Question 1

Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.

Accepted Answer

A) True 
 B)False  False

Question 2

The decider is the person in the business buying process who controls the flow of information to others involved.

Accepted Answer

A) True 
 B)False  False

Question 3

How have relationships between customers and suppliers changed in recent years?

Accepted Answer

Customers and suppliers have had adversarial relationships in the past,but because they are dependent on each other,they have begun to act more as partners;many customer companies now practice supplier development,systematically developing networks of supplier- partners to ensure an appropriate and dependable supply of products and materials.

Question 4

You call in a department manager to assist in a purchase of industrial equipment.You are considering a change in product specifications,terms,and possibly suppliers.This is most likely a situation.

Accepted Answer

A)  solution selling
B)  modified rebuy
C)  new task
D)  straight rebuy
E)  value analysis

Question 5

How is the business buying process more formalized than the consumer buying process?

Accepted Answer

The answer of How is the business buying process more...

Question 6

Which of the following statements about e- procurement security issues is true?

Accepted Answer

A)  Providing e- procurement security can involve a substantial financial investment from a company.
B)  Extranet users and Internet users face the same security risks and use the same security tools.
C)  Hackers are not interested in many business- to- business transactions.
D)  Firewalls provide adequate security for all Internet exchanges.
E)  There are no security risks for companies doing business on the Internet.

Question 7

Which of the following can be especially useful for a company that needs to conduct secure and frequent communications and transactions with key suppliers?

Accepted Answer

A)  an extranet
B)  buying centers
C)  a trading exchange
D)  a reverse auction
E)  an intranet

Question 8

E- procurement typically reduces drudgery and paperwork,thereby freeing purchasing personnel to focus on more strategic issues.

Accepted Answer

A) True 
 B)False

Question 9

Although there are many differences between business buying behavior and consumer buying behavior,both respond to the same four stimuli: product,price,promotion,and .

Accepted Answer

A)  personal relationships
B)  precision
C)  publicity
D)  place
E)  packaging

Question 10

Explain the concept of derived demand,giving an example of a product that has derived demand.

Accepted Answer

The answer of Explain the concept of derived demand,giving an...

Question 11

Unfortunately,most governments do not provide would- be suppliers with detailed guides describing how to sell to the government.

Accepted Answer

A) True 
 B)False

Question 12

Of the different types of buying situations,the modified rebuy presents the fewest decisions for a business buyer to make.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the scenario below to answer the following questions.
A- 1 Stampings,Inc.produces 14 metal stampings for the automotive industry.Due to industry design changes,for the next model year,six of those stampings will require a slight change: two will have an extra hole punched through the side,two will require an extra plating process,and two will require an additional weld operation.
In the meantime,the purchasing agent Richard Koehl has been asked to reduce the number of A- 1's steel suppliers in an effort to cut costs.After obtaining updated price quotations and steel samples from his current suppliers,Richard faced a dilemma.Until now,he had selected his suppliers based on quality and price,but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers.Not all of A- 1's suppliers could produce the exact grades of steel needed;some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A- 1 who had worked with the various types of steel in the past.The quality control manager and line inspector,for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked best in which presses.Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces.Each person contributed the necessary information to help Richard in making his decision.
-The demand for A- 1 Stampings' products is ultimately based on the demand for new automobiles in the consumer market.This is an example of demand.

Accepted Answer

A)  increasing
B)  derived
C)  static
D)  inelastic
E)  independent

Question 14

You regularly purchase cleaning supplies for your custodial staff,using the same vendor and ordering relatively consistent amounts of the same products with each purchase.This is an example of a _ situation.

Accepted Answer

A)  straight rebuy
B)  modified rebuy
C)  solution selling
D)  new task
E)  value analysis

Question 15

John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments.This approach to cost reduction likely took place in the stage of the business buying process.

Accepted Answer

A)  supplier search
B)  proposal solicitation
C)  problem recognition
D)  general need description
E)  product specification

Question 16

Explain how the decision process in the business market and consumer market differs.

Accepted Answer

The answer of Explain how the decision process in the...

Question 17

What type of noneconomic criteria influence government buying?

Accepted Answer

The answer of What type of noneconomic criteria influence government...

Question 18

Which of the following statements about buying centers is true?

Accepted Answer

A)  The buying center roles are specified on the organizational chart.
B)  The typical buying center has five employees,one to assume each of the buying center's roles.
C)  An individual's role in the buying center does not change.
D)  The buying center may involve informal participants who are not obvious to sellers.
E)  The buying center is like a standing committee.

Question 19

Describe two advantages of using multiple source contracts.

Accepted Answer

The answer of Describe two advantages of using multiple source...

Question 20

The Bentley department store chain makes extensive use of e- procurement.As a buyer,the store should expect to enjoy all of these benefits of e- procurement EXCEPT _.

Accepted Answer

A)  more time for purchasing agents to focus on strategic issues
B)  greater access to new suppliers
C)  hastened order processing and delivery
D)  reduced payroll
E)  lower purchasing costs

Exam 6: Business Markets and Business Buyer Behavior

Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.

The decider is the person in the business buying process who controls the flow of information to others involved.

How have relationships between customers and suppliers changed in recent years?

You call in a department manager to assist in a purchase of industrial equipment.You are considering a change in product specifications,terms,and possibly suppliers.This is most likely a situation.

How is the business buying process more formalized than the consumer buying process?

Which of the following statements about e- procurement security issues is true?

Which of the following can be especially useful for a company that needs to conduct secure and frequent communications and transactions with key suppliers?

E- procurement typically reduces drudgery and paperwork,thereby freeing purchasing personnel to focus on more strategic issues.

Although there are many differences between business buying behavior and consumer buying behavior,both respond to the same four stimuli: product,price,promotion,and .

Explain the concept of derived demand,giving an example of a product that has derived demand.

Unfortunately,most governments do not provide would- be suppliers with detailed guides describing how to sell to the government.

Of the different types of buying situations,the modified rebuy presents the fewest decisions for a business buyer to make.

You regularly purchase cleaning supplies for your custodial staff,using the same vendor and ordering relatively consistent amounts of the same products with each purchase.This is an example of a _ situation.

John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments.This approach to cost reduction likely took place in the stage of the business buying process.

Explain how the decision process in the business market and consumer market differs.

What type of noneconomic criteria influence government buying?

Which of the following statements about buying centers is true?

Describe two advantages of using multiple source contracts.

The Bentley department store chain makes extensive use of e- procurement.As a buyer,the store should expect to enjoy all of these benefits of e- procurement EXCEPT _.