Question 1

Business-to-business buying over the Internet

Accepted Answer

A)   is nearly equivalent to consumer online buying when measured by the total dollar value of all online transactions.
B)   is more than twice as large as consumer online buying when measured by the total dollar value of all online transactions.
C)   has dramatically decreased since face-to-face communication between a firm's sales force and its potential customers is so important.
D)   is impossible to estimate since companies will not share procurement information.
E)   has never been popular since it presents massive security risks for companies.

Question 2

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 3

Reverse auctions

Accepted Answer

A)   are seller-initiated.
B)   benefit the sellers significantly more than the buyers.
C)   have an increasing number of buyers as the auction progresses.
D)   put downward pressure on prices.
E)   have many buyers.

Question 4

What type of online auction includes one buyer and many sellers?

Accepted Answer

A)   forward auction
B)   reverse auction
C)   traditional auction
D)   vertical auction
E)   bidder's war

Question 5

At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their facilities, production capability, and quality control?

Accepted Answer

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

Question 6

In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved?

Accepted Answer

A)   reverse auction
B)   horizontal auction
C)   vertical auction
D)   diagonal auction
E)   traditional auction

Question 7

Supplier development refers to

Accepted Answer

A)   the effort of suppliers to shape buyers' needs and stimulate demand among ultimate consumers.
B)   the practice of dividing large orders among several suppliers rather than a single one to avoid possible manufacturing delays due to bad weather, plant mishaps, union issues, etc.
C)   the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers.
D)   the practice of establishing a close relationship with one supplier rather than many to ensure loyalty and preferential treatment when filling exceptionally large orders.
E)   the shift of a firm from supplier to manufacturer when repeated experience with a product and excellent buyer/seller relationships make the change both feasible and profitable.

Question 8

Differentiate between traditional and reverse auctions.

Accepted Answer

In a traditional auction, there is one s...

Question 9

European Style Furniture (ESF) , headquartered in New York, acquires fine furniture from several high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

Accepted Answer

A)   a producer.
B)   a reseller.
C)   a service provider.
D)   a government agency.
E)   an industrial firm.

Question 10

In a buying center, ________ have the formal or informal power to select or approve the supplier that receives the contract.

Accepted Answer

A)   gatekeepers
B)   deciders
C)   buyers
D)   influencers
E)   users

Question 11

A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of

Accepted Answer

A)   putting competitors of both buyers and sellers out of business.
B)   lowering costs and increasing profits for the supplier.
C)   lowering costs or increasing value of products or services to the ultimate consumer.
D)   creating a single channel of distribution.
E)   creating an exclusionary relationship from all other buyers and sellers.

Question 12

The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) , is referred to as the

Accepted Answer

A)   Standard Industrial Code System (SICS) .
B)   United Nations Central Product Classification System (UNCPCS) .
C)   National Codes of Industry System (NCIS) .
D)   North American Industry Classification System (NAICS) .
E)   Federal System of International Organizations (FSIO) .

Question 13

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a

Accepted Answer

A)   purchasing committee.
B)   sustainable procurement panel.
C)   buying center.
D)   supply partnership.
E)   purchasing task force.

Question 14

During late summer and early fall, there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season. The demand for these containers is referred to as ________ demand.

Accepted Answer

A)   unitized
B)   derived
C)   reseller
D)   applied
E)   implied

Question 15

In the organizational buying process, heavy emphasis is placed on which product or service characteristics?

Accepted Answer

A)   delivery time, technical assistance, and post-sale 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 16

Organizational buyers are divided into three markets, which are

Accepted Answer

A)   industrial, wholesaler, and retailer.
B)   industrial, retailer, and government.
C)   retailer, manufacturer, and government.
D)   industrial, government, and ultimate consumer.
E)   industrial, reseller, and government.

Question 17

The predominant person-to-person trading community in the world is

Accepted Answer

A)   Facebook.
B)   Amazon.
C)   NASDAQ.
D)   Craigslist.
E)   eBay.

Question 18

Reverse auctions

Accepted Answer

A)   are buyer-initiated.
B)   benefit the sellers significantly more than the buyers.
C)   have an increasing number of buyers as the auction progresses.
D)   do not allow sequential bidding.
E)   have many buyers at the start of the auction.

Question 19

Important market characteristics in organizational buying behavior include which of the following?

Accepted Answer

A)   Organizational buying behavior is the same as consumer buying behavior because individuals are involved in both processes.
B)   Demand for industrial products is elastic instead of inelastic.
C)   Demand for industrial products and services is derived.
D)   Purchase orders are much more frequent and they are usually small.
E)   Forecasting is not as important in organizational buying as in consumer buying.

Question 20

Many companies have broadened their buying objectives to include an emphasis on

Accepted Answer

A)   purchasing from as many vendors as possible to avoid component shortfalls.
B)   purchasing from start-up firms to grow the economy.
C)   diversifying their product lines and brand extensions to reduce the risk of failure for any one item.
D)   pricing freezes to maintain consistent quantities demanded from consumers.
E)   proactively purchasing from women-owned and minority-owned suppliers and vendors.

Exam 5: Understanding Organizations As Customers

The predominant person-to-person trading community in the world is

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Important market characteristics in organizational buying behavior include which of the following?

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Reverse auctions

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A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of

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Supplier development refers to

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The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) , is referred to as the

Correct AnswerverifiedShow Answer

During late summer and early fall, there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season. The demand for these containers is referred to as ________ demand.

Correct AnswerverifiedShow Answer

Organizational buyers are divided into three markets, which are

Correct AnswerverifiedShow Answer

European Style Furniture (ESF) , headquartered in New York, acquires fine furniture from several high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

Correct AnswerverifiedShow Answer

In the organizational buying process, heavy emphasis is placed on which product or service characteristics?

Correct AnswerverifiedShow Answer

In which type of auction is there an upward pressure on bid prices as more would-be buyers become involved?

Correct AnswerverifiedShow Answer

Differentiate between traditional and reverse auctions.

Correct AnswerverifiedIn a traditional auction, there is one s...View AnswerShow Answer

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a

Correct AnswerverifiedShow Answer

At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their facilities, production capability, and quality control?

Correct AnswerverifiedShow Answer

Many companies have broadened their buying objectives to include an emphasis on

Correct AnswerverifiedShow Answer

What type of online auction includes one buyer and many sellers?

Correct AnswerverifiedShow Answer

Reverse auctions

Correct AnswerverifiedShow Answer

In a buying center, ________ have the formal or informal power to select or approve the supplier that receives the contract.

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Which of the following organizational buyers purchases raw materials and parts to reprocess into the finished goods they sell?

Correct AnswerverifiedShow Answer

Business-to-business buying over the Internet

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In a traditional auction, there is one s...
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