Marketing Ch-8

PF16- 08

Multiple Choice

Identify the choice that best completes the statement or answers the question.

_E___ 1. When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire?

a.|Resale|

b.|Wholesale|

c.|Customer|

d.|Consumer|

e.|Business|

_E___ 2. Business markets are typically divided into four categories. These categories are

a.|retailers, wholesalers, services, and nonprofit firms.|

b.|producer, manufacturer, reseller, and government.|

c.|producer, reseller, government, and institutional.|

d.|manufacturer, wholesaler, retailer, and services.|

e.|reseller, retailer, government, and institutional.|

_A__ 3. Retailers like Target and Kmart are considered to be members of which business market?

a.|Reseller|

b.|Customer|

c.|Producer|

d.|Institutional|

e.|Services|

_C___ 4. About what percentage of the annual U.S. gross domestic product is government spending?

a.|2 percent|

b.|10 percent|

c.|20 percent|

d.|30 percent|

e.|50 percent|

_E___ 5. A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him

a.|that he's absolutely right, the government doesn't deal with small businesses.|

b.|although the government will deal with small businesses, he will never make a profit off a government contract.|

c.|that any government, federal, state, or local would laugh at the size of his business.|

d.|the government rarely considers new suppliers when making purchasing decisions.|

e.|the government buys products from all sizes of business, but there is some red tape.|

__D__ 6. The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use?

a.|The government will request bids from all companies on its...