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. 
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.

Question 2

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 consumers 
A) retailers 
B) wholesalers 
C) agents 
D) manufacturers 
E) ultimate consumers

Question 3

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

Question 4

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

Question 5

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 6

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? 
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?

Question 7

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 hierarchies 
A) purchase criteria 
B) buy classes 
C) buying centers 
D) consideration sets 
E) purchase hierarchies

Question 8

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. 
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 9

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. 
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.

Question 10

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

Question 11

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

Question 12

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 institutions 
A) finance 
B) wholesalers 
C) retailers 
D) government units 
E) educational institutions

Question 13

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 decision 
A) supplier search 
B) alternative evaluation 
C) problem recognition 
D) purchase decision

Question 14

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. 
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.

Question 15

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. 
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.

Question 16

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

Question 17

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

Question 18

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

Question 19

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. 
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.

Question 20

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) consumer 
A) applied 
B) unitized 
C) industrial 
D) derived 
E) consumer

Exam 6: Understanding Organizations As Customers

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

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

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

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

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

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?

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

A reverse auction refers to an online auction

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

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

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?

The acronym NAICS stands for

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

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

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

Which of the following characterizes organizational buyer-seller relationships?

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

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 Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

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