Question 1

Regarding the business (manufacturing) market, small firms (with fewer than 10 employees)

Accepted Answer

Small firms with fewer than 10 employees are the majority of all manufacturing firms, but they account for less than 3 percent of "value added" by manufacturing.

Question 2

Which of the following statements about manufacturers is true?

Accepted Answer

Industrial customers are more concentrated in countries that are at the more advanced stages of economic development, as these countries tend to have more sophisticated and demanding customers who require high-quality products and technology.

Question 3

Which of the following statements about manufacturers is true?

Accepted Answer

Marketers often segment industrial markets based on customer size to tailor their strategies and offerings to different segments effectively.

Question 4

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know

Accepted Answer

It is possible that even if there is one large firm in California in the specific 4-digit industry, no data may be available for it. This could be due to reasons such as the firm being privately held and not required to disclose financial information.

Question 5

Which of the following tips would help marketers find new B2B clients that are similar to clients they already serve?

Accepted Answer

Identifying current customers' NAICS codes and then looking at NAICS-coded lists for related firms is the best option as it allows the marketer to target companies that are similar in nature to their existing clientele. This increases the chances of success in marketing efforts as these companies are more likely to have a need for the same products/services that the current clients have. Other options such as conducting a vendor analysis or researching ISO 9000 certified companies may also help in finding new clients but may not necessarily be similar to the existing ones. Looking up firms that use automated systems for straight rebuying may also be useful, but it may not necessarily lead to finding similar clients. Asking a current customer to help identify new leads is also an option but it may not yield the best results as they may not be able to provide leads that are similar to their own business.

Question 6

All of the following statements about manufacturers are accurate except:

Accepted Answer

The statement "manufacturing output in the United States is shrinking" is inaccurate. In fact, U.S. manufacturing output has been steadily increasing over the past few decades, although there are fluctuations in short periods of time.

Question 7

The U.S. government collects and publishes data by _____ codes-groups of firms in similar lines of business.

Accepted Answer

NAICS (North American Industry Classification System) codes are used by the U.S. government to collect and publish data on groups of firms in similar lines of business.

Question 8

"NAICS" means:

Accepted Answer

NAICS (North American Industry Classification System) is a system used by the government to classify businesses based on their economic activities. It is used to collect, analyze, and publish statistical information related to the business activities of companies in Canada, Mexico, and the United States.

Question 9

Regarding the size of manufacturing concerns, large firms (with more than 250 employees)

Accepted Answer

Large firms may be few in number, but they account for a significant portion of production workers. They typically have more resources to devote to research and development, as well as more efficient production methods, which can result in higher levels of output and productivity.

Question 10

Organizational buyers purchase the same product from more than one source

Accepted Answer

Organizational buyers purchase the same product from more than one source to help ensure continuing supplies. This way, they are not dependent on a single supplier and can maintain their production even if one supplier fails to deliver.

Question 11

In the U.S., what percentage of total dollar value added by manufacturing comes from large manufacturers employing 250 or more employees?

Accepted Answer

According to the National Association of Manufacturers, almost 60 percent of the total dollar value added by manufacturing comes from large manufacturers employing 250 or more employees.

Question 12

Which of the following is not a key variable that marketers need to consider when developing marketing mixes for manufacturers?

Accepted Answer

The CEOs of manufacturers are not a key variable that marketers need to consider when developing marketing mixes. While the decisions of the CEO may have an impact on the overall direction and strategy of the company, marketers primarily focus on factors such as the size of manufacturers, geographic location, buying procedures, and classifications.

Question 13

When looking at NAICS codes:

Accepted Answer

The North American Industry Classification System (NAICS) uses a hierarchical structure where the number of digits in the code signifies the level of detail. Fewer digits indicate a broader category encompassing a wide range of activities, while more digits denote a more specific sector within the broader category.

Question 14

Regarding the market composed of manufacturers in the United States:

Accepted Answer

Manufacturers tend to be concentrated in specific areas, such as the Rust Belt, California, and Texas. A and C are incorrect as there are both large and small manufacturers in the market, and the number of manufacturers is not necessarily larger than the number of final consumers. D is also incorrect as larger manufacturers tend to have higher value added due to economies of scale.

Question 15

U.S. manufacturers:

Accepted Answer

U.S. manufacturers tend to concentrate by industry, with certain industries being more dominant in specific regions (e.g. automobile manufacturing in Michigan). This concentration is often due to factors such as access to raw materials or skilled labor, as well as historical and cultural legacies.

Question 16

If a firm targets business and organizational markets,

Accepted Answer

A) NAICS codes help to identify and group potential customers by industry, making it easier to target specific segments. 
B) Business and organizational markets are often specialized, and each customer may have unique needs and requirements that need to be addressed. 
C) It is common for competing manufacturers to be located in geographic clusters, meaning that a firm targeting business and organizational markets may need to consider the location when developing marketing strategies. Therefore, all of these statements are true.

Question 17

Regarding the manufacturers' market, large firms (with more than 250 employees)

Accepted Answer

Large firms with more than 250 employees account for the majority of the total "value added" by all manufacturers, and though they are very few compared to the many small firms, they still employ about 44 percent of all people employed in manufacturing.

Question 18

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

Accepted Answer

Outsourcing requires specific adaptations because the buyer is relying on an external firm to produce the goods or services, which may have different processes, capabilities, and quality standards than the buyer's internal production. The buyer may need to coordinate with the supplier, define performance metrics, monitor quality, and ensure compliance with legal and ethical standards. Gatekeeping refers to controlling access to information or resources, resident buying refers to living in an area to benefit from local discounts, competitive bidding refers to selecting a supplier based on price and quality through a competitive process, and auctioning refers to selling goods or services to the highest bidder.

Question 19

U.S. business manufacturing markets tend to be concentrated:

Accepted Answer

U.S. business manufacturing markets tend to be concentrated by industry, with a relatively few large manufacturing plants, and by geographical location.

Question 20

When referencing NAICS codes, marketers should know that:

Accepted Answer

Two-digit codes in the NAICS system represent the broadest categorization of industries, with more specific categories being defined as the number of digits increases.

Quiz 6: Business and Organizational Customers and Their Buying Behavior

Regarding the business (manufacturing) market, small firms (with fewer than 10 employees)

Which of the following statements about manufacturers is true?

Which of the following statements about manufacturers is true?

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know

Which of the following tips would help marketers find new B2B clients that are similar to clients they already serve?

All of the following statements about manufacturers are accurate except:

The U.S. government collects and publishes data by _____ codes-groups of firms in similar lines of business.

"NAICS" means:

Regarding the size of manufacturing concerns, large firms (with more than 250 employees)

Organizational buyers purchase the same product from more than one source

In the U.S., what percentage of total dollar value added by manufacturing comes from large manufacturers employing 250 or more employees?

Which of the following is not a key variable that marketers need to consider when developing marketing mixes for manufacturers?

When looking at NAICS codes:

Regarding the market composed of manufacturers in the United States:

U.S. manufacturers:

If a firm targets business and organizational markets,

Regarding the manufacturers' market, large firms (with more than 250 employees)

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

U.S. business manufacturing markets tend to be concentrated:

When referencing NAICS codes, marketers should know that: