Chapter 7

Question 1

The marketing of goods and services to individuals and organizations for purposes other than personal consumption

Answer 1

Business Marketing (Industrial Marketing)

Question 2

The use of the internet to facilitate the exchange of goods, services, and information between organizations

Answer 2

Business-To-Business Electronic Commerce (B-To-B or B2B E-Commerce)

Question 3

A measure of a Web site’s effectiveness; calculated by multiplying the frequency of visits by the duration of visits by the duration of a visit by the number of pages viewed during each visit (site reach)

Answer 3

Stickiness

Question 4

A cooperative agreement between business firms

Answer 4

Strategic Alliance (Strategic Partnership)

Question 5

A firm’s belief than an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely

Answer 5

Relationship Commitment

Question 6

The condition that exists when one party has confidence in an exchange partner’s reliability and integrity

Answer 6

Trust

Question 7

A network of interlocking corporate affiliates

Answer 7

Keiretsu

Question 8

Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers

Answer 8

Original Equipment Manufacturers (OEMs)

Question 9

A detailed numbering system developed by the United States, Canada, and Mexico to classy North American business establishments by their main production process

Answer 9

North American Industry Classification (NAICS)

Question 10

The demand for business products

Answer 10

Derived Demand

Question 11

The demand for two or more items used together in a final product

Answer 11

Joint Demand

Question 12

Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product

Answer 12

Multiplier Effect (Accelerator Principle)

Question 13

An electronic trading floor that provides companies with integrated links to their customers and suppliers

Answer 13

Business-To-Business Online Exchange

Question 14

A practice whereby business purchasers choose to buy from their own customers

Answer 14

Reciprocity

Question 15

Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

Answer 15

Major Equipment (Installations)

Question 16

Goods such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

Answer 16

Accessory Equipment

Question 17

Unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish

Answer 17

Raw Materials

Question 18

Either finished items ready for assembly or products that need very little processing before becoming part of some other product

Answer 18

Component Parts

Question 19

Products used directly in manufacturing other products

Answer 19

Processed Materials

Question 20

Consumable items that do not become part of the final product

Answer 20

Supplies

Question 21

Expense items that do not become part of a final product

Answer 21

Business Services

Question 22

All those people in an organization who become involved in the purchase decision

Answer 22

Buying Center

Question 23

A situation requiring the purchase of a product for the first time

Answer 23

New Buy

Question 24

A situation in which the purchaser wants some change in the original good or service

Answer 24

Modified Buy

Question 25

A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers

Answer 25

Straight Rebuy