Question 1

A business firm buys products and services for one main reason, which is to

Accepted Answer

A)  increase profitability. 
B)  beat its competitors. 
C)  satisfy the needs of its suppliers. 
D)  employ people. 
E)  maintain updated inventory. 
A)  increase profitability. 
B)  beat its competitors. 
C)  satisfy the needs of its suppliers. 
D)  employ people. 
E)  maintain updated inventory.

Question 2

At which stage of the organizational buying decision process would design and production engineers draft specifications?

Accepted Answer

A)  problem recognition 
B)  information search 
C)  alternative evaluation 
D)  purchase decision 
E)  value analysis 
A)  problem recognition 
B)  information search 
C)  alternative evaluation 
D)  purchase decision 
E)  value analysis

Question 3

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

Accepted Answer

A)  an industrial service provider. 
B)  a health care provider. 
C)  a reseller. 
D)  an industrial firm. 
E)  a government agency. 
A)  an industrial service provider. 
B)  a health care provider. 
C)  a reseller. 
D)  an industrial firm. 
E)  a government agency.

Question 4

Walmart asked that Procter & Gamble (P&G) electronically link to its computerized cash register scanning system, allowing for direct electronic ordering and replenishing for all of its stores. This way, Walmart can tell P&G what merchandise it needs, along with how much, when, and to which store to deliver on a daily basis. Walmart is engaged in

Accepted Answer

A)  ISO 9000 certification. 
B)  ISO 14000 certification. 
C)  a supply partnership. 
D)  sustainable development. 
E)  cause marketing. 
A)  ISO 9000 certification. 
B)  ISO 14000 certification. 
C)  a supply partnership. 
D)  sustainable development. 
E)  cause marketing.

Question 5

Apple Inc. custom-orders the microprocessors for its iMac and MacBook from Intel, which works with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This is an example of a

Accepted Answer

A)  symbiotic partnership. 
B)  make-buy decision. 
C)  reciprocal agreement. 
D)  supply partnership. 
E)  tying arrangement. 
A)  symbiotic partnership. 
B)  make-buy decision. 
C)  reciprocal agreement. 
D)  supply partnership. 
E)  tying arrangement.

Question 6

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the

Accepted Answer

A)  Standard Industrial Code System (SICS). 
B)  United Nations Central Product Classification System (UNCPCS). 
C)  National Codes of Industry System (NCIS). 
D)  North American Industry Classification System (NAICS). 
E)  Federal System of International Organizations (FSIO). 
A)  Standard Industrial Code System (SICS). 
B)  United Nations Central Product Classification System (UNCPCS). 
C)  National Codes of Industry System (NCIS). 
D)  North American Industry Classification System (NAICS). 
E)  Federal System of International Organizations (FSIO).

Question 7

List seven common organizational buying criteria.

Accepted Answer

Key organizational buying criteria: (1)

Question 8

The practice of ________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.

Accepted Answer

A)  tying agreements 
B)  just-in-time procurement 
C)  quid pro quo 
D)  supply partnerships 
E)  reciprocity 
A)  tying agreements 
B)  just-in-time procurement 
C)  quid pro quo 
D)  supply partnerships 
E)  reciprocity

Question 9

The NAICS provides common industry definitions for

Accepted Answer

A)  Canada, the United Kingdom, and the United States. 
B)  North America, Asia, and Europe. 
C)  North America, Central America, and South America. 
D)  Canada, England, and Australia. 
E)  Canada, Mexico, and the United States. 
A)  Canada, the United Kingdom, and the United States. 
B)  North America, Asia, and Europe. 
C)  North America, Central America, and South America. 
D)  Canada, England, and Australia. 
E)  Canada, Mexico, and the United States.

Question 10

When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a

Accepted Answer

A)  forward auction. 
B)  reverse auction. 
C)  Webfront auction. 
D)  traditional auction. 
E)  bidder's war. 
A)  forward auction. 
B)  reverse auction. 
C)  Webfront auction. 
D)  traditional auction. 
E)  bidder's war.

Question 11

A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a

Accepted Answer

A)  modified rebuy. 
B)  straight rebuy. 
C)  new buy. 
D)  standard reorder. 
E)  class buy. 
A)  modified rebuy. 
B)  straight rebuy. 
C)  new buy. 
D)  standard reorder. 
E)  class buy.

Question 12

Reverse auctions

Accepted Answer

A)  are seller-initiated. 
B)  benefit the sellers significantly more than the buyers. 
C)  have an increasing number of buyers as the auction progresses. 
D)  put downward pressure on prices. 
E)  have many buyers. 
A)  are seller-initiated. 
B)  benefit the sellers significantly more than the buyers. 
C)  have an increasing number of buyers as the auction progresses. 
D)  put downward pressure on prices. 
E)  have many buyers.

Question 13

Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

Accepted Answer

A)  green marketing. 
B)  regulatory exemptions. 
C)  stakeholder procurement. 
D)  ecological procurement. 
E)  sustainable procurement. 
A)  green marketing. 
B)  regulatory exemptions. 
C)  stakeholder procurement. 
D)  ecological procurement. 
E)  sustainable procurement.

Question 14

An industrial firm

Accepted Answer

A)  is one that is independently owned and takes title to the merchandise it sells. 
B)  buys physical goods and resells them again without any reprocessing. 
C)  deals exclusively with federal, state, and local governments. 
D)  in some way reprocesses a product or service it buys before selling it again to the next buyer. 
E)  only produces a product, not a service. 
A)  is one that is independently owned and takes title to the merchandise it sells. 
B)  buys physical goods and resells them again without any reprocessing. 
C)  deals exclusively with federal, state, and local governments. 
D)  in some way reprocesses a product or service it buys before selling it again to the next buyer. 
E)  only produces a product, not a service.

Question 15

In a buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract.

Accepted Answer

A)  buyers 
B)  gatekeepers 
C)  adopters 
D)  influencers 
E)  users 
A)  buyers 
B)  gatekeepers 
C)  adopters 
D)  influencers 
E)  users

Question 16

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

Accepted Answer

A)  gatekeeper. 
B)  buying center. 
C)  purchasing department. 
D)  procurement committee. 
E)  acquisition office. 
A)  gatekeeper. 
B)  buying center. 
C)  purchasing department. 
D)  procurement committee. 
E)  acquisition office.

Question 17

The department's administrative assistant orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a

Accepted Answer

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

Question 18

In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?

Accepted Answer

A)  traditional auction 
B)  vertical auction 
C)  reverse auction 
D)  horizontal auction 
E)  reciprocal auction 
A)  traditional auction 
B)  vertical auction 
C)  reverse auction 
D)  horizontal auction 
E)  reciprocal auction

Question 19

There are seven commonly used organizational buying criteria. One of them is

Accepted Answer

A)  warranty and claim policies. 
B)  loyalty. 
C)  longevity 
D)  adaptability. 
E)  responsive communication. 
A)  warranty and claim policies. 
B)  loyalty. 
C)  longevity 
D)  adaptability. 
E)  responsive communication.

Question 20

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

Exam 6: Understanding Organizations As Customers

A business firm buys products and services for one main reason, which is to

At which stage of the organizational buying decision process would design and production engineers draft specifications?

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

Apple Inc. custom-orders the microprocessors for its iMac and MacBook from Intel, which works with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This is an example of a

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the

List seven common organizational buying criteria.

The practice of ________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.

The NAICS provides common industry definitions for

When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a

A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a

Reverse auctions

Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

An industrial firm

In a buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract.

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

The department's administrative assistant orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a

In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?

There are seven commonly used organizational buying criteria. One of them is

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

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

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