Module 5 Test: Business Buying Behaviour and Strategy
Module 5 • 10 Questions
Question 1 of 10
0 of 10 answered
A tyre manufacturer supplies exclusively to a passenger car assembler. Car sales in the country fall 20 percent this quarter and the tyre maker's orders fall with them, even though its product quality, service and prices are unchanged. Which characteristic of business markets does this best illustrate?
A
Institutional buying, because the assembler buys finished goods in bulk for people in its care
B
Derived demand, because demand for a B2B input is created by demand for the customer's own output
C
Commodity buying, because the assembler treats tyres as interchangeable and switches on price
D
Straight rebuy behaviour, because the assembler simply repeats its existing order at a lower quantity