Question 1

The primary purpose of ISO 9000 standards is to

Accepted Answer

A) worldwide standards for environmental quality and green marketing practices. 
B) create standards for the registration and certification of a supplier's quality management and assurance system. 
C) establish common definition for reciprocal trade agreements among members of the WTO. 
D) develop the communication interfaces between computer networks and extranets for the sharing of data. 
E) establish an international code of ethics.

Question 2

Which of the following statements about Trek Bicycles is FALSE?

Accepted Answer

A) Trek's Eco Design initiative is an example of sustainable procurement. 
B) Trek has an extensive product line of bicycles. 
C) Trek has always been on the cutting edge,using the latest innovations in its designs. 
D) Trek was an early sponsor of Lance Armstrong,who won the Tour de France seven straight years. 
E) Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles,such as motorcycles and all terrain vehicles (ATVs).

Question 3

A buy class situation affects buying center tendencies in different ways.If there is one person involved,the problem definition is well-defined,and the buying objective is to find the low-priced supplier,the buy class situation is MOST LIKELY a

Accepted Answer

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

Question 4

Value analysis is a systematic appraisal of the design,quality,and performance of a product in order to

Accepted Answer

A) maintain quality assurance. 
B) offer the lowest possible price. 
C) increase the price of the offering. 
D) reduce purchasing costs. 
E) ensure customer satisfaction.

Question 5

A make-buy decision refers to

Accepted Answer

A) the decision-making process that determines whether a product is sustainable. 
B) the decision-making process to determine which manufacturer meets a firm's evaluative criteria for the production of a new component part or equipment. 
C) an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the firm itself. 
D) an evaluation of different suppliers to determine which one can fill an order without having to make any changes to the original product while maintaining the same level of quality. 
E) the decision-making process to determine which supplier can fill an order the fastest by a specified time period.

Question 6

The department secretary orders pens,copy paper,and printer ink cartridges for the department from the Corporate Express catalog nearly every month.This is an example of a

Accepted Answer

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

Question 7

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

Accepted Answer

A) production facilities and capacity 
B) consumer demand 
C) flexibility 
D) adherence to government policies 
E) senior management directives

Question 8

The group of people within an organization who participate in the buying process and share common goals,risks,and knowledge important to a purchase decision is referred to as the

Accepted Answer

A) gatekeeper. 
B) buying center. 
C) purchasing department. 
D) procurement committee. 
E) acquisition office.

Question 9

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

Accepted Answer

A) use the same five stages in the purchase 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 10

Sales engineers from Siemens,a German manufacturer,have won a contract for a new space-based telescope.They must now evaluate whether components and assemblies will be purchased from outside suppliers or be built by Siemens itself.This aspect of the problem recognition stage of the organizational buying decision process is known as a

Accepted Answer

A) cost analysis. 
B) make-buy decision. 
C) value analysis. 
D) modified rebuy. 
E) derived-demand decision.

Question 11

Swiss specialty chemical company Ciba is the primary producer of the chemical triclosan,the antibacterial agent in many household products like liquid soap.Consumers may have heard about research suggesting environmental and health risks associated with the cumulative effects of antibacterial agents.Changing consumer purchases provide an example of __________ demand for Ciba's triclosan product.

Accepted Answer

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

Question 12

The City of Denver contracts with Solid Waste Management to provide trash collection services for its citizens.The city is operating as a(n)

Accepted Answer

A) government unit. 
B) industrial market. 
C) business market. 
D) consumer market. 
E) service provider.

Question 13

Although the U.S.Justice Department frowns on __________ because it restricts the normal operation of a free market,it is still legal for two companies to buy one another's products as long as there is no coercion involved.

Accepted Answer

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

Question 14

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

Question 15

Recently,Walmart asked that Procter & Gamble (P&G)link its computerized cash register scanning equipment and direct electronic ordering and replenishing systems to all of its stores.This way,Walmart can tell P&G what merchandise it needs to replenish,along with how much,when,and to which store to deliver it on a daily basis.From this description,Walmart is engaged in __________.

Accepted Answer

A) ISO 9000 certification. 
B) ISO 14000 certification. 
C) a supply partnership. 
D) sustainable development. 
E) cause marketing.

Question 16

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

Question 17

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.

Question 18

A 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.

Question 19

Important product or service characteristics in organizational buying include which of the following?

Accepted Answer

A) A heavy emphasis is placed on loyalty programs and rebates. 
B) Direct selling to organizational buyers is rare. 
C) A fixed,nonnegotiable price is the norm. 
D) Many of the goods purchased are raw and semifinished. 
E) Personal relationships are preferred to online buying over the Internet.

Question 20

Within the buying center,deciders are people who

Accepted Answer

A) have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. 
B) control the flow of information in the buying center. 
C) have the formal or informal power to select or approve the supplier that receives the contract. 
D) affect the buying decision usually by helping define the specifications for what is bought. 
E) actually use and evaluate the product or service.

Exam 6: Understanding Organizations As Customers