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Chapter 6—Business-to-Business (B2B) Marketing

TRUE/FALSE

1. Business marketers advertise primarily to announce new products, to enhance their company image
and presence, and to attract potential customers who would then deal directly with a salesperson.

ANS: T PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of technology, design, &
production TYP: KN

2. Organizational buyers tend to purchase standardized products, unlike the consumer market where
customization is more prevalent.

ANS: F PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

3. B2B relationships tend to last longer than those in the consumer market.

ANS: T PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

4. Due to the complexity of the buying process and potential need for technical assistance, the
distribution channels in the B2B marketplace tend to be longer than those in the consumer market.

ANS: F PTS: 1 DIF: 2 REF: 167


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Distribution | R&D Knowledge of general
business functions TYP: AP

5. Personal selling and customer service are more important in business markets than in consumer
markets.

ANS: T PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

201
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
6. Purchasing decisions in the B2B sectors are more complex, take longer to negotiate, and often include
many levels of decision making.

ANS: T PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

7. Business marketers advertise primarily to announce new products.

ANS: T PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

8. The biggest distinction between B2B marketing and consumer marketing is the lack of advertising and
visibility in the marketplace the company services.

ANS: F PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Promotion | R&D Knowledge of general business functions
TYP: KN

9. Personal selling is less important in business markets than in consumer markets because of the longer
distribution channels involved.

ANS: F PTS: 1 DIF: 2 REF: 167


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general
business functions TYP: AP

10. The primary purchasing need of an organization is meeting the demands of its own customers.

ANS: T PTS: 1 DIF: 1 REF: 167


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

11. An organization’s goals must also be considered in the B2B buying process.

ANS: T PTS: 1 DIF: 1 REF: 168


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

202
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
12. The four categories that define the business market are the commercial market, producers, institutions
and government agencies.

ANS: F PTS: 1 DIF: 1 REF: 168


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

13. The commercial market purchases products for use directly and indirectly in the manufacturing of
other products.

ANS: T PTS: 1 DIF: 1 REF: 168


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

14. When Cannondale purchases aluminum for use in its bicycle frames, the company is participating in
the commercial market.

ANS: T PTS: 1 DIF: 1 REF: 168


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

15. The commercial market consists of retailers and wholesalers who purchase goods primarily for resale
to other businesses and to the consumer.

ANS: F PTS: 1 DIF: 1 REF: 168-169


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

16. Members of the trade industries acquire goods and services primarily for use in production.

ANS: F PTS: 1 DIF: 1 REF: 169


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

17. The term reseller is often used to describe wholesalers and retailers that comprise membership in the
trade industries.

ANS: T PTS: 1 DIF: 1 REF: 169


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Distribution | R&D Knowledge of general business functions
TYP: KN

203
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
18. The trade industries include manufacturers, wholesalers, and individual consumers.

ANS: F PTS: 1 DIF: 1 REF: 169


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

19. Because of its size, the government represents the largest segment of the B2B marketplace.

ANS: F PTS: 1 DIF: 1 REF: 170


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

20. Organizations such as hospitals, universities and museums comprise the commercial segment of the
business market.

ANS: F PTS: 1 DIF: 1 REF: 170


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

21. Not-for-profit organizations are considered part of B2B marketplace.

ANS: F PTS: 1 DIF: 1 REF: 170


OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

22. The Internet is intended to replace, not just enhance, personal selling and the traditional relationships
between businesses.

ANS: F PTS: 1 DIF: 1 REF: 170


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

23. In general, the consumer has more at stake in purchasing decisions because the money they are
spending is actually theirs. Business customers have less at stake and are less concerned with value
and utility of the materials purchased.

ANS: F PTS: 1 DIF: 1 REF: 170


OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

204
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
24. Geographic location is considered a demographic basis for segmenting the business market.

ANS: F PTS: 1 DIF: 1 REF: 171


OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

25. Organizational size is regarded as a demographic basis for segmenting business customers.

ANS: T PTS: 1 DIF: 1 REF: 171


OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

26. Compared to the old SIC system of classification, the NAICS not only standardizes classifications
among nations, but also provides flexibility for each country to measure its own business activity.

ANS: T PTS: 1 DIF: 2 REF: 171-172


OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

27. The NAICS codes provide information about businesses that allows users to compare business sectors
among the member nations of NAFTA.

ANS: T PTS: 1 DIF: 2 REF: 172


OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

28. The NAICS classification system provides a useful tool for segmenting B2B markets by customer
type.

ANS: T PTS: 1 DIF: 1 REF: 172


OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

29. With the implementation of the NAFTA accord, the SIC system replaced the NAICS system to
subdivide the business marketplace into detailed segments.

ANS: F PTS: 1 DIF: 1 REF: 172


OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

205
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
30. Some companies segment markets into categories such as small business, large business, consumers,
educational institutions and government. This is an example of end-use segmentation.

ANS: F PTS: 1 DIF: 2 REF: 172


OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

31. End-use application segmentation focuses on the precise way in which a business purchaser will use a
product.

ANS: T PTS: 1 DIF: 1 REF: 172


OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

32. Geographic concentration of an industry has no effect on the location decisions of the industry's
suppliers.

ANS: F PTS: 1 DIF: 1 REF: 174


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

33. Ford recently established a first-of-its-kind campus for suppliers near its Chicago
assembly plant, which enabled them to reduce costs, control parts inventories, and increase flexibility.

ANS: T PTS: 1 DIF: 1 REF: 174


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

34. The Internet is changing the buying process of many customers, including the federal government,
making it less likely that suppliers will need to be geographically close to their customers.

ANS: T PTS: 1 DIF: 1 REF: 174


OBJ: 6-3
NAT: AACSB Technology | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

35. Purchase decision making in B2B is more formal and professional than in the consumer market.

ANS: T PTS: 1 DIF: 1 REF: 174


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

206
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
36. Evaluating foreign market opportunities is a complex and somewhat difficult task for businesses.

ANS: T PTS: 1 DIF: 1 REF: 175


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Strategy | R&D Managing decision-making processes
TYP: KN

37. Global sourcing involves contracting to purchase goods and services from suppliers worldwide.

ANS: T PTS: 1 DIF: 1 REF: 175


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model International Perspective | R&D Knowledge of
general business functions TYP: KN

38. If Product A is used primarily to manufacture Product B, then the demand for product A is derived
from the demand for Product B.

ANS: T PTS: 1 DIF: 2 REF: 176


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

39. As demand for personal computers increases the demand for computer microprocessor chips will also
increase. This is an example of derived demand.

ANS: T PTS: 1 DIF: 2 REF: 176


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

40. Companies that sell products affected by derived demand can avoid the negative affects of downturns
by diversifying the markets in which they sell their products.

ANS: T PTS: 1 DIF: 3 REF: 176-177


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

41. Organizational buyers basically purchase two categories of products: capital items and expense items.

ANS: T PTS: 1 DIF: 1 REF: 177


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

42. Capital purchases are expended quickly, whereas expense items are more expensive and last longer.

ANS: F PTS: 1 DIF: 1 REF: 177


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

207
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing

43. The difference between capital and expense items is not only the size and length of use, but also the
way the accounting department handles production costs.

ANS: T PTS: 1 DIF: 2 REF: 177


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

44. Volatile demand means that even slight shifts or variations in the market can have an affect on sales.

ANS: T PTS: 1 DIF: 1 REF: 177


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

45. If consumer demand for dishwashers increases, dishwasher manufacturers will buy more raw materials,
components and supplies as a result of the link between the consumer market and the industrial market.
This linkage is called coordinated demand.

ANS: F PTS: 1 DIF: 2 REF: 177


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

46. Business markets tend to have more buyers and suppliers than found in the consumer marketplace.

ANS: F PTS: 1 DIF: 1 REF: 177


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

47. Assume the price of jet fuel rises, but airlines continue to purchase the same amount of fuel in order to
meet operational needs. As a result, the demand for jet fuel is said to be inelastic.

ANS: T PTS: 1 DIF: 2 REF: 177


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

48. JIT II inventory systems may require suppliers to have on-site representatives at their customers’
production facility.

ANS: T PTS: 1 DIF: 1 REF: 178


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

208
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
49. When a firm can manufacture the product it needs, it may experience a significant cost savings
because it will not have to pay the overhead costs and profit to an outside supplier.

ANS: T PTS: 1 DIF: 1 REF: 178


OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

50. Offshoring and nearshoring refer to the method of acquiring natural resources.

ANS: F PTS: 1 DIF: 1 REF: 179


OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

51. India has become a major supplier of customer service labor, while China offers inexpensive
manufacturing labor.

ANS: T PTS: 1 DIF: 1 REF: 179


OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

52. Turning to outsiders to provide products or services that were formerly provided in-house is referred to
as external acquisition.

ANS: F PTS: 1 DIF: 1 REF: 179


OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

53. If a company wants to concentrate its resources on its core business, it may be wise to outsource
support departments.

ANS: T PTS: 1 DIF: 1 REF: 179


OBJ: 6-4
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

54. Lower-than-anticipated cost savings is one potential downside to offshoring.

ANS: T PTS: 1 DIF: 1 REF: 179


OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

209
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
55. To understand organizational buying behavior, business marketers require knowledge of influences on
the purchase decision process, the stages in the organizational buying model, types of business buying
situations, and techniques for purchase decision analysis.

ANS: T PTS: 1 DIF: 1 REF: 180


OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

56. Successful organizational marketers understand their customers’ organizational structures, policies and
purchasing systems.

ANS: T PTS: 1 DIF: 1 REF: 181


OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

57. Personal and interpersonal influences affect consumer purchasing decisions, not B2B decisions.

ANS: F PTS: 1 DIF: 1 REF: 181


OBJ: 6-5
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

58. Centralized purchasing units may contract with only a few suppliers to service multiple locations
because they lack interest in long-term relationship building and place greater reliance on immediate
results.

ANS: F PTS: 1 DIF: 3 REF: 181


OBJ: 6-5
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

59. A sales representative can waste valuable time creating a sales relationship with decision makers in a
decentralized purchasing office of a Fortune 500 company.

ANS: F PTS: 1 DIF: 1 REF: 181


OBJ: 6-5
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

60. When selling to organizational customers, sales representatives need to be able to interact effectively
with employees of the various departments involved in the purchase decision.

ANS: T PTS: 1 DIF: 1 REF: 181


OBJ: 6-5
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

210
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
61. Organizational purchasing decisions tend to be standardized, resulting in the same procedures being
used for both capital and expense items.

ANS: F PTS: 1 DIF: 2 REF: 182


OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

62. Purchase decisions for capital items vary significantly from those of expense items.

ANS: T PTS: 1 DIF: 1 REF: 182


OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

63. “Merchandiser” is the common designation for a purchasing agent in wholesale and retail trades.

ANS: T PTS: 1 DIF: 1 REF: 182


OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

64. Lockheed Martin wins a contract to produce 14 state-of-the-art helicopters for the U.S. Navy.
Coordination of labor, purchasing, and manufacturing is a tremendous undertaking, so Lockheed
would have the option of streamlining the purchasing process through systems integration.

ANS: F PTS: 1 DIF: 3 REF: 182


OBJ: 6-5
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of technology, design,
& production TYP: AP

65. Business purchase decisions begin when the recognition of problems, needs, or opportunities activates
the buying process.

ANS: T PTS: 1 DIF: 1 REF: 182


OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

66. A firm deciding to purchase more energy-efficient machines in response to rising fuel prices illustrates
the first step in the business buying process.

ANS: T PTS: 1 DIF: 2 REF: 182


OBJ: 6-6
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

211
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
67. After determining the characteristics and quantity of needed products, B2B buyers must translate these
ideas into detailed specifications

ANS: T PTS: 1 DIF: 1 REF: 183


OBJ: 6-6
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

68. When government agencies seek to acquire proposals from potential suppliers, they participate in a
process called competitive bidding.

ANS: T PTS: 1 DIF: 1 REF: 183


OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

69. Once a supplier has been chosen, buyer and vendor must work out the best way to process future
purchases.

ANS: T PTS: 1 DIF: 1 REF: 184


OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

70. Although order procedures vary from supplier to supplier, the one constant in all transactions is the
inclusion of the terms of sales including price, quantity, delivery and payment terms.

ANS: T PTS: 1 DIF: 2 REF: 184


OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

71. A straight rebuy is to the business market what a routinized purchase is to the consumer market.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

72. A company that believes in “quality, service and reliability” will have a better chance of experiencing
straight rebuys from their customers.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing decision-making
processes TYP: AP

212
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
73. Straight rebuys resemble limited problem solving in consumer markets.

ANS: F PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

74. The purchasing decision can move to a modified rebuy status with either the introduction of new
products or poor performance by the original supplier.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

75. When a business purchases a new product that requires considerable effort on the decision maker's part,
it is called new-task buying.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

76. Marketers who want to encourage modified rebuy behavior by their customers should focus on
providing excellent service and delivery performance.

ANS: F PTS: 1 DIF: 1 REF: 185


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

77. New-task buying for businesses is comparable to the extended problem solving that takes place in
consumer markets.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

78. In the B2B market, the practice of buying from suppliers who are also customers is called reverse
reciprocity.

ANS: F PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

213
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
79. Reciprocal arrangements are common in industries where products are homogeneous and prices are
similar, such as the chemical, paint, rubber and steel industries.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

80. On an international level, attitudes toward reciprocity vary from country to country.

ANS: T PTS: 1 DIF: 2 REF: 185


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

81. Value analysis is a continuous process of evaluating the cost of doing business with a particular buying
unit. Suppliers must ensure they are receiving adequate benefits from the time invested in a customer.

ANS: F PTS: 1 DIF: 2 REF: 185-186


OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

82. The ongoing evaluation of a supplier's performance on such criteria as price, EDI capability, delivery
times, and attention to special requests is called vendor analysis.

ANS: T PTS: 1 DIF: 2 REF: 186


OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

83. A company’s buying center encompasses everyone who is involved in any aspect of its buying
activity.

ANS: T PTS: 1 DIF: 2 REF: 186


OBJ: 6-8
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

84. A buying center is a part of a firm's formal organization structure.

ANS: F PTS: 1 DIF: 1 REF: 186


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

214
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
85. Gatekeepers in the buying center affect the buying decision by determining which individuals within
the organization will be part of the buying process.

ANS: F PTS: 1 DIF: 1 REF: 186


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

86. Influencers in the purchasing decision can be both internal and external to the organization.

ANS: T PTS: 1 DIF: 2 REF: 186


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Managing decision-making processes
TYP: KN

87. While many individuals participate in the buying process, it is the buyer’s role to make the final
decision and confirmation of the sale.

ANS: F PTS: 1 DIF: 2 REF: 186-187


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

88. In the B2B purchasing process, the user, the influencer, and the decider might all be the same
individual.

ANS: T PTS: 1 DIF: 2 REF: 186-187


OBJ: 6-8
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

89. The participants in international buying centers are generally easier to identify than those in domestic
buying centers.

ANS: F PTS: 1 DIF: 1 REF: 187


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model International Perspective | R&D Knowledge of technology,
design, & production TYP: KN

90. The structure of the buying center varies from culture to culture. For example, 50 individuals might be
involved in the purchasing process in some countries.

ANS: T PTS: 1 DIF: 2 REF: 187


OBJ: 6-8
NAT: AACSB Reflective Thinking | CB&E Model International Perspective | R&D Knowledge of
technology, design, & production TYP: AP

215
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
91. Identifying the decision maker is so important that foreign companies will retain original sales and
marketing personnel after a buyout to ensure that cultural, language, and management styles do not
affect relationships between the supplier and their customers.

ANS: T PTS: 1 DIF: 2 REF: 187


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model International Perspective | R&D Knowledge of general
business functions TYP: KN

92. Contracts with the government fall into two categories: fixed-cost, where the government reimburses
the business for its costs, and inflationary protected pricing, where the original price quote is adjusted
to account for inflation.

ANS: F PTS: 1 DIF: 3 REF: 188


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

93. All contracts awarded by the federal government to suppliers must be conducted through the bid
process as mandated by law.

ANS: T PTS: 1 DIF: 1 REF: 188


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

94. The federal government essentially has two purchasing centers: the GSA, which handles general
procurement, property management and resource management, and the DLA, which serves the exact
same functions for the Department of Defense.

ANS: T PTS: 1 DIF: 3 REF: 188


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

95. The federal government has attempted to increase the speed and flexibility of its purchases through the
use of pre-negotiated contracts, elimination of detailed specifications for readily available commercial
products, and use of online product catalogs.

ANS: T PTS: 1 DIF: 2 REF: 189


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

96. Institutional markets are characterized by widely diverse buying practices.

ANS: T PTS: 1 DIF: 1 REF: 190


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

216
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
97. International vendors must consider local economic conditions, geographic characteristics, and legal
restrictions in their assessment of marketing opportunities.

ANS: T PTS: 1 DIF: 2 REF: 191


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

98. Restoring worn-out products to like-new condition is known as remanufacturing.

ANS: T PTS: 1 DIF: 1 REF: 191


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

99. Institutions often join buying cooperatives to pool purchases for the primary purpose of streamlining
and expediting product deliveries.

ANS: F PTS: 1 DIF: 2 REF: 190-191


OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

MULTIPLE CHOICE

1. Compared to the purchasing process for consumer products:


a. distribution channels for business products are significantly longer.
b. customer relationships for business products tend to be short-term and transactions-based.
c. personal selling plays a much larger role in business products markets.
d. customer service plays a smaller role in the distribution of business products.
ANS: C PTS: 1 DIF: 2 REF: 167
OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

2. Which of the following is not a characteristic that distinguishes B2B markets from consumer markets?
a. Organizational markets are more geographically concentrated.
b. More people exert influence on the organizational buying decision.
c. The organizational market tends to have a greater number of buyers.
d. Organizations often engage in multiple sourcing and vendor analysis.
ANS: C PTS: 1 DIF: 2 REF: 167
OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

217
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
3. Comparing the business to the consumer market, all of the following statements are correct except:
a. business products tend to be more complex.
b. negotiations are often longer and include more decision makers.
c. distribution channels are longer and more complex in the business market.
d. customer relations are relatively enduring and complex in the business market.
ANS: C PTS: 1 DIF: 2 REF: 167
OBJ: 6-1
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

4. The four segments of the B2B marketplace include all of the following except:
a. government.
b. entertainment industry.
c. commercial market.
d. trade industries.
ANS: B PTS: 1 DIF: 1 REF: 168
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

5. The largest segments of the business market are:


a. trade industries, which include retailers and wholesalers.
b. commercial markets, which include everyone that acquires products to support, directly or
indirectly, the production of other goods and services.
c. government organizations, including the military, state and federal governments.
d. institutions such as schools, hospitals and churches.
ANS: B PTS: 1 DIF: 2 REF: 168
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

6. The largest segment of the business market that consists of individuals and firms that acquire goods
and services to be used, directly or indirectly, in producing other goods and services is called:
a. wholesaling and retailing.
b. the commercial market.
c. government.
d. an institution.
ANS: B PTS: 1 DIF: 1 REF: 168
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

218
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
7. The trade industries consist of:
a. manufacturers.
b. wholesalers and retailers.
c. farmers.
d. transportation.
ANS: B PTS: 1 DIF: 1 REF: 169
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

8. Institutions, as a component of the B2B market:


a. tend to have greater financial resources than industrial customers.
b. provide business services to the other members of the market.
c. may have rigid purchasing procedures.
d. are accountable to their clients and stockholders.
ANS: C PTS: 1 DIF: 2 REF: 170
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

9. The government segment of the B2B market commonly buys products:


a. for resale to the public.
b. to provide public benefits.
c. that are customized and not commonly available.
d. from domestic sources only.
ANS: B PTS: 1 DIF: 1 REF: 170
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

10. Providing some form of public benefit is the primary motivation for purchasing by members of the:
a. industrial market.
b. global market.
c. government market.
d. trade industries.
ANS: C PTS: 1 DIF: 2 REF: 170
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

219
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
11. Which of the following is not found in e-commerce serving the business market?
a. Private portals that allow customers access to products and vendors
b. Service pages accessed using passwords provided by B2B marketers
c. Online auctions where business goods may be purchased
d. Chat rooms dedicated to opinions of new products
ANS: D PTS: 1 DIF: 1 REF: 170
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of technology, design, &
production TYP: KN

12. Which of the following is not a commonly used basis for segmenting the business market?
a. Demographics using the size of the firm
b. Customer type
c. Educational attainments of buyers
d. Product end-use application
ANS: C PTS: 1 DIF: 2 REF: 171
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

13. When the B2B market is segmented on the basis of precise product specifications issued by
organizational buyers, it is known as _____ segmentation.
a. customer-based
b. profit-generating
c. benefits
d. engineering and design
ANS: A PTS: 1 DIF: 2 REF: 171
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

14. Zardo, Inc. divides its customers into the following categories: small business, large business,
government, and not-for-profit institutions. Which type of segmentation is Zardo practicing?
a. End-use
b. Customer type
c. Demographic
d. Purchase category
ANS: B PTS: 1 DIF: 2 REF: 171
OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

220
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
15. The system for grouping businesses that grew out of the NAFTA accord is known as the:
a. Standard Industrial Classification System.
b. Industrial Data Recording System.
c. Standard Industrial Census System.
d. North American Industry Classification System.
ANS: D PTS: 1 DIF: 3 REF: 172
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

16. The implementation of the North American Free Trade Agreement required a change in the system
used for almost 70 years to categorize U.S. business firms. The change resulted in:
a. the abandonment of the Standard Industry Classification (SIC) for the North American
Industrial Classification System (NAICS).
b. the abandonment of any attempt at categorization until a new plan can be devised.
c. a new system called the RIAA plan, which closely parallels the ISO system of industrial
coding used in Europe.
d. the MILSPEC system that assigns code numbers to products rather than firms.
ANS: A PTS: 1 DIF: 2 REF: 172
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

17. In the B2B marketplace, segmentation based on the precise way in which the business will use the
product is called:
a. segmentation by purchasing situation.
b. segmentation by customer type.
c. end-use application segmentation.
d. segmentation by demographic characteristics.
ANS: C PTS: 1 DIF: 2 REF: 172
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

18. Texas Instruments produces chips used in a variety of devices, from cell phones to hand calculators.
Which type of segmentation would make the most business sense for a company like Texas
Instruments?
a. End-use
b. Purchase category
c. Customer type
d. Demographic
ANS: A PTS: 1 DIF: 2 REF: 172
OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

221
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
19. A manufacturer that produces glass for microwave oven doors, shower enclosures, and patio tabletops
is segmenting the market on the basis of:
a. cost-plus considerations.
b. end-use application.
c. benefits offered.
d. design factors.
ANS: B PTS: 1 DIF: 2 REF: 172
OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

20. Customer relationship management systems are most useful in which type of segmentation?
a. End-use
b. Demographic
c. Customer type
d. Purchase category
ANS: D PTS: 1 DIF: 1 REF: 172
OBJ: 6-2
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing administration &
control TYP: AP

21. Where can some of the best statistical information for companies seeking opportunities in the B2B
marketplace be found?
a. Internet
b. Dun & Bradstreet reports
c. Trade and business publications
d. Census of Manufacturers and Census of Retailing and Wholesaling
ANS: D PTS: 1 DIF: 1 REF: 174
OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

22. Dell Computer purchases parts and resources for its computers from suppliers worldwide. This
practice is known as:
a. offshoring.
b. global sourcing.
c. joint demand.
d. derived demand.
ANS: B PTS: 1 DIF: 1 REF: 175
OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model International Perspective | R&D Managing
administration & control TYP: AP

222
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
23. The demand for automated teller machines (ATMs) is based on consumer demand for banking
convenience. This is an example of:
a. joint demand.
b. derived demand.
c. volatile demand.
d. demand variability.
ANS: B PTS: 1 DIF: 1 REF: 176
OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

24. After Hurricane Katrina, roadways needed to be repaired and rebuilt, resulting in an increase in the
demand for concrete, stone, and steel reinforcement. The price of these materials began to rise due to
_____ demand.
a. linked
b. derived
c. coordinated
d. joint
ANS: D PTS: 1 DIF: 2 REF: 177
OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

25. Cotton and polyester are used in the production of permanent press clothing. If the supply of cotton is
reduced, there will be an immediate effect on the demand for polyester. This relationship represents:
a. derived demand.
b. demand variability.
c. inventory adjustments.
d. joint demand.
ANS: D PTS: 1 DIF: 2 REF: 177
OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

26. If the demand for product A stays constant regardless of the increase or decrease in demand for
product B, it can be said that product A is experiencing _____ demand.
a. derived
b. joint
c. volatile
d. inelastic
ANS: D PTS: 1 DIF: 3 REF: 177
OBJ: 6-3
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

223
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
27. Reducing inventories to absolute minimum levels and requiring vendors to deliver the items as they
are needed in the production process is known as:
a. in real time (IRT).
b. just-in-time (JIT).
c. on time delivery (OTD).
d. next-time in (NTI).
ANS: B PTS: 1 DIF: 2 REF: 177
OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product |R&D Managing logistics & technology
TYP: KN

28. Which of the following statements does not describe the advantage of leasing?
a. Requires a high level of capital commitment.
b. Provides the ability to easily upgrade equipment as needs change.
c. Provides flexibility for a growing business.
d. Allows quick adaptation to changes in demand.
ANS: A PTS: 1 DIF: 2 REF: 178
OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

29. A business paying for the use of equipment owned by an outside supplier for a specified period of time
is known as:
a. external acquisition.
b. supply chain management.
c. leasing.
d. supplier research.
ANS: C PTS: 1 DIF: 2 REF: 178
OBJ: 6-4
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

30. Outsourcing has the advantage of:


a. leading to lower-than-anticipated cost savings.
b. raising concerns over proprietary technology.
c. improving the quality and speed of software maintenance and development.
d. increasing the risk of losing touch with customers.
ANS: C PTS: 1 DIF: 2 REF: 179
OBJ: 6-4
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

224
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
31. Outsourcing is often chosen as an alternative to making goods in-house or providing in-house services
because:
a. savings often exceed 40 percent on an average.
b. savings often rise, as the contract firm (the outsource) becomes familiar with the job.
c. outsourcing solves security problems when proprietary technology is involved.
d. outsourcing allows firms to concentrate their resources on their core businesses.
ANS: D PTS: 1 DIF: 2 REF: 179
OBJ: 6-4
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

32. Turning to outsiders to provide goods and services that were formerly produced or handled internally
is known as:
a. outsourcing.
b. nearshoring.
c. supply chain management.
d. external buying.
ANS: A PTS: 1 DIF: 1 REF: 179
OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

33. Unions generally view outsourcing as a(n):


a. good idea to stay competitive and preserve jobs.
b. bargaining tool for higher wages.
c. threat to union jobs.
d. means of saving money and putting the savings into wages and benefits.
ANS: C PTS: 1 DIF: 1 REF: 180
OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

34. Product factors important to the buying decision include all of the following except:
a. replacement cost.
b. purchase price.
c. operating and maintenance costs.
d. service.
ANS: A PTS: 1 DIF: 2 REF: 180
OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

225
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
35. When a firm undertakes systems integration and designates a major trade industry supplier as the
systems integrator, that supplier is known as the:
a. category captain.
b. purchasing coordinator.
c. division leader.
d. supply chain manager.
ANS: A PTS: 1 DIF: 2 REF: 182
OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Customer | R&D Managing administration & control
TYP: KN

36. An employee who recognizes that the use of a new product can potentially improve the company’s
market performance is participating in:
a. need or opportunity recognition.
b. identification of suppliers.
c. word-of-mouth exploration.
d. information search.
ANS: A PTS: 1 DIF: 2 REF: 182
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation
TYP: KN

37. A firm has decided to purchase hybrid delivery vehicles in response to rising gasoline prices. Which
step in the business buying process does this illustrate?
a. Determining the characteristics of the needed product
b. Recognizing a problem or opportunity
c. Searching for qualified sources
d. Evaluating proposals and selecting suppliers
ANS: B PTS: 1 DIF: 2 REF: 182
OBJ: 6-6
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Managing decision-making
processes TYP: AP

38. Adam, a purchasing agent for the American Heart Association, has made a list of potential suppliers
for payroll services. Adam is currently at which step in the organizational buying process?
a. Recognizing a problem or opportunity.
b. Determining the characteristics and quantity of the needed product.
c. Describing the characteristics of the needed product.
d. Searching for and qualifying potential sources.
ANS: D PTS: 1 DIF: 2 REF: 183
OBJ: 6-6
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Managing decision-making
processes TYP: AP

226
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
39. The price negotiation process commonly experienced by government and institutional entities is
known as:
a. competitive bidding.
b. decentralized buying.
c. collective bargaining.
d. systems integration.
ANS: A PTS: 1 DIF: 2 REF: 183
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Pricing | R&D Managing decision-making processes
TYP: KN

40. Establishing specifications for a needed product is part of which step in the business buying process?
a. Recognizing a need.
b. Describing characteristics of a needed good.
c. Qualifying potential vendors.
d. Selecting an order routine.
ANS: B PTS: 1 DIF: 2 REF: 183
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

41. Once a search for suppliers is completed and the company makes the supplier aware of their needs, the
company will begin:
a. searching for needs to fill.
b. notifying the distribution channels of the new product introduction.
c. acquiring and analyzing proposals.
d. selecting an order routine.
ANS: C PTS: 1 DIF: 2 REF: 183-184
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

42. Procedures that measure characteristics, such as a supplier's reliability, price, and order accuracy
would be part of which step in the organizational buying process?
a. Searching for potential sources
b. Analyzing proposals
c. Recognizing a need
d. Evaluating proposals and selecting suppliers
ANS: D PTS: 1 DIF: 2 REF: 184
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

227
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
43. The organizational buying process has more steps than the consumer buying process, which can be
attributed to:
a. the limited number of suppliers in the B2B marketplace.
b. the importance of integrating the responsibilities of the wholesalers or retailers.
c. interpersonal and environmental influences not seen in consumer buying decisions.
d. business purchasing that introduces new complexities that do not affect consumers.
ANS: D PTS: 1 DIF: 3 REF: 184
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation
TYP: KN

44. Which of the following is the final step in the business buying process?
a. Selecting an order routine
b. Evaluating proposals and selecting suppliers
c. Obtaining feedback and evaluating performance
d. Acquiring and analyzing proposals
ANS: C PTS: 1 DIF: 2 REF: 184
OBJ: 6-6
NAT: AACSB Analytic | CB&E Model Product | R&D Managing decision-making processes
TYP: KN

45. When a business purchaser accepts the terms of sale of an item that has performed satisfactorily in the
past and requires no new information to decide to purchase it again, the buying situation is a(n):
a. straight rebuy.
b. service purchase.
c. contract purchase.
d. modified rebuy.
ANS: A PTS: 1 DIF: 1 REF: 184-185
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

46. Which product might an ink manufacturer purchase on a straight rebuy?


a. Warehouse storage tanks
b. Manufacturing equipment
c. Process oils that are refined to the exact specifications required to produce ink
d. New computer network
ANS: C PTS: 1 DIF: 3 REF: 184-185
OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

228
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
47. When business purchasers shift from straight rebuy to modified rebuy behavior, it is often due to:
a. a change in the accelerator principle.
b. the routine buying format being outdated.
c. corporate expansion.
d. a deterioration in supplier service or delivery.
ANS: D PTS: 1 DIF: 2 REF: 185
OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

48. A buying situation in which business purchasers are willing to re-evaluate their available options is
known as:
a. a straight rebuy.
b. a modified rebuy.
c. new-task buying.
d. routinized response behavior.
ANS: B PTS: 1 DIF: 2 REF: 185
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

49. ________ refers to the business buying situation where a company buys component parts never before
purchased.
a. Complex rebuying
b. New-task buying
c. Technical buying
d. Modified rebuying
ANS: B PTS: 1 DIF: 2 REF: 185
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

50. A unique purchase situation in the business market that requires considerable effort on the decision
maker's part is called:
a. a straight rebuy.
b. a modified rebuy.
c. new-task buying.
d. a selective rebuy.
ANS: C PTS: 1 DIF: 1 REF: 185
OBJ: 6-7
NAT: AACSB Technology | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

229
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
51. Reciprocity has been most common in industries featuring _____ products with _____ prices.
a. homogeneous; different
b. diverse; different
c. homogeneous; similar
d. diverse; similar
ANS: C PTS: 1 DIF: 1 REF: 185
OBJ: 6-7
NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

52. An ongoing evaluation of a supplier's performance in categories such as price, EDI capability, delivery
times, and attention to special requests is known as:
a. product substitution analysis.
b. component redesign.
c. vendor analysis.
d. costs-benefits analysis.
ANS: C PTS: 1 DIF: 2 REF: 186
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

53. A company's buying center encompasses:


a. a representative from each department within an organization.
b. only a gatekeeper and a buyer.
c. everyone who is involved in any aspect of the buying process.
d. an exclusive top-notch buying department.
ANS: C PTS: 1 DIF: 1 REF: 186
OBJ: 6-8
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: KN

54. In a business buying center situation, the people who sometimes initially request the product, use the
purchased product, and may assist in developing the product specifications are called:
a. users.
b. consumers.
c. influencers.
d. gatekeepers.
ANS: A PTS: 1 DIF: 1 REF: 186
OBJ: 6-8
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

230
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
55. One type of buying center role is that of a(n):
a. influencer, who supplies information to guide evaluation of alternatives.
b. contractor, who has the formal authority to select a supplier.
c. distributor, who controls the information that all buying center members will review.
d. technician, who presents technical requirements.
ANS: A PTS: 1 DIF: 1 REF: 186
OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

56. The function performed by the gatekeeper in the company buying center is to:
a. supply information to guide 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 buying center members will review.
ANS: D PTS: 1 DIF: 1 REF: 186
OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

57. A(n) _____ controls the information that enters the company’s buying center.
a. buyer
b. influencer
c. gatekeeper
d. user
ANS: C PTS: 1 DIF: 1 REF: 186
OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

58. Janelle works in distribution management at a Fortune 500 company and has formal authority to select
a supplier. Janelle is a(n):
a. buyer.
b. influencer.
c. gatekeeper.
d. user.
ANS: C PTS: 1 DIF: 1 REF: 186
OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

231
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
59. Which of the following is not a challenge ordinarily encountered in marketing to government entities?
a. Handling retail sales contracts using Visa, MasterCard or Discover.
b. Fixed-price contracts based on a bid process.
c. Cost-reimbursement contracts providing for allowable costs and profits.
d. Minority subcontracting programs.
ANS: A PTS: 1 DIF: 2 REF: 188
OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

60. Some of the challenges faced by government purchasers include all of the following except:
a. assuring that minority groups are fairly represented in the buying process.
b. meeting the needs of users who do not work in their organization.
c. inflexible and slow purchasing procedures that were written nearly 50 years ago.
d. coordinating the purchasing between the federal, state and local agencies.
ANS: D PTS: 1 DIF: 2 REF: 188
OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Managing administration & control
TYP: KN

61. The General Services Administration (GSA) of the U.S. federal government:
a. buys goods and services strictly only for its own internal use.
b. buys goods and services strictly for use by other government agencies including the
departments of Defense and Transportation.
c. is a central management agency involved in procurement, property management, and
information resources management.
d. oversees state and local purchasing guidelines for those products not usually bought by the
federal government.
ANS: C PTS: 1 DIF: 2 REF: 188
OBJ: 6-9
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: KN

62. Institutional markets are characterized by:


a. similar buying practices.
b. multiple-buying influences, even within the same institution.
c. few group purchasing arrangements.
d. little negotiation to secure volume discounts.
ANS: B PTS: 1 DIF: 1 REF: 190
OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

232
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
63. Which of the following types of organizations would not ordinarily be considered to be a part of the
institutional market?
a. Public libraries
b. Department stores
c. Educational foundations
d. Churches
ANS: B PTS: 1 DIF: 1 REF: 190-191
OBJ: 6-9
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

64. In order to receive quantity discounts on needed purchases, many institutions:


a. tend to purchase products they do not need.
b. insist on equal treatment under the Robinson-Patman Act.
c. join cooperative associations to pool purchases.
d. rely on their independence and future growth.
ANS: C PTS: 1 DIF: 1 REF: 191
OBJ: 6-9
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing strategy & innovation
TYP: AP

65. Efforts to restore worn-out products to like-new condition is called:


a. outsourcing.
b. making the product out-house.
c. remanufacturing.
d. indirect acquisition.
ANS: C PTS: 1 DIF: 1 REF: 191
OBJ: 6-9
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

MATCHING

Match each item with the correct statement below.


a. commercial market i. outsourcing
b. trade industries j. value analysis
c. market segmentation k. vendor analysis
d. customer-based segmentation l. buying center
e. end-use application segmentation m. reciprocity
f. global sourcing n. gatekeeper
g. joint demand o. systems integration
h. inelastic demand p. modified rebuy
1. The person who controls the information all members of a buying center will review is a(n) _____.
2. The _____ consists of individuals and firms that acquire products used to support the production of
other products.
3. _____ is the practice of buying from suppliers who are also customers.
4. _____ consists of retailers and wholesalers who purchase products for resale to others.

233
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
5. A(n) _____ is comprised of participants in an organizational buying action.
6. By applying _____ concepts to groups of business customers, marketers can develop a strategy that
best suits the needs of those customers.
7. The assessment of supplier performance is called _____.
8. _____ is the process of dividing a B2B market into homogeneous groups based on buyers’ products
specifications.
9. _____ is the systematic study of the components of a purchase to determine the most cost-effective
approach.
10. Dividing a B2B market based on how customers will use a product is called _____.
11. _____ is the use of outside vendors to produce products that were formerly produced in-house.
12. Purchasing products from suppliers worldwide is called _____.
13. If the demand for a product remains constant, even if its price changes, then this product is said to
exhibit _____.
14. _____ indicates that the demand for one product depends on the demand for another product.
15. A(n) _____ occurs when a purchaser is willing to consider new products or re-evaluate available
alternatives.
16. A company can streamline purchasing operations through a process of centralization called _____.

1. ANS: N PTS: 1 DIF: 1 REF: 186


OBJ: 6-8
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
2. ANS: A PTS: 1 DIF: 1 REF: 168
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
3. ANS: M PTS: 1 DIF: 1 REF: 185
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
4. ANS: B PTS: 1 DIF: 1 REF: 169
OBJ: 6-1
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
5. ANS: L PTS: 1 DIF: 1 REF: 186
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
6. ANS: C PTS: 1 DIF: 1 REF: 171
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
7. ANS: K PTS: 1 DIF: 1 REF: 186
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

234
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
8. ANS: D PTS: 1 DIF: 1 REF: 171
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
9. ANS: J PTS: 1 DIF: 1 REF: 185
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
10. ANS: E PTS: 1 DIF: 1 REF: 172
OBJ: 6-2
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
11. ANS: I PTS: 1 DIF: 1 REF: 179
OBJ: 6-4
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN
12. ANS: F PTS: 1 DIF: 1 REF: 175
OBJ: 6-3
NAT: AACSB Analytic | CB&E Model International Perspective | R&D Knowledge of general
business functions TYP: KN
13. ANS: H PTS: 1 DIF: 1 REF: 177
OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN
14. ANS: G PTS: 1 DIF: 1 REF: 177
OBJ: 6-3
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN
15. ANS: P PTS: 1 DIF: 1 REF: 185
OBJ: 6-7
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN
16. ANS: O PTS: 1 DIF: 1 REF: 182
OBJ: 6-5
NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

ESSAY

1. Define B2B marketing.

ANS:
Business-to business, or B2B, marketing deals with organizational sales and purchases of goods and
services to support production of other products, to facilitate daily company operations, or for resale.

PTS: 1 DIF: 2 REF: 166 OBJ: 6-1


NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: KN

235
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing

2. Describe some of the differences between B2B marketing and consumer product marketing.

ANS:
a) Consumer purchase decisions are usually made by one person. Organizational purchases
often take longer, have more decision makers involved, and can follow rigid purchasing
procedures.
b) Business products tend to be more technical and require a higher level of customer service
than consumer products. They may also have to conform to strict specifications.
c) Businesses often require non-standard products for which prices and terms must be
negotiated. Consumers usually purchase "off the shelf."
d) Organizations usually buy in larger quantities than consumers. Consumer product
companies tend to advertise more, especially on television and in print media. Businesses
use trade publications, conventions and peer organizations to advertise.
e) Business channels are usually short and direct due to the quantities and complexity of the
products involved. Consumer channels tend to be longer but less technical.
f) Business buyers expect their relationship with a vendor to be long-term and involve a great
deal of customer service. The same is not always true of consumers.

PTS: 1 DIF: 3 REF: 167 OBJ: 6-1


NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general
business functions TYP: AP

3. Identify and describe the four categories of business markets.

ANS:
a) Commercial market -- individuals and firms that acquire goods to be used directly or
indirectly in producing other goods and services.
b) Trade industries -- retailers and wholesalers that purchase goods for resale to others.
c) Government organizations -- all levels (as well as foreign), that purchase a wide variety of
items for use in providing public benefits.
d) Institutions -- hospitals, universities, museums, and other not-for-profit groups.

PTS: 1 DIF: 2 REF: 168-169 OBJ: 6-1


NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

4. Assume a firm sells similar products to different types of organizational customers. Which type of
segmentation would be most suitable?

ANS:
Customer segmentation divides a B2B market into homogeneous groups based on product
specifications for each buyer. This type of segmentation would probably make the most sense for a
firm that sells similar products to a variety of customers.

PTS: 1 DIF: 2 REF: 171 OBJ: 6-2


NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

236
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing

5. Identify and describe the major approaches to segmenting the organizational market.

ANS:
The four most commonly used approaches to segmenting the organizational market are:
a) Demographic segmentation -- grouping potential customers based on location (country,
region, state, county, city) or organization size (sales, number of employees, number of
locations).
b) Segmentation by customer type -- dividing the market based on whether customers are
manufacturers, service providers, government agencies or members of the trade industries,
or on the basis of their industrial classification (SIC or NAICS). This may be done
according to buyers' product specifications. In such cases, it is called customer-based
segmentation. This is often used in the business market because business users tend to have
more precise product specifications than ultimate consumers.
c) End-use application segmentation -- segmentation based on the precise way in which the
industrial purchaser will use the product.
d) Segmenting by purchasing situation -- the market is broken down on the basis of how firms
structure their purchasing functions, or alternatively on the basis of the buying situation for
a specific purchase.

PTS: 1 DIF: 3 REF: 171-172 OBJ: 6-2


NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

6. What is the NAICS? How does it differ from the SIC system it replaced?

ANS:
The NAICS (North American Industrial Classification System) is used by NAFTA countries to
categorize the business marketplace into detailed market segments. The NAICS is a six-digit
classification system that allows not only uniform identification among countries, but also provides a
flexible sixth digit that each country can use to track its own business activity. Additionally, new
industries have been added to the identification process. Both of these benefits are an improvement on
the old SIC system.

PTS: 1 DIF: 2 REF: 171-172 OBJ: 6-2


NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

237
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing

7. Discuss the demand characteristics that distinguish business markets from consumer markets.

ANS:
a) Derived demand -- the linkage between demand for consumer products and the impact on
demand for business products (business product demand is derived from consumer product
demand).
b) Volatile demand -- derived demand in the business market creates large shifts in demand
for business products associated with smaller changes in consumer demand; the
disproportionate nature of the change is known as the accelerator principle.
c) Joint demand -- demand for one industrial product moves jointly with demand for another
industrial product that is necessary for use of the first item.
d) Inventory adjustments and changes in inventory policies can impact business demand. The
just-in-time inventory system and its developments have moved the risk in manufacturing
up the channel of distribution, affecting the relationship between customers and suppliers
profoundly.

PTS: 1 DIF: 3 REF: 176-177 OBJ: 6-3


NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

8. Just-in-time (JIT) inventory practices are effective in boosting efficiency and cutting the cost of
holding large inventories. As a result of the widespread use of this process, what changes has the B2B
marketplace experienced?

ANS:
a) Reduction in the number of suppliers used by companies practicing JIT.
b) Supplier representatives working onsite to facilitate the JIT process.
c) Increased use of EDI and private web portals that suppliers and customers can access to
facilitate the JIT process.
d) Decline in the demand of many natural resources as inventory stockpiles have diminished.

PTS: 1 DIF: 2 REF: 177-178 OBJ: 6-3


NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

9. Discuss the make, buy, or lease decision for industrial organizations.

ANS:
Businesses must decide the best way to acquire a product for use. They evaluate the options of making
it themselves, purchasing it, or leasing it. In deciding whether or not to make the product,
organizations must decide if they have the capability to make it efficiently and if it makes good use of
company resources to commit the necessary equipment, staff, and supplies to producing the product.

The leasing decision is another alternative to buying a product and allows organizations the flexibility
to upgrade or lease on an "as-needed" basis, while allowing organizations financial flexibility by
spreading out costs, instead of purchasing products and paying out larger lump sums. Purchasing is
usually cheaper than leasing and may have some accounting advantages.

PTS: 1 DIF: 2 REF: 178 OBJ: 6-4

238
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
NAT: AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions
TYP: KN

10. What is outsourcing? Why do firms outsource production, and what are some potential drawbacks of
outsourcing?

ANS:
Outsourcing is the use of outside vendors to produce goods and services formally produced in-house.
Outsourcing is on the rise because firms need to reduce costs to remain competitive, and outsourcing
allows firms to concentrate resources of core businesses. Outsourcing can be a smart strategy if a
company can find a vendor that provides high-quality products at a lower cost.

On the other hand, the cost savings from outsourcing have been less than expected in many cases.
Moreover, there are security concerns involving proprietary technology. Outsourcing may also reduce
a company’s ability to respond quickly to marketplace changes, and cause a company to lose touch
with customers. Finally, outsourcing can have a negative impact on employee morale and the
company’s relationship with unions.

PTS: 1 DIF: 2 REF: 178-180 OBJ: 6-4


NAT: AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business
functions TYP: AP

11. What is the difference between offshoring and nearshoring? Discuss some offshoring trends occurring
in the global marketplace today.

ANS:
Offshoring is the movement of domestic jobs to lower-cost overseas locations. Nearshoring is a form
of offshoring where the jobs are moved to geographic locations as close to the domestic market as
possible. In the case of the United States, nearshore jobs are sent to Mexico and Canada. Trends in
offshoring include the transfer of development of software, financial services and customer services to
India. Manufacturing operations are sent to China, a country that wishes to expand into some areas
now held by Indians. Eastern Europe offers a labor source for many European countries, and American
firms are also recognizing the educated and talented labor pool in eastern Europe.

PTS: 1 DIF: 2 REF: 179 OBJ: 6-4


NAT: AACSB Reflective Thinking | CB&E Model International Perspective | R&D Knowledge of
general business functions TYP: AP

12. What distinguishes the business buying process from the consumer buying process? What do B2B
marketers need to understand about organizational buying behavior?

ANS:
The business buying process is more complex than the consumer decision process. Business buying
takes place within a formal organization’s budget, cost and profit considerations. Furthermore, B2B
and institutional buying decisions usually involve many people with complex interactions among
individual and organizational goals. To understand organizational buying behavior, business marketers
need to know factors regarding the influence on the purchase decision process, the stages in the
organizational buying model, types of business buying decisions, and techniques for purchase decision
analysis.

PTS: 1 DIF: 3 REF: 180 OBJ: 6-5

239
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing
NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of general business
functions TYP: AP

13. What factors influence business buying decisions?

ANS:
B2B buying decisions react to various influences, some external to the firm and others related to
internal structure and personnel. In addition to product-specific factors such as price, installation,
operating costs and vendor services, companies must consider broader environmental, organizational,
and interpersonal influences.

PTS: 1 DIF: 2 REF: 180 OBJ: 6-5


NAT: AACSB Analytic | CB&E Model Customer | R&D Managing decision-making processes
TYP: KN

14. What is the role of a professional buyer?

ANS:
Many large organizations attempt to make their purchases through systematic procedures by
employing professional buyers. In the trade industries these buyers, often referred to as merchandisers,
are responsible for securing needed products at the best possible prices. A firm’s purchasing or
merchandising unit devotes all of its time and effort in determining needs, locating and evaluating
alternative suppliers, and making purchase decisions.

PTS: 1 DIF: 2 REF: 182 OBJ: 6-5


NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

15. List the eight stages of the buying process for businesses.

ANS:
a) Anticipate or recognize a problem/need/opportunity and a general solution
b) Determine the characteristics and quality of the needed good or service
c) Describe the characteristics and quantity of the needed good or service
d) Search for and qualify potential sources
e) Acquire and analyze proposals
f) Evaluate proposals and select supplier(s)
g) Select an order routine
h) Obtain feedback and evaluate performance

PTS: 1 DIF: 2 REF: 182 OBJ: 6-6


NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

240
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing

16. In addition to price, what other factors are important in the final purchasing decision?

ANS:
Pricing, although important, is not the only variable that purchasers consider. Other terms of sale, such
as delivery, payment options, quantity discounts, and availability are also important. Technical support
and installation needs can be critical determinants of the final sale. Relationship factors including trust,
reliability, and history of product quality have a significant impact on which supplier will be chosen.

PTS: 1 DIF: 2 REF: 184 OBJ: 6-6


NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing decision-making
processes TYP: AP

17. Describe the three organizational buying situations. How do they correlate to the purchasing decisions
of consumers?

ANS:
The purchasing situations which one would ordinarily find in the organizational market include:
a) Straight rebuy -- a recurring purchase decision in which an item has performed
satisfactorily and is repurchased by a customer without much analysis; this behavior is
similar to routinize buying in the consumer market.
b) Modified rebuy -- a situation in which purchasers are willing to re-evaluate their available
options; consumers have a similar process called limited problem solving.
c) New-task buying -- first-time or unique purchase situations that require considerable effort
on the decision maker's part; this process closely resembles extended-problem solving in
the consumer market.

PTS: 1 DIF: 3 REF: 184-185 OBJ: 6-7


NAT: AACSB Reflective Thinking | CB&E Model Customer | R&D Managing decision-making
processes TYP: AP

18. Explain the difference between value analysis and vendor analysis.

ANS:
Value analysis is the evaluation of product attributes, and vector analysis is the evaluation of the
customer-supplier relationship. Value analysis is the systematic study of the components of a purchase
to determine the most cost-effective approach. Vendor analysis is an assessment of supplier
performance in areas such as price, product quality, back orders, timely delivery, and attention to
special requests.

PTS: 1 DIF: 2 REF: 185-186 OBJ: 6-7


NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

241
© 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Business-to-Business (B2B) Marketing

19. Identify and describe the five roles that buying center participants contribute to the organizational
purchasing process.

ANS:
Buying center participants play different roles in the purchasing decision process.
a) Users are the people who will actually use the purchased product or service.
b) Gatekeepers are those who control the information to be reviewed by other buying center
members. They may choose to allow information in or keep it out.
c) Influencers are the buying center members who affect the group decision by supplying
information for the evaluation of alternatives or by setting specifications.
d) Deciders are those who actually make the buying decision, even though they may not have
the formal authority to perform the buying transaction.
e) Buyers have the formal authority to choose the supplier and implement the buying
procedures to obtain the product or service.

PTS: 1 DIF: 2 REF: 186-187 OBJ: 6-8


NAT: AACSB Analytic | CB&E Model Customer | R&D Knowledge of general business functions
TYP: KN

20. Describe the unique challenges of selling to government markets.

ANS:
Government purchases usually involve dozens of interested parties who specify, legislate,
evaluate, or use the products or services being purchased, but need not be government
employees themselves.
Additionally, government purchases are influenced by political and social goals, such as
affirmative action and minority subcontracting programs.
Contract guidelines make selling to the government more bureaucratic. Bids are required to
obtain contracts. Contracts are generally either fixed-price (firm price is established before
the contract is awarded) or cost-reimbursement (vendor is reimbursed for allowable costs
incurred while fulfilling contract terms).

PTS: 1 DIF: 3 REF: 187-188 OBJ: 6-9


NAT: AACSB Analytic | CB&E Model Customer | R&D Managing strategy & innovation
TYP: KN

242
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from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Another random document with
no related content on Scribd:
“Yes, but it takes such a pile of money to buy enough birthrights.
Nobody can vote without owning real estate, and property gives
people expensive notions. That’s why I am in favor of universal
suffrage. I should be willing even to give the ladies the vote—or
anything else the darlings desire.”
RoBards was hot enough to sneer:
“In a ladies’ election you would bribe them all with a smile.”
“Thanks!” said Chalender, destroying the insult by accepting it as a
compliment. “But let me have a look at your Bronx, won’t you? As an
engineer it fascinates me. It is the real reason for my visit to-day.”
This thin duplicity made even Patty blush. RoBards bowed:
“Our sacred Bandusian font is always open for inspection, but it’s
really not for sale.”
“Not even to save New York from depopulation?”
“That would be a questionable service to the world,” RoBards
grumbled. “The town is overgrown already past the island’s power to
support. Two hundred thousand is more than enough. Let the people
get out of the pest-hole into the country and till the farms.”
“You are merciless to us poor cits. No, my dear RoBards, what
New York wants she will take. She is the city of destiny. Some day
the whole island will be one swarm up to the Harlem, and it will have
a gigantic thirst. Doesn’t the Bible say something about the
blessedness of him who gives a cup of water to the least of these?
Think what blessings will fall on the head of him who brings gallons
of water to every man Jack in the greatest of American cities!
Quench New York’s thirst and you will check the plagues and the
fevers that hold her back from supremacy.”
“Her supremacy will do the world no good. It will only make her a
little more vicious; give crime and every evil a more comfortable
home.”
“Is there no wickedness up here in Arcadia?”
“None compared to the foulness of the Five Points.”
“Isn’t that because there is almost nobody up here to be wicked—
or to be wicked with?”
“Whatever the reason, we are not complaining of the dearth.”
“That’s fine! It’s a delight to find somebody content with something.
But show me your Bronx, and I may do you a service. You won’t
object if I find fault with the stream, because then I shall have
ammunition to fight with against your real enemies, who want to dam
the brook at Williams’s Bridge and pipe it into town. You and I should
be the best of friends; for I want the people to look to the Croton for
their help. It will enable New York to wash its face oftener, and drink
something soberer than brandy. And it will enrich me through the
sale of the miserable lands that have grown nothing for me but taxes
and mortgage interest.”
But RoBards was not content, and he was a whit churlish as he
led Chalender along the high ridges, and let him remark the silver
highway the river laid among the winding hills of Northcastle, down
into the balsam-snowed levels of the White Plains.
Little as RoBards approved his tenacious guest, he approved
himself less. He felt a fool for letting Chalender pink him so with his
clumsy sarcasms, but he could not find wit for retort or take refuge in
a lofty tolerance.
He suffered a boorish confusion when Chalender said at last, as
they returned to the house and the cocktails that Patty had waiting
for them on the porch:
“I agree with you, David. The Bronx is not our river. I can honestly
oppose its choice. But it’s a pretty country you have here. I love the
sea and the Sound and the big Hudson, but there is a peculiar grace
about these inland hills of Westchester. I shall hope to see much of
them in the coming years.”
“Yes?”
“Yes. I shall bid for a contract to build a section of the Croton
waterway. That may mean that I shall spend several years in your
neighborhood. My office will be the heights along the Hudson. That
is only a few miles away and a pleasant gallop. You won’t mind if I
drop in upon you now and then when I am lonely?”
Though Chalender ignored Patty’s existence in making this plea,
RoBards felt that it was meant for her. But what could he say except
a stupidly formal:
“It will be an honor to receive one of the captains of so great an
enterprise.”
“Thanks! And I can count upon always finding you here?”
Now RoBards amazed himself when he answered:
“I fear not. We came up only to escape the cholera. When that is
over, we shall return to New York. I have my law practice to
remember.”
He could feel, like hot irons in his cheek, the sharp eyes of Patty.
He knew what she was thinking. He had said that he wanted to dwell
here forever. And now he was pretending that he was only a brief
visitor.
Instead of gasping with the shock of her husband’s perversion,
she snickered a little. It was as if he heard a sleighbell tinkle in the
distance. But someone else was in that sleigh with his sweetheart.
He could not understand Patty. He seemed to please her most by
his most unworthy actions. He wondered if she had scented the
jealousy that had prompted his words, and had taken it once more
as an unwitting tribute to her.
He thought he detected a triumphant smile on Chalender’s face,
and he longed to erase it with the flat of his hand. Instead, he found
himself standing up to bow in answer to Chalender’s bow, like a
jointed zany.
The inscrutable Patty, when Chalender had driven out of sight of
the little lace handkerchief she waved at him, turned to her husband
with sudden anger in her face. He braced himself for a rebuke, but
again she confused him by saying:
“The impudence of Harry Chalender! Daring to crowd in on our
honeymoon! It was splendid how you made him understand that we
RoBardses don’t welcome him here.”
“Did I? Don’t we?” stammered RoBards, so pitifully rejoiced to find
her loyal to him and to their sacred union that he gathered her in his
arms, and almost sobbed, “Oh, my dear! my sweet! my darling!”
Though she was as soft and flexile as a shaft of weeping willow,
somehow she was like a stout spar upholding him in the deep waters
of fear, and he felt most ludicrously happy when she talked nursery
talk to him and cooed:
“Poor, little David baby wants its Patty to love it, doesn’t it?”
He could not answer in her language, but he felt a divinity in it, and
was miserably drenched in ecstasy. And she had used his first
name!
CHAPTER IV

BY and by the summer sifted from the trees and ebbed from the sky.
The honeymoon passed like a summer, in days and nights of hot
beauty, in thunder-salvos of battle, in passions of impatient rain.
For a while the autumn was a greater splendor, a transit from a
green earth starred with countless blossoms of scarlet, purple,
azure, to a vast realm of gold—red gold, yellow gold, green gold, but
always and everywhere gold. All Westchester was a treasure-temple
of glory. Then the grandeur dulled, the gold was gilt, was only
patches of gilt, was russet, was shoddy. The trees were bare. Sharp
outlines of unsuspected landscape came forth like hags whose robes
have dropped from their gaunt bones. The wind grew despondent.
Savor went with color; hope was memory; warmth, chill.
Something mournful in the air reminded RoBards of a poem that
Mr. Bryant, the editor of the Post, had written a few years before:

“The melancholy days have come, the saddest of the year,


Of wailing winds, and naked woods, and meadows brown
and sere;
Heaped in the hollows of the grove, the autumn leaves lie
dead;
They rustle to the eddying gust, and to the rabbit’s tread.”

When he quoted this to Patty, her practical little soul was moved,
as always, to the personal:
“Your Mr. Bryant writes better than he fights, Mist’ RoBards. Only
last year, almost in front of our house, I saw him attack Mr. Stone, of
the Commercial Advertiser, with a horsewhip. Mr. Stone carried off
the whip. It was disgusting, but it brightened Broadway. Oh, dear,
does nothing exciting ever happen up here? Wouldn’t it be wonderful
to stroll down to the Battery to watch the sunset and cross the bridge
to Castle Garden, and hear the band play, and talk to all our friends?
And go to a dance, perhaps, or a theatre? The Kembles are there
setting the town on fire! And am I never to dance again? I was just
learning to waltz when the cholera came. I sha’n’t be able to dance
at all unless we go at once.”
It shocked RoBards to think that marriage had not changed the
restless girl to a staid matron. That she should want to waltz was
peculiarly harrowing, for this new and hideously ungraceful way of
jigging and twisting was denounced by all respectable people as a
wanton frenzy, heinously immoral, indecently amorous, and lacking
in all the dignity that marked the good old dances.
But he was in a mood to grant her anything she wished. She had a
right to her wishes now, for she was granting him his greatest wish; a
son and heir was mystically enfolded in her sweet flower-flesh, as
hidden now as the promise of the tulip tree in a bud that hardly broke
the line of a bough in the early spring, but later slowly unsheathed
and published the great leaf and the bright flower.
So he bade the servants pack her things and his, and they set out
again for New York.
Now the tide flowed back with them as it had ebbed with them.
The exiles were flocking once more to the city, and new settlers were
bringing their hopes to market. A tide of lawyers and merchants was
setting strong from New England, and packs of farmers who had
harvested only failure from the stingy lands, counted on somehow
winnowing gold on the city streets, where sharpers and humbugs of
every kind would take from them even that which they had not.
The drive to New York was amazingly more than a mere return
along a traveled path. Though they had gone out in a panic, they had
been enveloped in a paradise of leaves and flowers and lush weeds,
as well as in a bridal glamor. Now they went back under boughs as
starkly bare as the fences of rail or stone; only the weeds bore
flowers, and those were crude of fabric as of hue. And the hearts of
the twain were already autumnal. Their April, June, and August of
love were gone and November was their mantle. Patty’s orange
blossoms were shed, and they had been artificial, too.
Below White Plains the road was a-throng with cattle that
frightened Patty and the horses. When they were clear of these
moving shoals, they came into the Post Road where the stages went
like elephants in a panic. But Patty found them beautiful. She
rejoiced in the increasing crowds, and as the houses congregated
about her, and the crowded streets accepted her, she clapped her
hands and cried:
“How good it is to be home!”
This sent a graveyard chill through RoBards’ heart, for it meant
that home to her was not in the solitude of his heart, but in the center
of the mob.
Home was to her more definitely the house in Park Place, her
father’s house to which he must take her till he found another
lodging. Her father and mother greeted her as a prodigal and him as
a mere body servant—which was what he felt himself to be.
The chief talk was of the cholera and its havoc. Three thousand
and five hundred dead made up its toll in the city, but the menace
was gone, and those who lived were doubly glad. The crowds in the
streets showed no gaps; there were no ruins visible. New houses
were going up, narrow streets being widened and the names
changed.
It was only when the Sabbath called them to church, or some
brilliant performance took them to see Fanny Kemble and her father
at the Park Theatre, and they inquired for one friend or another, that
they learned dreadfully how many good friends had been hurried feet
first to Washington Square, whence they would never return.
Dinners were few, since nearly every family wore mourning for
someone; but gradually the gayety returned in full sweep. The dead
were forgotten, and the plans for preventing a return of the plague
were dismissed as a tiresome matter of old-fashioned unimportance.
The pumps and cisterns were no longer blamed for the slaughter of
the innocents.
And now Patty must go into eclipse gradually. She grew more and
more peevish. When she complained that everybody worth while
was moving uptown, RoBards bought a house in St. John’s Park,
just south of Canal Street, and only a little distance from the Hudson
River. The house was new and modern, with a new cistern in the
rear. Only a few steps away was a pump supplied with water from
the new city water works in the salubrious region of Thirteenth Street
and Broadway. There was a key that admitted the family to the
umbrageous park, behind whose high fence there was seclusion.
There was something aristocratic and European, too, about the
long iron rail fence that framed the entire square, the same in front of
every house, and giving them all a formal uniform, a black court
dress.
But even aristocracy palled. Patty found but a brief pleasure in the
privilege of walking there at twilight, and she dared not venture out
before dusk. It was chill then and she shivered as she sat on a
bench and breathed in the gloom that drooped from the naked
branches like a shroud. She did not want to be a mother yet, and she
faced the ordeal with dread, knowing how many mothers die, how
few babies lived, for all the pain of their long preparation.
The winter was cold and she complained of the dark of nights,
though her husband multiplied the spermaceti candles and the astral
lamps till her room was as dazzling as an altar. He filled the bins in
the hall closet with the best Liverpool coal and kept the grates
roaring. But she wailed of mornings when he had to break the ice in
the water pitcher for her and she huddled all day by the red-hot iron
stove. She made her servants keep it charged with blazing wood,
until RoBards was sure that the house would be set on fire.
When spring came again and released grass, birds, trees, souls,
flowers, the very air from the gyves of winter, she was so much more
a prisoner that she herself pleaded to be taken back to Tuliptree
Farm. If she could not meet people she did not want to see them
pass her windows, or hear them laugh as they went by in shadows of
evening time. On the farm she could wander about the yard
unterrified and, with increasing heaviness, devote herself to the
flowerbeds. She fled at the sight of any passerby and was altogether
as hidden and craven as only a properly bred American wife
undergoing the shameful glory of motherhood could be.
She was smitten at times with panics of fear. She knew that she
would perish and she called her husband to save her from dying so
young; yet when he got her in his arms to comfort her, she called him
her murderer. She accused him of dragging her into the hasty
marriage, and reminded him that if he had not inflicted his ring and
his name and his burden upon her she could have gone with her
father and mother this summer to Ballston Spa, where there was life
and music, where the waltz flourished in rivalry with the vivacious
polka just imported.
But even in her most insane onsets she did not taunt him now with
the name of Harry Chalender. That was a comfort.
One day Chalender drove up to the house, but she would not see
him. Which gave RoBards singular pleasure. Chalender lingered,
hoping no doubt that she would relent. He sat out an hour, drinking
too much brandy, and cursing New York because it laughed at his
insane talk of going forty miles into the country to fetch a river into
the city. Chalender wanted to pick up the far-off Croton and carry it
on a bridge across the Spuyten Duyvil!
When he had left, Patty, who had overheard his every sentence,
said: “He must be going mad.” She was absent in thought a while,
then murmured as if from far off:
“I wonder if he is drinking himself to death on purpose, and why?”
CHAPTER V

ALL summer the water-battle went on in town, but with flagging


interest. Colonel DeWitt Clinton threw his powerful influence into the
plan for an open canal from a dam in the Croton down to a reservoir
to be built on Murray’s Hill. Even Clinton’s fervor left the people cold.
When he pointed out that they were paying hundreds of thousands
of dollars every year for bad water hauled in hogsheads, they
retorted that the Croton insanity would cost millions. When he
pointed out that the Croton would pour twenty million gallons of pure
water every day into the city, and declared that New York water was
not fit to drink, the answer came gaily that it did not need to be, since
the plainest boarding house kept brandy bottles on the table.
One old gentleman raised a town laugh by boasting that he had
taken a whole tumblerful of Manhattan water every morning for years
and was still alive. And yet the dream of bringing a foreign river in
would not down, though the believers in the artesian wells were
ridiculed for “the idea of supplying a populous city with water from its
own bowels.”
The cholera had brought a number round to the Westchester
project, but the cholera passed in God’s good time. It would come
back when God willed. Plagues were part of the human weather like
floods and drouths, and not to be forefended.
In any case Patty was busied with her own concerns. Her baby
was born on Tuliptree Farm before her husband could get back from
White Plains with the doctor, though he had lashed his horses till the
carry-all flung to and fro like a broken rudder.
The son and heir was a girl, and in the hope that she would be an
heiress they named her after Patty’s Aunt Imogene, whose husband
had recently died and left her a fleet of vessels in the Chinese trade.
For a time instinct and pride in the flattery of people who cried that
the child was its mother’s own beautiful image gave the tiny replica a
fascination to Patty. She played with it as if it were a doll, and she a
little girl only pretending to motherhood.
But she tired of the bauble and turned the baby over to the
servants. Her Aunt Imogene cried out against her:
“Nowadays women don’t take care of their babies like they used to
when I was a girl. In the good old-fashioned days a mother was a
mother. She was proud to nurse her children and she knew all about
their ills and ailments. I had eleven children and raised all of them
but six, and I would no more have dreamed of hiring a nurse for
them than I would have I don’t know what. But these modern
mothers!”
Criticism had no power over Patty, however. She admitted all that
was charged against her and simply added it to the long list of
grievances she had against her fate. RoBards often felt that this was
cheating of the lowest kind. It left a man no means of either
comforting distress or rebuking misbehavior.
As soon as the baby could be weaned from her mother to a nurse,
Patty made a pretext of ill health and joined the hegira to Saratoga
Springs, which was winning the fashion hunters away from Ballston
Spa. She traveled with some friends from the South who brought
North a convoy of slaves and camped along the road, preferring that
gypsy gait to the luxury of a voyage up the river on the palatial
steamboats, in which America led the world.
During that summer RoBards was both mother and father to the
child, and Immy’s fingers grew into and around his heart like the ivy
that embraced the walls of the house. He was bitter against his wife,
whose fingers had let his heart slip with ease and indifference.
Yet, by the time Patty returned from taking the waters in the North,
he was so lonely for her that their reunion was another and a first
marriage. He found a fresh delight in her company and learned the
new dances to keep her in his sight and out of the arms of other
men.
By one of Nature’s mysterious dispensations, this girl with the soul
of a flirt and a gadabout had the bodily fertility of a great mother. To
her frank and hysterical disgust heaven sent her a second proof of
its bounty, which she received with an ingratitude that dazed her
husband—and frightened him, lest its influence be visited on the next
hostage to fortune. If the child should inherit the moods of its mother
it would come into the world like another Gloster, with hair and teeth
and a genius for wrath.
But the child arrived so placidly that the doctor could hardly wring
a first cry from him by slapping him and dipping him into a tub of cold
water. And he wept almost never. What he had he wanted. When it
was taken from him he wanted it no more. He chuckled and glowed
in his cradle like a little brook. He gave up his mother’s breast for a
bottle with such lack of peevishness that it was almost an act of
precocious gallantry. They named him Keith after an uncle.
Keithkins, as too often happens in a world of injustice, made it so
convenient to neglect him that his chivalry must be its own and only
reward. Patty left him in the country—“for his own good”—and went
earlier to New York than in the other autumns. There she plunged
into a whirlpool of recklessness.
She seemed to welcome every other beau but her husband. She
would not even flirt with him. She said he was too dangerous!
She laughed at his jealous protests against the worthless
company she affected. But when he courted her she fought him. Her
extravagance in the shops alarmed him, but when he quarreled with
her on that score, and demanded that she cease to smirch his credit
with debts upon the merchants’ books, she would run away from
home and stay until he sought her out in Park Place, where she was
wheedling her father into ruinous indulgence.
The old man’s business was prospering and his gifts to Patty were
hardly so much generosities as gestures of magnificence.
Harry Chalender was constantly seen with old Jessamine. They
talked the Croton project, but RoBards felt this to be only a tinsel
pretext of Chalender’s to keep close to Patty.
By the gods, he even infected her with his talk of water-power!
Everybody was talking it now. It had become politics.
For sixty years or so the town had dilly-dallied over a water supply
—ever since the Irishman Christopher Colles had persuaded the
British governor Tryon to his system of wells and reservoirs. Every
year a bill was put forward, and the Wars of the Roses were
mimicked in the Wars of the Rivers.
Bronx fought Croton incessantly but neither gained a victory. Wily
old Aaron Burr stole a march on both with his Manhattan Company
and sneaking a bank in under the charter of a waterworks sank a
well and purveyed liquid putridity at a high price.
It was a great relief to RoBards when the Crotonians gained the
upper hand in 1833, for it left his Bronx to purl along in leafy
solitudes undammed. But it took two years to bring the project to a
vote and then the majority was only seventeen thousand Ayes to six
thousand Nos.
Just after the skyrockets of the Fourth of July died down, the
engineers went out into Westchester to plant their stakes, outlining
the new lake that the dam would form, and the pathway of the
aqueduct from the Croton to the Harlem.
This row of posts billowing up hill and down alongside the Hudson
stretched like a vast serpent across the homes and farms and the
sacred graveyards of villages and towns and old families. It was the
signal for a new war.
The owners of the land fell into two classes: those who would not
let the water pass through their demesnes at any price, and those
who sought to rob the city by unwarranted demands.
The farmers seemed to RoBards to comport themselves with
dignity and love of their own soil, though Chalender denounced them
for outrageous selfishness in preferring the integrity of their estates
to the health of a vast metropolis.
But RoBards saw through Chalender’s lofty patriotism. Chalender
could not unload his own land upon the city unless the whole
scheme were established, and Chalender’s price was scandalously
high.
The stakes were not yet nearly aligned when an almost unequaled
frost turned the buxom hills to granite overnight. It seemed that the
havoc which this high emprise was to forestall had been purposely
held in leash by the ironic fiends until the procrastinating city had
drawn this parallel of stakes, this cartoon of an aqueduct. For almost
immediately the cataclysm broke.
The idleness enforced upon the engineers by the evil weather
drove most of them back to town, Harry Chalender among them. And
now he dragged Patty into that vortex of dissipation for which the city
was notorious. Dancing, drinking, theatre-going, riotous sleigh-rides,
immodest costumes, and dinners of wild revel gave the moralists
reason to prophesy that God would send upon the wicked capital fire
from the skies—as indeed He did in terrible measure.
Harry Chalender began to follow Patty about and to encounter her
with a regularity that ceased to resemble coincidence. There was
gossip. One of the slimy scandal-mongering newspapers well-named
The Hawk and Buzzard printed a blind paragraph in which RoBards
recognized his own case.
But what could RoBards do? To horsewhip the editor or shoot the
lover would not only feed the newspapers but blacken the lives of the
babies, who were suffering enough now in the lack of a mother’s
devotion without being cursed for life with a mother of no reputation.
In a world governed by newspapers the old rules of conduct were
altered.
The winter of 1835 fell bitterer than any ever known before. The
cold was an excruciation. The sleighs rang along the street as if the
snow were white steel. The pumps froze; the cisterns froze; the
pipes of the water companies froze underground, and the fire-
hydrants froze at the curbs.
The main industry of the town seemed to be the building and
coaxing of fires, though coal and wood were almost impossible to
obtain, and the price rose to such heights that one must either go
bankrupt or freeze.
Everybody began to wonder what would happen if a house should
blaze up. The whole city would go. Who would come to the rescue of
a burning house in such weather? And with what water would the
flames be fought? Everybody listened for the new firebell that had
been hung in the City Hall cupola and had sent its brazen yelps
across the sky so often, but was ominously silent of late as if saving
its horrific throat for some Doomsday clangor.
Hitherto, membership in certain of the fire companies had been
cherished as a proof of social triumph. There were plebeian gangs
made up of mechanics and laborers, and the Bowery b’hoys were a
byword of uncouth deviltry.
But RoBards had been accepted into one of the most select fire
clubs with a silver plated engine. He kept his boots, trumpet, and
helmet in a basket under his bed, so that there was never any delay
in his response to the bell. He was so often the first to arrive that
they gave him the key, and in the longest run he always carried more
than his share of the weight in the footrace. But now he wished that
he had never joined the company.
Christmas drew near and Patty wore herself out in the shops and
spent her time at home in the manufacture of gifts with her own
hands. They were very apt hands at anything pretty and useless.
She was going to have a Christmas tree, too, a recent affectation
borrowed from the Hessian soldiers who had remained in the country
after the Revolution.
The evening of the sixteenth of December was unbearably chill.
The fire itself seemed to be freezing red. The thermometer outside
the house dropped down to ten below zero. The servants refused to
go to the corner for water and Patty was frightened into staying
home from a ball she was invited to.
That was the ultimate proof of terror. It was one of the times when
the outer world was so cruel that just to sit within doors by a warm
fire was a festival of luxury; just to have a fire to sit by was wealth
enough.
Patty was so nearly congealed that she climbed into her
husband’s lap and gathered his arms about her like the ends of a
shawl. It had been a long while since she had paid his bosom such a
visit and he was grateful for the cold.
And then the great bell spoke in the City Hall tower—spoke one
huge resounding awful word, “Fire!” before it broke into a baying as
of infernal hounds.
When RoBards started to evict Patty from his lap she gasped:
“You’re not going out on such a night?” RoBards groaned: “I’ve got
to!” He set her aside and ran upstairs for the basket of armor, and
Patty followed him wailing with pity.
“Don’t go, darling!” she pleaded. “You can tell them to-morrow that
you were sick. You’ll die if you go out in this hideous cold, and then
what will become of me? Of us? Of our babies?”
Her solicitude heartened him. He was important to her after all! His
death would grieve her. That added a beauty to duty. But it took
away none of its authority.
While he struggled into his boots, she ran to a window looking
south and drew back the curtains. Through the thick lace of frost on
the panes a crimson radiance pierced, imbuing the air with a rosy
mist as if the town were seen through an upheld glass of Madeira.
“It looks like the end of the world!” Patty screamed. “What will
become of our beautiful city now? It will be nothing but ashes to-
morrow. Don’t go! You’ll be buried under a wall, or frozen to death in
the streets. If you’ll promise not to go down into that furnace, I’ll go
with you to-morrow to Tuliptree Farm, and never leave it again!”
His heart ached for her in her agitation, and it was not easy to tear
off the clinging hands for whose touch he had so often prayed. But
he broke free and dashed, helmeted and shod, into the icy world
between him and the advancing hell. The fire’s ancient enemy,
water, was not at hand for the battle, and the whole city lay helpless.
At the firehouse door RoBards met Harry Chalender. He was
dressed for the ball that Patty had planned to attend, and he wore
white gloves and dancing pumps.
CHAPTER VI

IT was like Harry Chalender to wear dancing pumps to a fire on a


midwinter night.
“Harry will have ’em on Judgment Day,” said one of the other
members of the fire company, and they laughed at him through
chattering teeth.
This did not amuse RoBards. He wanted to hate Chalender; but
justice was his foible, and he had to confess to his own prejudice
that, while it was Chalenderish to appear in pumps at a fire, it was
equally like him to be absent from no heroic occasion no matter what
his garb.
Harry played the fool, perhaps, but he was always at King Lear’s
side. And though he never forgot his bauble, it tinkled and grinned
wherever there was drama.
And there promised to be drama enough this night.
The gathering volunteers flung back the folding doors and
disclosed the engine, a monster asleep and gleaming as with
phosphorescent scales in the light of the brass and silver trimmings
polished often and piously. A light was struck with a tinder-box and
the signal lantern and torches brightened the room.
The Fire King Engine Company had been proud of its tamed
leviathan, though there had been some criticism because on one
side of the engine an allegorical figure of Hope had been painted
with almost no clothes on her. But New York was advancing
artistically with giant strides, and a painting of a semi-nude Adam
and Eve had been exhibited that summer without provoking anything
more violent than protest. Also, the Greek casts were displayed
nowadays without interference, though of course ladies did not visit
them at the same time with gentlemen.
But Heaven rebuked the ruthless allegory of Hope before this night
was over; and with the ruination of Hope went the beautiful scene on
the opposite flank of the engine, a painting of the recent burning of
the Roman Catholic Church in Nassau Street. The Fire Kings had
played a noble part there, and had almost saved the church.
Now, as they dashed into the street they were thrown into a tangle
to avoid the rush of the Naiad Hose Company swooping past with a
gaudy carriage, whose front panel presented the burning of Troy and
the death of Achilles, while the back panel showed an Indian maid
parting from her lover. The hosemen might have been Indians
themselves from the wild yell they gave.
There was no time for the usual gay dispute over the right of way,
and the cobblestones and brickbats with which the road would have
been normally challenged were frozen in the ice. Besides, the Fire
Kings were sparse in numbers.
Such Fire Kings as braved the elements would long tell of the
catastrophe. Getting to the neighborhood of the blaze was adventure
enough of itself. For the road was grooved with the tracks of sleigh
runners and chopped up with a confusion of hoof-marks impressed
in knife-edged ridges. The men inside the square of the draw-rope
alternately slipped, sliddered, fell, rose, stumbled, sprawled, and ran
on with wrenched joints and torn pantaloons. Their progress made a
sharp music as if they were trampling through a river of crackling
glass.
But they ran on because there was tonic in the community of
misery.
RoBards was touched by the sight of Chalender’s lean face above
the satin stock and the frilled white shirt. The others were in red
flannel, and cold enough. Chalender’s great beaver hat was a further
trial to keep on, and finally the wind swirled it out of sight and
seeking. RoBards bared his own head and offered Chalender his
brass-bound helmet of glazed leather, but Chalender declined it with
a graceful gesture and a chill smile drawn painfully along the line of
his white mouth. The only color in his cheeks was imposed by the
ruddy flare of the sky.
The fire, wherever it was, seemed to retreat as the company
advanced. It grew in vastitude, too. The scarlet heavens were
tormented with yellow writhings, as if Niagara were falling upwards in
a mist of smoke and a spume of red spray.
Chalender’s patent leather pumps were soon cut through and his
nimble feet left bloody traces on the snow. This offended RoBards
somehow. Footprints on the snow were the sacred glory of the
patriot troops at Valley Forge. What right had a fop like Chalender to
such martyrdom?
When the puffing Fire Kings covered the long half-mile to City Hall
Park, the fire was just as far away as ever.
From here on the way was clogged with engines and hose carts
plunging south and fighting through a tide of flight to the north.
RoBards was reminded of the retreat from the cholera, until a
wrangle for priority with a rival company engaged his thoughts, his
fists, and his voice.
Wagons of every sort toppling over with goods of every sort locked
wheels while their drivers fought duels with whips and curses.
Merchants who had gone early to bed were scampering half-clad to
open their shops and rescue what they might. Everywhere they
haggled frantically for the hire or the purchase of carts. Two hundred
dollars was offered in vain for an hour’s use of a dray that would not
have brought so much outright that afternoon, with its team thrown
in.
The commercial heart of the city was spurting flames, and the
shop in Merchant Street where the volcano first erupted had spread
its lava in circles. Everything was burning but the frozen river, and
ice-imprisoned shipping was ablaze at the docks. Whole warehouses
were emptied and their stores carried to apparent safety as far as
Wall Street, where they were heaped up in the shadow of the cupola
of the new Merchants’ Exchange.
Certain shopkeepers of pious mind shifted their wealth into the
Dutch Reformed Church for safety. In the deeps of its gloom some
invisible musician was playing on the big pipe-organ. The merchants
lugging in their burdens felt that he interceded for them harmoniously
against the din of the fiends whose fires danced on the windows, as
if they reveled in the sacrilege of attacking the temples of both
Mammon and Jehovah. First the fiends made a joke of the costly
pretence that the Merchants’ Exchange was fireproof. Then they
leaped across a graveyard to seize the church and sent Maypole
ribbons twirling around and around its high spire. In half an hour the
steeple buckled and plunged through its own roof, and the roof
followed it, covering organ, pulpit, pews, and merchandise.
Pearl Street, whose luxurious shops had made lower Broadway a
second-rate bazaar, was sinking into rubble. Copper roofs were
melting and red icicles dripped ingots on the street.
The Fire Kings pushed on, with ardor dwindling as the
magnificence of their task was revealed to them. They were scant of
breath and footsore and cold, and their helmets rattled with flying
embers. Embers were streaming across the river to Brooklyn and the
people there sat on their roofs and wondered if their town must
follow New York to destruction. On all the roofs in New York, too,
shadowy bevies fought off the embers and flung them into the street.
The fire companies were driven back in all directions. They felt as
tiny and futile as apes fumbling and chittering against a forest blaze.
By and by the bells ceased to ring. The tollers were too cold to pull
the ropes—and what was the use of going on alarming those who
were already in a panic? Yet the silence had an awe of doom in it.
Merchants and their women cursed and wept, and tears smeared
smoky faces. It was maddening to be so useless; firemen sobbed
blasphemies as soldiers did when wet powder rendered them
ridiculous and mocked their heroism. Their nostrils smarted with the
acrid stench from bubbling paint and varnish, from mountains of
chewing tobacco, cigars, and snuff, from thousands of shoes and
boots and hats and household furnishings. Miles of silk and wool and
cotton, woven and prettily designed, were all rags now that
smoldered, or flew on the wind like singed birds, awkward ravens
frightened out of some old rookery.

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