Chapter 7

Question 1

business-to-business marketing

Answer 1

Marketing of those goods and services that business and organizational customers need to produce other goods and services for resale or to support their operations.

Question 2

organizational markets

Answer 2

Another name for business-to-business markets.

Question 3

derived demand

Answer 3

Demand for business or organizational products derived from demand for consumer goods or services.

Question 4

inelastic demand

Answer 4

Demand in which changes in price have little or no effect on the amount demanded.

Question 5

acceleration principle (multiplier effect)

Answer 5

A marketing phenomenon in which a small percentage change in consumer demand can create a large percentage change in business-to-business demand.

Question 6

joint demand

Answer 6

Demand for two or more goods that are used together to create a product.

Question 7

producers

Answer 7

The individuals or organizations that purchase products for use in the production of other goods and services.

Question 8

resellers

Answer 8

The individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations.

Question 9

government markets

Answer 9

The federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations.

Question 10

competitive bids

Answer 10

A business buying process in which two or more suppliers submit proposals (including price and associated data) for a proposed purchase and the firm providing the better offer gets bid.

Question 11

not-for-profit insitutions

Answer 11

The organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members.

Question 12

North American Industry Classification System (NAICS)

Answer 12

The numerical coding system that the United States, Canada, and Mexico use to classify firms into detailed categories according to their business activities.

Question 13

buy class

Answer 13

One of three classifications of business buying situations that characterizes the degree of time and effort required to make a decision.

Question 14

straight rebuy

Answer 14

A buying situation in which business buyers make routine purchases that require minimal decision making.

Question 15

modified rebuy

Answer 15

A buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making.

Question 16

new-task buy

Answer 16

A new business-to-business purchase that is complex or risky and that requires extensive decision making.

Question 17

centralized purchasing

Answer 17

A business buying practice in which a single department does the buying for all the company’s facilities.

Question 18

buying center

Answer 18

The group of people in an organization who participate in a purchasing decision.

Question 19

product specifications

Answer 19

A written description of the quality, size, weight, and so forth required of a product purchase.

Question 20

just in time (JIT)

Answer 20

Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed.

Question 21

single sourcing

Answer 21

The business practice of buying a particular product from only one supplier.

Question 22

reciprocity

Answer 22

A trading partnership in which two firms agree to buy from one another.

Question 23

outsourcing

Answer 23

The business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house.

Question 24

reverse marketing

Answer 24

A business practice in which a buyer firm attempts to identify suppliers who will produce products according to the buyer firm’s specifications.

Question 25

business-to-business (B2B) e-commerce

Answer 25

Internet exchanges between two or more businesses or organizations.

Question 26

multiple sourcing

Answer 26

The business practice of buying a particular product from many suppliers.

Question 27

extranet

Answer 27

Private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization.

Question 28

private exchanges

Answer 28

Systems that link an invited group of suppliers and partners over the Web.

Question 29

firewall

Answer 29

A combination of computer hardware and software that ensure only authorized individuals gain entry into a computer system.