Test Bank Business Marketing Management B2B, 11th Edition, Michael D. Hutt, Thomas W. Speh |All Chapters Covered

Test Bank Business Marketing Management B2B, 11th Edition, Michael D. Hutt, Thomas W. Speh IM Part 3: Exam Questions: MC, TF, SA, Essay Chapter 1—A Business Marketing Perspective MULTIPLE CHOICE 1. The business market consists of the following three components: a. commercial enterprises, resellers, and government. b. manufacturers, institutions, and defense. c. manufacturers, service organizations, and government. d. commercial enterprises, service organizations, and government. e. commercial enterprises, institutions, and government. ANS: E PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Marketing Plan | R&D Knowledge of general business functions 2. Concerning manufacturing customers, the business market is: a. concentrated by size. b. geographically concentrated. c. experiencing declining growth in many large metropolitan areas. d. all of the above. e. (a) and (b) only. ANS: E PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Marketing Plan | R&D Knowledge of general business functions 3. Based on the volume of their purchases, are the most important commercial customers in the business or industrial market. a. construction companies b. manufacturers c. transportation companies d. service firms (e.g., hotels) e. health care facilities ANS: B PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Marketing Plan | R&D Knowledge of general business function 4. Market-driven firms demonstrate: a. the coordinated use of interfunctional resources (for example, research and development, manufacturing). b. a set of values and beliefs among employees that places the customer's interests first. c. the ability to generate, disseminate, and productively use superior information about customers and competitors. d. all of the above. e. (b) and (c) only. ANS: D PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Strategy | R&D Knowledge of general business functions 5. Market-driven firms spot market changes and react well in advance of their competitors. This illustrates: a. the customer-linking capability of market-driven firms. b. the value proposition of market-driven firms. c. the market-sensing capability of market-driven firms. d. the value of using direct channels of distribution in the business market. e. both (b) and (c). ANS: C PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Strategy | R&D Knowledge of general business functions 6. The particular skills, abilities, and processes that an organization has developed to manage close customer relationships are referred to as: a. the customer-linking capability. b. channel management. c. derived demand. d. the market-sensing capability. e. the extended enterprise. ANS: A PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing decisionmaking processes 7. The ability of an organization to quickly recognize changes in its market and to anticipate customer responses to marketing programs is referred to as: a. market research capability. b. customer-linking capability. c. competitive intelligence. d. market-sensing capability. e. derived demand. ANS: D PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing decisionmaking processes 8. Motorola reduced the price of the electronic engine control that it sells to Ford by 10 percent and experienced a 15 percent increase in quantity demanded. This suggests that Ford’s price elasticity of demand is: a. elastic. b. inelastic. c. neither elastic nor inelastic. d. insensitive to price changes. e. none of the above. ANS: A PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Pricing | R&D Knowledge of general business functions 9. Dayco increased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 9 percent. Price elasticity of demand for drive belts appears to be: a. elastic. b. inelastic. c. neither elastic nor inelastic. d. sensitive to price changes. e. none of the above. ANS: B PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Pricing | R&D Knowledge of general business functions 10. A diverse array of organizations make up the business market. These organizations can be broadly classified as: a. commercial enterprises, governmental organizations, and institutions. b. commercial enterprises, users, and governmental units. c. commercial enterprises, users, and original equipment manufacturers. d. producers and resellers of industrial products or services. e. upstream suppliers, users, and governmental units. ANS: A PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Strategy | R&D Knowledge of general business functions 11. When purchasing a high speed packaging machine, General Foods would be classified as: a. an original equipment manufacturer. b. a user. c. a distributor. d. a dealer. e. an institutional buyer. ANS: B PTS: 1 NAT: AACSB Reflective Thinking | CB&E Model Strategy | R&D Knowledge of general business functions 12. Concerning the chain of suppliers involved in the creation of a Honda automobile, which of the following fall within the business marketing domain? a. Honda purchasing power steering components from direct suppliers