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Due to important differences in motivations and buying procedures, marketing planning for business-to-business markets is considerably different than it is for consumer markets.

The four types of business markets are commercial outlets, producers, institutions, and government agencies.

A university would be a good example of a trade industry.

Producers buy raw materials and component parts for resale.

Value added is the increase in the value of input material when it has been transformed into semifinished or finished goods.  For example, value added is the increase in the value of lumber when it has been transformed from lumber to pulp for paper.

As consumer demand for air travel increases and decreases due to economic conditions, the demand for airplane fuel fluctuates.  This characteristic of business markets is known as demand variability.

The initial breakdown of business products into capital items and expense items is valuable because buying behaviour may vary significantly between them.  Capital items may be bought routinely and with minimal delay, while expense items involve major funding commitments and are therefore subject to considerable review by the purchaser's personnel.

Business firms systematize their purchases by employing professional buyers or purchasing managers.  They need to have professional buyers because determining a firm's needs, locating and evaluating alternative sources of supply, and making purchase decisions are done so frequently that a firm needs one or more full-time people to handle these tasks.

To have success in dealing with an organization's buying centre, it is not necessary for marketers to identify the roles played by the group members upfront.  These roles will gradually become apparent as negotiations progress.

Stage 1 of the business buying process consists of need recognition, information search, delineation of suppliers, and sales demonstration/proposal, while Stage 2 involves review of internal proposals and final decision.

Some members of the buying centre have more influence than others at the final decision stage.

A restaurant is in a reciprocity situation when the owners are considering switching suppliers because of delivery problems.

Reverse reciprocity is when a business turns to its customers in times of shortage in an attempt to obtain raw materials and parts to support continuing operations.

The NAICS codes can be used as a basis for segmenting organizational markets.

Many firms have separate sales managers or sales forces to serve government agencies due to the immense size of governments and the instant credibility an organization enjoys as a result of having one or more of them as customers.

According to the RBC Financial Group, most businesses that have joined Internet-based B2B marketplaces have enjoyed significant revenue gains, and over half of the companies they polled expect that a significant portion of their sales will take place over the Internet.

The Internet has made possible tremendous changes in the way that businesses deal with other businesses.  Unfortunately, at this point in time, these changes have resulted in significant increases in the cost of processing orders. This situation is not expected to continue much longer.

Some Internet exchange systems have been established and run by individual for-profit companies, while other Internet exchange systems have been run by non-profit organizations.

A vertical Web community acts as a comprehensive source of information and dialogue for a specific trade community, like healthcare or communications, while a horizontal Web community serves the needs of several industries for a particular service, such as acting as an auction house to clear out old inventories of stock.

B2B e-commerce goes beyond online buying and selling, and includes the entire spectrum of business automation.

An example of business-to-business marketing would be

Business markets differ from consumer markets in that

Marketing of business products tends to rely heavily on the strategic element of

The purchase decision process in business-to-business markets is generally more complex because

The members of the government organizations segment of the B2B market

In total, the B2B market accounts for ____% of the purchases of manufactured goods in Canada.

The relationship between the demand for silk cloth and consumer demand for silk blouses and neckties is known as

A(n) ___________________ is not an example of a capital item.

A factor that may be more important than price in making business purchase decisions is

Which statement is true with regard to buying centres?

Which buying situation would probably involve the fewest number of people in the buying centre?

Manufacturing firms that convert to automated factory systems must purchase equipment that they have never bought before, such as robots and computers.  This buying situation is called a

The need to make a business purchase decision can be triggered by

A particular purchasing agent might allow some salespeople to see the engineers responsible for developing product specifications, but not allow others the same privilege.  In the buying centre, this agent is performing the role of

A good starting point for analyzing a business market is gathering and looking at

One of the key ways of doing business with the Canadian government is to

Governments often have difficulty finding suppliers because

Which of the following statements is true with regard to Internet-enabled marketplaces?

The Internet enables buyers and sellers in B2B markets to connect efficiently because

B2B electronic exchanges