Question 1

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

Accepted Answer

A)  consumer demand 
B)  promotional incentives 
C)  current mood of the buyer 
D)  senior management directives 
E)  warranties and claim policies 
A)  consumer demand 
B)  promotional incentives 
C)  current mood of the buyer 
D)  senior management directives 
E)  warranties and claim policies

Question 2

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 3

industrial buying practice in which two organizations agree to purchase each other's products and services is referred to as __________.

Accepted Answer

A)  a tying arrangement 
B)  exclusive dealing 
C)  reciprocity 
D)  a supply partnership 
E)  noncompetitive bidding 
A)  a tying arrangement 
B)  exclusive dealing 
C)  reciprocity 
D)  a supply partnership 
E)  noncompetitive bidding

Question 4

a purchase is a straight or modified rebuy for a manufacturer,the seller would most likely emphasize a competitive price and __________ in meetings with the purchasing agent.

Accepted Answer

A)  nationwide distribution 
B)  a reliable supply 
C)  funds for advertising 
D)  a quality product 
E)  a great brand name 
A)  nationwide distribution 
B)  a reliable supply 
C)  funds for advertising 
D)  a quality product 
E)  a great brand name

Question 5

Organizational buying behavior refers to

Accepted Answer

A)  the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. 
B)  the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers. 
C)  the determination of what to purchase and the quantity to purchase based upon derived demand. 
D)  the determination of what to purchase and the quantity to purchase based upon the derived demand in the industry. 
E)  the process that organizations use to purchase the raw materials and tools used in the manufacturing of a product. 
A)  the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. 
B)  the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers. 
C)  the determination of what to purchase and the quantity to purchase based upon derived demand. 
D)  the determination of what to purchase and the quantity to purchase based upon the derived demand in the industry. 
E)  the process that organizations use to purchase the raw materials and tools used in the manufacturing of a product.

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 firm, 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 firm, our products and services, and our salespeople?" 
E)  "What criteria were used to select the members of the buying center?"

Question 7

classes refer to the three types of organizational buying situations:

Accepted Answer

A)  buy, lease, and rent. 
B)  new buy, make-buy, and modified rebuy. 
C)  manufacturing contracts, consulting contracts, service contracts. 
D)  new buy, straight rebuy, and modified rebuy. 
E)  new buy, remake, and used buy. 
A)  buy, lease, and rent. 
B)  new buy, make-buy, and modified rebuy. 
C)  manufacturing contracts, consulting contracts, service contracts. 
D)  new buy, straight rebuy, and modified rebuy. 
E)  new buy, remake, and used buy.

Question 8

the organizational buying process,important product or service characteristics include multiple buying influences,a predominance of raw and semifinished goods,and

Accepted Answer

A)  delivery time, technical assistance, and postsale service. 
B)  low price, buyer incentives, and extended contracts. 
C)  buyer incentives, technical assistance, and exclusive contracts. 
D)  quantity discounts, delivery time, and exclusive contracts. 
E)  low price, buyer incentives, and post-sale service. 
A)  delivery time, technical assistance, and postsale service. 
B)  low price, buyer incentives, and extended contracts. 
C)  buyer incentives, technical assistance, and exclusive contracts. 
D)  quantity discounts, delivery time, and exclusive contracts. 
E)  low price, buyer incentives, and post-sale service.

Question 9

Derived demand refers to

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

the salesperson for West Plains Band Saw talked to a group from Conner Industries,he overheard one of the men on the production line saying,"This band saw has a 36-inch wheel that could really save us time,and with its adjustable height,it can be operated by someone tall like me and by some of our shorter workers.I bet this would speed up production time by 30 percent.Why don't we order this band saw?" The person the salesperson heard giving input has which buying center role?

Accepted Answer

A)  purchasing agent 
B)  decider 
C)  buyer 
D)  user 
E)  motivator 
A)  purchasing agent 
B)  decider 
C)  buyer 
D)  user 
E)  motivator

Question 11

Organizational buyers refer to

Accepted Answer

A)  manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for resale. 
B)  manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. 
C)  manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for their own use. 
D)  firms that buy physical products and resell them again without any reprocessing. 
E)  firms that in some way reprocess a product or service they buy before selling it again to the next buyer. 
A)  manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for resale. 
B)  manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. 
C)  manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for their own use. 
D)  firms that buy physical products and resell them again without any reprocessing. 
E)  firms that in some way reprocess a product or service they buy before selling it again to the next buyer.

Question 12

Researchers who have studied organizational buying identify three types of buying situations,called

Accepted Answer

A)  purchase criteria. 
B)  buy classes. 
C)  buying alternatives. 
D)  consideration set. 
E)  purchase hierarchy. 
A)  purchase criteria. 
B)  buy classes. 
C)  buying alternatives. 
D)  consideration set. 
E)  purchase hierarchy.

Question 13

Which of the following characterizes organizational buyer-seller relationships?

Accepted Answer

A)  Purchases are often made after brief negotiations. 
B)  Purchases are usually of small dollar values. 
C)  Long-term contracts are often prevalent. 
D)  Reciprocal arrangements never exist. 
E)  Delivery schedules are largely irrelevant. 
A)  Purchases are often made after brief negotiations. 
B)  Purchases are usually of small dollar values. 
C)  Long-term contracts are often prevalent. 
D)  Reciprocal arrangements never exist. 
E)  Delivery schedules are largely irrelevant.

Question 14

systematic appraisal of the design,quality,and performance requirements of a product to reduce purchasing costs is referred to as

Accepted Answer

A)  cost analysis. 
B)  a make-buy decision. 
C)  value analysis. 
D)  procurement analysis. 
E)  a buy class decision. 
A)  cost analysis. 
B)  a make-buy decision. 
C)  value analysis. 
D)  procurement analysis. 
E)  a buy class decision.

Question 15

bidder's list refers to

Accepted Answer

A)  a list of firms believed to be qualified to purchase a given item. 
B)  a list of firms believed to be qualified to supply a given item. 
C)  those firms that have expressed interest in supplying a specific item but have not yet been approved. 
D)  a list of firms that have not yet expressed an interest in supplying a specific item to the firm. 
E)  a list of approved suppliers that have not yet been entered into the firm's purchasing databank. 
A)  a list of firms believed to be qualified to purchase a given item. 
B)  a list of firms believed to be qualified to supply a given item. 
C)  those firms that have expressed interest in supplying a specific item but have not yet been approved. 
D)  a list of firms that have not yet expressed an interest in supplying a specific item to the firm. 
E)  a list of approved suppliers that have not yet been entered into the firm's purchasing databank.

Question 16

Online buying in organizational markets is prominent because Internet technology

Accepted Answer

A)  allows companies to increase their advertising and promotion expenditures. 
B)  can convey timely information quickly. 
C)  substantially increases buyer order processing costs. 
D)  narrows the potential customer base for many products. 
E)  totally eliminates marketing costs. 
A)  allows companies to increase their advertising and promotion expenditures. 
B)  can convey timely information quickly. 
C)  substantially increases buyer order processing costs. 
D)  narrows the potential customer base for many products. 
E)  totally eliminates marketing costs.

Question 17

NAICS Logo
-Figure 6-1 above is the logo for the NAICS,which provides common industry definitions for

Accepted Answer

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

Question 18

What is a bidder's list?

Accepted Answer

During the alternative evaluation stage

Question 19

the breakdown for the NAICS code based on Figure 6-1 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 code 
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 code

Question 20

Figure 6-6b
-Figure 6-6b above,as the number of sellers increases,the price

Accepted Answer

A)  increases. 
B)  stays the same. 
C)  has no relation to the number of sellers. 
D)  decreases. 
E)  fluctuates depending on economic conditions. 
A)  increases. 
B)  stays the same. 
C)  has no relation to the number of sellers. 
D)  decreases. 
E)  fluctuates depending on economic conditions.

Exam 6: Understanding Organizations As Customers

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

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

industrial buying practice in which two organizations agree to purchase each other's products and services is referred to as __________.

a purchase is a straight or modified rebuy for a manufacturer,the seller would most likely emphasize a competitive price and __________ in meetings with the purchasing agent.

Organizational buying behavior refers to

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?

classes refer to the three types of organizational buying situations:

the organizational buying process,important product or service characteristics include multiple buying influences,a predominance of raw and semifinished goods,and

Derived demand refers to

Organizational buyers refer to

Researchers who have studied organizational buying identify three types of buying situations,called

Which of the following characterizes organizational buyer-seller relationships?

systematic appraisal of the design,quality,and performance requirements of a product to reduce purchasing costs is referred to as

bidder's list refers to

Online buying in organizational markets is prominent because Internet technology

NAICS Logo -Figure 6-1 above is the logo for the NAICS,which provides common industry definitions for

What is a bidder's list?

the breakdown for the NAICS code based on Figure 6-1 above,"B" represents the

Figure 6-6b -Figure 6-6b above,as the number of sellers increases,the price

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 Process

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