C201 Pre-Assessment Review QUESTIONS AND
VERIFIED ANSWERS
In which three ways does business-buying behavior differ from consumer-
buying behavior?
A group or committee often makes decisions, Purchasers often invite selected
providers to bid on a purchase & Buyers face organizational influences that affect
their own preferences.
After years of marketing a body lotion, a cosmetics company begins promoting
the lotion as an insect repellent as well. In which three product life cycle
extension strategies did this company engage?
Adding new users, Increasing frequency of use & Finding new uses for the product
Which manufacturer distribution model is enhanced by the shipping and
tracking capabilities of a global package delivery service?
Direct
Which calculation determines a firm’s return on equity?
Average equity / net income
Why should companies that are conservative investors with liquidity concerns
invest their excess cash in money market funds?
It converts easily into cash.
VERIFIED ANSWERS
In which three ways does business-buying behavior differ from consumer-
buying behavior?
A group or committee often makes decisions, Purchasers often invite selected
providers to bid on a purchase & Buyers face organizational influences that affect
their own preferences.
After years of marketing a body lotion, a cosmetics company begins promoting
the lotion as an insect repellent as well. In which three product life cycle
extension strategies did this company engage?
Adding new users, Increasing frequency of use & Finding new uses for the product
Which manufacturer distribution model is enhanced by the shipping and
tracking capabilities of a global package delivery service?
Direct
Which calculation determines a firm’s return on equity?
Average equity / net income
Why should companies that are conservative investors with liquidity concerns
invest their excess cash in money market funds?
It converts easily into cash.
