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.