Principles of Contemporary Marketing 14th Edition Kurtz Test Bank PDF Download
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TRUE/FALSE
1. Business marketers advertise primarily to announce new products, to enhance their company image
and presence, and to attract potential customers who would then deal directly with a salesperson.
2. Organizational buyers tend to purchase standardized products, unlike the consumer market where
customization is more prevalent.
3. B2B relationships tend to last longer than those in the consumer market.
4. Due to the complexity of the buying process and potential need for technical assistance, the
distribution channels in the B2B marketplace tend to be longer than those in the consumer market.
5. Personal selling and customer service are more important in business markets than in consumer
markets.
201
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
6. Purchasing decisions in the B2B sectors are more complex, take longer to negotiate, and often include
many levels of decision making.
8. The biggest distinction between B2B marketing and consumer marketing is the lack of advertising and
visibility in the marketplace the company services.
9. Personal selling is less important in business markets than in consumer markets because of the longer
distribution channels involved.
10. The primary purchasing need of an organization is meeting the demands of its own customers.
11. An organization’s goals must also be considered in the B2B buying process.
202
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
12. The four categories that define the business market are the commercial market, producers, institutions
and government agencies.
13. The commercial market purchases products for use directly and indirectly in the manufacturing of
other products.
14. When Cannondale purchases aluminum for use in its bicycle frames, the company is participating in
the commercial market.
15. The commercial market consists of retailers and wholesalers who purchase goods primarily for resale
to other businesses and to the consumer.
16. Members of the trade industries acquire goods and services primarily for use in production.
17. The term reseller is often used to describe wholesalers and retailers that comprise membership in the
trade industries.
203
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
18. The trade industries include manufacturers, wholesalers, and individual consumers.
19. Because of its size, the government represents the largest segment of the B2B marketplace.
20. Organizations such as hospitals, universities and museums comprise the commercial segment of the
business market.
22. The Internet is intended to replace, not just enhance, personal selling and the traditional relationships
between businesses.
23. In general, the consumer has more at stake in purchasing decisions because the money they are
spending is actually theirs. Business customers have less at stake and are less concerned with value
and utility of the materials purchased.
204
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
24. Geographic location is considered a demographic basis for segmenting the business market.
25. Organizational size is regarded as a demographic basis for segmenting business customers.
26. Compared to the old SIC system of classification, the NAICS not only standardizes classifications
among nations, but also provides flexibility for each country to measure its own business activity.
27. The NAICS codes provide information about businesses that allows users to compare business sectors
among the member nations of NAFTA.
28. The NAICS classification system provides a useful tool for segmenting B2B markets by customer
type.
29. With the implementation of the NAFTA accord, the SIC system replaced the NAICS system to
subdivide the business marketplace into detailed segments.
205
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
30. Some companies segment markets into categories such as small business, large business, consumers,
educational institutions and government. This is an example of end-use segmentation.
31. End-use application segmentation focuses on the precise way in which a business purchaser will use a
product.
32. Geographic concentration of an industry has no effect on the location decisions of the industry's
suppliers.
33. Ford recently established a first-of-its-kind campus for suppliers near its Chicago
assembly plant, which enabled them to reduce costs, control parts inventories, and increase flexibility.
34. The Internet is changing the buying process of many customers, including the federal government,
making it less likely that suppliers will need to be geographically close to their customers.
35. Purchase decision making in B2B is more formal and professional than in the consumer market.
206
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
36. Evaluating foreign market opportunities is a complex and somewhat difficult task for businesses.
37. Global sourcing involves contracting to purchase goods and services from suppliers worldwide.
38. If Product A is used primarily to manufacture Product B, then the demand for product A is derived
from the demand for Product B.
39. As demand for personal computers increases the demand for computer microprocessor chips will also
increase. This is an example of derived demand.
40. Companies that sell products affected by derived demand can avoid the negative affects of downturns
by diversifying the markets in which they sell their products.
41. Organizational buyers basically purchase two categories of products: capital items and expense items.
42. Capital purchases are expended quickly, whereas expense items are more expensive and last longer.
207
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
43. The difference between capital and expense items is not only the size and length of use, but also the
way the accounting department handles production costs.
44. Volatile demand means that even slight shifts or variations in the market can have an affect on sales.
45. If consumer demand for dishwashers increases, dishwasher manufacturers will buy more raw materials,
components and supplies as a result of the link between the consumer market and the industrial market.
This linkage is called coordinated demand.
46. Business markets tend to have more buyers and suppliers than found in the consumer marketplace.
47. Assume the price of jet fuel rises, but airlines continue to purchase the same amount of fuel in order to
meet operational needs. As a result, the demand for jet fuel is said to be inelastic.
48. JIT II inventory systems may require suppliers to have on-site representatives at their customers’
production facility.
208
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
49. When a firm can manufacture the product it needs, it may experience a significant cost savings
because it will not have to pay the overhead costs and profit to an outside supplier.
50. Offshoring and nearshoring refer to the method of acquiring natural resources.
51. India has become a major supplier of customer service labor, while China offers inexpensive
manufacturing labor.
52. Turning to outsiders to provide products or services that were formerly provided in-house is referred to
as external acquisition.
53. If a company wants to concentrate its resources on its core business, it may be wise to outsource
support departments.
209
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
55. To understand organizational buying behavior, business marketers require knowledge of influences on
the purchase decision process, the stages in the organizational buying model, types of business buying
situations, and techniques for purchase decision analysis.
56. Successful organizational marketers understand their customers’ organizational structures, policies and
purchasing systems.
57. Personal and interpersonal influences affect consumer purchasing decisions, not B2B decisions.
58. Centralized purchasing units may contract with only a few suppliers to service multiple locations
because they lack interest in long-term relationship building and place greater reliance on immediate
results.
59. A sales representative can waste valuable time creating a sales relationship with decision makers in a
decentralized purchasing office of a Fortune 500 company.
60. When selling to organizational customers, sales representatives need to be able to interact effectively
with employees of the various departments involved in the purchase decision.
210
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
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