Question 1

The government uses a system called NAICS to classify North American business establishments.NAICS stands for:

Accepted Answer

NAICS stands for North American Industry Classification System.

Question 2

What is an OEM?

Accepted Answer

OEM stands for Original Equipment Manufacturer, which refers to a company that produces components or products that are sold to another company to be rebranded and sold under their own name. Therefore, an OEM is a producer.

Question 3

Which of the following is the BEST example of an institution market?

Accepted Answer

The answer of Which of the following is the BEST...

Question 4

Hensley Poultry is a wholesaler that buys poultry food and health products from Provini,Inc.,feeding systems from Big Dutchman,Inc,and incubation systems from Copca Corp,which it then sells to poultry producers and farmers' cooperatives in Iowa.Hensley Poultry could be best classified as a(n):

Accepted Answer

Hensley Poultry buys products from different manufacturers and sells them to poultry producers and farmers' cooperatives. Therefore, it can be best classified as a reseller, or intermediary, in the distribution channel.

Question 5

One segment of the business market has primary goals that differ from the ordinary business goals such as profit,market share,or return on investment.This segment includes many schools,churches,and civic clubs and is often called the _____ market.

Accepted Answer

Institutions such as schools, churches, and civic clubs usually have a different set of goals compared to traditional for-profit businesses. They are usually more focused on providing services or fulfilling their mission rather than solely on making a profit. Therefore, they represent a unique segment in the business market known as the institution market. Option B (OEM) refers to Original Equipment Manufacturers, which is a term commonly used in the manufacturing industry. Option C (Service) refers to a type of business that focuses on providing intangible goods to customers. Option D (Provider) is too broad and does not specify a particular type of market segment. Option E (Reseller) refers to a type of business that buys products from manufacturers or wholesalers and sells them to consumers or other businesses.

Question 6

Rice Epicurean in Houston is an exclusive outlet for Honey Baked brand hams and See brand candies.In the spring,it markets Easter baskets and all the makings for personalized Easter baskets.Rice Epicurean would be best classified as a(n):

Accepted Answer

Rice Epicurean is a reseller as it sells products from other brands like Honey Baked hams and See candies. It does not produce these products on its own. Additionally, it also markets Easter baskets and their contents, which would also fall under the category of a reseller.

Question 7

Which type of customer do business marketers NOT serve?

Accepted Answer

Business marketers do not serve private consumers, as they target B2B (business-to-business) sales rather than B2C (business-to-consumer) sales.

Question 8

The U.S.government is:

Accepted Answer

The U.S. government is the world's largest single customer, which means it is a significant market segment for businesses. However, it does not account for over 50 percent of the U.S. gross national product, mainly purchase military equipment or use one centralized purchasing office for the entire government.

Question 9

NAICS data are helpful for analyzing,segmenting,and targeting markets.The system was developed by:

Accepted Answer

The NAICS (North American Industry Classification System) was developed by the North American Free Trade Agreement (NAFTA) partners: the United States, Canada, and Mexico, to replace the Standard Industrial Classification (SIC) system.

Question 10

Laminators,Inc.manufactures outdoor signs for business customers in less than one hour using SpecTar equipment and supplies.Laminator would be part of the _____ sector of the business market.

Accepted Answer

Laminators, Inc. is directly involved in manufacturing outdoor signs using SpecTar equipment and supplies, making them a producer in the business market sector.

Question 11

Which of the following statements does NOT describe the business market?

Accepted Answer

This statement is not true as organizational buying decisions are often made jointly by a team of decision-makers, while consumer buying decisions are usually made independently by the individual consumer.

Question 12

The demand for consumer goods often affects the demand for business products.This characteristic of business markets is called _____ demand.

Accepted Answer

Derived demand refers to the demand for business products that is derived from the demand for consumer goods or services. When consumers demand more products, businesses need to increase their production, which in turn increases the demand for business products such as raw materials and equipment.

Question 13

What would a U.S.company that manufactures the lighted signs that are used by state departments of transportation on the sides of roads,at outdoor sports arenas,for restaurant promotion,and in amusement parks use to facilitate its market segmentation and targeting if it wanted data that was readily available and usable?

Accepted Answer

The North American Industry Classification System (NAICS) is a widely recognized system of categorizing businesses by industry. By using NAICS codes, the company can easily identify potential customers by their industry and location. This information is readily available and can be obtained from government sources. This will allow the company to segment and target their market effectively.

Question 14

Businesses that buy finished goods and sell and distribute them for a profit are called:

Accepted Answer

Businesses that buy finished goods and sell them for a profit are called resellers. They do not produce the goods themselves but focus on the distribution and sale of the goods.

Question 15

Ben works for the State of Mississippi as a advocate of state growth and development.He devises ways to encourage businesses to relocate in the state.In other words,Ben is involved in business marketing.He has compiled a list of potential businesses that might be willing to relocate in Mississippi.Which of the following possible clients should he include in his list?

Accepted Answer

Ben's job is to encourage businesses to relocate in the state, so his list of potential clients should include companies that have growing sales. The other options are not relevant to his job and would not be useful clients.

Question 16

A particular segment of the business market includes those individuals and organizations that purchase goods and services for the purpose of making a profit.They achieve this goal by using purchased goods and services to make other goods,to become part of other goods,or to facilitate the daily operations of the organization.This group is called the _____ segment of the business market.

Accepted Answer

The term "producer" refers to individuals or organizations that purchase goods and services for the purpose of using them in the production of other goods. This definition aligns with the description provided in the question prompt. None of the other options provided accurately describe this segment of the business market.

Question 17

Organon Teknina sells inexpensive equipment to detect E.coli,listeria,or salmonella bacteria in food.The company serves not-for-profit institutions that need to regularly check food quality.Organon Teknina would be LEAST likely to sell to:

Accepted Answer

Although the chain of Mexican restaurants may have a need to test for E.coli, listeria or salmonella bacteria in their food, they are a for-profit institution and therefore not the targeted customer base for Organon Teknina, which focuses on not-for-profit institutions such as schools, hospitals, retirement homes, and emergency shelters. The other four options are all examples of not-for-profit institutions and would therefore be more likely customers for Organon Teknina.

Question 18

Imagine you are the research director of a major industrial marketing firm.You need to select an NAICS code that defines the most homogenous group of companies in a particular group of highly competitive companies .Which of the following codes might you use?

Accepted Answer

NAICS code 7432 pertains to "Other Management Consulting Services" which would have a more specific and narrow focus compared to the other codes listed, making it likely to define a more homogenous group of companies. The other codes listed are broader categorizations and could include a wider range of types of companies.

Question 19

The demand for polyethylene film used to wrap meat ready for sale is dependent on consumers' demand for meat.This is an example of _____ demand.

Accepted Answer

This is an example of derived demand because the demand for polyethylene film is derived from the demand for meat. If the demand for meat increases, the demand for polyethylene film used to wrap the meat will also increase.

Question 20

Managers can use the NAICS data to:

Accepted Answer

NAICS data can provide information about various industries and businesses, which can help managers identify potential new customers and target their marketing efforts accordingly. It is not directly related to creating a mission statement, eliminating risk, classifying consumer behavior, or determining purchase motives.

Quiz 6: Business Marketing