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) All of the above
G) B) and E)

Question 2

Which of the following statements about Trek Bicycles is FALSE?

Accepted Answer

A)  Trek's Eco Design initiative is an example of sustainable procurement.
B)  Trek has an extensive product line of bicycles.
C)  Trek has always been on the cutting edge, using the latest innovations in its designs.
D)  Trek views the bicycle as an important form of alternative transportation, not just as recreation.
E)  Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all terrain vehicles (ATVs) .F) None of the above
G) A) and D) E

Question 3

At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier?

Accepted Answer

A)  problem recognition
B)  information search
C)  purchase decision
D)  purchase review
E)  alternative evaluationF) B) and D)
G) D) and E)

Question 4

-As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify?

Accepted Answer

A)  forward auction.
B)  reverse auction.
C)  traditional auction.
D)  vertical auction.
E)  bidder's war.F) None of the above
G) A) and E)

Question 5

Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.

Accepted Answer

A)  Webfronts
B)  clicks-and-mortar
C)  e-marketplaces
D)  iMarkets
E)  integrated marketsF) A) and D)
G) C) and D) C

Question 6

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

Accepted Answer

A)  wholesaling
B)  retailing
C)  government units
D)  communication
E)  manufacturingF) B) and C)
G) A) and E)

Question 7

What is the North American Industry Classification System (NAICS)?

Accepted Answer

The North American Industry Classificati...

Question 8

Archer Daniels Midland Co. (ADM)  is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in a(n)  __________ market.

Accepted Answer

A)  consumer
B)  government
C)  service
D)  reseller
E)  industrialF) A) and B)
G) A) and C)

Question 9

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the time required for a decision is short, and the problem definition is well-defined, the buy class situation is most likely a

Accepted Answer

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

Question 10

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Accepted Answer

A)  user
B)  gatekeeper
C)  influencer
D)  buyer
E)  deciderF) A) and B)
G) A) and C)

Question 11

All of the following people are part of the Trek buying center EXCEPT:

Accepted Answer

A)  Trek executives.
B)  production workers.
C)  representatives from research and development.
D)  quality control employees.
E)  a purchasing manager.F) B) and E)
G) B) and D)

Question 12

Describe the three types of organizational markets and give examples of each.

Accepted Answer

There are three types of organizational markets: (1) Industrial markets consist of industrial firms that reprocess a product or service they buy before selling it again to the next buyer. (Examples: mining, construction, insurance companies, and public utility firms). (2) Reseller markets are composed of wholesalers and retailers who buy physical products and resell them again without any reprocessing. (Examples: Sears, Walmart, and Target). (3) Government markets are comprised of federal, state, and local agencies that buy goods and services for the constituents they serve. (Examples: NASA, City of San Francisco, and New York City Police Department).

Question 13

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 profits, these firms represent about 75 percent of all industrial firms.

Accepted Answer

A)  finance
B)  wholesalers
C)  retailers
D)  government units
E)  educational institutionsF) A) and D)
G) C) and E)

Question 14

An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make a

Accepted Answer

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

Question 15

The buying objective for nonprofit firms and government agencies is usually to

Accepted Answer

A)  meet the needs of the groups they serve.
B)  increase profits through reducing costs.
C)  increase profits through increasing revenues.
D)  maintain profits through reducing costs and increasing revenues.
E)  reduce profits through reducing costs and reducing revenues.F) B) and C)
G) C) and E)

Question 16

-In the breakdown for the NAICS code based on Figure 5-1 above, B represents the

Accepted Answer

A)  two-digit industry sector code.
B)  three-digit industry subsector code.
C)  four-digit industry group code.
D)  five-digit industry code.
E)  six-digit U.S. national industry codeF) None of the above
G) B) and E)

Question 17

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)  information search
B)  supplier search
C)  alternative evaluation
D)  problem recognition
E)  purchase decisionF) A) and C)
G) B) and E)

Question 18

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Accepted Answer

A)  The purchase decision is usually quick once the information search has been completed.
B)  Even after the bid is submitted and even accepted, further negotiation is likely.
C)  Even if several vendors make it onto the bidder's list, ultimately only one supplier is chosen.
D)  If a supplier on the bidder's list is not selected, it is rarely told the reason why it was rejected.
E)  Once an agreement has been formally reached, neither the buyer nor the seller is permitted to make changes to the terms of the contract.F) A) and E)
G) A) and D)

Question 19

The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to __________.

Accepted Answer

A)  increase profits through reducing costs
B)  increase profits through increasing donations
C)  diversify its services mix to survive the continued economic downturn
D)  meet the needs of the groups it serves
E)  maintain profits through reducing costs and increasing donationsF) All of the above
G) B) and E)

Question 20

Important product or service characteristics in organizational buying include which of the following?

Accepted Answer

A)  A heavy emphasis is placed on loyalty programs and rebates.
B)  Direct selling to organizational buyers is rare.
C)  A fixed, nonnegotiable price is the norm.
D)  Many of the goods purchased are raw and semifinished.
E)  Personal relationships are preferred to online buying over the Internet.F) All of the above
G) B) and D)

Exam 5: Understanding Organizations As Customers

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

Correct Answer
verified

Which of the following statements about Trek Bicycles is FALSE?

Correct Answer
verified
E

At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier?

Correct Answer
verified

-As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify?

Correct Answer
verified

Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.

Correct Answer
verified
C

Correct Answer
verified

What is the North American Industry Classification System (NAICS)?

Correct Answer
verified
The North American Industry Classificati...
View Answer

Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in a(n) __________ market.

Correct Answer
verified

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the time required for a decision is short, and the problem definition is well-defined, the buy class situation is most likely a

Correct Answer
verified

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Correct Answer
verified

All of the following people are part of the Trek buying center EXCEPT:

Correct Answer
verified

Describe the three types of organizational markets and give examples of each.

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 profits, these firms represent about 75 percent of all industrial firms.

Correct Answer
verified

An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make a

Correct Answer
verified

The buying objective for nonprofit firms and government agencies is usually to

Correct Answer
verified

-In the breakdown for the NAICS code based on Figure 5-1 above, B represents the

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

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Correct Answer
verified

The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to __________.

Correct Answer
verified

Important product or service characteristics in organizational buying include which of the following?

Correct Answer
verified

Exam 5: Understanding Organizations As Customers

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

Correct AnswerverifiedShow Answer

Which of the following statements about Trek Bicycles is FALSE?

Correct AnswerverifiedE

At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier?

Correct AnswerverifiedShow Answer

-As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify?

Correct AnswerverifiedShow Answer

Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

What is the North American Industry Classification System (NAICS)?

Correct AnswerverifiedThe North American Industry Classificati...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the time required for a decision is short, and the problem definition is well-defined, the buy class situation is most likely a

Correct AnswerverifiedShow Answer

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Correct AnswerverifiedShow Answer

All of the following people are part of the Trek buying center EXCEPT:

Correct AnswerverifiedShow Answer

Describe the three types of organizational markets and give examples of each.

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 profits, these firms represent about 75 percent of all industrial firms.

Correct AnswerverifiedShow Answer

An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make a

Correct AnswerverifiedShow Answer

The buying objective for nonprofit firms and government agencies is usually to

Correct AnswerverifiedShow Answer

-In the breakdown for the NAICS code based on Figure 5-1 above, B represents the

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

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Correct AnswerverifiedShow Answer

The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to __________.

Correct AnswerverifiedShow Answer

Important product or service characteristics in organizational buying include which of the following?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
The North American Industry Classificati...
View 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