Question 1

If a purchase is a new buy for a manufacturer, the seller should

Accepted Answer

A)  expect a long time for a buying decision to be reached.
B)  neutralize the typically high levels of conflict.
C)  maintain flexibility, since specifications are likely to be changed several times before the buy is completed.
D)  be prepared to do some favors for the decision makers.
E)  avoid making concessions or compromises.F) B) and C)
G) C) and E)

Question 2

All of the following statements about the purchase involved in organizational buying are true except

Accepted Answer

A)  the length of time required to arrive at a purchase agreement can vary with size of purchase.
B)  the dollar value of a single purchase made by an organization often runs into thousands or millions of dollars.
C)  the size of purchase impacts who participates in the purchase decision.
D)  the size of purchase impacts who makes the final decision.
E)  the size of the purchase involved in organizational buying is typically smaller than that in consumer buying but it is done more frequently.F) A) and C)
G) C) and D)

Question 3

If a purchase is a new buy for a manufacturer, the seller should expect

Accepted Answer

A)  specifications to be changed many times before the buy is completed.
B)  a lot of conflict.
C)  many people to be involved in the purchase decision.
D)  to have to do some favors for the decision makers.
E)  to avoid making concessions or compromises.F) A) and C)
G) D) and E)

Question 4

A reverse auction refers to an online auction

Accepted Answer

A)  where firms may sell their overstock-unused raw materials, packaging, and tools-to the highest bidder.
B)  in which a manufacturer offers to share its facilities, inventory, or services with other smaller firms that are invited to bid in competition with each other.
C)  in which a smaller manufacturer seeks to share the facilities, inventory, or services of a larger firm, and invites those firms to bid in competition with each other.
D)  in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
E)  where firms seek to purchase other firms' overstock-unused raw materials, packaging, and tools-while trying to find the lowest price possible.F) C) and E)
G) A) and E)

Question 5

Researchers who have studied organizational buying identify three types of buying situations, called __________, which include new buy, modified rebuy, and straight rebuy.

Accepted Answer

A)  purchase criteria
B)  buy classes
C)  buying centers
D)  consideration sets
E)  purchase hierarchiesF) None of the above
G) C) and E)

Question 6

The acronym NAICS stands for

Accepted Answer

A)  National Association of Industrial Compliance Standards.
B)  National Association of Industrial Communication Systems.
C)  North American Industrial Communication Standards.
D)  North American Industry Classification System.
E)  North Atlantic Industrial Classification System.F) B) and D)
G) A) and B)

Question 7

Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell?

Accepted Answer

A)  retailers
B)  wholesalers
C)  agents
D)  manufacturers
E)  ultimate consumersF) A) and B)
G) A) and C)

Question 8

The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

Accepted Answer

A)  secondary marketing.
B)  derived demand.
C)  reciprocal supply.
D)  demand elasticity.
E)  sequential demand.F) B) and D)
G) A) and C)

Question 9

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

Accepted Answer

A)  supplier search
B)  alternative evaluation
C)  problem recognition
D)  purchase decisionE) All of the above
F) C) and D)

Question 10

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a

Accepted Answer

A)  purchasing committee.
B)  sustainable procurement panel.
C)  buying center.
D)  supply partnership.
E)  purchasing task force.F) All of the above
G) A) and B)

Question 11

Which of the following characterizes organizational buyer-seller relationships?

Accepted Answer

A)  Purchases are often made after brief negotiations if any.
B)  Supply partnerships may eventually develop.
C)  Short-term contracts are often prevalent.
D)  Reciprocal arrangements provide the most flexibility to buyer and seller.
E)  Delivery schedules are less important than production capacity.F) None of the above
G) A) and E)

Question 12

Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1)  to be supplied by 100 percent renewable energy, (2)  to create zero-waste, and (3)  to increase the sale of renewably produced products. Walmart is focusing on

Accepted Answer

A)  using ecological buying centers.
B)  complying with government regulations.
C)  engaging in cause marketing.
D)  using sustainable procurement.
E)  meeting ISO 9000 standards.F) B) and E)
G) D) and E)

Question 13

A reorder of an existing product or service from a list of acceptable suppliers is referred to as a

Accepted Answer

A)  new buy.
B)  straight rebuy.
C)  modified rebuy.
D)  standard reorder.
E)  make-buy.F) A) and B)
G) C) and D)

Question 14

Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.

Accepted Answer

A)  applied
B)  unitized
C)  industrial
D)  derived
E)  consumerF) B) and E)
G) C) and D)

Question 15

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with __________, insurance, and real estate businesses, transportation, communication and public utility firms, and not-for-profit organizations, these firms represent 75 percent of all industrial firms.

Accepted Answer

A)  finance
B)  wholesalers
C)  retailers
D)  government units
E)  educational institutionsF) All of the above
G) None of the above

Question 16

Starbucks is using its purchasing power to continue its quest to reduce its energy usage. Recently, the company announced plans to replace all of the traditional incandescent and halogen bulbs in its stores worldwide with more efficient light-emitting diode (LED)  bulbs-a move the company claims will enable it to cut energy consumption in its stores by up to 7 percent. Starbucks would be considered a leader in

Accepted Answer

A)  ISO 9000 certification.
B)  sustainable procurement.
C)  cause marketing.
D)  ecological procurement.
E)  sustainable development.F) A) and E)
G) D) and E)

Question 17

Marketers need to understand their firms' buying centers. A series of questions can be used to facilitate this process. Which of the following questions would be the least useful when trying to understand the operations of a buying center?

Accepted Answer

A)  Which individuals are in the buying center for the product or service?
B)  What is the relative influence of each member of the group?
C)  What are the buying criteria of each member?
D)  How does each member of the group perceive our company, our products and services, and our salespeople?
E)  What criteria were used to select the members of the buying center?F) A) and B)
G) A) and C)

Question 18

The objective attributes of the supplier's products and services and the capabilities of the supplier itself are collectively referred to as

Accepted Answer

A)  the supplier consideration set.
B)  derived demand factors.
C)  evaluative criteria.
D)  performance metrics.
E)  organizational buying criteria.F) A) and B)
G) C) and D)

Question 19

Apple Inc. custom-orders the microprocessors for its iMac, iPhone, and iPad. Intel makes chips for the iMac and Samsung produces Apple-designed chips for the iPhone and iPad. Intel and Samsung work with Apple to minimize costs for each of them while maximizing quality, ultimately giving customers good value for their money. This is an example of

Accepted Answer

A)  a symbiotic partnership.
B)  a make-buy decision.
C)  a reciprocal agreement.
D)  a supply partnership.
E)  an exclusive dealing.F) A) and D)
G) C) and D)

Question 20

When the John Deere Co. employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

Accepted Answer

A)  buyer development.
B)  make-buy decisions.
C)  supply partnerships.
D)  supplier development.
E)  directive purchasing.F) A) and B)
G) D) and E)

Exam 6: Understanding Organizations As Customers

The objective attributes of the supplier's products and services and the capabilities of the supplier itself are collectively referred to as

Correct Answer
verified

Correct Answer
verified

Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100 percent renewable energy, (2) to create zero-waste, and (3) to increase the sale of renewably produced products. Walmart is focusing on

Correct Answer
verified

Correct Answer
verified

All of the following statements about the purchase involved in organizational buying are true except

Correct Answer
verified

Marketers need to understand their firms' buying centers. A series of questions can be used to facilitate this process. Which of the following questions would be the least useful when trying to understand the operations of a buying center?

Correct Answer
verified

Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.

Correct Answer
verified

The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

Correct Answer
verified

A reverse auction refers to an online auction

Correct Answer
verified

A reorder of an existing product or service from a list of acceptable suppliers is referred to as a

Correct Answer
verified

Correct Answer
verified

The acronym NAICS stands for

Correct Answer
verified

If a purchase is a new buy for a manufacturer, the seller should expect

Correct Answer
verified

Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell?

Correct Answer
verified

When the John Deere Co. employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

Correct Answer
verified

Which of the following characterizes organizational buyer-seller relationships?

Correct Answer
verified

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a

Correct Answer
verified

If a purchase is a new buy for a manufacturer, the seller should

Correct Answer
verified

Researchers who have studied organizational buying identify three types of buying situations, called __________, which include new buy, modified rebuy, and straight rebuy.

Correct Answer
verified

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

Correct Answer
verified

Exam 6: Understanding Organizations As Customers

The objective attributes of the supplier's products and services and the capabilities of the supplier itself are collectively referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100 percent renewable energy, (2) to create zero-waste, and (3) to increase the sale of renewably produced products. Walmart is focusing on

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following statements about the purchase involved in organizational buying are true except

Correct AnswerverifiedShow Answer

Marketers need to understand their firms' buying centers. A series of questions can be used to facilitate this process. Which of the following questions would be the least useful when trying to understand the operations of a buying center?

Correct AnswerverifiedShow Answer

Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.

Correct AnswerverifiedShow Answer

The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

Correct AnswerverifiedShow Answer

A reverse auction refers to an online auction

Correct AnswerverifiedShow Answer

A reorder of an existing product or service from a list of acceptable suppliers is referred to as a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The acronym NAICS stands for

Correct AnswerverifiedShow Answer

If a purchase is a new buy for a manufacturer, the seller should expect

Correct AnswerverifiedShow Answer

Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell?

Correct AnswerverifiedShow Answer

When the John Deere Co. employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

Correct AnswerverifiedShow Answer

Which of the following characterizes organizational buyer-seller relationships?

Correct AnswerverifiedShow Answer

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a

Correct AnswerverifiedShow Answer

If a purchase is a new buy for a manufacturer, the seller should

Correct AnswerverifiedShow Answer

Researchers who have studied organizational buying identify three types of buying situations, called __________, which include new buy, modified rebuy, and straight rebuy.

Correct AnswerverifiedShow Answer

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified