Question 1

What is the composition of the buying centre?

Accepted Answer

A buying centre is composed of "all thos

Question 2

What will small sellers and larger sellers do differently in targeting within the business centre?

Accepted Answer

Small sellers concentrate on r

Question 3

The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Accepted Answer

A)  consumer market 
B)  e-commerce market 
C)  global market 
D)  domestic market 
E)  business market 
A)  consumer market 
B)  e-commerce market 
C)  global market 
D)  domestic market 
E)  business market

Question 4

E-procurement Web sites are organized around two types of e-hubs. If you were in the advertising business and were seeking to take advantage of e-procurement, what type of e-hub should be constructed by your company?

Accepted Answer

The two types of hubs are vert

Question 5

With respect to e-procurement, Web sites are organized around two types of e-hubs:

Accepted Answer

A)  manufacturer and supplier hubs. 
B)  vertical and functional hubs. 
C)  supplier and user hubs. 
D)  functional hubs and organizational hubs. 
E)  vertical and horizontal hubs. 
A)  manufacturer and supplier hubs. 
B)  vertical and functional hubs. 
C)  supplier and user hubs. 
D)  functional hubs and organizational hubs. 
E)  vertical and horizontal hubs.

Question 6

With respect to buyer-seller relationships, which of the following categories would you believe to be the most appropriate description of a situation where there was a traditional custom supply situation where competition rather than cooperation was the dominant form of governance?

Accepted Answer

A)  customer is king 
B)  contractual transaction 
C)  customer supply 
D)  collaborative 
E)  bare bones 
A)  customer is king 
B)  contractual transaction 
C)  customer supply 
D)  collaborative 
E)  bare bones

Question 7

Since Federal Lighting consistently purchases MROs from a trusted supplier, they use the least number of buyphases (stages) in the industrial buying process. Which buyclass does this represent?

Accepted Answer

A)  modified rebuy 
B)  straight rebuy 
C)  relational rebuy 
D)  new task 
E)  global task 
A)  modified rebuy 
B)  straight rebuy 
C)  relational rebuy 
D)  new task 
E)  global task

Question 8

Most business buyers, preferring to spread their risk, reject what is called systems buying from one seller.

Accepted Answer

A) True 
 B)False

Question 9

In general, buyers review the product and its price rather than any other considerations about the seller as a buying decision is made.

Accepted Answer

A) True 
 B)False

Question 10

Some customers are willing to handle price-oriented buyers by setting a lower price, but establishing restrictive conditions. One of these could be

Accepted Answer

A)  customizing services. 
B)  increasing customer risks. 
C)  providing additional training. 
D)  compromising product quality. 
E)  limiting the quantity that can be purchased. 
A)  customizing services. 
B)  increasing customer risks. 
C)  providing additional training. 
D)  compromising product quality. 
E)  limiting the quantity that can be purchased.

Question 11

With respect to e-procurement, Acosta, Ahold, Best Buy, Carrefour, Safeway, Sears, and several other companies joined forces to form a ________ called ISYNC to use their combined leverage to obtain lower prices from suppliers.

Accepted Answer

A)  manufacturer's co-op 
B)  supplier's co-op 
C)  cabal 
D)  buying alliance 
E)  middleman group 
A)  manufacturer's co-op 
B)  supplier's co-op 
C)  cabal 
D)  buying alliance 
E)  middleman group

Question 12

Your organization is considering selling its products to the institutional market. What type of customers will you be making your appeals to? Give specific examples.

Accepted Answer

The institutional market consi

Question 13

The typical buying centre has a minimum of two to three people even though large companies may have more performing this function.

Accepted Answer

A) True 
 B)False

Question 14

The demand for business goods is ultimately derived from the demand for raw materials.

Accepted Answer

A) True 
 B)False

Question 15

VIA Rail relies primarily on a few major ________ to supply major systems and components.

Accepted Answer

A)  second tier contractors 
B)  systems suppliers 
C)  MROs 
D)  competitors 
E)  Japanese firms 
A)  second tier contractors 
B)  systems suppliers 
C)  MROs 
D)  competitors 
E)  Japanese firms

Question 16

Cannon and Perreault found that buyer-suppler relationships differed according to four factors, then classified buyer-supplier relationships into eight categories. Which category is similar to basic buying and selling but involves more adaptation by the seller and less cooperation and information exchange?

Accepted Answer

A)  bare bones 
B)  mutually adaptive 
C)  contractual transaction 
D)  customer supply 
E)  cooperative systems 
A)  bare bones 
B)  mutually adaptive 
C)  contractual transaction 
D)  customer supply 
E)  cooperative systems

Question 17

A buying alliance attempts to use their combined leverage to obtain lower prices for raw materials.

Accepted Answer

A) True 
 B)False

Question 18

According to Patrick J. Robinson, the eight stages in the business buying-decision process are known as ________.

Accepted Answer

A)  buyphases 
B)  buybacks 
C)  buyouts 
D)  buyables 
E)  buyoffs 
A)  buyphases 
B)  buybacks 
C)  buyouts 
D)  buyables 
E)  buyoffs

Question 19

In new task buying, a purchaser buys a product or service

Accepted Answer

A)  with automatic reordering systems. 
B)  for the first time. 
C)  on a routine basis from approved suppliers. 
D)  based on existing satisfaction. 
E)  with modified specifications. 
A)  with automatic reordering systems. 
B)  for the first time. 
C)  on a routine basis from approved suppliers. 
D)  based on existing satisfaction. 
E)  with modified specifications.

Question 20

The new, more strategically-oriented purchasing departments have a mission. Which of the following most accurately describes that mission?

Accepted Answer

A)  approach every purchasing opportunity as means to create interdependency 
B)  abandon all strategies except for systems selling and buying 
C)  outsource the supply function 
D)  seek the best value from fewer and better suppliers 
E)  make the most profit possible and remain independent of entanglements 
A)  approach every purchasing opportunity as means to create interdependency 
B)  abandon all strategies except for systems selling and buying 
C)  outsource the supply function 
D)  seek the best value from fewer and better suppliers 
E)  make the most profit possible and remain independent of entanglements

Exam 7: Analyzing Business Markets

What is the composition of the buying centre?

What will small sellers and larger sellers do differently in targeting within the business centre?

The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

E-procurement Web sites are organized around two types of e-hubs. If you were in the advertising business and were seeking to take advantage of e-procurement, what type of e-hub should be constructed by your company?

With respect to e-procurement, Web sites are organized around two types of e-hubs:

With respect to buyer-seller relationships, which of the following categories would you believe to be the most appropriate description of a situation where there was a traditional custom supply situation where competition rather than cooperation was the dominant form of governance?

Since Federal Lighting consistently purchases MROs from a trusted supplier, they use the least number of buyphases (stages) in the industrial buying process. Which buyclass does this represent?

Most business buyers, preferring to spread their risk, reject what is called systems buying from one seller.

In general, buyers review the product and its price rather than any other considerations about the seller as a buying decision is made.

Some customers are willing to handle price-oriented buyers by setting a lower price, but establishing restrictive conditions. One of these could be

With respect to e-procurement, Acosta, Ahold, Best Buy, Carrefour, Safeway, Sears, and several other companies joined forces to form a ________ called ISYNC to use their combined leverage to obtain lower prices from suppliers.

Your organization is considering selling its products to the institutional market. What type of customers will you be making your appeals to? Give specific examples.

The typical buying centre has a minimum of two to three people even though large companies may have more performing this function.

The demand for business goods is ultimately derived from the demand for raw materials.

VIA Rail relies primarily on a few major ________ to supply major systems and components.

A buying alliance attempts to use their combined leverage to obtain lower prices for raw materials.

According to Patrick J. Robinson, the eight stages in the business buying-decision process are known as ________.

In new task buying, a purchaser buys a product or service

The new, more strategically-oriented purchasing departments have a mission. Which of the following most accurately describes that mission?

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

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