Which of the following statements regarding the nature of


1. Which of the following statements regarding the nature of the business market is true?

  • Distribution channels for business products are significantly longer than those for consumer products.
  • Customer relationships for business products tend to be short-term and transactions-based.
  • Personal selling plays a larger role in business products markets than in consumer markets.
  • Customer service plays a smaller role in the distribution of business products, as compared to the consumer market.

2. Which of the following is the largest segment of the business market?

  • Trade industries, which include retailers, wholesalers, and resellers.
  • The commercial market, which includes anyone who acquires products to support production of other goods and services.
  • Government organizations, including the military, state, and federal governments.
  • Institutions such as schools, hospitals, and churches.

3. Which of the following statements does not describe the advantage of leasing?

  • Requires a high level of capital commitment
  • Provides the ability to easily upgrade equipment as needs change
  • Provides flexibility for a growing business
  • Spreads out costs compared with lump-sum costs for up-front purchases

4. Businesses choose outsourcing as an alternative to making goods in-house or providing in-house services when:

  • in-house processes often do not incur costs for overheads that an outside vendor would otherwise charge.
  • proprietary technology has the potential to raise security concerns.
  • conflicts arise between nonunion outside workers and in-house union employees.
  • they need to reduce costs to remain competitive.

5. Which of the following statements is true regarding the influence of organizational factors on purchasing decisions?

  • A company with a centralized procurement function operates very similarly to one that delegates purchasing decisions to divisional or geographic units.
  • Centralized buying tends to emphasize short-term results.
  • Decentralized buying focuses more on long-term relationships with suppliers.
  • Personal selling skills and user preferences carry more weight in decentralized purchasing situations.

6. Related party trade is defined as the trade relationship between:

  • countries with free trade agreements.
  • countries with the same language.
  • companies in the same industries.
  • a corporation and its overseas subsidiaries.

7. A nation's size, per-capita income, and stage of economic development determine its prospects as a host for _____.

  • regional economic integration
  • international business expansion
  • free trade association
  • public private partnership

8. The Export Trading Company Act of 1982, exempts companies from _____ so they can form export groups that offer a variety of products to foreign buyers.

  • few international laws
  • business monitoring
  • specific quotas and tariffs
  • antitrust regulations

9. A complete ban on the import of a product is known as a(n) _____.

  • import quota
  • embargo
  • revenue tariff
  • protective tariff

10. The ideal way for a nation to stop a foreign company from dumping is to:

  • pay the exporter with soft currency.
  • impose protective tariffs.
  • cite international law.
  • appeal to the IMF.

11. In recent years, advances in computer technology have significantly changed the nature of marketing research by:

  • narrowing the focus of the data collection process.
  • allowing marketers to evaluate alternatives through the use of computer simulations.
  • eliminating the need for outside research firms.
  • providing an in-house market research group with primary data.

12. Wal-Mart prefers transaction records sorted by customer type, product, sales method, type of order, and order size. Analyzing internal data sorted in this manner is called:

  • sales analysis.
  • financial iteration.
  • transactional hypothesis.
  • marketing cognizance.

13. Information collected for the first time specifically for a marketing research study is called _____ data.

  • Secondary
  • Primary
  • Tertiary
  • Screening

14. Which of the following is a limitation of secondary data not found in primary data?

  • Secondary data is more expensive to collect and analyze than primary data.
  • Secondary data requires that market researchers spend more time to locate and analyze.
  • Published information can quickly become obsolete.
  • Published data often involves non-standardized analytic patterns.

15. Which of the following federal agencies is the most important source of secondary data for marketing research studies?

  • Federal Reserve
  • Treasury Department
  • Census Bureau
  • Bureau of Labor Statistics

16. The division of the total market into smaller, _____ groups is called market segmentation.

  • equivocal
  • randomly selected
  • relatively homogeneous
  • conveniently stratified

17. Which of the following is a basic requirement for effective market segmentation?

  • The firm must avoid focusing on non-variables, such as profitability and volume.
  • The market segment must have measurable purchasing power and size.
  • The company must expand beyond its marketing capabilities to capture growing markets.
  • The market segment must reflect the population's changing attitudes and lifestyles.

18. Japanese automaker, Subaru, generates approximately one-half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru's:

  • primary market.
  • core region.
  • secondary market.
  • sales region.

19. The most common method of market segmentation is:

  • product sampling.
  • demographic segmentation.
  • economic segmentation.
  • psychographic segmentation.

20. In terms of numbers, which age group is the largest?

  • Baby Boomers
  • Generation X
  • 9/11 Generation
  • World War II Generation

21. The government segment of the B2B market commonly buys products:

  • for resale to the public.
  • to provide public benefits.
  • to export them to other countries.
  • to improve its gross domestic product.

22. A strategy for going global through contractual agreements in which the production of goods or services is assigned to local companies is termed as _____.

  • franchising
  • licensing
  • offset strategy
  • subcontracting

23. One of the very first marketing research studies involved of an examination of people's:

  • phone bills.
  • literacy levels.
  • newspaper reading habits.
  • garbage.

24. A positioning map:

  • is used primarily by companies utilizing undifferentiated marketing strategies.
  • will remain constant through the entire product life cycle.
  • Shows how consumers view a product relative to competitive products
  • outlines how to introduce a new product to the marketplace.

25. One of the characteristics of relationship marketing is:

  • the short-term goal of creating an immediate sale.
  • consolidating purchases based on promotions and other inducements.
  • an orientation toward added value through superior customer service.
  • longer distribution channels between suppliers and buyers.

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