Question 1

If General Motors (GM) purchases Borg-Warner transmissions, and Borg-Warner buys trucks and cars from GM, they would be demonstrating which type of buyer-seller interaction?

Accepted Answer

A) exclusive dealing 
B) supply partnerships 
C) tying arrangements 
D) noncompetitive bidding 
E) reciprocity

Question 2

Once an organization passes through the problem recognition stage of the organizational buying decision process, it reaches the __________ stage.

Accepted Answer

A) information search 
B) value analysis 
C) alternative evaluation 
D) purchase decision 
E) behavioral learning

Question 3

What are the three types of organizational buying situations or buy classes? Give an example of each.

Accepted Answer

The answer of What are the three types of organizational...

Question 4

Milsco Manufacturing emphasizes

Accepted Answer

A) signing lifetime contracts with suppliers to demonstrate its loyalty to them. 
B) supplier partnerships when designing products for its customers. 
C) reciprocity arrangements with its customers so that each can maximize profit. 
D) co-branding as a form of supply partnerships with customers. 
E) extending health care benefits to its suppliers' employees as a result of the Affordable Care Act.

Question 5

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, and real estate businesses, __________, communication, and public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

Accepted Answer

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

Question 6

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

Accepted Answer

A) consumer demand. 
B) promotional incentives. 
C) longevity. 
D) senior management directives. 
E) warranties and claim policies.

Question 7

E-marketplace can take two different formats, which are

Accepted Answer

A) bricks-and-mortar exchanges and clicks-and-mortar exchanges. 
B) privately owned trading communities and open-to-the-public trading communities. 
C) networked exchanges or public trading communities. 
D) independent trading communities or private exchanges. 
E) public exchanges and networked exchanges.

Question 8

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Accepted Answer

A) user 
B) gatekeeper 
C) influencer 
D) buyer 
E) decider

Question 9

All of the following are organizational buyers except

Accepted Answer

A) industrial firms. 
B) government units. 
C) ultimate consumers. 
D) resellers. 
E) wholesalers.

Question 10

The North American Industry Classification System (NAICS) provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Accepted Answer

A) European Union (EU). 
B) United Nations (UN). 
C) North American Free Trade Agreement (NAFT
A) . 
D) North Atlantic Treaty Organization (NATO). 
E) World Trade Organization (WTO).

Question 11

A __________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

Accepted Answer

A) supplier development agreement 
B) reciprocal arrangement 
C) shareholder relationship 
D) supply partnership 
E) strategic alliance

Question 12

General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which stage in the organizational buying decision process would GE make this evaluation?

Accepted Answer

A) purchase decision stage 
B) information search stage 
C) post-purchase behavior stage 
D) alternative evaluation stage 
E) problem recognition stage

Question 13

What is the North American Industry Classification System (NAICS)?

Accepted Answer

The answer of What is the North American Industry Classification...

Question 14

Organizational buying behavior is similar to consumer behavior in some ways and different in others. Common to both is that they

Accepted Answer

A) use the same five stages in the buying decision process. 
B) use formal vendor rating when choosing among alternative brands. 
C) are affected by derived demand. 
D) have virtually unlimited options for suppliers. 
E) rely on gatekeepers to control product information.

Question 15

A straight rebuy is __________ while a modified rebuy is __________.

Accepted Answer

A) an exchange; a resale 
B) a routine reorder; an exchange 
C) a first-time order; a routine reorder 
D) a changed order; a first-time order 
E) a routine reorder; a changed order

Question 16

People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as

Accepted Answer

A) deciders. 
B) obstructionists. 
C) gatekeepers. 
D) power brokers. 
E) influencers.

Question 17

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 the continued economic downturn. 
D) meet the needs of the groups it serves. 
E) maintain profits through reducing costs and increasing donations.

Question 18

The practice of __________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.

Accepted Answer

A) tying agreements 
B) just-in-time procurement 
C) quid pro quo 
D) supply partnerships 
E) reciprocity

Question 19

Independent e-marketplaces act as a neutral third party, provide an Internet technology trading platform, and provide __________ market that enable exchanges between buyers and sellers.

Accepted Answer

A) a centralized 
B) a deconsolidated 
C) a segregated 
D) an integrated 
E) a noncompetitive

Question 20

In terms of organizational buying, Amazon.com, Lands' End, and JCPenney would most likely be classified as

Accepted Answer

A) government units. 
B) resellers. 
C) manufacturers. 
D) wholesalers. 
E) industrial firms.

Exam 6: Understanding Organizations As Customers