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Principles of Marketing, 17e (Kotler/Armstrong)
Chapter 6 Business Markets and Business Buyer Behavior
1) The decision process by which business buyers determine which products and services their
organizations need to purchase and then find, evaluate, and choose among alternative suppliers
and brands is known as ________.
A) situational analysis
B) business buying process
C) business diversification
D) business process automation
E) lateral expansion
Answer: B
Skill: Concept
Objective: LO 6.1: Define the business market and explain how business markets differ from
consumer markets.
Difficulty: Easy
2) Business buyer behavior refers to the ________.

A) buying behavior of consumers who buy goods and services for personal consumption
B) buying behavior of the organizations that buy goods and services for use in the production
of other products and services that are sold, rented, or supplied to others
C) buying behavior of consumers who rely on small retailers for the regular supply of
provisions
D) decision process by which business buyers determine which products and services their
organizations need to purchase
E) strong affinity of businesses for value-for-money deals
Answer: B
Skill: Concept
consumer markets.
Difficulty: Easy
3) Which of the following is NOT part of the business market?

A) Kruger Group sells interior security systems to resorts.
B) A country club buys safety equipment for its swimming pool.
C) Maria Theresa shops for her family's groceries at the local Whole Foods store.
D) A firm buys laptops from Dell for company salespeople to use when traveling.
E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.
Answer: C
AACSB: Analytical thinking
Skill: Application
consumer markets.
Difficulty: Moderate
1
Copyright © 2018 Pearson Education, Inc.
4) Business markets are similar to consumer markets in that ________.
A) the nature of the buying unit is the same for both
B) the decision processes involved in both the markets are same
C) both involve people who assume buying roles and make purchase decisions to satisfy needs
D) both share the same market structure
E) the types of decisions are fairly consistent in both the markets
Answer: C
Skill: Concept
consumer markets.
Difficulty: Easy
5) Differences between business markets and consumer markets include all of the following
EXCEPT ________.
A) nature of the buying unit
B) market structure and demand
C) number of buyers
D) people who make purchase decisions to satisfy needs
E) types of decisions and the decision process
Answer: D
Skill: Concept
consumer markets.
Difficulty: Easy
6) The business marketer normally deals with ________ than the consumer marketer does.
A) far fewer but far larger buyers
B) far more but far smaller buyers
C) negligible customer complaints
D) far less fluctuations in demands
E) far more elastic demand
Answer: A
Skill: Concept
consumer markets.
2
7) The Pure Drug Company produces insulin, a product with a very stable demand. Even
though the price changed several times in the past two years, the demand for Pure Drug's
insulin remained relatively unaffected. In this instance, the demand for insulin is representative
of ________ demand.
A) latent
B) negative
C) inelastic
D) derived
E) composite
Answer: C
Skill: Application
consumer markets.
8) In business markets with inelastic demand ________.

A) the total demand for products is not much affected by short-term price changes
B) buyers are highly sensitive to price changes
C) derived demand is absent
D) a business purchase usually involves fewer decision participants
E) a business purchase usually does not involve a professional purchasing effort
Answer: A
Skill: Concept
consumer markets.
9) A university enrolled 200 graduate students in the Fall of 2015. However, the enrollment rate
was only slightly affected following a 12-percent hike in tuition the following fall. This
illustrates ________ demand.
A) derived
B) negative
C) highly elastic
D) composite
E) inelastic
Answer: E
AACSB: Application of knowledge
Skill: Application
consumer markets.
3
10) Business demand that ultimately comes from the demand for consumer goods is known as
________ demand.
A) derived
B) negative
C) primary
D) consumer
E) elastic
Answer: A
Skill: Concept
consumer markets.
Difficulty: Easy
11) Green Bees, a popular American heavy-metal band, will perform in Berlin during
Christmas. There is a high demand for concert tickets among fans worldwide who are looking
forward to the much-awaited performance. In this instance, the high demand for tickets for the
Green Bees concert is representative of ________ demand.
A) primary
B) negative
C) derived
D) elastic
E) business
Answer: C
Skill: Application
consumer markets.
Difficulty: Easy
12) Demand for outboard motors depends on consumers purchasing fishing boats. This is an
example of ________ demand.
A) primary
B) composite
C) derived
D) elastic
E) negative
Answer: C
Skill: Application
consumer markets.
4
13) Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in
anticipation of brisk sales of handbags during December. This is an example of a(n) ________
demand.
A) composite
B) derived
C) primary
D) latent
E) inelastic
Answer: B
Skill: Application
consumer markets.
Difficulty: Easy
14) Which of the following is true about business purchases?

A) Business purchases involve more professional purchasing effort than consumer purchases.
B) Business purchases involve fewer participants in decision making compared to consumer
purchases.
C) Purchasing agents are absent in business purchases.
D) Business purchases involve less technical and economic considerations compared to
consumer purchases.
E) Business purchases are usually quicker and more informal than are consumer purchases.
Answer: A
Skill: Concept
consumer markets.
Difficulty: Easy
15) A business purchase usually involves all of the following EXCEPT ________.
A) more decision participants
B) manufacturing representatives
C) more professional purchasing effort
D) trained purchasing agents
E) high-level trained supply managers
Answer: B
Skill: Concept
consumer markets.
Difficulty: Easy
5
16) Since business marketers have fewer buyers than consumer marketers, business buyers
often face ________ than do consumer buyers.
A) less complex buying decisions
B) shorter buying processes
C) informal buying processes
D) more complex buying decisions
E) fewer product details
Answer: D
Skill: Concept
consumer markets.
17) ________ involves systematically developing networks of supplier-partners to ensure a

dependable supply of products and materials for use in making products or reselling them to
others.
A) Supplier development
B) Business buying
C) Supplier quality assurance
D) Relationship management
E) Executive development
Answer: A
Skill: Concept
consumer markets.
Difficulty: Easy
18) The owners of a manufacturing firm in Ohio have developed a core network of suppliers to
ensure an uninterrupted supply of products. This is an example of ________.
A) capability management
B) a supply bottleneck
C) asset management
D) backsourcing
E) supplier development
Answer: E
Skill: Concept
consumer markets.
Difficulty: Easy
6
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the side,
two will require an extra plating process, and two will require an additional weld operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of
Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and
steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected
his suppliers based on quality and price, but the major consideration had been the type of steel
required and the specialized production processes of his respective suppliers. Not all of Alpha's
suppliers could produce the exact grades of steel needed; some suppliers were better at
producing certain types of steel than others.
Richard contacted several employees at Alpha who had worked with the various types of steel
in the past. The quality control manager and line inspector, for example, could help to
determine which suppliers had the capabilities of producing specific types of steel. The
production control manager could provide input regarding which types of steel worked best in
which presses. The warehouse foreman gave inputs regarding how long various types of steel
could be held in inventory before rust spots began to form on their surfaces. Each person
contributed the necessary information to help Richard in making his decision.
19) The demand for Alpha Stampings' products is ultimately based on the demand for new
automobiles in the consumer market. This is an example of ________ demand.
A) negative
B) latent
C) primary
D) derived
E) composite
Answer: D
Skill: Application
consumer markets.
20) In the business buying process, business buyers determine which products and services
their organizations need to purchase.
Answer: TRUE
Skill: Concept
consumer markets.
Difficulty: Easy
7
21) The main differences between business and consumer markets are in market structure and
demand, the nature of the buying unit, and the types of decisions and the decision process
involved.
Answer: TRUE
Skill: Concept
consumer markets.
Difficulty: Easy
22) Most businesses that manufacture products for the consumer market also sell directly to
consumers.
Answer: FALSE
Skill: Concept
consumer markets.
Difficulty: Easy
23) The business marketer normally deals with far fewer but far larger buyers than the
consumer marketer does.
Answer: TRUE
Skill: Concept
consumer markets.
Difficulty: Easy
24) The demand for many business goods tends to change more slowly than the demand for
consumer goods.
Answer: FALSE
Skill: Concept
consumer markets.
Difficulty: Easy
25) Derived demand refers to the business demand that ultimately comes from the demand for
consumer goods.
Answer: TRUE
Skill: Concept
consumer markets.
Difficulty: Easy
26) Business demand ultimately derives from the demand for consumer goods.
Answer: TRUE
Skill: Concept
consumer markets.
Difficulty: Easy
8
27) In the business buying process, the buyer and seller are relatively less dependent on each
other.
Answer: FALSE
Skill: Concept
consumer markets.
Difficulty: Easy
28) Why is demand in the business market mostly inelastic?

Answer: The total demand for many business products is not much affected by price changes,
especially in the short run. A drop in the price of leather will not cause shoe manufacturers to
buy much more leather unless it results in lower shoe prices that, in turn, increase consumer
demand for shoes.
Skill: Concept
consumer markets.
29) Explain the concept of derived demand.

Answer: Derived demand refers to business demand that ultimately comes from—or derives
from—the demand for consumer goods.
AACSB: Written and oral communication
Skill: Concept
consumer markets.
Difficulty: Easy
30) Why is the business buying process more formalized than the consumer buying process?
Answer: Large business purchases usually call for detailed product specifications, written
purchase orders, careful supplier searches, and formal approval. Business purchases often
involve large sums of money and complex technical and economic considerations.
Skill: Concept
consumer markets.
9
31) What is supplier development?
Answer: Supplier development refers to systematic development of networks of supplier-
partners to ensure an appropriate and dependable supply of products and materials for use in
making products or reselling them to others.
AACSB: Written and oral communication
Skill: Concept
consumer markets.
32) Distinguish between business markets and consumer markets.

Answer: As compared to consumer markets, business markets usually have fewer but larger
buyers. Business demand is derived demand, which tends to be more inelastic and fluctuating
than consumer demand. The business buying decision usually involves more, and more
professional, buyers. Business buyers usually face more complex buying decisions, and the
buying process tends to be more formalized. Finally, business buyers and sellers are often more
dependent on each other.
AACSB: Analytical thinking; Written and oral communications
Skill: Concept
consumer markets.
33) In which of the following would the buyer reorder a product without any modifications?
A) reverse auction
B) solution selling
C) new task
D) straight rebuy
E) modified rebuy
Answer: D
Skill: Concept
Objective: LO 6.2: Identify the major factors that influence business buyer behavior.
34) Sigma Inc., a software firm based in California, reordered 50 printers from the designated
provider without any modifications. This is an example of ________.
A) derived demand
B) inelastic demand
C) a straight rebuy
D) a new task
E) a modified rebuy
Answer: C
AACSB: Application of knowledge; Analytical thinking
Skill: Application
10
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35) A marketer wanting to determine business buyer behavior is most likely to ask which of the
following questions?
A) Are buyers sensitive toward price changes in consumer markets?
B) What are the major influences on buyers?
C) Are niche markets more profitable than mass markets?
D) How do interpersonal factors affect organizational performance?
E) Is the role of gatekeepers relevant in the international business environment?
Answer: B
Skill: Application
36) In a ________ situation, the "in" suppliers may become nervous and feel pressured to put
their best foot forward to protect an account and the "out" suppliers may see the present
situation as an opportunity to make a better offer and gain new business.
A) straight rebuy
B) new task
C) reverse auction
D) modified rebuy
E) solutions selling
Answer: D
Skill: Concept
37) In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms,
or suppliers.
A) reverse auction
B) straight rebuy
C) new task
D) modified rebuy
E) absolute auction
Answer: D
Skill: Concept
11
38) In a straight rebuy, ________.
A) the "in" suppliers try to maintain product and service quality to keep the business
B) the "in" suppliers feel pressured to protect an account
C) the "out" suppliers view the situation as an opportunity to gain new business
D) a company buys a product or a service for the first time
E) buyers are keen on revising product specifications
Answer: A
Skill: Concept
39) Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies
for her custodial staff, using the same vendor and ordering relatively consistent amounts of the
same products on each purchase. This is an example of ________.
A) a modified rebuy situation
B) a new task
C) a straight rebuy situation
D) reverse auction
E) product differentiation
Answer: C
Skill: Application
Difficulty: Easy
40) Which of the following is most likely true about a straight rebuy?
A) Suppliers are not required to focus on quality of products or services delivered.
B) A straight rebuy is far more complex than a new-task situation.
C) A straight rebuy is handled on a routine basis by the purchase department.
D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best deal in the
market.
E) A straight rebuy involves more opportunities for "out" buyers than do other types of
purchasing situations.
Answer: C
Skill: Application
12
41) Ralph works for a manufacturing company in Ohio. Recently, he called in a department
manager to assist in the purchase of some heavy machinery. After consulting the department
manager, Ralph is considering a change in product specifications and characteristics and
expects suppliers to meet his requirements. Which of the following is evident here?
A) modified rebuy
B) new task
C) straight rebuy
D) product differentiation
E) reverse auction
Answer: A
Skill: Application
42) Sheffield Cargo serves both consumer and business markets, but most of its revenue comes
from its business customers. Of late, the business customers of Sheffield Cargo have demanded
a change in the packaging of heavy cargo along with a more sophisticated and user-friendly
extranet framework. Sheffield Cargo is under pressure to offer better products and services or
risk losing a huge portion of its customers. This is an example of ________.
A) a new task
B) a modified rebuy situation
C) a straight rebuy situation
D) trade exchange
E) reverse auction
Answer: B
Skill: Application
43) Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed
servers and computers for his company, he decided to order these from a local vendor who was
offering attractive discounts. In this instance, Peter ________.
A) faces a new task situation
B) faces a modified rebuy situation
C) is most likely to benefit the most from reverse auction
D) faces the need for product differentiation
E) plans to attract customers by offering products at below-market prices
Answer: A
Skill: Application
Difficulty: Easy
13
44) ________ refers to a business buying situation in which the buyer purchases a product or
service for the first time.
A) Modified rebuy
B) Straight rebuy
C) New task
D) Reverse auction
E) Derived demand
Answer: C
Skill: Concept
Difficulty: Easy
45) A new task situation presents ________.

A) low risk for the buyer
B) the fewest decisions for the buyer
C) the least information required
D) the greatest opportunity and the greatest challenge to the marketer
E) the smallest number of decision participants
Answer: D
Skill: Concept
46) ________ refers to buying a packaged solution to a problem from a single seller, thus
avoiding all the separate decisions involved in a complex buying situation.
A) Systems selling
B) Performance review
C) Problem recognition
D) Proposal solicitation
E) General need specification
Answer: A
Skill: Concept
14
47) Solutions selling ________.
A) is often a key business marketing strategy for winning and holding accounts
B) refers to a business buying situation in which the buyer purchases a product or service for
the first time
C) refers to a business buying situation in which the buyer wants to modify product
specifications, prices, terms, or suppliers
D) is equivalent to cold calling
E) refers to a business buying situation in which the buyer routinely reorders something without
any modifications
Answer: A
Skill: Concept
Difficulty: Easy
48) Rudolf Technologies Inc. decided to enter the automobile service market. Consequently,
the company decided to procure the tools and machines needed from a reputable supplier.
Rudolf Technologies is facing ________.
A) a new task situation
B) a modified rebuy situation
C) negative competition
D) the need to outsource its primary service offering
E) the pressure to diversify its market
Answer: A
Skill: Application
Difficulty: Easy
49) The decision-making unit of a purchasing organization is called its ________.

A) value chain
B) buying center
C) customer support system
D) quality center
E) innovation center
Answer: B
Skill: Concept
Difficulty: Easy
15
Exploring the Variety of Random
Documents with Different Content
The Project Gutenberg eBook of The Obedient
Servant
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Title: The Obedient Servant
Author: S. M. Tenneshaw
Illustrator: W. E. Terry
Release date: November 14, 2021 [eBook #66733]
Language: English
Credits: Greg Weeks, Mary Meehan and the Online Distributed

Proofreading Team at http://www.pgdp.net
*** START OF THE PROJECT GUTENBERG EBOOK THE OBEDIENT

SERVANT ***
John Gardner made up his mind to buy his
wife a very unusual present—one she could not
resist. So he asked the salesman to show him—
The Obedient Servant

By S. M. Tenneshaw
[Transcriber's Note: This etext was produced from

Imagination Stories of Science and Fantasy
June 1956
Extensive research did not uncover any evidence that
the U.S. copyright on this publication was renewed.]
They quarreled at breakfast. This was not strange because they
quarreled often. But it bothered him after he'd called for his car and
was on the way to his office, he realized she was the only one left.
The realization came suddenly and now he was frightened—this
strange man who needed friends as a spider needs flies—in order to
survive. His wealth had drawn them of course; a fact he refused to
believe. But even unlimited resources could not hold them and insult
and abuse drove them all finally away. Yet he continued to insult and
abuse while painfully seeing them leave. Because that was the kind
of man he was.
Until now they were all gone, the dear ones, the relatives, even the
fawners and he realized in panic that only Dolores was left.
But she will stay. There is no cause to worry. She will stay because
she loves me because she married me.
But he was nervous. He knew this quarrel had to be patched up
because he had too much at stake. And knowing only one way to
patch a quarrel, he frowned and pondered. A gift of course, but
what? She had everything. Another diamond necklace? Another ruby
ring? Somehow he felt neither would do the trick this time. The
quarrel had been very bitter.
Then he remembered and smiled and told his chauffeur, "There is a
store I noticed in the International Building. Kamiss and Company.
Stop off there...."
He marched into the richly decorated showroom and said, "I'm John
Gardner of Gardner Industries. I understand you've got something
new."
The clerk almost snapped his spine bowing. John Gardner! Mr.
Billions himself! If he could get him on the customer list it would be
a tremendous prestige boost. "Indeed we have, sir. I imagine you
are referring to our new unit—Domestic Two?"
"I don't know what you call it, but it's the servant-robot you people
have spent millions publicizing. Will it actually do what you claim?"
"Oh, yes. Our advertising was underplayed if anything. You see, Mr.
Gardner, robots have been found quite satisfactory for assembling
work—manufacturing operations and the like, where they functioned
as mere automatons."
"I know," Gardner said coldly. "I use seven hundred of them in
small-parts assembly."
"But only now has Kamiss been able to individualize the robot and
endow it with a real intelligence. The process involved a new
sensitizer we developed. This device is motivated by a micro-wave
control individualized to the unit itself. The result, Mr. Gardner, is
basic intelligence and unswerving devotion. Each unit is—"
"You talk too much," Gardner growled with his usual tact. "Trot one
of the things out and let me look it over."
"Certainly sir," and the clerk scurried away, fearful of offending this
powerful man.
A few moments later, the drapes parted and a robot walked into the
room. Gardner scowled at it. He was disappointed. "Rather tall isn't
it?"
The clerk, following close behind the robot, said, "True, but its
dimensions are the result of exhaustive scientific research. The
height is nine-feet-three and one-quarter inches, the arm-span six-
feet-two inches. The body and the appendages are well padded with
our new Vino-Live Plasticene—almost a flesh-equivalent. The hands
you will note, sir, are absolute masterpieces of human ingenuity. The
unit can powder a rock or pick up a pin. Let me demonstrate."
"It's about time," Gardner growled.
The demonstration was spectacular. The robot took a one-inch steel
bar in its hands and formed a loop. It threaded an old-fashioned
sewing needle, then picked up a fragile vase and moved it tenderly
across the room.
The clerk beamed with justifiable pride. "Tell the gentleman your
qualifications, Raymond."
The robot looked at Gardner through two blue electronic eyes and
said, "I can perform any task a human servant can perform. And I
will be more devoted and loyal than a human servant could possibly
be. Your commands will be obeyed without question. Your wishes
will always be fulfilled to the limit of my power. You and you alone
will be my god."
The salesman coughed apologetically. "A little flowery, I'm afraid, but
our advertising and sales engineers demanded it."
"Where does the voice come from?"
"Another Kamiss innovation. An ultrasonic selector draws the words
from a storage wire attuned to—"
"Enough chatter. I'll take one."
The salesman beamed. "Where would you like it delivered, sir?"
"I'll take it with me. I plan it as a surprise gift for my wife."
The salesman's smile vanished. "Then perhaps you could bring the
lady here to our establishment—"
"No," Gardner scowled. "Why should I?"
"As I was endeavoring to explain, sir, the units are, of necessity,
completely individualized. The controlling factor is the electronic
wavelength of the owner's brain. As you know, the frequency of
every human brain varies. No two are alike. That is the key to the
whole concept of Domestic Two. We—"
"Will you quit babbling and get to the point!" Gardner bellowed. "Tell
me in simple words why I can't take the robot with me!"
"Because, sir," the clerk answered in a frightened voice, "to be of
any value to your wife, the unit will have to be keyed to her brain
frequency."
Gardner stomped the floor. "Then you've wasted my time. We can't
do business. My wife would never come down here."
"But the adjustment takes only a few minutes—"
"We had a quarrel, you fool! She won't even unlock her bedroom
door for me. The whole idea of this thing was something to surprise
her out of her anger and bring about a reconciliation."
Gardner was striding toward the door. The clerk was frantic. This
sale would have got him Company recognition. In desperation, he
hurried after Gardner.
"May I make a suggestion, sir?"
Gardner turned. "All right—make it."
"It occurred to me that you might have the unit attuned to your own
frequency—temporarily, that is. You could present it to the lady, then
at her leisure, she could call here and have the frequency changed
to correspond to her own."
Gardner scowled. "Well, why didn't you say that in the first place?
How long does this adjustment take?"
"Only a few minutes," the clerk, said eagerly. "If you will just step
this way, sir. Come Raymond...."
Raymond sat hunched beside the chauffeur who was a trifle

nervous. But the chauffeur hid his agitation because John Gardner
paid well and had been known to discharge chauffeurs who
displeased him and leave them standing on street corners without
jobs. Gardner ordered him to turn and go back home. As they rode,
Raymond stared straight ahead, a pleasant light glowing in his blue
eyes.
When the car stopped under the portico, Gardner said, "Get out and
open the door, Raymond."
The robot said, "Yes, master," and obeyed instantly.
The chauffeur, shouldered aside by the robot, looked worried.
Gardner noted this and enjoyed adding to the man's discomfort:
"Maybe they build one that can drive a car. In that case I won't be
needing you much longer."
Inside, the robot gently lifted Gardner's coat from his shoulders,
hung it in the closet, then returned to Gardner's side. "Have you any
further wishes, Master?"
Aladdin's genie come true, Gardner thought, and amused himself for
a few minutes putting the robot through a series of grotesque
duties. Amazing! Perhaps he would get one of these units for himself
also.
Then he turned his mind to Dolores. She was no doubt still in her
room. But this new toy would make her forget their quarrel all right.
He visualized her laughing interest. He could already see her
clapping her hands like the child she was and rushing into his arms.
Gardner turned to the robot. "Raymond, go up the stairs and knock
on the first door to your right. It is your mistress' room. Tell her I'm
waiting. Bring her to me."
The robot nodded and Gardner thought a look of adoration glowed
in its eyes. It said, "Yes Master," and moved toward the stairs.
Gardner sat down. He smiled to himself, anticipating the reunion. It
wasn't every wife whose husband could go out and buy her a thirty-
thousand-dollar toy.
There was the crash of rending wood. The sound chilled Gardner,
froze him so that the angry scream that followed was anticlimax. But
it brought movement back into his legs and he lunged toward the
stairs. He bellowed an order.
Too late. The robot was already descending. It carried the dead
body of Dolores in its steel arms. Her head hung limply on a horribly
twisted neck.
"She refused to come, Master," the robot said.
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Principles of Organizational Behavior Realities and

2) Business buyer behavior refers to the ________.

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Raymond sat hunched beside the chauffeur who was a trifle

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