EXAM 2 BMKT 325 MSU QUESTIONS
AND ANSWERS
Business (organizational) buying behavior - ANSWER-The purchase behavior of producers,
government units, institutions, and resellers
A business market (also called a business-to-business market or B2B market) - ANSWER-consists
of individuals, organizations, or groups that purchase a specific kind of product for one of three
purposes:
Direct use in producing other products
Use in general daily operations
Resale
In most cases, B2B big-picture goals are - ANSWER-understanding customer needs
developing relationships with customers
providing value-added exchanges
Four major types of B2B markets - ANSWER-Producer Markets
Reseller Markets
Government Markets
Institutional Markets
Producer Markets - ANSWER-Individuals and business organizations that purchase products to
make profits by using them to produce other products or using them in their operations
-Include buyers of raw materials, as well as purchasers of semi-finished and finished items, used
to produce other products
Reseller Markets - ANSWER-Intermediaries that buy finished goods and resell them for a profit
Intermediaries consist of wholesalers and retailers
Government Markets - ANSWER-Federal, state, county, or local governments that buy goods
and services to support their internal operations and provide products to their constituencies
, Institutional Markets - ANSWER-Organizations with charitable, educational, community, or
other non-business goals
Transactions between businesses differ from consumer sales in several ways: - ANSWER-Orders
by business customers tend to be much larger than individual consumer sales
B2B discussions and negotiations may require considerable marketing time and selling effort
B2B suppliers must indicate how they provide better value to their customers than their
competitors
Reciprocity - ANSWER-An arrangement unique to business marketing in which two organizations
agree to buy (only) from each other
When making purchasing decisions, business customers take into account a variety of factors: -
ANSWER-Price, Product quality, Service, Ethics and social responsibility, Costs of developing and
maintaining relationships with suppliers
Methods of Business Buying - ANSWER-Description, Inspection, Sampling, Negotiation
Description - ANSWER-Used when products are standardized and graded according to certain
characteristics such as size, shape, weight, and color
Examples: Commodities and raw materials
Inspection - ANSWER-Used when products have unique characteristics and may vary with
regard to condition
Examples: Industrial equipment, used vehicles, and buildings
Sampling - ANSWER-Used when products are homogeneous and examining the entire lot is not
physically or economically feasible
Example: Grain
Negotiation - ANSWER-Used commonly for one-time projects
Examples: Buildings and capital equipment
Types of Business Purchases - ANSWER-New Task Purchase, Straight Rebuy, Modified Rebuy
New-task purchase - ANSWER-An organization's initial purchase of an item to be used to
perform a new job or solve a new problem
Straight rebuy purchase - ANSWER-A routine purchase of the same products under
approximately the same terms of sale by a business buyer
AND ANSWERS
Business (organizational) buying behavior - ANSWER-The purchase behavior of producers,
government units, institutions, and resellers
A business market (also called a business-to-business market or B2B market) - ANSWER-consists
of individuals, organizations, or groups that purchase a specific kind of product for one of three
purposes:
Direct use in producing other products
Use in general daily operations
Resale
In most cases, B2B big-picture goals are - ANSWER-understanding customer needs
developing relationships with customers
providing value-added exchanges
Four major types of B2B markets - ANSWER-Producer Markets
Reseller Markets
Government Markets
Institutional Markets
Producer Markets - ANSWER-Individuals and business organizations that purchase products to
make profits by using them to produce other products or using them in their operations
-Include buyers of raw materials, as well as purchasers of semi-finished and finished items, used
to produce other products
Reseller Markets - ANSWER-Intermediaries that buy finished goods and resell them for a profit
Intermediaries consist of wholesalers and retailers
Government Markets - ANSWER-Federal, state, county, or local governments that buy goods
and services to support their internal operations and provide products to their constituencies
, Institutional Markets - ANSWER-Organizations with charitable, educational, community, or
other non-business goals
Transactions between businesses differ from consumer sales in several ways: - ANSWER-Orders
by business customers tend to be much larger than individual consumer sales
B2B discussions and negotiations may require considerable marketing time and selling effort
B2B suppliers must indicate how they provide better value to their customers than their
competitors
Reciprocity - ANSWER-An arrangement unique to business marketing in which two organizations
agree to buy (only) from each other
When making purchasing decisions, business customers take into account a variety of factors: -
ANSWER-Price, Product quality, Service, Ethics and social responsibility, Costs of developing and
maintaining relationships with suppliers
Methods of Business Buying - ANSWER-Description, Inspection, Sampling, Negotiation
Description - ANSWER-Used when products are standardized and graded according to certain
characteristics such as size, shape, weight, and color
Examples: Commodities and raw materials
Inspection - ANSWER-Used when products have unique characteristics and may vary with
regard to condition
Examples: Industrial equipment, used vehicles, and buildings
Sampling - ANSWER-Used when products are homogeneous and examining the entire lot is not
physically or economically feasible
Example: Grain
Negotiation - ANSWER-Used commonly for one-time projects
Examples: Buildings and capital equipment
Types of Business Purchases - ANSWER-New Task Purchase, Straight Rebuy, Modified Rebuy
New-task purchase - ANSWER-An organization's initial purchase of an item to be used to
perform a new job or solve a new problem
Straight rebuy purchase - ANSWER-A routine purchase of the same products under
approximately the same terms of sale by a business buyer
