6
15) In a typical organization, buying activity consists of two major parts: the buying ________ and the buying ________. A) committee; time B) time; reorder point C) economic order quantity; reorder point D) center; decision process E) deciders; influencers
d
2) As a purchasing agent, Benni Lopez buys goods and services for use in the production of products that are sold and supplied to others. Benni is involved in ________. A) consumer buying behavior B) post-purchase dissonance C) retail buyer behavior D) business buyer behavior E) interpretive business research
d
90) Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage of the business buying process when he decided to replace his old coops? A) problem recognition B) general need description C) product specification D) product value analysis E) performance review
a
49) In the generally accepted stages of the business buying process, the step following problem recognition is ________. A) proposal solicitation B) supplier search C) product value analysis D) general need description E) performance review
d
101) The main differences between business and consumer markets include market structure and demand, the nature of the buying unit, and the types of decisions.
true
103) A business marketer normally deals with far fewer buyers than the consumer marketer does.
true
105) The business buying process consists of business buyers determining which products and services their organizations need to purchase, and then finding, evaluating, and choosing among alternative suppliers and brands.
true
106) Business demand ultimately derives from the demand for consumer goods and services.
true
11) The demand for many business goods and services tends to change more, and more quickly, than the demand for consumer goods and services does. This is referred to as ________ demand. A) fluctuating B) derived C) inelastic D) elastic E) supplier
a
12) Large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval. These are all examples of how the business buying decision process is more ________ than the consumer buying decision process is. A) formalized B) creative C) relationship-oriented D) independent E) concentrated
a
18) In which type of buying situation would a supplier most likely focus on maintaining product and service quality? A) straight rebuy B) modified rebuy C) new task D) systems task E) solutions task
a
19) You just lost a major account because a competitor provided the most complete system to meet the customer's needs and solve the customer's problems, and made the sale. In other words, the competition beat you with ________. A) solutions selling B) team selling C) cross-functional skill D) customer relationship management E) promotions
a
20) Another name for systems selling is ________ selling. A) solutions B) blanket contract C) vendor-managed inventory D) negotiated contract E) periodic purchase
a
31) When competing products differ greatly, business buyers are more accountable for their purchase choices and tend to pay more attention to ________. A) economic factors B) emotional choice C) intuition D) personal factors E) creative factors
a
53) In the case of maintenance, repair, and operating items, buyers may use a ________ rather than periodic purchase orders. A) blanket contract B) negotiable instrument C) binding purchase order D) locked-in sale E) solutions purchase
a
56) Under a ________, a supplier monitors and replenishes a buyer's stock automatically as needed. A) vendor-managed inventory B) negotiated contract C) stand-alone contract D) periodic purchase order E) blanket contract
a
64) A problem with the rapidly expanding use of e-purchasing is that it ________. A) can erode established customer-supplier relationships B) saves less time than expected C) generates more transactions to document D) generates less cost savings than predicted E) reduces the amount of time purchasing people can spend on strategic issues
a
66) Firewalls and encryption are ________. A) two commonly used techniques to safeguard Internet and extranet transactions B) two methods of communicating with e-commerce customers C) entirely reliable at keeping hackers away from sensitive company information D) two methods for increasing employee productivity E) effective methods for efficiently linking buyer and seller Web sites
a
73) There are many factors considered in government buying, but ________ is, above all, the most important. A) price B) product differentiation C) advertising D) personal selling E) packaging
a
8) Which of the following is true about business marketers in comparison to consumer marketers? A) They deal with far fewer but far larger buyers. B) They deal with far more but far small buyers. C) They deal with a more elastic market. D) They deal with fewer demands in fluctuation. E) They deal with the same decision buying process.
a
81) 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. A) modified rebuy B) new task C) straight rebuy D) solution selling E) value analysis
a
84) Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. This purchase of coops is an example of a ________. A) modified rebuy B) new task C) straight rebuy D) solution selling situation E) value analysis
a
94) Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and it allows suppliers to send new-product information directly to Pace retailers. In this scenario, Pace Hardware is using a(n) ________. A) extranet B) intranet C) search engine D) trading exchange E) reverse auction
a
95) Which of the following was most likely being used when Boeing received orders for $100 million in spare parts in the first year its Web site was in operation? A) e-procurement B) an intranet C) single sourcing D) blanket contracting E) a reverse auction site
a
21) The decision-making unit of a buying organization is called the ________. A) business buyer B) buying center C) buying system D) business-to-business market E) supplier-development center
b
25) Don Amspacher, in his role on the buying committee, provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing. Don is a(n) ________. A) user B) influencer C) decider D) gatekeeper E) buyer
b
30) When suppliers' offers are very similar, business buyers have little basis for strictly ________. A) emotional choice B) rational choice C) personal choice D) intuitive choice E) independent choice
b
33) To ensure an adequate and available supply of key scarce materials, many companies are now willing to ________. A) decrease levels of demand B) buy and hold large inventories of the materials C) eliminate distribution and warehousing partners D) experiment with just-in-time technologies E) reduce the length of the supply chain
b
4) In one way or another, most large companies sell to ________. A) consumers B) other organizations C) employees D) not-for-profit companies E) the service sector
b
43) In which stage of the business buying process is a supplier most likely to provide a buyer with information about the values of different product characteristics? A) problem recognition B) general need description C) supplier search D) supplier selection E) order-routine specification
b
48) In the generally accepted stages of the business buying process, the step following product specification is ________. A) proposal solicitation B) supplier search C) problem recognition D) general need description E) order-routine specification
b
52) During the ________ stage of the business buying decision process, the buying center assesses the proposals. A) proposal solicitation B) supplier selection C) product value analysis D) order-routine specification E) performance review
b
54) In which stage of the business buying process is a supplier's task to make sure that the supplier is giving the buyer the expected satisfaction? A) problem recognition B) performance review C) supplier search D) supplier selection E) order-routine specification
b
60) Which of the following can be especially useful for a company that needs to conduct secure and frequent communications and transactions with key suppliers? A) an intranet B) an extranet C) buying centers D) a reverse auction E) a trading exchange
b
72) U.S. Government Purchasing, Specifications, and Sales Directory is a(n) ________ publication. A) independent B) government C) e-procurement D) for-profit E) B-to-B
b
77) Giant Food Stores buy a lot of frozen turkey products at Thanksgiving and Christmas due to high consumer demand. This is an example of ________ demand. A) joint B) derived C) elastic D) fluctuating E) inelastic
b
80) UPS serves both consumer and business markets, but most of its revenues come from its business customers. UPS has become a strategic logistics ally for many of its business customers, going far beyond offering delivery services to offering inventory management, international trade management, and even financing to its commercial customers. This is an example of which of the following differences between the consumer and business markets? A) Business purchases involve more buyers. B) Buyers and sellers in the business market build close, long-term relationships. C) Business markets contain more and larger buyers. D) Business buyer demand is derived. E) Demand in business markets is inelastic.
b
85) The EPA has mandated that, in order to reduce local pollution, your printing plant switch from oil-based to water-based inks. This will require entirely new printing presses and a new printing plate technology. After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work, the printing plant's buying center will be ready to make this ________ purchase. A) modified rebuy B) new task C) straight rebuy D) straight task E) situational analysis
b
88) One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time. Dr. Albrecht, who runs a solo practice in a small rural town, located some articles on the chemical sterilizer and read about how the machine works. After gathering more information and talking to salespeople, Dr. Albrecht placed his order for the machine. In terms of the buying center, Dr. Albrecht had the role of ________. A) initiator B) decider C) agent D) influencer E) liaison
b
93) Most newspapers rely on ________ so they do not need to rely on only one supplier to provide the tons of paper that they use annually. A) single sourcing B) multiple sourcing C) cross-docking D) vendor-managed inventory E) blanket contracting
b
10) The Pure Drug Company produces insulin, a product with a very stable demand, even though the price has changed several times in the past two years. Insulin is a product with ________ demand. A) joint B) service C) inelastic D) elastic E) fluctuating
c
14) Although there are many differences between business buying behavior and consumer buying behavior, both respond to the same four stimuli: product, price, promotion, and ________. A) precision B) personal relationships C) place D) publicity E) packaging
c
17) Which business buying situation is the marketer's greatest opportunity and challenge? A) modified rebuy B) straight rebuy C) new task D) multiple rebuys E) system rebuy
c
22) A ________ consists of the actual users of products, those who control buying information, those who influence the decisions, those who do the actual buying, and those who make the buying decisions. A) supplier development team B) cross-functional team C) buying center D) quality management center E) partnership management team
c
26) Gretchen Kabor has formal authority to select the suppliers and arrange terms of purchase for many of the items her firm uses. Her role in the buying center is that of ________. A) user B) influencer C) buyer D) decider E) gatekeeper
c
27) A buying center is not a fixed, formally identified, unit within an organization, but rather a set of ________ assumed by different people for different purchases. A) budgetary limits B) informal job titles C) buying roles D) status roles E) marketing positions
c
35) Which of the following types of factors influencing members of a buying center are typically the most difficult for marketers to assess? A) economic B) technological C) interpersonal D) organizational E) political
c
37) Status, empathy, and persuasiveness are all examples of ________ influences on business buyer behavior. A) environmental B) individual C) interpersonal D) organizational E) cultural
c
38) Charlie Van Dusen, executive vice president of National Central Bank, is going through all of the stages of the buying process to purchase a computer system for the bank. Charlie is facing a(n) ________ situation. A) straight rebuy B) modified rebuy C) new-task buying D) limited budget E) independent buying
c
39) Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition? A) A buyer gets a new idea from an advertisement. B) A buyer gets a new idea at a trade show. C) A buyer is unhappy with a current supplier's price. D) A buyer receives a call from a salesperson offering better service terms. E) A buyer learns about a new product at an industry convention.
c
40) The first step of the business buying process is ________. A) general need description B) alternative evaluations C) problem recognition D) order-routine specification E) performance review
c
41) Business marketers often alert customers to potential problems and then show how their products provide solutions. These marketers are hoping to influence which stage of the business buying process? A) general need description B) alternative evaluations C) problem recognition D) order-routine specification E) performance review
c
42) The purchasing agent at your company is working with engineers and users to define the items to purchase by describing general characteristics and quantities needed. He is also ranking the importance of reliability, durability, and price. The buyer is preparing a(n) ________. A) value analysis B) product specifications list C) general need description D) order-routine specification E) product proposal
c
46) Empire Products has begun a process to find the best suppliers. Empire Products is actively engaged in ________. A) value analysis B) performances review C) supplier search D) supplier control E) supplier selection
c
5) When compared to consumer markets, business markets are ________. A) approximately the same B) smaller C) huge D) somewhat larger E) less complex
c
50) Members of the buying center at ABC Kid's World are drawing up a list of desired toy supplier attributes and their relative importance. Next, they intend to compare several suppliers to these attributes. In which step of the business buying process is the buying center at ABC Kid's World engaged? A) supplier search B) proposal solicitation C) supplier selection D) order-routine specification E) performance review
c
55) Following a purchase, the buyer and seller would both monitor which phase of the new-task buying situation? A) order-routine specifications B) supplier selection C) performance review D) value analysis E) vendor analysis
c
58) Which of the following is the best advice for an international marketer planning to interact with businesspeople from many different cultures? A) Trust your instincts and behave as you normally do. B) Remember that countries all over the world are fascinated with American culture. C) Cultures really are different, so do your best to learn about those differences. D) Use the same strategies with all of your clients, no matter what their cultural backgrounds are. E) Assume that businesspeople from different cultures will make accommodations for you.
c
6) Which of the following is NOT a way that business and consumer markets differ? A) market structure and demand B) nature of the buying unit C) satisfaction of needs through purchases D) types of decisions E) decision processes
c
63) B-to-B e-procurement yields many benefits. These include all of the following EXCEPT ________. A) reduced transaction costs B) more efficient purchasing for both buyers and sellers C) elimination of inventory problems D) reduced order processing costs E) elimination of much of the paperwork associated with traditional ordering procedures
c
65) The leading barrier to expanding electronic links with customers and partners online is ________. A) cost B) lack of trained personnel C) concern over security D) lack of knowledge E) lack of evidence of efficiencies gained through e-procurement
c
69) Many institutional markets are characterized by ________ and ________. A) low budgets; vague criteria B) special needs; vague criteria C) low budgets; captive patrons D) captive patrons; limited access E) mismanagement; disgruntled workers
c
74) Total government spending is determined by ________ rather than by any ________ to develop this market. A) price; contracts B) elected officials; contracts C) elected officials; marketing effort D) marketing effort; elected officials' effort E) product and service availability; marketing strategies
c
75) The world's largest buyer of products and services is ________. A) the Department of Veteran Affairs B) the Chinese government C) the U.S. government D) the General Services Administration E) the Russian government
c
76) Which of the following is NOT part of the business market? A) Scott Sign Systems sells interior signs to an Alabama resort. B) A municipal government buys chemicals for its city swimming pools. C) Sue buys a gift for her mother. D) A Canadian software company buys tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan. E) Airmark sells a vinyl printing press to a manufacturer of plastic bags.
c
78) Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand. A) fluctuating B) joint C) derived D) contrived E) leisure
c
82) Which of the following is most likely true about a straight rebuy? A) It requires little customer relationship management. B) It is more complex than a new-task situation. C) It often involves products with low risks. D) It occurs when a buyer wants to locate the best deal on the market. E) It involves more opportunities for "out" buyers than other types of purchasing situations do.
c
83) 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. A) modified rebuy B) new task C) straight rebuy D) solution selling E) value analysis
c
9) Hewlett-Packard and Dell buy Intel microprocessor chips because consumers buy personal computers. This demonstrates an economic principle called ________. A) elastic demand B) fluctuating demand C) derived demand D) joint demand E) market demand
c
91) 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. A) problem recognition B) general need description C) product specification D) supplier search E) proposal solicitation
c
92) In what type of buying situation would a seller most likely send only a catalog to the buyer during the proposal solicitation stage of the business buying process? A) new task B) modified rebuy C) straight rebuy D) solution selling E) independent task
c
96) All of the following organizations are likely considered to be a part of the institutional market EXCEPT ________. A) LaGrange Community Hospital B) Joliet Prison C) Lancaster Township D) The Water Street Rescue Mission E) Millersville University
c
23) In routine buying situations, which members of the buying center have formal or informal power to select or approve the final suppliers? A) users B) influencers C) gatekeepers D) deciders E) buyers
d
24) A(n) ________ controls the flow of information to others in the buying center. A) user B) influencer C) buyer D) gatekeeper E) decider
d
28) Which of the following is NOT included in the decision-making unit of a buying organization? A) individuals who use the product or service B) individuals who influence the buying decision C) individuals who make the buying decision D) individuals who supply the product E) individuals who control buying information
d
36) Policies, procedures, and systems are all examples of ________ influences on business buyer behavior. A) environmental B) authoritative C) interpersonal D) organizational E) cultural
d
47) A buyer would be most likely to review trade directories in which stage of the business buying process? A) problem recognition B) general need description C) product specification D) supplier search E) supplier selection 47) A buyer would be most likely to review trade directories in which stage of the business buying process? A) problem recognition B) general need description C) product specification D) supplier search E) supplier selection
d
57) Which of the following accurately describes a cultural difference international marketers should be aware of? A) Outside of English-speaking countries, most business leaders do not speak English. B) British businesspeople are accustomed to making more business deals over the telephone than in person. C) German people tend to be impressed by overstatement and showiness. D) Japanese people tend to put a high value on rank. E) French businesspeople are accustomed to building relationships between buyer and seller through quick and easy familiarity.
d
62) 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 ________. A) greater access to new suppliers B) lower purchasing costs C) hastened order processing and delivery D) reduced payroll E) more time for purchasing agents to focus on strategic issues
d
68) Sage, Inc., provides food services to schools, hospitals, and nursing homes in the Midwest. Management at Sage is involved in the ________ market. A) government B) not-for-profit C) local D) institutional
d
7) There are many sets of ________ purchases made for each set of ________ purchases. A) consumer; business B) tangible; intangible C) service; product D) business; consumer E) product; service
d
70) Government organizations tend to favor ________ suppliers over ________ suppliers. A) local; domestic B) unionized; nonunionized C) foreign; domestic D) domestic; foreign E) nonunionized; unionized
d
71) All of the following are difficulties associated with selling to government buyers EXCEPT ________. A) considerable paperwork B) bureaucracy C) regulations D) low sales volume E) large group decision making
d
86) Don Brady is responsible for obtaining price quotations from various vendors. After reviewing them, Don then determines whether or not to include the vendor on the approved vendor list. Don apparently plays two roles, that of ________ and ________. A) user; buyer B) buyer; influencer C) buyer; gatekeeper D) decider; buyer E) gatekeeper; influencer
d
87) One of Dr. Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time. In terms of the buying center, the dental assistant had the role of ________. A) initiator B) buyer C) gatekeeper D) influencer E) liaison
d
1) In which of the following ways is GE like most other large companies? A) It produces hundreds of products for a wide range of markets. B) It has an entertainment division. C) It has a finance division. D) Most of its business comes from final consumers. E) Most of its business comes from commercial and industrial customers.
e
13) The owners of the company you work for have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of products. This is an example of ________ management. A) value chain B) network relationship C) channel captain D) core channel E) supplier development
e
16) The buying center and the buying decision process are affected by all of the following factors EXCEPT ________. A) internal organization factors B) interpersonal factors C) individual factors D) external environmental factors E) self-concept factors
e
29) Which of the following statements about buying centers is true? A) The buying center is like a standing committee. B) The buying center roles are specified on the organizational chart. C) The typical buying center has five employees, one to assume each of the buying center's roles. D) An individual's role in the buying center does not change. E) The buying center may involve informal participants who are not obvious to sellers.
e
3) Business buying behavior refers to the buying behavior of organizations that buy all of the following EXCEPT ________. A) products for use in production of other products B) services for use in production of other services C) products purchased to resell to others D) products purchased to rent to others E) products purchased for personal consumption
e
32) Buyers are heavily influenced by the current and expected economic environment. That includes which of the following buyer influences? A) level of primary demand B) economic outlook C) the cost of money D) A and B only E) all of the above
e
34) The major influences on the buying process at General Aeronautics include company policies and systems, technological change, and economic developments. The types of influences on the buying process in this scenario are most accurately categorized as ________ and ________. A) individual; environmental B) organizational; interpersonal C) individual; organizational D) environmental; interpersonal E) organizational; environmental
e
44) Which of the following is the process of the buying center deciding on the best product characteristics? A) value analysis B) general need description C) marketing myopia D) purchase order E) product specification
e
45) During which stage of the business buying process is a buyer most likely to conduct a value analysis, carefully studying components to determine if they can be redesigned, standardized, or made less expensively? A) proposal solicitation B) general need description C) order-routine specification D) performance review E) product specification
e
51) Which of the following statements about the supplier selection stage of the business buying decision process is true? A) Price is the only factor businesses consider before making a purchase decision. B) Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier. C) Price and warranty are the only two factors businesses consider before making a purchase decision. D) Buyers do not negotiate for better terms before making a final supplier selection. E) Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behavior, and honest communication.
e
59) Instead of focusing on managing individual purchases, a seller should focus on managing the ________. A) building a good reputation in the marketplace B) organizational environment C) use of blanket contracts D) order-routine specifications E) total customer relationship
e
61) Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. A) secure extranets B) product value analysis C) vendor-managed inventory systems D) blanket contracts E) e-procurement
e
67) Which of the following statements about e-procurement security issues is true? A) There are no security risks for companies doing business on the Internet. B) Firewalls provide adequate security for all Internet exchanges. C) Hackers are not interested in many business-to-business transactions. D) Extranet users and Internet users face the same security risks and use the same security tools. E) Providing e-procurement security can involve a substantial financial investment from a company.
e
79) ABC Enterprises sold 9,000 units @ $2.99/unit in July. The firm sold 9,000 units @ $4.29/unit in August. This illustrates ________ demand. A) derived B) contrived C) fluctuating D) joint E) inelastic
e
89) A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel. In terms of the buying center, the truck drivers who must make sure that the trucks do not run out of fuel are the ________. A) initiators B) deciders C) buyers D) influencers E) users
e
102) One set of business purchases is made for each set of consumer purchases.
false
104) Buyer and seller are less dependent upon each other in the business buying process than in the consumer buying process.
false
108) Of the different types of buying situations, the modified rebuy presents the fewest decisions for a business buyer to make.
false
109) Rob Taylor is the buyer for Major Memories. He regularly orders inexpensive merchandise in a fairly routine fashion without any modifications. He may choose other suppliers from time to time. Rob's decisions take the form of a modified rebuy.
false
111) Nancy Zahm works for LeBray Beverage Company. She often helps to define product specifications and also provides information for evaluating alternatives. In this role she is acting as a gatekeeper.
false
112) The decider is the person in the business buying process who controls the flow of information to others involved.
false
113) In business buying decisions, the role of emotion is negligible in comparison to the role of reason.
false
115) Buyers have different buying styles influenced by interpersonal factors such as age, income, education, professional identification, and attitudes toward risk.
false
116) A statement prepared by a business buyer describing the quantity and general characteristics of the items needed is a product specification description.
false
117) In the product specification stage of the business buying process, the buyer ranks the importance of reliability, price, and other desired product characteristics.
false
118) According to the stages of the business buying process, after completing a general need description, a business buyer should next invite qualified suppliers to submit proposals.
false
120) Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.
false
121) When conducting a performance review, the seller monitors different factors than those monitored by the buyer to make sure that the seller is giving the expected satisfaction.
false
124) Unfortunately, most governments do not provide would-be suppliers with detailed guides describing how to sell to the government.
false
125) It is rare that noneconomic factors play a role in government buying.
false
107) Demand in business markets is subject to more fluctuation than in consumer markets.
true
110) The buying center is not a fixed or formally identified unit within an organization.
true
114) Environmental, organizational, interpersonal, and individual factors all influence business buyer behavior.
true
119) Proposals should be marketing documents and not just technical documents.
true
122) E-procurement typically reduces drudgery and paperwork, thereby freeing purchasing personnel to focus on more strategic issues.
true
123) The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery.
true