MGT301 MCQs

MGT 301 MCQ / True-False / Questions

1. The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as

Answer: business marketing.

2. Organizational buyers include manufacturers, wholesalers, retailers, and government agencies

Answer: That buy goods and services for their own use or resale

Q3. Which of the following statements represents an organizational buying decision?

Answer: The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.

4. Organizational buyers can be divided into three different markets. They are

Answer: industrial, reseller, and government markets.

5. The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, real estate businesses, and , communication and public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

Answer: transportation

6. Archer Daniels Midland (ADM) Co. is the world's largest cocoa-bean processor. It buys cocoa beans and converts the beans into cocoa powder and cocoa butter, which it sells to companies that manufacture consumer products that contain chocolate. The cocoa-bean processor is operating in a(n)

market.

Answer: industrial

7. Wholesalers and retailers that buy physical product and resell them without any reprocessing are

Answer: reseller firms

8. The reseller market includes

Answer: retailers and wholesalers.

9. In terms of organizational buyers, , Lands' End, and JCPenney would all be classified as

Answer: resellers.

10. When Louisiana State University buys new laptops for its faculty it is operating as a(n)

Answer: government unit.

11. The system that provides common industry definitions for Canada, Mexico, and the United States, which make easier the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) is called:

Answer: the North American Industry Classification System (NAICS).

12. the North American Industry Classification System (NAICS).

Answer: The system that provides common industry definitions between Canada the United States, which makes it easier to measure economic activity and releases barriers of trade for manufacturing and distribution for cross-border firms. The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

13. Derived demand refers to

Answer: the demand for industrial products and services that is driven by demand for consumer products

14. Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as.

Answer: derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances

15. Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of demand.

Answer: derived

Q16. Which of the following statements about organizational buying compared to consumer buying is most accurate?

Answer: Brand loyalty exists in both organizational and consumer buying.

17. Important product or service characteristics in organizational buying behavior include: products or services of a technical nature, purchased on the basis of specifications; a large portion of goods are purchased in a raw or semi-finished state, and

Answer: a heavy emphasis placed on delivery time, technical assistance, and postsal service.

Q18. Which of the following statements accurately characterizes buying behavior in organizational markets?

Answer: Fewer customers typically exist in organizational markets than in consumer markets.

19. The primary organizational buying objective is to

Answer: help the firm achieve its objectives.

20. Seven of the most commonly used organizational buying criteria are (1) , (2) ability to meet the quality specifications required for the item, (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7) production facilities and capacity.

Answer: price

21. Seven of the most commonly used organizational buying criteria are (1) price, (2) , (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7) production facilities and capacity.

Answer: ability to meet the quality specifications required for the item

22. Seven of the most commonly used organizational buying criteria are (1) price, (2) ability to meet the quality specifications required for the item, (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7)

Answer: production facilities and capacity

23. To be a Wal-Mart supplier, a firm must be able to deliver its products to Wal-Mart distribution centers within a 15-minute window. If the driver arrives before or after the scheduled window they will be turned away and fined. Wal-Mart's insistence of choosing a supplier based upon their ability to provide on-time delivery is an example of a(n)

Answer: organizational buying criterion.

24. Supplier development refers to

Answer: the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers

25. Harley-Davidson is admired by its suppliers for involving suppliers in future products, referring to suppliers as stakeholders, using quality benchmarks, and

Answer: building long-term relationships.

26. Reciprocity refers to