hundreds of millions of dollars.In the buying center, Kim Nagele performs the role of the

Accepted Answer

Kim Nagele is directly responsible for making the purchases, which makes her the Buyer in the buying center.

Question 7

Which of the following statements represents an organizational buying decision?

Accepted Answer

The purchasing decision of the owner of a fried chicken restaurant to hire a snow removal service for the parking lot represents an organizational buying decision as it is made for the benefit of the business. The other options represent personal or individual buying decisions.

Question 8

JCPMedia

Accepted Answer

JCPMedia is the print and paper purchasing arm of JCPenney, responsible for acquiring the necessary materials for the company's print advertising and promotional needs.

Question 9

These buyers purchase raw materials and parts to reprocess into the finished goods they sell.

Accepted Answer

Manufacturers are the ones who purchase raw materials and parts to reprocess into finished goods that they sell. Retailers, wholesalers, manufacturers' agents, and ultimate consumers are not involved in the manufacturing process itself.

Question 10

The size and number of JCPenney catalogs designed and mailed to consumers would determine how much paper JCPMedia would need to buy.This is an example of

Accepted Answer

Derived demand refers to the demand for a good or service based on the demand for another good or service. In this case, the demand for paper by JCPMedia is derived from the demand for JCPenney catalogs. The size and number of catalogs directly determine how much paper is needed.

Question 11

Organizational buyers can be divided into three different markets.They are

Accepted Answer

Organizational buyers are typically categorized into industrial, reseller, and government markets, which represent businesses, intermediaries, and public sector entities, respectively.

Question 12

Organizational buyers refer to

Accepted Answer

Organizational buyers include entities that purchase goods and services for their own use or for resale, not exclusively for one or the other.

Question 13

The services market sells diverse services such as legal advice, auto repair, and dry cleaning.Along with __________, insurance, and real estate businesses, and transportation, communication and public utility firms, and not for profit, these firms represent about 75 percent of all industrial firms.

Accepted Answer

The services market includes financial services such as banking, investment management, and accounting. This, along with insurance and real estate businesses, are considered part of the financial sector and represent a significant portion of industrial firms. Wholesalers, retailers, government units, and educational institutions are not included in the services market as defined in the passage.

Question 14

The services market sells diverse services such as legal advice, auto repair, and dry cleaning.Along with finance, insurance, and real estate businesses, and transportation, __________ and public utility firms, and not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

Accepted Answer

Communication firms are part of the services market, which includes diverse services and industries like transportation and public utilities, contributing significantly to the industrial sector.

Question 15

Archer Daniels Midland (ADM) Co.is the world's largest cocoa-bean processor.It buys cocoa beans and converts the beans into cocoa powder and cocoa butter, which it sells to companies that manufacture consumer products that contain chocolate.The cocoa-bean processor is operating in a(n) __________ market.

Accepted Answer

Archer Daniels Midland operates in an industrial market as it is involved in the production and sale of intermediate goods (cocoa powder and cocoa butter) to other companies for further manufacturing into consumer products.

Question 16

Business marketing refers to

Accepted Answer

Business marketing involves selling goods and services to companies, governments, or not-for-profit organizations for use in creating goods and services that they can produce and market to others.

Question 17

A firm that reprocesses a good or service it buys before selling the product again to the next buyer is referred to as a(n)

Accepted Answer

An industrial firm is involved in the production or reprocessing of goods or services. In this case, the firm is reprocessing the product it bought before selling it to the next buyer. This is different from a reseller firm, which simply buys and sells goods without any processing or value addition. A wholesaler is a type of reseller that buys goods in bulk from manufacturers and sells them to retailers or other businesses. Government agencies and retail firms are not necessarily involved in reprocessing goods or services.

Question 18

The services market sells diverse services such as legal advice, auto repair, and dry cleaning.Along with finance, insurance, real estate businesses, and __________, communication and public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

Accepted Answer

The answer of The services market sells diverse services such...

Question 19

Which of these statements regarding organizational buyers is most accurate?

Accepted Answer

Wholesalers and retailers are intermediaries that buy products from manufacturers or other suppliers and resell them to consumers without reprocessing them. This is different from manufacturers who may purchase processed goods and suppliers who may alter products before selling. Also, government agency purchases can be considered organizational buying, but they typically have unique procurement processes and requirements that differentiate them from other types of buyers.

Question 20

An industrial firm is a firm that

Accepted Answer

An industrial firm is a type of firm that engages in some form of reprocessing of goods or services before selling the product again to the next buyer. This can include manufacturing, assembly, or other forms of production. The other options in the question do not accurately describe what an industrial firm is.

Quiz 6: Understanding Organizations As Customers