Chapter 6 – Analyzing Business Markets

Chapter 6 – Analyzing Business Markets

True/False Questions

1. SAP is a German software company that helps businesses automate their finance and management systems. True (easy) pp. 101–102

2. Organizational buying is the decision-process by which organizations establish and satisfy their needs for goods and services. True (moderate) p. 102

3. Mining, manufacturing, banking, and distribution services are all considered part of the business market. True (easy) p. 102

4. Schools and prisons are considered institutional buying organizations and they tend to have captive clienteles and limited budgets. True (moderate) p. 102

5. Characteristics of business markets include that there are more buyers and larger buyers. False (moderate) p. 103, Table 6.1

6. When compared to the consumer market, the demand for goods and services in the business market is derived. True (moderate) p. 103, Table 6.1

7. In selling to the government, the contract is always awarded to the lowest bidder. False (difficult)       p. 104

8. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation. True (moderate) p. 104

9. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation. True (moderate) p. 104

10. A “straight rebuy” is a more complex process than a “new task” because the firm is limited to an approved list of vendors. False (moderate) pp. 104–105

11. One key thing to keep in mind when marketing across cultural boundaries is that all people are NOT basically alike. True (moderate) p. 107

12. A secretary who prevents salespersons from contacting users or deciders is playing a gatekeeper role. True (easy) p. 107

13. Interpersonal factors have almost no influence in business purchasing decisions. False (moderate)     p. 107

14. The business buying process is influenced by environmental, organizational, and individual factors. True (moderate) p. 107

15. Reading an...