MKTG 400 Exam test questions with
answers graded A+
Organizational Buyers - ANS✅✅manufacturers, wholesalers, retailers, and government agencies
that buy goods and services for their own use or for resale
Industrial Markets - ANS✅✅-7.5 million firms, reprocess a product or service they buy before
selling it again to the next buyer
-Companies that sell primarily physical goods represent 25%
-Service Companies represent 75%
Reseller Markets - ANS✅✅-wholesalers and retailers that buy physical products and resell them
again without any reprocessing
-1.1 million retailers
-435,000 wholesalers
Government Markets - ANS✅✅-Federal, state, county, or local agencies that buy goods and
services to support their internal operations and provide products to their constituencies
-89,500 in the US
Reciprocity - ANS✅✅an industrial buying practice in which two organizations agree to purchase
each other's products and services
Supply Partnership - ANS✅✅a relationship that exists when a buyer and its supplier adopt
mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or
increasing the value of products and services delivered to the ultimate consumer
Derived Demand - ANS✅✅the demand for industrial products and services is driven by demand
for consumer products and services
-size of order or purchase
-# of potential buyers
-Organizational Buying Objectives
, Organizational Buying Criteria - ANS✅✅(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) production facilities and capacity
Buying Center - ANS✅✅-the group of people in an organization who participate in the buying
process and share common goals, risks, and knowledge important to a purchase decision
-Users, influencers, Buyers, Deciders, Gatekeepers
Buy Classes - ANS✅✅consist of three types of organizational buying situations: straight rebuy, new
buy, and modified rebuy.
Users - ANS✅✅the people in the organization who actually use the product or service
Influencers - ANS✅✅affect the buying decision, usually by helping define the specifications for
what is bought
Buyers - ANS✅✅have formal authority and responsibility to select the supplier and negotiate the
terms of the contract
Deciders - ANS✅✅have formal or informal power to select and approve final suppliers
Gatekeepers - ANS✅✅control the flow of information in the buying center
straight rebuy - ANS✅✅reorder of an existing product or service from the list of acceptable
suppliers, w/o checking with users or influencers
New buy - ANS✅✅-Completely new purchase. First time buyer of the product or service.
-greater potential risks
modified rebuy - ANS✅✅the users, influencers, or deciders in the buying center want to change
the product specifications, price, delivery schedule, or supplier
Countertrade - ANS✅✅the practice of using barter rather than money for making global sales
answers graded A+
Organizational Buyers - ANS✅✅manufacturers, wholesalers, retailers, and government agencies
that buy goods and services for their own use or for resale
Industrial Markets - ANS✅✅-7.5 million firms, reprocess a product or service they buy before
selling it again to the next buyer
-Companies that sell primarily physical goods represent 25%
-Service Companies represent 75%
Reseller Markets - ANS✅✅-wholesalers and retailers that buy physical products and resell them
again without any reprocessing
-1.1 million retailers
-435,000 wholesalers
Government Markets - ANS✅✅-Federal, state, county, or local agencies that buy goods and
services to support their internal operations and provide products to their constituencies
-89,500 in the US
Reciprocity - ANS✅✅an industrial buying practice in which two organizations agree to purchase
each other's products and services
Supply Partnership - ANS✅✅a relationship that exists when a buyer and its supplier adopt
mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or
increasing the value of products and services delivered to the ultimate consumer
Derived Demand - ANS✅✅the demand for industrial products and services is driven by demand
for consumer products and services
-size of order or purchase
-# of potential buyers
-Organizational Buying Objectives
, Organizational Buying Criteria - ANS✅✅(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) production facilities and capacity
Buying Center - ANS✅✅-the group of people in an organization who participate in the buying
process and share common goals, risks, and knowledge important to a purchase decision
-Users, influencers, Buyers, Deciders, Gatekeepers
Buy Classes - ANS✅✅consist of three types of organizational buying situations: straight rebuy, new
buy, and modified rebuy.
Users - ANS✅✅the people in the organization who actually use the product or service
Influencers - ANS✅✅affect the buying decision, usually by helping define the specifications for
what is bought
Buyers - ANS✅✅have formal authority and responsibility to select the supplier and negotiate the
terms of the contract
Deciders - ANS✅✅have formal or informal power to select and approve final suppliers
Gatekeepers - ANS✅✅control the flow of information in the buying center
straight rebuy - ANS✅✅reorder of an existing product or service from the list of acceptable
suppliers, w/o checking with users or influencers
New buy - ANS✅✅-Completely new purchase. First time buyer of the product or service.
-greater potential risks
modified rebuy - ANS✅✅the users, influencers, or deciders in the buying center want to change
the product specifications, price, delivery schedule, or supplier
Countertrade - ANS✅✅the practice of using barter rather than money for making global sales
