Q.

1) Give Comparison of Business-to-Business &Business-to-Consumer Marketing

Q.2) For MRF tyres, highlight any five differences between B2B marketing and B2C marketing.
Q.3) Explain Role & Characteristics of Personal Selling in Business-to-Business Marketing.
Q.4) Give Distinctive Nature of B To B Distribution Channels Business-to-Business Marketing.
Q.5) Write a detail note on Current Trends for B to B markets.
Q.6) Comment on Use of Social Media, technology, digital platforms by B to B organizations

1. Which of the following is not a type of buy class?

a) New task b) Straight rebuy. c)Switch buy. d) Modified rebuy
2. The development & maintenance of _____ between buying & selling organizations is pivotal to success.
a) products b) relationships c) services d)system
3. These goods and services are 'consumables' as they are necessary to keep production processes and the
organization running. They are known as:
a) Input goods. b) Equipment goods. c)Supply goods. d)Commodity.
4. When making a buying decision about a product the organization has purchased before, if an organization
decides that it needs to change the specification of the product, further negotiate on price levels with the
supplier, or perhaps make an arrangement for alternative delivery patterns, this is an example of which type
of buying decision?
a) Straight rebuy. b) Switch buy. c) Modified rebuy. d) New task.
5. Which of the following is not membership of an organization's decision-making unit?
a) Initiators. b) Users. c) Contractors d)Gatekeepers.
6. In a business buying centre situation, the people who use the product once it has been acquired and who
will also evaluate its performance are called:
a) Users. b) Consumers. c) Influencers. d)Gatekeepers.
7. There is a huge number of different types of commercial organization. Organizations, where one company
purchases and re-labels a product and then incorporate it within a different product in order to sell it under a
different (their own) brand name, are called:______
a) suppliers. b) distributors. c) original equipment manufacturers. d) retailers.
8. The purchasing strategy that refers to a buyer's efficiency orientation where the main purchasing goal is to
seek the lowest price for the product is known as:
a) bargainer b) price minimizer. c) clockwiser. d) adaptator.
9. The ___________ purchasing strategy refers to network relationships that function predictably and
precisely.
a) adaptator b) clockwiser c) bargainer d)projector
10. _______________can be distinguished as an independent type of organisation. They provide services to
all other organisations and can be found in many sectors.
a) Professional service firms b) Suppliers c) Agencies d)Manufacturing firms
11. When one company re-labels a product and incorporates it within a different product, in order to sell it
under its own brand name and offering its own warranty, support and licensing, what is this referred to as?
a) Government. b) Original equipment manufacturers (OEMs). c) Retailers. d) Distributors.
12. The development of ______________techniques has enabled organizations to concentrate on their core
processes and to outsource all other activities.
a) logistics management b) supply chain management c)lean management d)supplier research
13. The purchase of goods or services for use by an organization in producing other goods and services, to
support the daily operations of the organization, or for resale is called:
a) wholesale marketing b)business-to-business marketing.
c) corporate marketing d) distribution marketing
14. Which of the following is not one of the main factors of business markets?
a) The nature of demand. b)The buy phases.
c)Buyer-Seller relationships. d)The buying processes
15. Examples of business market items that would usually be purchased as a straight re-buy are:
a) high-quality raw materials b) heavy-duty machinery.
c) paper clips and pencils. d)computers.
16. B2B marketing is fundamentally different from consumer goods or services marketing because:
a) distribution channels for business products are significantly longer
b) customer relationships for business products tend to be short-term and transactions-based.
c) organizational buyers do not consume the products or services themselves
d) customer service plays a smaller role in the distribution of business products.
17. Three broad types of B2B organizations are identified as:
a) Domestic, regional and international organizations
b) Small, medium and large enterprises
c) Commercial, government and institutional organizations
d) Small companies, large enterprises and not-for-profit organizations.
18. Organizational buying behaviour is about:
a) determining the characteristics of the needed product.
b) the functions and processes, strategy, and the network of relationships
c) searching for qualified sources.
d) evaluating proposals and selecting suppliers.
19. The function performed by the gatekeeper in the company decision-making unit is to:
a) supply information to guide the evaluation of alternatives.
b) select a supplier and implement the procedures for securing the goods and services.
c) choose which goods and services will actually be bought.
d) control the information that all members of the decision-making unit will review.
20. Products and services bought and sold through business markets are categorized as ________
a) manufacturing goods, equipment goods, and supply goods.
b) consumer goods, services, and supply goods.
c) input goods, equipment goods, and supply goods.
d) input goods, services, and supply goods.
21. The starting point for discussing segmentation is _____.
a) Segregation. b) Positioning. c) Both. d) None
22. _____ and ____ are the major factors influencing the selection of suppliers.
a) Price and Quantity b) Price and Quality. c) Price and Delivery. d) Quantity and Delivery.
23. Creating image of product in the minds of target group is called
a) Marketing b) positioning c) Branding d) Popularizing
24. Which of the following strategies is usually followed by B2B companies with respect to promotion strategy?
a) Push strategy b) Pull strategy c) Blocking strategy d) Integrated strategy
25. The reduction in the price of a product for a short span of time is known as___________
a) Rebate b) Free Offer c) Price off offer d)Trade offer
. The starting point for discussing segmentation is _____. A. Segregation. B. Positioning. C. Both. D. None
ANSWER: A
50. _____ and ____ are the major factors influencing the selection of suppliers. A. Price and Quantity B. Price and
Quality. C. Price and Delivery. D. Quantity and Delivery. ANSWER: C
60. Creating image of product in the minds of target group is called a) Marketing b) positioning c) Branding d)
Popularizing Ans: B
79. Which of the following strategies is usually followed by B2B companies with respect to promotion strategy?
a) Push strategy b) Pull strategy c) Blocking strategy d) Integrated strategy Ans: A
125. The reduction in the price of a product for a short span of time is known as___________ a) Rebate b) Free
Offer c) Price off offer d)Trade offer Ans: C

Chapter 16 Multiple-Choice Questions

Business-to-Business Marketing
1. The purchase of goods or services for use by an organization in producing other goods and services, to support the daily
operations of the organization, or for resale is called:

wholesale marketing. incorrect

business-to-business marketing. correct

corporate marketing. incorrect

distribution marketing. incorrect

business-to-business marketing.

Business-to-business marketing is concerned with the identification and satisfaction of business customers' needs.
This requires that all stakeholders benefit from the business relationship and associated transactions.
Page reference: 644
2. B2B marketing is fundamentally different from consumer goods or services marketing because:

distribution channels for business products are significantly longer. incorrect

customer relationships for business products tend to be short-term and transactions-based. incorrect

organizational buyers do not consume the products or services themselves. correct

customer service plays a smaller role in the distribution of business products. incorrect
In a number of ways B2B marketing is fundamentally different from consumer goods or services marketing
because organizational buyers do not consume the products or services themselves. Unlike consumer
markets, where goods and services are consumed individually, by the people who buy them, the essence
of business markets is that organizations, not individual people, undertake the act of consumption.
Page reference: 613
3. Which of the following is not a type of buyclass?

New task. incorrect

Straight rebuy. incorrect

Switch buy. correct

Modified rebuy. incorrect

Buyclasses are the different types of buying situations faced by organizations. These can be classified as
either a straight rebuy, a new task or modified rebuy.
Page reference: 624
4. The development and maintenance of __________ between buying and selling organizations is pivotal to success.

products incorrect

relationships correct
 services incorrect

system incorrect
The development and maintenance of relationships between buying and selling organizations is pivotal to
success. Interdependence, collaboration and, in some cases, partnership over the development, supply,
and support of products and services, is considered a core element of B2B marketing.
Page reference: 617
5. Three broad types of B2B organizations are identified as:

Domestic, regional and international organizations. incorrect

Small, medium and large enterprises. incorrect

Commercial, government and institutional organizations. correct

Small companies, large enterprises and not-for-profit organizations. incorrect

Commercial, government and institutional organizations.

Three broad types of B2B organizations are identified as commercial, government, and institutional organizations.
Page reference: 618
6. When one company re-labels a product and incorporates it within a different product, in order to sell it under its own brand
name and offering its own warranty, support and licensing, what is this referred to as?

Government. incorrect

Original equipment manufacturers (OEMs). correct

Retailers. incorrect

Distributors. incorrect
Original equipment manufacturers (OEMs) refers to one company re-labelling a product, incorporating it
within a different product, in order to sell it under their own brand name and offering its own warranty,
support and licensing.
Page reference: 619
7. These goods and services are 'consumables' as they are necessary to keep production processes and the organization running.
They are known as:

Input goods. incorrect

Equipment goods. incorrect

Supply goods. correct

Commodity. incorrect
Supply goods, otherwise known as maintenance, repair, and operating materials (MRO) items, are
'consumables' as they are necessary to keep production processes and the organization running.
Page reference: 620
8. Which of the following is not one of the main factors of business markets?

The nature of demand. incorrect

The buy phases. correct

Buyer-Seller relationships. incorrect

The buying processes. incorrect

Business markets are characterized by a number of factors but the main ones are: the nature of demand,
the buying processes, international dimensions, and, perhaps most importantly, the relationships that
develop between organizations in the process of buying and selling.
Page reference: 641
9. The development of ______________techniques has enabled organizations to concentrate on their core processes and to
outsource all other activities.

logistics management incorrect

supply chain management incorrect

lean management correct

 supplier research incorrect
Outsourcing is an increasingly popular activity practised by a wide range of organizations. As a result,
purchasing behaviours have had to adapt accordingly, which in turn has impacted on business marketing.
The development of 'lean management' techniques has enabled organizations to concentrate on their core
processes and to outsource all other activities. As organizations have become 'leaner' they dramatically
reduce their use of resources and the importance of purchasing increases (Durham and Ritchey, 2009).
Page reference: 620
10. Organizational buying behaviour is about:

determining the characteristics of the needed product. incorrect

the functions and processes, strategy, and the network of relationships. correct

searching for qualified sources. incorrect

evaluating proposals and selecting suppliers. incorrect

the functions and processes, strategy, and the network of relationships.

Organizational buying behaviour is about three key issues:

The functions and processes buyers move through when purchasing products for use in business markets.
Strategy, where purchasing is designed to assist value creation, competitive advantage and influence supply chain
activities.
The network of relationships that organizations are part of when purchasing. The placement of orders and contracts
between organizations can confirm a current trading relationship, initiate a new set of relationships, or may even
signal the demise of a relationship.
Page reference: 621
11. When making a buying decision about a product the organization has purchased before, if an organization decides that it needs
to change the specification of the product, further negotiate on price levels with the supplier, or perhaps make an arrangement for
alternative delivery patterns, this is an example of which type of buying decision?

Straight rebuy. incorrect

Switch buy. incorrect

Modified rebuy. correct

New task. incorrect

Modified rebuy.

Modified rebuy is when an organization has purchased a product. Uncertainty is reduced but not eliminated, so the
organization may request through their buyer(s) that certain modifications be made to future purchases. For example,
adjustments to the specification of the product, further negotiation on price levels, or perhaps an arrangement for
alternative delivery patterns. Fewer people are involved in the decision-making process than in the new task situation.
Page reference: 624
12. Examples of business market items that would usually be purchased as a straight re-buy are:

high-quality raw materials. incorrect

heavy-duty machinery. incorrect

paper clips and pencils. correct

computers. incorrect
paper clips and pencils.

Straight rebuy is when the purchasing department reorders on a routine basis, very often working from an approved
list of suppliers. These may be products that an organization consumes in order to keep operating (e.g. office
stationery), or may be low-value materials used within the operational, value-added part of the organization (e.g. the
manufacturing processes).
Page reference: 624
13. Which of the following is not membership of an organization's decision-making unit?

Initiators. incorrect

Users. incorrect

Contractors. correct
 Gatekeepers. incorrect
The decision-making unit (DMU) or the buying centre is an informal grouping of people who come together
in varying ways to contribute to the decision-making process. Membership of the decision-making unit
consists of initiators, users, influencers, deciders, buyers and gatekeepers.
Page reference: 622
14. In a business buying centre situation, the people who use the product once it has been acquired and who will also evaluate its
performance are called:

Users. correct

Consumers. incorrect

Influencers. incorrect

Gatekeepers. incorrect
In a business buying centre situation, users literally use the product once it has been acquired and they will
also evaluate its performance. Users may not only initiate the purchase process but are sometimes
involved in the specification process. Their role is continuous, although it may vary from the highly involved
to the peripheral.
Page reference: 622
15. The function performed by the gatekeeper in the company decision-making unit is to:

supply information to guide the evaluation of alternatives. incorrect

select a supplier and implement the procedures for securing the goods and services. incorrect

choose which goods and services will actually be bought. incorrect

control the information that all members of the decision-making unit will review. correct
Gatekeepers have the potential to control the type and flow of information to the organization and the
members of the DMU. These gatekeepers may be assistants, technical personnel, secretaries, or
telephone switchboard operators.
Page reference: 623
16. There is a huge number of different types of commercial organization. Organizations, where one company purchases and re-
labels a product and then incorporate it within a different product in order to sell it under a different (their own) brand name, are
called:______

suppliers. incorrect

distributors. incorrect

original equipment manufacturers. correct

retailers. incorrect
Original equipment manufacturers (OEMs) refers to one company re-labelling a product, incorporating it
within a different product, in order to sell it under their own brand name and offering its own warranty,
support and licensing.
Page reference: 619
17. The purchasing strategy that refers to a buyer's efficiency orientation where the main purchasing goal is to seek the lowest
price for the product is known as:

the bargainer. incorrect

the price minimizer. correct

the clockwiser. incorrect

the adaptator. incorrect

The 'price minimizer' purchasing strategy refers to a buyer's efficiency orientation where the main
purchasing goal is to seek the lowest price for the product. To help achieve this, the buyer actively
promotes competition among several potential suppliers.
Page reference: 631
18. The ___________ purchasing strategy refers to network relationships that function predictably and precisely.

adaptator incorrect

clockwiser correct
 bargainer incorrect

projector incorrect
The clockwiser purchasing strategy refers to network relationships that function predictably and precisely,
just as a clock works. Again the goal is strict efficiency, achieved through the vigilant integration of
production-based integrated control systems and IT and the careful coordination of the value activities
performed by each supply network partner (Glenn and Wheeler, 2004).
Page reference: 632
19. Products and services bought and sold through business markets are categorized as ________

manufacturing goods, equipment goods, and supply goods. incorrect

consumer goods, services, and supply goods. incorrect

input goods, equipment goods, and supply goods. correct

input goods, services, and supply goods. incorrect

Products and services bought and sold through business markets are categorized as input goods,
equipment goods, and supply goods.
Page reference: 620
20. _______________can be distinguished as an independent type of organisation. They provide services to all other organisations
and can be found in many sectors.

Professional service firms correct

Suppliers incorrect

Agencies incorrect

Manufacturing firms incorrect

Professional service firms (PSFs) can be distinguished as an independent type of organisation. They
provide services to all other organisations and can be found in many sectors including, engineering,
architecture, IT and software, and management consultancy and financial services companies such as
PricewaterhouseCoopers, Deloitte, KPMG, and Ernst Young. They offer highly complex and customised
services that are created and delivered by highly qualified personnel (Reid 2008).
Page reference: 634

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