1. When purchasing a high speed packaging machine, Nestlé would be classified as:

1. an original equipment manufacturer.
2. a user.
3. a distributor.
4. a dealer.
5. an institutional buyer.

2. When Tata Steel notices a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles, this illustrates the concept of:

1. derived demand.
2. connector demand.
3. linked demand.
4. reflection demand.
5. evoked demand.

3. Which of the following would be classified as entering goods?

1. operating supplies
2. maintenance and repair items
3. component materials
4. both (a) and (c)
5. none of the above

4. Douglas Jackson is a salesperson for Quality Surgical Products. To achieve success in selling medical supplies, Doug may have to:

1. satisfy the requirements of the hospital administrator.
2. meet the requirements and specifications of the professional staff (doctors and nurses).
3. satisfy the requirements of the purchasing manager.
4. all of the above.
5. (a) and (c) only.

5. The NAICS is:

1. a standard industrial classification system.
2. the North American equivalent of NACE.
3. used for segmenting B2B markets.
4. all of the above.

6. Organizational buyers do not have well-defined criteria that can be applied to the procurement
problem in:

1. modified rebuy situations.
2. new task buying situations.
3. straight rebuy situations.
4. purchasing expensive accessory equipment.

7. Strategies that would be appropriate for an “out” supplier to follow when confronting a modified rebuy situation include:

1. offering performance guarantees.
2. encouraging the organization to sample the firm’s offering.
3. defining and responding to the organization’s problem with the existing supplier.
4. all of the above.
5. (b) and (c) only.

8. Sales forces that frequently encounter this type of buying situation provide the following sketch:
“The buying center is large, slow to decide, uncertain about its needs and the appropriateness of the
possible solutions, more concerned about finding a good solution than getting a low price, more
influenced by technical personnel, less influenced by purchasing agents.” This describes a:

1. capital equipment purchase.
2. new task.
3. straight rebuy.
4. modified rebuy.
5. none of the above

9. Within the buying centre, individuals who actually make the organizational buying decision, whether or
not they have formal authority to do so, are performing the role of:

a user.

a gatekeeper.

an influencer.

a decider.

a buyer

10. A common identifiable element in buying centres in all sectors of the industrial market is:

1. the chief executive officer.
2. the accounting function.
3. the purchasing function.
4. the production function.
5. the engineering function.

11. Transactional exchange features very close:

1. information linkages.
2. social linkages.
3. operational linkages.
4. all of the above.
5. none of the above.

12. Ongoing transactions in the business market where the customer and the supplier focus only on
the timely exchange of standard products at competitive prices could be described as:

1. transactional exchange.
2. a partnership.
3. collaborative exchange.
4. a strategic alliance.
5. a joint venture.

13. Buying firms prefer a more collaborative relationship when:

1. the purchase is deemed strategically important to the buying organization.
2. the market is dynamic.
3. there are few alternatives.
4. all of the above.
5. (a) and (c) only.

14. Which of the following statements concerning business market segmentation is (are) true?

1. The decision to enter a particular market segment carries with it significant long-term resource commitments for the industrial firm.
2. In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behaviour.
3. Segmentation decisions can be reversed more easily in the business market than in the consumer market.
4. All of the above
5. (a) and (b) only.

15. NACE is an acronym for:

1. National Association of Chimney Engineers.
2. National Association of Colleges and Employers.
3. Nomenclature générale des activités Économiques dans les Communautés européennes.
4. National Association of Catering Executives.
5. All of the above.

16. Which of the following is NOT a method of differentiating B2B marketing from B2C marketing?

1. market structure
2. derived demand
3. buying behaviour
4. demand concentration
5. product type

17. A particular industrial customer might be properly classified as a user by somebusiness marketers
and an original equipment manufacturer by other business marketers.

1. True
2. False

18. A purchasing manager could assume the roles of buyer, gatekeeper, and influencerin the buying centre.

1. True
2. False

19. The marketing task appropriate for the straight rebuy situation depends on whether the marketer is
an “in” or an “out” supplier.

1. True
2. False

20. Buying firms prefer a transactional relationship when there are few alternatives and the complexity of purchase is high.

1. True
2. False