BU270 PRINCIPLES OF MARKETING
Chapter 5—Business Marketing
NAME:______________________________________________SCORE:______________DATE
SCENARIOS
Etruscan Railing Company
Etruscan Railing Company makes railing that is used in sports arenas, down nursing home corridors, in queue
houses at amusement parks, and many other places that are not as obvious. Its railing is molded into bicycle racks.
You may also see city governments using the railing to make walkways over ravines and creek banks safer for
pedestrian traffic. Hospitals also use the railing in their physical therapy departments, to keep the lines straight in the
hospital cafeteria, and to prevent patients from falling out of hospital beds.
1. Refer to Etruscan Railing Company. Etruscan Railing sells:
a. consumer products
b. business products
c. supplies
d. consumer and business products
e. major equipment
REF:
p. 160
2. Refer to Etruscan Railing Company. When Etruscan sells railing to contractors to use in building loading docks
safer in accordance with federal government regulations, it is selling to:
a. government
b. institutions
c. resellers
d. producers
e. consumers
REF:
3.
p. 166
Refer to Etruscan Railing Company. When Etruscan sells railings to refurbish a private university's football stadium,
it is selling to a(n):
a. intermediary
b. institution
c. reseller
d. producer
e. consumer
REF:
p. 167
4. Refer to Etruscan Railing Company. Etruscan has experienced a strong increase in railing sales as a result of the
growth of college football. This increase in the demand for railings as a result of the demand for new football
stadiums is called _____ demand.
a. joint
b. derived
c. inelastic
d. fluctuating
e. elastic
REF:
p. 169
5. Refer to Etruscan Railing Company. Companies that make bicycle racks for bike safekeeping in public places
receive the railing as 30-foot lengths of pipe. For these companies, Etruscan railing is:
a. supplies
b. accessory equipment
c. an installation
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Chapter 5  Business Marketing
BU270 PRINCIPLES OF MARKETING
d.
e.
processed material
raw material
REF:
p. 173
Laptop Computers
Jason Lee, the warehouse manager for a small manufacturer of valves used in heating and cooling systems, wants all
of the company's sales force to record each sale on a laptop computer and send the information to the office at the
end of each workday. This use of technology will make the processing of orders quicker. Lee has suggested his
idea to the salespeople at a quarterly meeting, and they concur that the plan is excellent. Lee then discussed this
option with the company president Wilson Arno, who agreed to buy laptops for all the salespeople. Arno contacted
the company's purchasing agent Ron Talbot and authorized the purchase.
6. Refer to Laptop Computers. Lee, Arno, Talbot, and the company's sales force were all involved in the decisionmaking process for the laptop computer purchase. These people represent a:
a. purchasing group
b. decision board
c. purchasing department
d. planning group
e. buying center
REF:
p. 175
7. Refer to Laptop Computers. The role Lee played in the laptop computer purchase was:
a. decider
b. gatekeeper
c. influencer
d. initiator
e. user
REF:
p. 175
8. Refer to Laptop Computers. Which roles are the salespeople playing in the decision-making process for the
computer laptops?
a. initiators
b. gatekeepers
c. deciders
d. purchasers
e. users
REF:
p. 175
9. Refer to Laptop Computers. Which role is Arno playing in the decision-making process?
a. gatekeeper
b. purchaser
c. user
d. decider
e. initiator
REF:
p. 175
10. Refer to Laptop Computers. Which role is Ron Talbot playing in the decision-making process?
a. initiator
b. decider
c. purchaser
d. gatekeeper
e. influencer
REF:
p. 175
Lucent Technologies
Business Division –CIS Program
COM-FSM National Campus
BU270 PRINCIPLES OF MARKETING
Because AT&T Corporation wanted to become a big player in the booming market for outsourcing computer
services, it set up Lucent Technologies to manage corporate clients' worldwide computer networks. Lucent
Technologies assists corporations in global network and computer management by drawing on AT&T's world-wide
digital network and its computer hardware and software businesses. It also relies on the expertise of technicians at
Bell Laboratories.
11. Refer to Lucent Technologies. Lucent Technologies sells:
a. consumer products
b. business products
c. supplies
d. consumer and business products
e. installations
REF:
p. 160
12. Refer to Lucent Technologies. Lucent Technologies depends on AT&T, but also has found it necessary to form
cooperative partnerships with other technology, telecommunications, and software firms, such as Lotus
Development. Lucent has found it necessary to form:
a. strategic alliances
b. relationship contracts
c. outsourcing vendor liaisons
d. bargaining positioning grids
e. market groupings
REF:
p. 163
13. Refer to Lucent Technologies. First National Bank of Chicago, one of AT&T's customers, claims the new network
helped the bank win a huge contract from the U.S. Treasury. For classification purposes, First National Bank would
be which type of customer:
a. producer
b. reseller
c. government
d. institution
e. wholesaler
REF:
p. 166
14. Refer to Lucent Technologies. Consumers utilizing the First National Bank of Chicago to purchase U.S. Treasury
Bonds will affect the demand for and use of the AT&T network computer system capabilities. This is called:
a. joint demand
b. inelastic demand
c. derived demand
d. fluctuating demand
e. elastic demand
REF:
p. 169
15. Refer to Lucent Technologies. AT&T requires its customers to purchase all the necessary technology to run the
network. This requires expensive machinery that will be purchased and then depreciated over time. The machinery
is classified as:
a. processed materials
b. accessory equipment
c. installations
d. supplies
e. component parts
REF:
p. 172
Baseball Dirt
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Chapter 5  Business Marketing
BU270 PRINCIPLES OF MARKETING
Dirt is not dirt when it comes to baseball fields. About two-thirds of the pro baseball fields got their dirt from a dirt
farm in New Jersey called Partac Peat. The company markets a secret mix for the infield (resilient), the warning
track (extra crunchy), and the pitcher’s mounds (firm). Mounds come in red, brown, orange and gray colors. Roger
Bossard, the White Sox head groundskeeper, scouted nationwide for dirt before settling on the mix provided by
Partac Peat. (He uses sand under the grassy areas of the playing field.)
16. Refer to Baseball Dirt. Some of the dirt sold by Partac Peat goes to make clay tennis court surfaces. As the number
of people playing tennis increases so does the demand for new clay courts and, therefore, the demand for Partac Peat
clay. This occurs because the demand for Partac Peat is:
a. inelastic
b. intangible
c. heterogeneous
d. derived
e. elastic
REF:
p. 169
17. Refer to Baseball Dirt. Because Partac Peat is a business product, the primary promotional method used for its sale
is:
a. trade promotions
b. slotting allowances
c. personal selling
d. advertising in consumer magazines
e. publicity
REF:
p. 172
18. Refer to Baseball Dirt. An increase in the price of Partac Peat will not affect the demand for the product because
many groundskeepers believe there is no substitute for the product. Thus, demand for Partac Peat is:
a. inelastic
b. intangible
c. heterogeneous
d. synergistic
e. elastic
REF:
p. 170
19. Refer to Baseball Dirt. What type of business product would Partac Peat be since it is used in the making of
baseball fields?
a. equipment
b. accessory equipment
c. capital item
d. processed materials
e. component parts
REF:
p. 173
20. Refer to Baseball Dirt. Roger Bossard, the White Sox head groundskeeper, most likely did NOT assume which of
the following buying center roles since he has the authority to buy whatever needed to make the baseball field the
best playing surface possible?
a. gatekeeper
b. decider
c. evaluator
d. influencer
e. initiator
REF:
p. 175
21. Refer to Baseball Dirt. The first time Roger Bossard purchased Partac Peat, it was most likely an example of which
type of buying situation?
a. modified rebuy
Business Division –CIS Program
COM-FSM National Campus
BU270 PRINCIPLES OF MARKETING
b.
c.
d.
e.
new buy
habitual buying decision
buying heuristics
straight rebuy
REF:
p. 177
Claxton Fruitcakes
One common Christmas tradition in many households is the Claxton fruitcake. The fruitcake bakery in Claxton,
Georgia, makes about 6 million pounds of fruitcake annually and has $12 million in sales. One fruitcake batch
weighs 375 pounds. About 70 percent of that weight is fruits and nuts. A single batch is divided into 34 loaf pans
that hold 11 pounds each. Loaves are cooked for 100 minutes at 375 degrees. The bakery can cook 6,000 pounds at
a time. During the baking season (August-December), the bakery uses a tractor-trailer load of raisins each day. The
suggested retail price of a one-pound Claxton fruitcake is $3.69.
22. Refer to Claxton Fruitcakes. Because demand for raisins to bake into the fruitcakes does not change on the basis of
the price fluctuations of dried fruits, Claxton’s demand for raisins is an example of _____ demand.
a. inelastic
b. derived
c. fluctuating
d. elastic
e. joint
REF:
p. 170
23. Refer to Claxton Fruitcakes. In terms of business-to-business products, the large ovens in which the cakes are baked
are examples of:
a. component parts
b. MRO equipment
c. specialty equipment
d. processed supplies
e. none of the above
REF:
p. 172
24. Refer to Claxton Fruitcakes. In terms of business-to-business products, the raisins used in fruitcakes are examples
of:
a. OEM supplies
b. installations
c. MRO supplies
d. processed materials
e. accessory supplies
REF:
p. 174
25. Refer to Claxton Fruitcakes. In December, many corporations give Claxton fruitcakes to their customers as a way of
thanking them for their business. In terms of the buying center,:
a. the person who decides that gifts would be appropriate would be the initiator
b. the person who has the formal authority to select Claxton fruitcakes as the appropriate gift is the
decider
c. the person who prevents other members of the buying center from seeing promotional material
from other companies selling similarly-priced gift ideas is an example of a gatekeeper
d. the salespeople who remind management how much their customers enjoyed Claxton fruitcake last
year are examples of influencers
e. all of the above are true
REF:
p. 175
26. Refer to Claxton Fruitcakes. Any company that purchased Claxton fruitcakes to give to its customers would treat
this purchase like any other purchase and evaluate the cake and the company in terms of:
a. demand, value, and promotion
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Chapter 5  Business Marketing
BU270 PRINCIPLES OF MARKETING
b.
c.
d.
e.
quality, service, and price
order time and delivery time
customer relationships, costs, and ethical behavior
time requirements, order speed, and customer reactions
REF:
p. 176
27. Refer to Claxton Fruitcakes. For a corporation that has been giving its key customers Claxton fruitcakes since 1950,
placing the order for cakes to be delivered this year would be an example of a _____ situation because some
negotiation about price and quantity must occur each year.
a. new buy
b. contingency buy
c. modified rebuy
d. situational buy
e. straight rebuy
REF:
p. 177
Business Division –CIS Program
COM-FSM National Campus