Marketing Basics

Question 1

In his last order, the bakery manager at Bread of the Earth Bakery purchased a different brand of whole wheat flour from his regular supplier, Best Bakery Supplies. This is an example of a:

Answer

modified rebuy.

straight buy.

straight rebuy.

new-task buy.

10 points

Question 2

As the owner of a women's clothing store, Karen Montenegro has an income of $75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery bills, house mortgage, and car payment. Last year she went to Italy and spent an additional $4,000. What was Karen's discretionary income last year?

Answer

$45,000

$75,000

$26,000

$28,000

10 points

Question 3

A hospital or a law firm is considered a __________ type of organizational customer?

Answer

producer

intermediary

government

nonprofit

10 points

Question 4

Regarding the government market:

Answer

sales reps generally do not (and should not) write the specifications for government business.

government is the largest customer group in the United States--spending about 30% of the GDP.

governments buy a lot, but only of certain products and can be safely ignored by most producers.

negotiated contracts are uncommon because of mandatory bidding procedures.

10 points

Question 5

Which of the following statements is TRUE regarding U.S. business and organizational customers?

Answer

More goods and services are purchased by business and organizational customers than by final consumers.

There are more business and organizational customers than final consumers.

There are more manufacturers than all other types of business and organizational customers combined.

More goods and services are purchased by government buyers than by all other business and organizational customers.

10 points

Question 6

Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs purchase orders for office supplies without further consideration. At Black Mountain, purchases of office supplies are:

Answer

a modified rebuy.

a necessity.

somewhat insignificant commodity (SIC) items.

a straight rebuy.

10 points

Question 7

Which of the following statements BEST describes a purchasing manager?

Answer

A purchasing manager is basically a clerk who fills out paperwork to place orders.

A purchasing manager is the only person a business-to-business salesperson ever needs to see in order to make a sale with a buying organization.

A purchasing manager may specialize by product area if he/she works for a large organization.

A purchasing manager is only interested in finding the lowest possible price for a product.

10 points

Question 8

Regarding the business (manufacturing) market, small firms (with fewer than ten employees):

Answer

are not very numerous compared to the very large firms.

are the majority of all firms, but account for less than 3% of "value added" by manufacturing.

account for the vast majority of the total employment provided by all manufacturers.

amount to nearly two million establishments.

10 points

Question 9

Economists' economic-buyer theory assumes that:

Answer

income data are very useful for predicting consumer behavior.

buyers logically compare choices in order to maximize their satisfaction.

consumers should purchase only low-priced products.

consumers should purchase only high-priced products.

10 points

Question 10

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know:

Answer

that there are no 4-digit NAICS codes.

that there is only one firm to find, since each firm has its own 4-digit NAICS code.

that it is possible that no data will be available, even if there is one large firm in California in that 4-digit industry.

that your manager is talking about the New Auto Industry Classification Survey.