Reference no: EM131060291

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.