Question;Multiple;Choice;1. To create and capture value, sellers need to understand business;organizations? needs, resources, policies, and ________.;a. demands;b. protocols;c. strategies;d. buying procedures;e. personnel policies;2. Webster;and Wind define ________ as the decision-making process by which formal;organizations establish the need for purchased products and services and;identify, evaluate, and choose among;alternative brands and suppliers.;a. marketing channels;b. organizational buying;c. demand-oriented buying;d. purchasing;e. inventory control;3. The;consists of all the organizations that acquire goods and services used;in the production of other products or services that are sold, rented, or;supplied to others.;a. business market;b. consumer market;c. e-commerce market;d. global market;e. supplier market;4. Business markets have;several characteristics that contrast sharply with those of consumer markets.;All of the following would be among;those characteristics EXCEPT ________.;a. fewer, larger buyers;b. close supplier-customer;relationship;c. professional purchasing;d. inverted demand;e. multiple sales calls;5. All;of the following would be among the;major industries that make up the business market EXCEPT ________.;a. agriculture, forestry, and;fisheries;b. manufacturing;c. construction;d. banking, finance, and;insurance;e. the Internet;6. Trained;purchasing agents, who must follow their organization?s ________, often;purchase business goods.;a. culture;b. past purchasing history;c. purchasing policies, constraints;and requirements;d. needs;e. financial budgets;7. Ultimately;the amount of steel sold to General;Motors depends on the consumer?s demand for GM cars and trucks. From the standpoint of the steel manufacturer;which of the following demand forms is most;pertinent?;a. Derived demand;b. Inelastic demand;c. Geographic demand;d. Relational demand;e. Static demand;8. The;demand for business goods is ultimately derived from the demand for ________.;a. raw materials;b. consumer goods;c. electronics;d. business solutions;e. e-commerce;9. The;business buyer faces many decisions in making a purchase. The number of;decisions depends on the buying situation. All of the following examples are appropriate to the preceding EXCEPT ________.;a. complexity;of the problem being solved;b. newness of the buying requirement;c. number of people involved;d. applicability of situation;to mission statement;e. time required;10. The;purchasing department buys office supplies on a routine basis. This type of;purchase is classified as a ________.;a. straight rebuy;b. modified rebuy;c. new task;d. secondary purchase;e. preordained purchase;11. There;are a series of guidelines for selling to small businesses. Which of the;following should not be among those;guidelines?;a. Don?t waste their time.;b. Do keep it simple.;c. Do use the Internet.;d. Don?t forget about direct;contact.;e. Do lump;small and midsize businesses together for efficiency sake.;12. The business buyer;makes the fewest decisions in the ________.;a. modified rebuy;b. regular buy;c. straight rebuy;d. new rebuy;e. new task buy;13. Many;business buyers prefer to buy a total solution to a problem from one seller.;is the correct term for this process.;a. Channel consolidation;b. Systems buying;c. Vertical buying;d. Horizontal buying;e. Supply buying;14. Xerox;offers a ________ approach to prospective clients when it offers a complete turnkey procedure, operation, and management;of the client?s information and communication need.;a. supply buying;b. primary buying;c. systems buying;d. co-op;buying system;e. direct buying;15. If Ampex;Support Systems is the single supplier for a local manufacturing company?s MRO (maintenance, repair, operating);supplies and needs, Ampex Support;Systems would then be considered as providing ________ for the manufacturer.;a. systems buying;b. purchasing support;c. turnkey logistics;d. decision support;e. systems contracting;16. ________ is a key industrial;marketing strategy in bidding to build large-scale industrial products (e.g.;dams, pipelines, et cetera).;a. Systems contracting;b. Systems buying;c. Systems selling;d. Solutions buying;e. Turnkey logistics;17.;is composed of all those individuals;and groups who participate in the;purchasing decision-making process, who share some common;goals and the risks arising from;their decisions.;a. The buying center;b. The marketing sales team;c. Strategic management;d. Engineering support;e. The logistics center;18. In the purchasing decision;process, the ________ arethose who request that something be;purchased. They may be users or others in the organization.;a. users;b. initiators;c. influencers;d. deciders;e. approvers;19. In the purchasing decision;process, the ________ arethose who have the power to prevent sellers;or information from reaching members of the buying center.;a. gatekeepers;b. buyers;c. initiators;d. approvers;e. deciders;20. The typical buying center;has a minimum of ________ members.;a. 2?3;b. 3?4;c. 4?5;d. 5?6;e. 10;21. Webster;cautions that ultimately, ________ make purchasing decisions.;a. only senior managers;b. individuals, not;organizations;c. organizations, not;individuals;d. third parties;e. systems contractors;22. Small sellers concentrate;their marketing efforts on reaching ________.;a. approvers;b. initiators;c. key buying influencers;d. users;e. the purchasing staff;23. To the ________ price is;everything and transactional selling is used.;a. solution-oriented customers;b. income-oriented customers;c. gold-standard customers;d. strategic-value customers;e. price-oriented customers;24. The;strategic-value customers want a fairly;permanent sole-supplier relationship with your company.;Which of the following would be the best selling format to use with the;strategic-value customer?;a. Transactional selling;b. Consultative selling;c. Quality selling;d. Enterprise selling;e. Indirect demand selling;25. Some customers are willing;to handle price-oriented buyers by setting a lower price, but establishing;restrictive conditions. All of the following would be among;those conditions EXCEPT ________.;a. limiting the quantity that;can be purchased;b. no refunds;c. no adjustments;d. no services;e. no customer advertising;26. If a supplier signs an;agreement with a customer that states $350,000 in savings will be earned by the;customer over the next 18 months in;an exchange for a ten-fold increase in the customer?s share of supplies ordered;by the customer, the two parties will have participated in what is called ________.;a. solution selling;b. consultative selling;c. risk and gain sharing;d. strategic alignment;e. demand shifting;27. W.W. Grainger employees work at large customer facilities to reduce;materials-management costs. Which of the following forms of solution selling is;W.W. Grainger using?;a. Solutions to partnerships.;b. Solutions to alter corporate;culture.;c. Solutions to enhance;customer revenues.;d. Solutions to decrease;customer risks.;e. Solutions to reduce customer;costs.;28. In principle, business;buyers seek to ________ in relation a market offering?s costs.;a. spread risks;b. obtain the highest benefit;package;c. maintain everyday-low-prices;d. outsource as much as is;possible;e. eliminate partners? shares;in profits as much as possible;29. In;the past, what position did purchasing departments hold in the management;hierarchy of most organizations?;a. A high level because of;their role in managing the company?s;costs.;b. A moderate;level because of their spotty record on controlling costs.;c. A low level despite the fact;that they manage more than half of;the company?s costs.;d. A secretive position.;e. There has been no;determination of this position.;30. The;new, more strategically-oriented;purchasing departments have a mission. Which of the following most accurately describes that mission?;a. Make the most profit possible and remain independent of;entanglements.;b. Approach every purchasing;opportunity as means to create interdependency.;c. Seek the best value from;fewer and better suppliers.;d. Outsource the supply;function.;e. Abandon all strategies;except for systems selling and buying.;31. When thepurchaser?s;focus is short term and tactical and they are rewarded on their ability to;obtain the lowest price from suppliers for the given level of quality and;availability, this is referred to as ________.;a. procurement orientation;b. supply chain management;orientation;c. buying orientation;d. sellers orientation;e. market orientation;32. Whenbuyers;simultaneously seek quality improvements;and cost reductions and they develop collaborative relationships with major suppliers and seek savings through;better management of acquisition, conversion, and disposal costs, this is;referred to as ________.;a. sellers orientation;b. supply chain management;orientation;c. market orientation;d. procurement orientation;e. buying orientation;33. When thepurchasing;role is further broadened to become a more;strategic, value-adding operation, this is referred to as ________.;a. supply chain management;orientation;b. buying orientation;c. sellers orientation;d. procurement orientation;e. routine orientation;34. Peter;Kraljic distinguished four product-related purchasing processes. Which of the;following matches to products that have high value and cost to the customer but;involve little risk of supply because many companies;make them?;a. Strategic products;b. Bottleneck products;c. Leverage products;d. Routine products;e. Commodity;products;35. The products thathave;high value and cost to the customer and also involve high risk (e.g., mainframe;computers) are called ________.;a. strategic products;b. bottleneck products;c. leverage products;d. routine products;e. commodity;products;36. Most purchasing;professionals describe their jobs as more;technical, team-oriented, and involving more;responsibility than ever before.;a. risky;b. strategic;c. ethically difficult;d. Web-based;e. human-based;37. Robinson and Associates have;identified eight stages and called them buyphases. This model is called the ________ framework.;a. buygrid;b. buying/selling;c. seller-centered;d. commercial;e. buy-analysis;38. The;first step (buyphase) in the straight rebuy buyclass is ________.;a. problem recognition;b. general need description;c. product specification;d. supplier search;e. proposal solicitation;39. A;new task buyclass decision begins with which of the following buyphases?;a. Problem recognition;b. General need description;c. Product specification;d. Supplier search;e. Proposal solicitation;40. Business;marketers can stimulate problem recognition by ________.;a. trade directories;b. direct mail, telemarketing;and calling on prospects;c. encouraging the Better;Business Bureau to release statistics;d. consumer advertising;e. requesting testimonials from existing customers;41. When;Hewlett-Packard sells such complex;products as a network computer system;it is engaging in what it calls the ________ concept because it offers;information and specific solutions to unique problems.;a. ?product specification?;b. ?price de-escalation?;c. ?systems selling?;d. ?trusted advisor?;e. ?strategic alliance?;42. U.S.;businesses spent about ________ on online transactions with other businesses in;2002 as compared to consumer online;purchases of $71 billion during the same time period.;a. $650 billion;b. $500 billion;c. $482 billion;d. $225 billion;e. $53 billion;43. With;respect to e-procurement, Web sites are organized around two types of e-hubs: ________.;a. vertical and horizontal hubs;b. vertical and functional hubs;c. functional hubs and;organizational hubs;d. supplier and user hubs;e. manufacturer and supplier;hubs;44. With respect to;e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo;Gillette, P&G, and several other companies;joined forces to form a ________ called Transora to use their combined leverage;to obtain lower prices for raw materials.;a. manufacturer?s;co-op;b. supplier?s;co-op;c. middleman group;d. buying alliance;e. cabal;45. Business-to-business;cyberbuying is flourishing on the Internet. So far, most;of the products that businesses are buying electronically are ________, and;travel and entertainment services.;a. promotion;services such as advertising;b. HR services (e.g., employee recruitment);c. MRO materials (maintenance;repair, and operations);d. food services;e. marketing research services;46. Moving;into e-procurement has many benefits. Which of the following would not be among those benefits?;a. Aggregating purchasing;across multiple departments gains larger volume discounts.;b. Aggregating purchasing;across multiple departments gains centrally negotiated volume discounts.;c. There is less buying of;substandard goods from outside the approved list of suppliers.;d. A smaller purchasing staff;is required.;e. Purchasing gains a;significant leverage with top management because of its management team.;47. With respect to;e-procurement commitment, in 2003 ________ was named number one in BtoBmagazine?s annual ranking of the;top B-to-B Web sites because of its ability to generate sales (about 55 percent;of the company?s total sales) and;commitment to the process.;a. Coca-Cola;b. Dell Computers;c. Hewlett-Packard;d. Cadillac;e. Boeing;48. In the proposal solicitation;process, ________ should be marketing documents that describe value and;benefits in customer terms.;a. written proposals;b. oral proposals;c. e-proposals;d. alliance proposals;e. global proposals;49. Xerox qualifies only;suppliers who meet the ISO 9000 quality standards, but to win the company?s top award?certification status?a supplier;must first complete ________.;a. government;certification;b. an extensive ethics;statement evaluation;c. the Xerox Multinational;Supplier Quality Survey;d. a company;training and indoctrination period;e. a Malcolm Baldridge National;Quality Award entry form and then enter;50. All of the following are;considered to be methods of assessing customer value EXCEPT ________.;a. direct survey questions;b. exit interviewing;c. focus-group value assessment;d. conjoint analysis;e. benchmarks;51. According;to purchasing professionals, which of the following is considered to be the;major responsibility of the purchasing agent in supplier negotiations?;a. Forming networks for future business.;b. Assuring quality;conformance.;c. Being fair with all parties.;d. To use a team approach in;negotiations.;e. Negotiating price.;52. If;an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessee gains;several advantages. Which of the following would NOT be among;those advantages?;a. Higher quality products.;b. Conserving capital.;c. Getting the latest products.;d. Receiving better service.;e. Some tax advantages.;53. ?OTIFNE? is a term that;summarizes three desirable outcomes of a B-to-B transaction: OT?deliver on;time, IF?in full, and, NE?________.;a. no error;b. no emergencies;c. non-experimental;d. new entrepreneurs;e. need equipment;54. Corporate credibility;depends on three factors: corporate expertise, corporate trustworthiness, and ________.;a. corporate manpower;b. corporate mission statement;c. corporate likeability;d. corporate governance;e. corporate management;structure;55. Cannon;and Perreault found that buyer-suppler relationships;differed according to four factors. Which of the following would NOT be among those factors?;a. Importance;of supply.;b. Complexity;of supply.;c. Availability of alternatives.;d. Supply market dynamism.;e. Demand market conservatism.;56. According to Cannon and;Perreault, buyer-supplier relationships;fall into eight different categories. Which of the following relationships is characterized as being one that has much trust;and commitment leading to a true partnership?;a. Mutually adaptive;b. Collaborative;c. Basic buying and selling;d. Customer supply;e. Cooperative systems;57. In the ________ category of;Cannon and Perreault?s buyer-supplier relationship categorization, although;bonded by a close, cooperative relationship, the seller adapts to meet the;customer?s needs without expecting much adaptation or change on the part of the;customer in exchange.;a. contractual transaction;b. cooperative system;c. collaborative;d. mutually adaptive;e. customer is king;58. Vertical coordination can;facilitate stronger customer-seller ties but at the same time may increase the;risk to consumer?s and supplier?s ________ (e.g., those expenditures tailored;to a particular company and value;chain partner).;a. logistics channel;b. independent operations;c. specific investments;d. leverage ability;e. liquidity situation;59. The ________ market consists;of schools, hospitals, nursing homes, prisons, and other institutions that must;provide goods and services to people in their care.;a. vertical;b. nonprofit;c. spot;d. secondary business;e. institutional;60. With purchases of $200;billion annually in goods and services, ________ is the largest customer in the;world.;a. Wal-Mart;b. Grainger;c. the State of California;d. the U.S. government;e. Latin;America;True/False;61. Webster;and Wind define organizational buying as the decision-making process by which;formal organizations establish the need for purchased products and services and;identify, evaluate, and choose among;alternative brands and suppliers.;62. The;business market is essentially the same thing as the consumer market.;63. The demand for business;goods is ultimately derived from the demand for raw materials.;64. The total demand for many;business goods and services is inelastic?that is, not much is affected by price;changes.;65. In;the straight rebuy, ?out-suppliers? try to get a small order and then enlarge;their purchase share over time.;66. Over;time, new-buy situations become straight rebuys and routine purchase behavior.;67. Most business buyers, preferring;to spread their risk, reject what is called systems buying from one;seller.;68. Systems selling;is a key industrial marketing strategy in bidding to build large-scale;industrial projects such as dams or pipelines.;69. The;buying centeris where consumers go;to purchase their goods and services.;70. Initiators are those who authorize the proposed action of deciders or buyers.;71. Users perform all seven roles in the buying center;because of their direct tie to the product and what it is supposed to do.;72. The;typical buying center has a minimum of two to three people even though large companies may have more;performing this function.;73. Webster;cautions that ultimately, organizations not individuals make purchasing;decisions.;74. In the business market;small sellers concentrate on reaching as many participants as possible because;their chances of success are slim.;75. To;gold-standard customers, a seller is wise to use what is called quality;selling.;76. To;effectively sell to price-oriented customers, a company;is wise to use transactional selling.;77. One;of the forms of solution selling is to provide solutions to enhance customer;revenues.;78. Today;purchasing departments occupy a relatively low position in the management;hierarchy and answer primarily to the vice-president of marketing.;79. If;a company?s purchasing department;focus is short term and tactical, it is said to have a buying orientation.;80. When business buyers work simultaneously;to seek quality improvements and;cost reductions, the business buyers are said to have a demand orientation.;81. Office supplies are good examples;of what are called bottleneck products.;82. Strategic products;have high value and cost to the customer and also involve high risk.;83. According;to the buygrid framework described in the text, a performance review completes;the buygrid as a last step.;84.The buying process begins when someone places;an order with a sales representative.;85.Product value analysis (PVA) is an approach to;cost reduction in which components;are studied to determine if they can be redesigned or standardized or made by;cheaper methods of production.;86.A buying alliance attempts to use their combined leverage to obtain lower;prices for raw materials.;87.In the business-to-business;market on the Internet, the majority of purchases fall under the category of;services (e.g., advertising, financial needs, et cetera).;88. With respect to proposal;solicitation in B2B, sellers begin the process by requesting permission to make;a proposal rather than waiting for the buyer to request one.;89.In general, buyers review the;product and its price rather than any other considerations about the seller as;a buying decision is made.;90. With;respect to assessing customer value, in conjoint analysis customers are asked;to rank their preference for alternative market offerings or concepts.;91.The buying center has many responsibilities;however, it does not negotiate with suppliers in order to avoid a conflict of;interest.;92.?OTIFNE? is the term that summarizes three desirable;outcomes of a B-to-B transaction, stands for: on time, in full, no error.;93. Most performance;reviews are conducted by outside auditing agencies to avoid bias and internal;discrepancies.;94. Corporate;credibility depends on: corporate expertise, corporate trustworthiness, and;corporate likeability.;95. One;of the problems facing B2B on the Web is that many firms often impose more;stringent requirements on their online business partners than they do on;non-online partners.;96. One;of the eight categories of buyer-seller relationships;is the contractual transaction that generally shows low levels of trust;cooperation, and interaction, exchange is defined by formal contract.;97. In;the ?customer is king? category of buyer-seller relationship, the category is;characterized as being one that it relatively simple;where routine exchanges with moderately;high levels of cooperation and information exchange occurs.;98. A good illustration of a;member of the institutional market would Boeing because it is a member of the;aviation institution structure.;99. The;United States government is the;largest customer in the world.;100.Today, almost;all companies that sell to the U.S.;government use a marketing;orientation because of the special relationship required.
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