The demand for consumer goods often affects the demand for business products. This characteristic of business markets is called _____ demand.
What is derived demand?
100
When two or more items are used in combination to produce a final product, they are said to have _____ demand.
What is joint?
100
Buyers in the business market tend to _____ than buyers in the consumer market.
What is geographically concentrated?
100
Includes capital goods such as large/expensive machines, mainframe computers, blast furnances, generators, airplanes, and buildings.
What is major equipment (aka installtions)?
100
Store mannequins, notebook computers, fax machine, and grocery carts are typically classified as _____ because they are not expensive, have short useful lives, and are frequently purchased from local distributors.
What is accessory equipment?
200
When the demand for packaged beer fell by 8 percent in one year, the demand for aluminum beer cans and glass beer bottles fell also because the demand for beer containers is an example of a(n) _____ demand.
What is derived demand?
200
As a result of the _____, a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product.
What is multiplier effect (aka accelerator principle)?
200
The distribution structure in business marketing typically
What is direct?
200
Unprocessed extractive or agricultural products (such as mineral ore, timeber, wheat, corn, etc.) that are used in the finished product.
What is raw material?
300
When demand for a product is _____, an increase or decrease in the price of the product will not significantly affect demand for the product.
What is inelastic?
300
In the six months following the September 11 attacks, consumer demand for large American flags saw a 200 percent increase, but the Eagle Manufacturing Company had a 500 percent increase in orders for the special machine that mass produces the larger flags. This dramatic increase is due to the
What is accelerator principle?
300
If a business needs a particular good or service and decides to look among its own customers for a provider of that good or service, the business is
What is practicing reciprocity?
300
Within the business market, drawer handles that are purchased by cabinet manufacturers are examples of
What is component parts?
300
A company that installs and maintains signs along interstate highways has a truck equipped with a 158-foot crane that is capable of lifting up to 15 tons. The company's accountant depreciated the value of the vehicle over several years. What type of business product is the truck with crane?
What is major equipment?
400
Lanover Manufacturing supplies windshield wiper blades to General Motors and Ford. A sudden jump in the price of rubber and its substitutes has forced Lanover and other wiper blades manufacturers to double the price of the wiper blades. This increase in price has not affected sales volume for wiper blades. The price did not change because demand for windshield wiper blades is
What is inelastic?
400
White Wave is a small company that manufactures several flavors of soy milk coffee creamers for people who are lactose-intolerant. White Wave typically places large orders for the soy it uses to manufacture its creamers. This order size is an example of _____ and would give White Wave an advantage over other buyers of soy.
What is purchase volume?
400
Allows business to reduce capital outflow, acquire a seller's latest products, receive better services, and gain tax advantages.
What is leasing?
400
For a police department, firearms, computers, printers, fax machines, and patrol vehicles are all examples of _____ because they are shown as expenses on the yearly accounting statements.
What is accessory equipment?
400
A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a dry dog food. These processed meat by-products are examples of
What is processed materials?
500
Grote manufactures a slicing machine for any boneless food. The machine will cut up to 1,200 slices per minute and is portable in that it can be rolled out of the work area when it is not in use. The wheels are especially made to meet federal safety requirements. A decline in the availability of the specialized wheels will slow down the production of the slicing machines and in turn reduce the sales of the blades that fit in the machine. A condition of _____ demand exists.
What is joint?
500
_____ is the bargaining between buyers and sellers on product specifications, delivery dates, payment terms, and other pricing matters and is commonplace in business marketing.
What is negotiation?
500
_____ is the primary promotional method for the sale of all business products.
What is personal selling?
500
Products used directly in manufacturing other products, but,unlike raw materials, these have had some processing.
What is processed materials?
500
One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. The fresh tomatoes it buys from growers are examples of: