Lennox Just Moved from a Position Where He Dealt with the Consumer

question 171

Multiple Choice

Lennox just moved from a position where he dealt with the consumer market to working as a salesperson in the B2B market. As he considers his new responsibilities, it's likely that he will

• A) find little difference between buyers in the consumer market and those in the business-to-business market.
• B) discover that decision making in the B2B market requires salespeople to be little more than order takers.
• C) learn that industrial buyers generally require more personal service than buyers in the consumer market.
• D) find that B2B buyers tend to purchase more on impulse than consumer buyers.

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Definitions:

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including items like rent, salaries, and insurance.

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, which contributes towards covering fixed costs and generating profit.

Cost Volume Profit Graph

A graphical representation that shows how changes in cost, volume, and profit affect a company's financial situation.

Break-Even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.