Marketing quốc tế 7 analyze business market

4 Which of the following is true for business marketers?A They deal with more and larger buyers than consumer marketers.. C They deal with fewer and larger buyers than consumer marketers

Marketing Management, 14e (Kotler/Keller)

Chapter 7 Analyzing Business Markets

1) refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers

3) How can a marketer overcome the negative effects of commoditization?

A) convince target consumers that the firm's products are as good as those of competitorsB) convince target consumers that price is irrelevant in determining quality

C) convince target consumers that the firm's products are different from those of competitorsD) convince target customers that buying the highest-priced product is no guarantee of qualityE) convince target customers that all the products in the market are equivalent

Answer: C

Page Ref: 184

Objective: 1

Difficulty: Easy

4) Which of the following is true for business marketers?

A) They deal with more and larger buyers than consumer marketers

B) They deal with more and smaller buyers than consumer marketers

C) They deal with fewer and larger buyers than consumer marketers

D) They deal with fewer and smaller buyers than consumer marketers

E) They deal with the same kind of buyers as consumer marketers

A) understanding deep customer needs in new ways

B) identifying new opportunities for organic business growth

C) geographically concentrated buyers

D) calculating better marketing performance and accountability metrics

E) competing and growing in global markets, particularly China

6) Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for

GM cars and trucks From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent?

7) The demand for business goods is ultimately derived from the demand for

8) A given percentage increase in consumer demand can lead to a much larger percentage

increase in the demand for plant and equipment necessary to produce the additional output Economists refer to this as

10) The purchasing department buys office supplies on a routine basis from a pre-approved list

of suppliers This type of purchase is classified as a

11) Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period This is an example of

14) In a purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms

17) Orica Inc competes in the market for commercial explosives The company recently changedits business model from just selling explosives to managing an entire blast in a quarry This customer-solution-based approach to the sale of explosives is an example of

19) Many business buyers prefer to buy a total solution to a problem from one seller This

process is also known as

20) Xerox offers a approach to prospective clients when it offers a complete turnkey solution, including the operation and management of the client's information and communicationneed.

23) is composed of all parties who participate in the purchasing decision-making process and share common goals and risks associated with their decisions

A) The buying center

B) The marketing sales team

27) If you performed the role of the in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center

30) In which of the following is a person performing the role of an influencer?

A) Dan decides on the product requirements and makes the final choice of suppliers B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives

D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG

E) Dana authorizes the actions of the deciders and buyers in LKG

31) In which of the following is a person performing the role of an approver?

A) Dan decides on the product requirements and makes the final choice of suppliers B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives

D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG

E) Dana authorizes the actions of the deciders and buyers in LKG

32) In which of the following is a person performing the role of a gatekeeper?

A) Dan decides on the product requirements and makes the final choice of suppliers B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives

D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG

E) Dana authorizes the actions of the deciders and buyers in LKG

33) Which of the following is true about the buying center?

A) In a buying center, one person cannot play more than one role

B) A typical buying center has a maximum of five or six members

C) A buying center consists of only mid-level managers and below

D) It is the decision-making unit of a buying organization

E) Gatekeepers in a buying center are people who authorize the proposed actions of deciders or buyers

A) Concentrate on key buying influencers

B) Use multilevel in-depth selling

C) Use trade-based promotions

D) Concentrate sales efforts on the support staff

E) Move all operations to the Internet

37) The new, more strategically oriented purchasing departments have a mission Which of the following most accurately describes that mission?

A) Make the most profit possible and remain independent of entanglements

B) Approach every purchasing opportunity as means to create interdependency

C) Seek the best value from fewer and better suppliers

D) Outsource the supply function

E) Abandon all strategies except for systems selling and buying

Answer: C

Page Ref: 194

Objective: 4

Difficulty: Moderate

38) Patrick J Robinson and his associates have identified eight stages in the business

buying-decision process This model is called the framework

41) A new-task buyclass decision begins with which of the following steps?

A) maintenance, repair, and operating (MRO)

B) product value analysis (PVA)

C) vendor managed inventories (VMI)

D) supplier performance management (SPM)

E) supplier added value effort (SAVE)

44) Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier These situations spur the stage

45) Business marketers can stimulate problem recognition by

A) ensuring a presence in trade directories

B) direct mail, telemarketing, and calling on prospects

C) encouraging the Better Business Bureau to release statistics

D) using consumer advertising

E) conducting surveys of existing customers

47) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers Plastics.com is an example of a(n) .

A) vertical and horizontal hubs

B) vertical and functional hubs

C) functional hubs and organizational hubs

D) supplier and user hubs

E) manufacturer and supplier hubs

Answer: B

Page Ref: 197

Objective: 4

Difficulty: Moderate

50) Which of the following is an example of a functional hub?

A) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers

B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals

C) SteelMart.com concentrates on steel buyers from the United States

D) SupplyLink.com offers manufacturers information on ensuring workplace safety

E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality in the paper market

53) Robert Jennings consultants help farmers deliver an incremental animal weight gain of 8% to12% over competitors This is an example of

A) solutions selling to enhance customer revenues

B) solutions selling to reduce customer costs

C) solutions selling to decrease customer risks

D) solutions selling to simplify customer purchasing

E) solutions to provide better partnership

A) solutions to encourage partnerships

B) solutions to alter corporate culture

C) solutions to enhance customer revenues

D) solutions to decrease customer risks

E) solutions to reduce customer costs

56) Through its dedicated research team, CISCO Systems Inc has developed new value-added

business solutions which enable its variant class-II capacitors to provide incremental productivity

of 10 to 20 percent over its competitors This is an example of the form of solution selling

A) solutions to reduce customer costs

B) solutions to decrease customer risks

C) solutions to alter corporate culture

D) solutions to enhance customer revenues

A) Supplier Added Value Effort ($AVE)

B) Vendor Managed Inventory (VMI)

C) Direct Concentrated Buying (DCB)

D) Supplier Performance Management (SPM)

E) Product Value Analysis (PVA)

58) Which of the following methods is most likely to be used by buyers to review the

performance of chosen suppliers?

A) the buyer may contact different suppliers and ask for their evaluations

B) the buyers may rate the end-users on several criteria using a weighted-score method

C) the buyer might aggregate the cost of poor performance to come up with adjusted costs of purchase, including price

D) the buyers may aggregate the opinions of various competitors and come up with the adjusted cost of supply

E) the buyers might adopt the Supplier Added Value Effort technique to calculate supplier efficiency

Answer: C

Page Ref: 201

Objective: 4

Difficulty: Difficult

59) A establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time

A) stockless purchase plan

B) direct stock purchase plan

C) defined contribution plan

D) stock purchase plan

E) share purchase plan

60) In the category of buyer-supplier relationships, competition rather than

cooperation is the dominant form of governance

A) basic buying and selling

62) The partners in systems are united in operational ways, but neither demonstrates structural commitment through legal means or adaptation

products This relationship is best described as

A) basic buying and selling

65) In the category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange

C) there are many undifferentiated vendors in the marketplace

D) the customer is highly price sensitive

E) the suppliers charge a premium for their products

68) investments are those expenditures tailored to a particular company and value chain partner.

72) Organizational buying is the decision-making process by which formal organizations

establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers

78) An increase in the demand for plant and equipment can lead to a much larger increase in consumer demand This is known as the acceleration effect.

82) The buyer in a straight rebuy usually changes product specifications, prices, delivery

requirements, or other terms

84) Most business buyers reject what is called systems buying from one seller

85) Systems selling is a key industrial marketing strategy in bidding to build large-scale

industrial projects such as dams or pipelines

90) Influencers influence the buying decision by helping define specifications and providing information for evaluating alternatives.

94) Framing occurs when customers are given a perspective or point of view that allows the firm

to "put its best foot forward."

96) The buying process begins when someone places an order with a sales representative Answer: FALSE

102) Risk and gain sharing can offset price reductions that customers request.

108) The "customer is king" category of buyer-seller relationship is relatively simple, and one in which routine exchanges with moderately high levels of cooperation and information exchange occur

Page Ref: 183-185

Objective: 1

AACSB: Reflective thinking

Difficulty: Easy

113) Explain how fluctuating demand impacts business markets differently from consumer markets.

Answer: The demand for business goods and services tends to be more volatile than the demand for consumer goods and services A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce additional output Economists refer to this as the acceleration effect

Straight rebuy- In a straight rebuy, the purchasing department reorders supplies such as office supplies and bulk chemicals on a routine basis and chooses from suppliers on an approved list The suppliers make an effort to maintain product and service quality and often propose automaticreordering systems to save time "Out-suppliers" attempt to offer something new or exploit dissatisfaction with a current supplier Their goal is to get a small order and then enlarge their purchase share over time

Modified rebuy- The buyer in a modified rebuy wants to change product specifications, prices, delivery requirements, or other terms This usually requires additional participants on both sides The in-suppliers become nervous and want to protect the account The out-suppliers see an opportunity to propose a better offer to gain some business

New task- A new-task purchaser buys a product or service for the first time (an office building, a new security system) The greater the cost or risk, the larger the number of participants, and the greater their information gathering, the longer the time to a decision

Page Ref: 185-186

Objective: 2

AACSB: Communications

Difficulty: Moderate

116) Describe the practices of systems buying and systems contracting

Answer: Systems buying involves buying a total solution to a problem from one seller Systems contracting is a variant of systems selling in which a single supplier provides the buyer with his entire requirement for maintenance, repair, and operating supplies During the contract period, the supplier manages the customer's inventory

Page Ref: 187

Objective: 2

Difficulty: Moderate

117) What is the composition of the buying center?

Answer: A buying center is composed of "all those individuals and groups who participate in thepurchasing decision-making process, who share some common goals and the risks arising from the decisions." The buying center includes all members of the organization who play any of seven roles in the purchase decision process: initiators, users, influencers, deciders, approvers, buyers, gatekeepers Buying centers usually include several participants with differing interests, authority, status, and persuasiveness Each member of the buying center is likely to give priority

to very different decision criteria

Page Ref: 188

Objective: 3

AACSB: Analytic skills

Difficulty: Moderate

118) List the seven roles of people in a buying center

Answer: 1 Initiators—Users or others in the organization who request that something be

4 Deciders—People who decide on product requirements or on suppliers

5 Approvers—People who authorize the proposed actions of deciders or buyers

6 Buyers—People who have formal authority to select the supplier and arrange the purchaseterms Buyers may help shape product specifications, but they play their major role in selecting vendors and negotiating In more complex purchases, buyers might include high-level managers

7 Gatekeepers—People who have the power to prevent sellers or information from reachingmembers of the buying center For example, purchasing agents, receptionists, and telephoneoperators may prevent salespersons from contacting users or deciders

Page Ref: 188

Objective: 3

AACSB: Reflective thinking

Difficulty: Moderate