Question 1

In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved?

Accepted Answer

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

Question 2

eBay Business Supply is an example of

Accepted Answer

A)  a webfront operation. 
B)  a clicks-and-mortar store. 
C)  an e-marketplace. 
D)  an integrated market. 
E)  an iMarket. 
A)  a webfront operation. 
B)  a clicks-and-mortar store. 
C)  an e-marketplace. 
D)  an integrated market. 
E)  an iMarket.

Question 3

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 an economic downturn. 
D)  meet the needs of those affected by disasters or other issues. 
E)  maintain purchase levels to support its suppliers. 
A)  increase profits through reducing costs. 
B)  increase profits through increasing donations. 
C)  diversify its services mix to survive an economic downturn. 
D)  meet the needs of those affected by disasters or other issues. 
E)  maintain purchase levels to support its suppliers.

Question 4

A supply partnership is

Accepted Answer

A)  an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. 
B)  the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer. 
C)  a supplier that requires a buyer purchasing some products from it to also buy others. 
D)  a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer. 
E)  the practice whereby a seller requires the purchaser of one product to also buy another item in the line. 
A)  an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. 
B)  the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer. 
C)  a supplier that requires a buyer purchasing some products from it to also buy others. 
D)  a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer. 
E)  the practice whereby a seller requires the purchaser of one product to also buy another item in the line.

Question 5

A computer company salesperson invites the IT managers of its top 10 customers (in terms of dollar sales) to view a demonstration of the firm's new product line, so the salesperson can obtain their opinions regarding various options and configurations that could be offered. These IT managers are most likely to be the ________ of their organizations' buying centers.

Accepted Answer

A)  gatekeepers 
B)  influencers 
C)  reciprocity arrangers 
D)  buyers 
E)  users 
A)  gatekeepers 
B)  influencers 
C)  reciprocity arrangers 
D)  buyers 
E)  users

Question 6

A reverse auction refers to an 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. 
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.

Question 7

Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the practice

Accepted Answer

A)  gives an unfair advantage to smaller companies. 
B)  gives an unfair advantage to larger corporations. 
C)  reduces the amount of taxes paid by the parties involved. 
D)  restricts the normal operation of the free market. 
E)  encourages free trade. 
A)  gives an unfair advantage to smaller companies. 
B)  gives an unfair advantage to larger corporations. 
C)  reduces the amount of taxes paid by the parties involved. 
D)  restricts the normal operation of the free market. 
E)  encourages free trade.

Question 8

Which of the following characterizes organizational buyer-seller relationships?

Accepted Answer

A)  Purchases are often made after lengthy or complex negotiations. 
B)  Purchases are usually of small dollar values. 
C)  Short-term contracts are often prevalent. 
D)  Reciprocal arrangements are illegal. 
E)  Delivery schedules are less important than production capacity. 
A)  Purchases are often made after lengthy or complex negotiations. 
B)  Purchases are usually of small dollar values. 
C)  Short-term contracts are often prevalent. 
D)  Reciprocal arrangements are illegal. 
E)  Delivery schedules are less important than production capacity.

Question 9

Derived demand is

Accepted Answer

A)  a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. 
B)  the demand for industrial products and services that is driven by the demand for consumer products and services. 
C)  the relationship between total revenue and total cost to determine profitability at various levels of output. 
D)  the point on a demand curve where supply and demand intersect. 
E)  the percentage change in quantity demanded relative to a percentage change in price. 
A)  a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. 
B)  the demand for industrial products and services that is driven by the demand for consumer products and services. 
C)  the relationship between total revenue and total cost to determine profitability at various levels of output. 
D)  the point on a demand curve where supply and demand intersect. 
E)  the percentage change in quantity demanded relative to a percentage change in price.

Question 10

All of the following people are part of the Trek buying center except which?

Accepted Answer

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

Question 11

Another name for an e-marketplace is a

Accepted Answer

A)  WebXChange. 
B)  WebMart. 
C)  W4B marketplace. 
D)  C2C market forum. 
E)  B2B exchange. 
A)  WebXChange. 
B)  WebMart. 
C)  W4B marketplace. 
D)  C2C market forum. 
E)  B2B exchange.

Question 12

Important market characteristics in organizational buying behavior include which of the following?

Accepted Answer

A)  Organizational buying behavior is basically the same as consumer buying behavior since individuals are involved in both processes. 
B)  Demand for industrial products is elastic instead of inelastic. 
C)  Demand for industrial products and services is derived. 
D)  Purchase orders are much more frequent and they are usually small. 
E)  Forecasting is not as important in organizational buying as in consumer buying. 
A)  Organizational buying behavior is basically the same as consumer buying behavior since individuals are involved in both processes. 
B)  Demand for industrial products is elastic instead of inelastic. 
C)  Demand for industrial products and services is derived. 
D)  Purchase orders are much more frequent and they are usually small. 
E)  Forecasting is not as important in organizational buying as in consumer buying.

Question 13

Which of the following statements about marketing mix characteristics in organizational buying behavior is most accurate?

Accepted Answer

A)  Few large transactions are made over the Internet. 
B)  The actual buyer retains all of the influence in the buying decision. 
C)  Advertising is very simplistic in nature. 
D)  Direct selling to organizational buyers is the rule. 
E)  Only finished goods need a developed marketing mix; resellers need worry just about the transaction. 
A)  Few large transactions are made over the Internet. 
B)  The actual buyer retains all of the influence in the buying decision. 
C)  Advertising is very simplistic in nature. 
D)  Direct selling to organizational buyers is the rule. 
E)  Only finished goods need a developed marketing mix; resellers need worry just about the transaction.

Question 14

Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald's with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The firm sources the animal proteins from farms and processes them in a variety of ways, such as breading or freezing, before selling them to McDonald's. Keystone is operating in ________ market.

Accepted Answer

A)  a heavy goods 
B)  a government 
C)  a service 
D)  an industrial 
E)  a reseller 
A)  a heavy goods 
B)  a government 
C)  a service 
D)  an industrial 
E)  a reseller

Question 15

Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a(n)

Accepted Answer

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

Question 16

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. 
A)  purchasing committee. 
B)  sustainable procurement panel. 
C)  buying center. 
D)  supply partnership. 
E)  purchasing task force.

Question 17

When Louisiana State University buys new laptops for its faculty, it is operating as

Accepted Answer

A)  an industrial market. 
B)  a business market. 
C)  a government unit. 
D)  a consumer market. 
E)  a service provider. 
A)  an industrial market. 
B)  a business market. 
C)  a government unit. 
D)  a consumer market. 
E)  a service provider.

Question 18

Online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services are referred to as

Accepted Answer

A)  webfronts. 
B)  iCommerce. 
C)  e-commerce marketspaces. 
D)  e-marketplaces. 
E)  X-changes. 
A)  webfronts. 
B)  iCommerce. 
C)  e-commerce marketspaces. 
D)  e-marketplaces. 
E)  X-changes.

Question 19

Which of the following characterizes organizational buyer-seller relationships?

Accepted Answer

A)  Purchases are typically made with few to no negotiations. 
B)  Purchases are usually of small dollar values. 
C)  Long-term contracts are often prevalent. 
D)  Reciprocal arrangements are prohibited by the federal government. 
E)  Delivery schedules are largely irrelevant. 
A)  Purchases are typically made with few to no negotiations. 
B)  Purchases are usually of small dollar values. 
C)  Long-term contracts are often prevalent. 
D)  Reciprocal arrangements are prohibited by the federal government. 
E)  Delivery schedules are largely irrelevant.

Question 20

The North American Industry Classification System (NAICS)

Accepted Answer

A)  provides common industry definitions for North America, Central America, and South America to measure economic activity in the Western Hemisphere. 
B)  provides common industry definitions between Canada and the United States to measure economic activity and reduce barriers of trade for cross-border firms. 
C)  provides a classification system for products that is consistent worldwide. 
D)  provides a dealer network for products across North America, Central America, and South America. 
E)  provides common industry definitions for Canada, Mexico, and the United States to measure economic activity in these countries. 
A)  provides common industry definitions for North America, Central America, and South America to measure economic activity in the Western Hemisphere. 
B)  provides common industry definitions between Canada and the United States to measure economic activity and reduce barriers of trade for cross-border firms. 
C)  provides a classification system for products that is consistent worldwide. 
D)  provides a dealer network for products across North America, Central America, and South America. 
E)  provides common industry definitions for Canada, Mexico, and the United States to measure economic activity in these countries.

Exam 6: Understanding Organizations As Customers

In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved?

eBay Business Supply is an example of

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

A supply partnership is

A reverse auction refers to an auction

Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the practice

Which of the following characterizes organizational buyer-seller relationships?

Derived demand is

All of the following people are part of the Trek buying center except which?

Another name for an e-marketplace is a

Important market characteristics in organizational buying behavior include which of the following?

Which of the following statements about marketing mix characteristics in organizational buying behavior is most accurate?

Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a(n)

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

When Louisiana State University buys new laptops for its faculty, it is operating as

Online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services are referred to as

Which of the following characterizes organizational buyer-seller relationships?

The North American Industry Classification System (NAICS)

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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