Session:4 Business Markets and Purchasing Behavior
Answer Key
Principles of Marketing | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-marketing
4.1 Knowledge Check
1. c. Derived demand is a market demand for a good or service that results from a demand for a related
good or service.
2. a. A B2B (or “business-to-business”) transaction is one that is conducted between one business and
another.
3. c. B2B purchasing is more likely to involve complex negotiations concerning price, delivery schedules,
technical specifications, etc., so personal selling plays a vital role.
4. c. The B2B market is more geographically concentrated in areas based on cost, access, and availability of
resources.
5. d. DaVonte’s purchase of the lumber in connection with his business is a B2B transaction; the purchase of
batteries for the smoke detector in his house is a B2C transaction.
good or service.
2. a. A B2B (or “business-to-business”) transaction is one that is conducted between one business and
another.
3. c. B2B purchasing is more likely to involve complex negotiations concerning price, delivery schedules,
technical specifications, etc., so personal selling plays a vital role.
4. c. The B2B market is more geographically concentrated in areas based on cost, access, and availability of
resources.
5. d. DaVonte’s purchase of the lumber in connection with his business is a B2B transaction; the purchase of
batteries for the smoke detector in his house is a B2C transaction.
4.2 Knowledge Check
1. c. Government markets make up the largest single business and organizational market in the United
States.
2. a. A straight rebuy is making a routine purchase of a standard product or products with no modifications
from a familiar supplier.
3. c. In a modified rebuy, the purchaser is buying goods that have been purchased previously but changes
either the supplier or certain elements of the previous order.
4. c. The initiator is the individual within the buying center who first suggests the idea of purchasing a new
product or service.
5. d. Buyers are those who have authority within the organization to select suppliers and negotiate and
arrange the purchase terms.
States.
2. a. A straight rebuy is making a routine purchase of a standard product or products with no modifications
from a familiar supplier.
3. c. In a modified rebuy, the purchaser is buying goods that have been purchased previously but changes
either the supplier or certain elements of the previous order.
4. c. The initiator is the individual within the buying center who first suggests the idea of purchasing a new
product or service.
5. d. Buyers are those who have authority within the organization to select suppliers and negotiate and
arrange the purchase terms.
4.3 Knowledge Check
1. c. The goals and objectives act as a major element as to what the business purchases.
2. a. Legal factors include laws, rules, and regulations with which a business or individual must comply.
3. d. Conditional factors include the present financial condition of the organization, as well as product/service
availability.
4. b. Economic factors include the level of primary demand, the economic outlook, and the cost of money
(i.e., interest rates).
5. d. The availability of the product or service plays a significant role in the buying decision, and availability is
a conditional factor.
2. a. Legal factors include laws, rules, and regulations with which a business or individual must comply.
3. d. Conditional factors include the present financial condition of the organization, as well as product/service
availability.
4. b. Economic factors include the level of primary demand, the economic outlook, and the cost of money
(i.e., interest rates).
5. d. The availability of the product or service plays a significant role in the buying decision, and availability is
a conditional factor.
4.4 Knowledge Check
1. c. The purpose of a product specification is to provide a description and statement of the requirements of
a product, the components of a product, the capability or performance of a product, and/or the service or
work to be performed to create a product.
2. d. Stage 5 of the B2B buying process is proposal solicitation, in which qualified vendors are asked to
submit proposals.
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3. b. In Stage 2: Need description, the buying center will work to put some parameters around what needs to
be purchased and develop a bill of materials.
4. d. In Stage 7: Order-routine specification, the B2B buyer negotiates the order, listing the technical
specifications, the quantity needed, the expected time of delivery, etc.
5. a. Similar to consumer buying, the first stage in the B2B buying decision process occurs when someone
identifies a problem that can be resolved through a purchase.
a product, the components of a product, the capability or performance of a product, and/or the service or
work to be performed to create a product.
2. d. Stage 5 of the B2B buying process is proposal solicitation, in which qualified vendors are asked to
submit proposals.
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3. b. In Stage 2: Need description, the buying center will work to put some parameters around what needs to
be purchased and develop a bill of materials.
4. d. In Stage 7: Order-routine specification, the B2B buyer negotiates the order, listing the technical
specifications, the quantity needed, the expected time of delivery, etc.
5. a. Similar to consumer buying, the first stage in the B2B buying decision process occurs when someone
identifies a problem that can be resolved through a purchase.