Chapter 1

Question 1

Business Markets

Answer 1

All organizations that purchase goods and services used in the creation of their own goods and services (which in turn are sold to consumers)

Question 2

Market size: b2b vs b2c

Answer 2

fewer for b2b

Question 3

Transactional Value: b2b vs b2c

Answer 3

higher for b2b

Question 4

Marketing

Answer 4

activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large

Question 5

Business Marketing

Answer 5

Creating value for the business customer

Value creation to business consumer –> value creation for final consumer

Question 6

Product

Answer 6

Good, service, or ideas to satisfy the consumers’ needs

Question 7

Total Offering

Answer 7

Provides the complete solution to the buyer’s needs (products + service + financing + training, etc)

Question 8

Price

Answer 8

What is exchanged for the product (generally final step in a negotiation effort)

Question 9

Place

Answer 9

Where the consumer gets a product, marketer needs to make product available such that economic utility is maximized

Question 10

Form Utility

Answer 10

value firm production (pack size/quantity)

Question 11

Place Utility

Answer 11

Value of access (atm, online purchasing)

Question 12

Time Utility

Answer 12

value from time saved

Question 13

Possession Utility

Answer 13

value from ease of purchase (credit cards, cash, ownership transfer)

Question 14

Economic Utility for B2B

Answer 14

Offered in the way of supply chain management efficiencies

Question 15

Promotion

Answer 15

Means of communication between seller and buyer - in b2b it is leveraged with personal selling

Question 16

Marketing Concept

Answer 16

the idea that an organization should strive to satisfy customer needs while also trying to achieve the organization’s goals

Question 17

Bullwhip effect

Answer 17

the idea that as consumer demand varies (seasonality, trends) upstream suppliers of components that created the total offering to the end consumer experience an impact

Question 18

Discontinued Demand

Answer 18

Condition in which quantity demanded in the market makes large changes up or down in response to changes in the market place

Question 19

Customer Value

Answer 19

Value = Benefits - Costs

Question 20

Evaluated Price

Answer 20

cost of owning and using the product

Question 21

B2B Market Structure

Answer 21

Concentrated Geographically
Relatively Few Buyers
Oligopolistic competition

Question 22

B2C Market Structure

Answer 22

Dispersed
Mass Markets
Monopolistic competition

Question 23

B2B Products

Answer 23

Technically Complex,
Customized for users,
Service is important,
Not for personal use

Question 24

B2C Products

Answer 24

Standardized,
Service not as important,
Purchased for personal use

Question 25

B2B Buyers

Answer 25

Professionally trained,
Many levels of involvement,
Task motives

Question 26

B2C Buyers

Answer 26

Individual purchasing,
Family influence,
Social, Psycho motives

Question 27

B2B Relationship

Answer 27

Technical expertise is asset,
Interpersonal relationships,
Significant info exchanged,
stable, long-term relationships encouraged

Question 28

B2C Relationships

Answer 28

Less technical knowledge,
Nonpersonal relationships,
Little personal information exchanged,
changing/short-term relationships

Question 29

B2B Channels

Answer 29

Shorter,

Organization involvement

Question 30

B2C Channels

Answer 30

Indirect/multiple relationships,

No, supply chain involvement

Question 31

B2B Promotion

Answer 31

Emphasis on personal selling,

Consumer seldom aware of B2B companies

Question 32

B2C Promotion

Answer 32

Emphasis on advertising,

Companies compete for visiblity

Question 33

B2B Price

Answer 33

Competitive bidding or complex purchase process

Question 34

B2C Price

Answer 34

Usually predetermined or list prices

Question 35

B2B Demand

Answer 35

Derived,
Inelastic(short run),
Volatile(Leveraged),
Discontinuous

Question 36

B2C Demand

Answer 36

Direct,
Elastic,
less volatile