Institutional markets primarily consist of organizations such as:
A) Retail stores
B) Schools and hospitals
C) Online marketplaces
D) Business consultancies
Answer: B

Which of the following is a characteristic of government markets?
A) Usually purchase for personal use
B) Purchases are made for public purposes
C) Make purchases based on individual preferences
D) Are not subject to formal procedures
Answer: B

One key difference between institutional and government markets is that institutional markets often focus on:
A) Maximizing profits
B) Serving the public good with limited budgets
C) Generating tax revenue
D) Exporting goods
Answer: B

The main buying objective for institutional markets is:
A) Low price only
B) Maximum efficiency and service
C) Short-term profit
D) Competitive advantage
Answer: B

Which of the following is NOT a typical institutional market?
A) Prisons
B) Churches
C) Hospitals
D) Automobile dealerships
Answer: D

Government procurement is characterized by:
A) Flexible negotiation and few rules
B) Strict regulations and public accountability
C) Absence of tenders
D) Emphasis on luxury goods
Answer: B

In government markets, the procurement process is often based on:
A) Personal negotiation
B) Formal bidding
C) Direct sales visits
D) Private contracts
Answer: B

Nonprofit institutions generally seek:
A) To maximize sales
B) To provide service efficiently within a budget
C) To out-compete rivals
D) To serve high-income groups
Answer: B

Government markets differ from business markets because they:
A) Have fewer legal constraints
B) Emphasize social objectives and accountability
C) Are driven by consumer trends
D) Ignore budgetary controls
Answer: B

Which is a major challenge in marketing to government organizations?
A) Predictable buying cycles
B) High brand loyalty
C) Complex bidding and regulatory requirements
D) Lack of formal procedure
Answer: C

A hospital buying medical equipment is an example of:
A) Government procurement
B) Institutional buying
C) Retail purchasing
D) Consumer buying
Answer: B

Price sensitivity in institutional and government markets is generally:
A) High
B) Low, due to focus on quality and reliability
C) Irrelevant
D) Determined by consumer advertising
Answer: B

One reason suppliers may avoid government markets is:
A) High profit potential
B) Intense competition and low margins
C) Few rules and flexibility
D) Simple contracts
Answer: B

Which type of contract is common in government procurement?
A) Open-ended contract
B) Fixed-price contract
C) No-contract purchase
D) Verbal agreement
Answer: B

The “lowest bidder” principle is common in:
A) Business-to-business markets
B) Government purchasing
C) Retail sales
D) Institutional donations
Answer: B

Government buying often emphasizes:
A) Relationships over process
B) Transparency and fairness
C) Brand loyalty
D) Impulse buying
Answer: B

Why is public accountability important in government purchasing?
A) It reduces paperwork
B) It ensures taxpayer money is spent wisely
C) It maximizes seller profits
D) It encourages supplier loyalty
Answer: B

Institutions such as universities often buy:
A) Based on celebrity endorsements
B) For operational needs with limited funds
C) To resell to the public
D) For stock investment
Answer: B

In institutional buying, decisions are often made by:
A) One individual
B) Committees or teams
C) The general public
D) Elected officials only
Answer: B

When marketing to government agencies, suppliers must often:
A) Rely on aggressive advertising
B) Meet strict specifications and legal standards
C) Ignore compliance requirements
D) Offer luxury upgrades
Answer: B

A key difference in government procurement versus business buying is:
A) Less public oversight
B) Stronger focus on transparency and non-discrimination
C) Greater use of relationship marketing
D) Simpler paperwork
Answer: B

Government and institutional buyers generally prefer suppliers who can:
A) Provide consistent quality and after-sales service
B) Change prices frequently
C) Limit product warranties
D) Offer customized marketing
Answer: A

An example of an institutional buyer is:
A) A city government
B) A family purchasing groceries
C) A religious charity
D) A private stock investor
Answer: C

In government buying, contracts are often awarded to suppliers who:
A) Deliver the fastest marketing campaign
B) Meet the specifications at the lowest cost
C) Have the most popular brands
D) Offer extra incentives
Answer: B

The role of ethics in government and institutional buying is:
A) Minimal
B) Important to ensure fair competition and accountability
C) Limited to supplier choice
D) Focused on advertising messages
Answer: B