Chapter 6

70) Sail Metalworks Inc. is currently looking for the best vendors of metal sheets. In other words, Sail Metalworks is ________. A) preparing a general needs description B) deciding on product specification C) conducting a supplier search D) preparing an order-routing specification E) reviewing suppliers' performance

C) conducting a supplier search

9) Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand. A) primary B) composite C) derived D) latent E) negative

C) derived

6) Green Bees, a popular American heavy-metal band, will perform in Berlin during Christmas. There is a high demand for concert tickets among fans worldwide who are looking forward to the much-awaited performance. In this instance, the high demand for tickets for the Green Bees concert is representative of ________. A) primary demand B) negative demand C) derived demand D) cross elasticity of demand E) latent demand

C) derived demand

90) In several major cities in the U.S, the ________ operates business service centers with staffs to provide a complete education on the way government agencies buy, the steps that suppliers should follow, and the procurement opportunities available. A) Defense Logistics Agency B) Federal Business Agency C) Small Business Administration D) General Services Administration E) U.S. Commerce Department

D) General Services Administration

85) Which of the following is LEAST likely a characteristic of business-to-business e-procurement? A) greater access to better suppliers B) lower purchasing costs C) quick order processing and delivery D) an increase in the derived demand E) less paperwork

D) an increase in the derived demand

28) In routine buying situations, which of the following members of the buying center has formal or informal power to select or approve the final suppliers? A) users B) influencers C) gatekeepers D) deciders E) buyers

D) deciders

49) In routine buying, the buyers are often the ________, or at least the approvers. A) monitors B) influencers C) gatekeepers D) deciders E) primary advertisers

D) deciders

20) In which of the following would the buyer reorder a product without any modifications? A) reverse auction B) solution selling C) new task D) straight rebuy E) modified rebuy

D) straight rebuy

45) Which of the following is an environmental factor that influences business buyers? A) organizational procedures B) individual motives C) organizational objectives D) supply of key materials E) group dynamics

D) supply of key materials

96) In this scenario, which of the following had the greatest influence on the business buying behavior at Alpha Stampings? A) individual preferences B) organizational structure C) interpersonal influences D) technological changes E) cultures and customs

D) technological changes

116) In the proposal solicitation stage of the business buying process, the buyer invites qualified suppliers to submit proposals.

True

120) The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery.

True

82) Which of the following is true with regard to e-procurement? A) E-procurement has significantly declined in recent years. B) Typically, business marketers do not favor e-procurement as it offers them little benefit. C) E-procurement has been widely practiced since the 1950s. D) E-procurement adds to existing inefficiencies in the supply chain. E) E-procurement hastens order processing and delivery.

E) E-procurement hastens order processing and delivery.

29) A(n) ________ controls the flow of information to others in the buying center. A) user B) influencer C) buyer D) gatekeeper E) decider

D) gatekeeper

89) Sage Hospitals, a not-for-profit organization, provides healthcare to the people in the Midwest. Management at Sage is involved in the ________ market. A) government B) consumer C) wholesale D) institutional E) resell

D) institutional

117) During proposal solicitation, the buying center often will draw up a list of the desired supplier attributes and their relative importance.

False

119) The newer the buying task, and the more complex and costly the item, the lesser the amount of time the buyer will spend searching for suppliers.

False

7) The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand. A) latent B) negative C) inelastic D) derived E) composite

C) inelastic

53) Which of the following factors influencing the business buying process do marketers typically find most difficult to assess? A) economic B) technological C) interpersonal D) organizational E) environmental

C) interpersonal

57) If a buying center is most influenced by authority in the business buying process, it can be safely concluded that ________ factors have a major influence on its buying behavior. A) technological B) systemic C) interpersonal D) strategic E) economic

C) interpersonal

83) In ________, companies put their purchasing requests online and invite suppliers to bid for the business. A) strategic sourcing B) trade exchanges C) reverse auctions D) outsourcing activities E) insourcing activities

C) reverse auctions

67) ________ refers to the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item. A) Performance review B) General needs description C) Product development D) Proposal solicitation E) Product specification

E) Product specification

88) The ________ market consists of schools, hospitals, nursing homes, prisons, and the like that provide goods and services to people in their care. A) government B) consumer C) wholesale D) for-profit E) institutional

E) institutional

13) The owners of a manufacturing firm in Ohio have developed a core network of suppliers to ensure an uninterrupted supply of products. This is an example of ________. A) capability management B) a supply bottleneck C) asset management D) backsourcing E) supplier development

E) supplier development

102) In the business buying process, the buyer and seller are relatively less dependent on each other.

False

32) ________ refer to people in an organization's buying center who affect the buying decision; they often help define specifications and provide information for evaluating alternatives. A) Users B) Influencers C) Buyers D) Gatekeepers E) Deciders

B) Influencers

100) The business marketer normally deals with far fewer but far larger buyers than the consumer marketer does.

True

103) In the business buying process, business buyers determine which products and services their organizations need to purchase .

True

104) Business demand ultimately derives from the demand for consumer goods.

True

92) Which of the following plays the most important role in government buying? A) price B) product differentiation C) advertising D) personal selling E) customer relationship management

A) price

1) The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands is known as ________. A) situational analysis B) business buying process C) business diversification D) business process automation E) lateral expansion

B) business buying process

61) Which of the following is an example of an internal stimulus that would most likely lead to 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 product quality. D) A buyer receives a call from a salesperson offering better service. E) A buyer learns about a new product at an industry convention.

C) A buyer is unhappy with a current supplier's product quality.

30) ________ have formal authority to select the supplier and arrange the terms of purchase. A) Users B) Influencers C) Buyers D) Gatekeepers E) Deciders

C) Buyers

63) Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He sources most of the raw materials needed by his company from Kramer Corp. However, Ross is unhappy with Kramer's prices. Additionally, he thinks that the quality of the raw materials supplied by Kramer is sub-standard. Which of the following stages in the business buying process is Ross' company currently in? A) general needs description B) product specification C) problem recognition D) order-routine specification E) performance review

C) problem recognition

79) ________ refers to purchasing through electronic connections between buyers and sellers—usually online. A) E-procurement B) Inverted sourcing C) Strategic sourcing D) Outsourcing E) Value chain management

A) E-procurement

98) In this instance, Richard plays the role of a(n) ________. A) decider B) gatekeeper C) influencer D) proposal solicitor E) product designer

A) decider

37) Ralph works for a manufacturing company in Ohio. Recently, he called in a department manager to assist in the purchase of some heavy machinery. After consulting the department manager, Ralph is considering a change in product specifications and characteristics and expects suppliers to meet his requirements. Which of the following is evident here? A) modified rebuy B) new task C) straight rebuy D) product differentiation E) reverse auction

A) modified rebuy

25) The decision-making unit of a purchasing organization is called its ________. A) value chain B) buying center C) customer support system D) quality center E) innovation center

B) buying center

51) Which of the following is an organizational factor that influences business buyers? A) technology B) company procedures C) employee attitudes D) employee motives E) group dynamics

B) company procedures

33) ________ may help shape product specifications, but their major role is in selecting vendors and negotiating. A) Gatekeepers B) Deciders C) Buyers D) Influencers E) Users

C) Buyers

35) Dora 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(n) ________. A) user B) influencer C) buyer D) decider E) gatekeeper

C) buyer

26) The ________ refers to all the individuals and units that play a role in the purchase decision-making process. A) research and development center B) value chain C) buying center D) marketing information system E) immersion group

C) buying center

93) Total government spending is determined by ________. A) legal treatises B) marketing efforts C) elected officials D) court rulings E) technology needs

C) elected officials

39) Paul, a purchasing agent for Kiel Inc., has the authority to prevent salespersons from seeing the decision makers in his organization. Which of the following best describes Paul's position? A) influencer B) decider C) gatekeeper D) buyer E) user

C) gatekeeper

95) The demand for Alpha Stampings' products is ultimately based on the demand for new automobiles in the consumer market. This is an example of ________ demand. A) negative B) latent C) primary D) derived E) composite

D) derived

91) All of the following are difficulties associated with selling to government buyers EXCEPT ________. A) excessive paperwork B) bureaucracy C) strict regulations D) high advertising costs E) decision-making delays

D) high advertising costs

40) Who among the following does NOT participate in the purchase decision process 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 raw materials E) individuals who control the flow of information to others

D) individuals who supply raw materials

48) Marissa Hopkins, a hospital nurse, notices that the gurneys used in the hospital are not durable enough. She informed the hospital authorities about Grace Care Inc., a new company selling lightweight and durable gurneys. In this instance, Marissa played the role of a(n) ________. A) strategist B) buyer C) gatekeeper D) influencer E) decider

D) influencer

106) The buying center is a fixed and formally identified unit within the buying organization.

False

69) ________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production. A) Proposal solicitation B) General needs description C) Order-routine specification D) Cost-benefit analysis E) Product value analysis

E) Product value analysis

87) 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 more-than-enough security for all Internet exchanges. C) Hackers typically avoid business-to-business transactions due to the extensive security in place. D) Extranet users and Internet users face the same security risks and use the same basic encryption methods. E) Providing e-procurement security can involve a substantial financial investment from a company.

E) Providing e-procurement security can involve a substantial financial investment from a company.

74) Which of the following most likely occurs in the supplier selection stage of the business buying decision process? A) The buyer calls for detailed written proposals or formal presentations from each potential supplier. B) The buyer compiles a small list of qualified suppliers by reviewing trade directories, doing computer searches, or contacting other companies for recommendations. C) The buying team decides on the best product characteristics and specifies them accordingly. D) The buyer prepares a general need description and identifies the quantity of the needed item. E) The buying center draws up a list of the desired supplier attributes and their relative importance.

E) The buying center draws up a list of the desired supplier attributes and their relative importance.

52) The major influences on the buying process at General Aeronautics Limited include supply conditions and technological changes, which would both be categorized as ________ factors. A) organizational B) individual C) systemic D) interpersonal E) environmental

E) environmental

15) A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only slightly affected following a 12 percent hike in tuition the following Fall. This illustrates a(n) ________ demand. A) derived B) negative C) highly elastic D) composite E) inelastic

E) inelastic

68) During which of the following stages of the business buying process is a buyer most likely to conduct a value analysis by 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) product specification

101) Derived demand refers to the business demand that ultimately comes from the demand for consumer goods.

True

108) A company buying a product or service for the first time faces a new task situation.

True

112) Within the organization, buying activity consists of two major parts: the buying center and the buying decision process

True

114) In the general needs description of the buying process, the buyer describes the characteristics and quantity of the needed item.

True

118) The order-routine specification includes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected delivery time, return policies, and warranties

True

123) Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder.

True

10) Which of the following is true about business purchases? A) Business purchases involve more professional purchasing effort than consumer purchases. B) Business purchases involve less participants in decision making compared to consumer purchases. C) Purchasing agents are absent in business purchases. D) Business purchases involve less technical and economic considerations compared to consumer purchases. E) Business purchases are usually quicker and more informal than are consumer purchases.

A) Business purchases involve more professional purchasing effort than consumer purchases.

11) ________ involves systematically developing networks of supplier-partners to ensure a dependable supply of products and materials for use in making products or reselling them to others. A) Supplier development B) Backsourcing C) Supplier quality assurance D) Corporate recovery E) Executive development

A) Supplier development

23) ________ refers to buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation. A) Systems selling B) Outsourcing C) Insourcing D) Cold calling E) Direct marketing

A) Systems selling

43) Worthington's Farm is an old poultry farm in Mount Prospect, Illinois. For years, it has used wooden coops to haul its poultry to the 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. Consequently, the owner of Worthington's Farm ordered 100 customized coops from its regular supplier. This exemplifies ________. A) a modified rebuy B) a new task C) a straight rebuy D) derived demand E) composite demand

A) a modified rebuy

42) Rudolf Technologies Inc. decided to enter the automobile service market. Consequently, it decided to procure the tools and machines required for servicing cars from a reputed supplier. Rudolf Technologies is facing ________. A) a new task situation B) a modified rebuy situation C) negative competition D) the need to outsource its primary service offering E) the pressure to diversify its market

A) a new task situation

75) A ________ creates a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed prices for a set time period. A) blanket contract B) request for proposal C) supplier proposal D) change order E) noncompete clause

A) blanket contract

5) Business demand that ultimately comes from the demand for consumer goods is known as ________ demand. A) derived B) negative C) primary D) latent E) elastic

A) derived

73) SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo Limited through its Web site in 2012. This is an example of ________. A) e-procurement B) insourcing C) crowdsourcing D) blanket contract E) customer relations management

A) e-procurement

66) Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise. It allows Pace retailers to connect with each other for seeking managerial and marketing advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and send new-product information directly to the retailers. In this instance, Pace Hardware is facilitating communication through ________. A) extranet links B) podcasts C) search engines D) trading exchanges E) reverse auctions

A) extranet links

55) Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________. A) faces a new task situation B) faces a modified rebuy situation C) is most likely to benefit the most from reverse auction D) faces the need for product differentiation E) plans to attract customers by offering products at below-market prices

A) faces a new task situation

4) The business marketer normally deals with ________ than the consumer marketer does. A) far fewer but far larger buyers B) far more but far smaller buyers C) negligible customer complaints D) far less fluctuations in demands E) far more elastic demand

A) far fewer but far larger buyers

24) Solutions selling ________. A) is often a key business marketing strategy for winning and holding accounts B) refers to a business buying situation in which the buyer purchases a product or service for the first time C) refers to a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers D) is equivalent to cold calling E) refers to a business buying situation in which the buyer routinely reorders something without any modifications

A) is often a key business marketing strategy for winning and holding accounts

50) Business buyers are heavily influenced by factors in the current and expected economic environment, such as ________. A) level of primary demand B) organizational objectives C) group dynamics D) individual motives E) culture and customs

A) level of primary demand

41) After searching extensively for vendors, Mike Miller, the owner of a manufacturing firm, selected Texcom Technologies Inc. as his firm's primary supplier of bearings and shafts of a specific dimension. Mike is currently preparing an order form that specifies the number of shafts needed and the expected time of delivery. In other words, he is preparing the ________. A) order routine specification B) general needs description C) product specification D) marketing mix E) product mix

A) order routine specification

59) In the beginning of the buying process, Timothy Perry, a product development manager, noticed that the raw materials that were being procured from his company's regular supplier were of poor quality. Consequently, he decided to change the existing supplier as a remedial measure. The stage of the buying process in which Timothy identified the quality breach represents the ________ stage. A) problem recognition B) general needs description C) product specification D) supplier search E) performance review

A) problem recognition

22) In a straight rebuy, ________. A) the "in" suppliers try to maintain product and service quality to keep the business B) the "in" suppliers feel pressured to protect an account C) the "out" suppliers view the situation as an opportunity to gain new business D) a company buys a product or a service for the first time E) buyers are keen on revising product specifications

A) the "in" suppliers try to maintain product and service quality to keep the business

8) In business markets with inelastic demand ________. A) the total demand for products is not much affected by short-term price changes B) buyers are highly sensitive to price changes C) derived demand is absent D) a business purchase usually involves less decision participants E) a business purchase usually does not involve a professional purchasing effort

A) the total demand for products is not much affected by short-term price changes

78) Under ________, buyers share sales and inventory information directly with key suppliers who monitor and replenish the buyer's stock automatically as needed. A) vendor-managed inventory B) delayed differentiation C) demand chain management D) enterprise resource planning E) materials management

A) vendor-managed inventory

17) A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions? A) Are buyers sensitive toward price changes in consumer markets? B) What are the major influences on buyers? C) Are niche markets more profitable than mass markets? D) How do interpersonal factors affect organizational performance? E) Is the role of gatekeepers relevant in the international business environment?

B) What are the major influences on buyers?

54) Sheffield Cargo serves both consumer and business markets, but most of its revenue comes from its business customers. Of late, the business customers of Sheffield Cargo have demanded a change in the packaging of heavy cargo along with a more sophisticated and user-friendly extranet framework. Sheffield Cargo is under pressure to offer better products and services or risk losing a huge portion of its customers. This is an example of ________. A) a new task B) a modified rebuy situation C) a straight rebuy situation D) trade exchange E) reverse auction

B) a modified rebuy situation

47) The United States Environment Protection Agency (EPA) has mandated that, in order to reduce local pollution, all printing plants have to switch from oil-based inks to water-based inks. This will require entirely new printing presses and the procurement of a completely different printing plate technology. In this instance, the buying center of an organization using printing plants is most likely to face ________. A) a need for market segmentation B) a new task situation C) a straight rebuy situation D) a need for market diversification E) delayed differentiation

B) a new task situation

2) Business buyer behavior refers to the ________. A) buying behavior of consumers who buy goods and services for personal consumption B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others C) buying behavior of consumers who rely on small retailers for the regular supply of provisions D) decision process by which business buyers determine which products and services their organizations need to purchase E) strong affinity of businesses for value-for-money deals

B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

44) Jason Perkins has the informal power to approve the final suppliers in his organization. In other words, Jason plays the role of a(n) ________ in his organization's buying center. A) gatekeeper B) decider C) buyer D) influencer E) user

B) decider

46) A nurse in a hospital told the chief dentist, Dr.Albrecht, that the hospital should purchase equipment that would sterilize the dentists' tools without using any water because water tends to affect the durability of the tools over time. Dr. Albrecht located some articles on chemical sterilizers and gathered more information on how they worked. After talking to salespeople, Dr. Albrecht finally placed his order for the machine. In this instance, Dr. Albrecht played the role of a(n) ________. A) monitor B) decider C) agent D) influencer E) gatekeeper

B) decider

14) Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand. A) composite B) derived C) primary D) latent E) inelastic

B) derived

80) Which of the following can help a company create direct procurement accounts with suppliers, through which company buyers can purchase equipment, materials, and supplies directly? A) backsourcing B) extranet C) company blog D) reverse auction E) trade exchange

B) extranet

65) In the ________ stage of the buying process, the alert business marketer can help the buyers define their needs and provide information about the value of different product characteristics. A) problem recognition B) general needs description C) supplier search D) supplier selection E) order-routine specification

B) general needs description

81) A manager in a garment manufacturing company decided to replace the plastic shopping bags currently used in his company with bags made of recyclable material. Consequently, he asked the operations officer to gather relevant information and send a list of alternatives to him. In the business buying process, the manager is preparing a(n) ________. A) problem statement B) general needs description C) supplier list D) proposal solicitation E) order-routine specification

B) general needs description

34) Eric Mason, an employee of Huntington Steelworks, is responsible for defining product specifications and providing relevant information for evaluating alternatives in his organization's buying center. Eric, whose opinions affect the buying decisions of his organization to a great extent, is most likely a(n) ________. A) user B) influencer C) decider D) gatekeeper E) buyer

B) influencer

97) The management's directive to reduce the number of steel suppliers refers to the influence of ________ factors affecting the business buying behavior of Alpha. A) political B) organizational C) interpersonal D) individual E) cultural

B) organizational

76) In which stage of the business buying process does a buyer ask users to rate their satisfaction with the supplied materials? A) problem recognition B) performance review C) supplier search D) supplier selection E) order-routine specification

B) performance review

36) Which of the following is most likely true about a straight rebuy? A) Suppliers are not required to focus on quality of products or services delivered. B) A straight rebuy is far more complex than a new-task situation. C) A straight rebuy is handled on a routine basis by the purchase department. D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best deal in the market. E) A straight rebuy involves more opportunities for "out" buyers than do other types of purchasing situations.

C) A straight rebuy is handled on a routine basis by the purchase department.

38) The ________ Web site provides a single point of entry through which commercial vendors and government buyers can post, search, monitor, and retrieve opportunities solicited by the entire federal contracting community. A) U.S. Small Business Administration B) Center for Regulatory Effectiveness C) Federal Business Opportunities D) Federal Civil Defense Authority E) U.S. Commerce Department

C) Federal Business Opportunities

94) All of the following organizations are likely part of the institutional market EXCEPT ________. A) LaGrange Community Hospital B) Worthampshire Prison C) Lancaster Real Estate Company D) Water Street Nursing Home E) Millersville Community College

C) Lancaster Real Estate Company

86) Which of the following is true about business-to-business e-procurement? A) E-procurement increases transaction costs for suppliers. B) Because of an overwhelming demand, e-procurements usually have a huge time gap between order and response. C) Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis. D) E-procurement enhances customer-supplier relationships. E) Due to extensive paperwork, the relatively important strategic issues, such as finding better supply sources and working with suppliers to reduce costs and develop new products, are sidelined.

C) Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis.

21) ________ refers to a business buying situation in which the buyer purchases a product or service for the first time. A) Modified rebuy B) Straight rebuy C) New task D) Reverse auction E) Derived demand

C) New task

60) ________ occurs when someone in the company identifies a need that can be met by acquiring a specific product or service. A) Solutions selling B) Proposal solicitation C) Problem recognition D) Performance review E) Real-time marketing

C) Problem recognition

12) Which of the following is NOT part of the business market? A) Kruger Group sells interior security systems to resorts. B) A country club buys safety equipment for its swimming pool. C) Sue shops for her family's groceries at the local Whole Foods store. D) A firm buys laptops from Dell for company salespeople to use when traveling. E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.

C) Sue shops for her family's groceries at the local Whole Foods store.

27) ________ refer to members of the buying organization who will actually use the purchased product or service. A) Gatekeepers B) Deciders C) Users D) Influencers E) Buyers

C) Users

16) Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________. A) derived demand B) inelastic demand C) a straight rebuy D) a new task E) a modified rebuy

C) a straight rebuy

31) Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. This is an example of ________. A) a modified rebuy situation B) a new task C) a straight rebuy situation D) reverse auction E) product differentiation

C) a straight rebuy situation

3) Business markets are similar to consumer markets in that ________. A) the nature of the buying unit is the same for both B) the decision processes involved in both the markets are same C) both involve people who assume buying roles and make purchase decisions to satisfy needs D) both share the same market structure E) the types of decisions are fairly consistent in both the markets

C) both involve people who assume buying roles and make purchase decisions to satisfy needs

64) Sam Doharty, a purchasing manager in Willard Groups of Companies, is currently working with engineers and consultants to define the items to be purchased. Additionally, Sam and his team are ranking the importance of reliability, durability, and price desired in the items. In other words, they are preparing a(n) ________. A) decision tree B) supplier list C) general need description D) order-routine specification E) product proposal

C) general need description

58) Buyers who face a ________ usually go through all stages of the buying process. A) straight rebuy B) modified rebuy C) new-task buying situation D) routine buying situation E) need for limited problem solving

C) new-task buying situation

77) Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling. Which of the following is evident here? A) order-routine specifications B) supplier selection C) performance review D) general needs description E) proposal solicitation

C) performance review

62) The first step of the business buying process is ________. A) general needs description B) product specification C) problem recognition D) order-routine specification E) performance review

C) problem recognition

84) 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. In the business buying process, this approach to cost reduction most likely took place in the ________ stage. A) problem recognition B) general needs description C) product specification D) supplier search E) proposal solicitation

C) product specification

72) Members of the buying center at Kid's World, a store for children's clothing, are drawing up a list of desired supplier attributes and their relative importance. Next, they intend to compare several suppliers' proposals to these attributes. In which step of the business buying process is the buying center at Kid's World involved in? A) general needs description B) proposal solicitation C) supplier selection D) order-routine specification E) performance review

C) supplier selection

18) In a ________ situation, the "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account and the "out" suppliers may see the present situation as an opportunity to make a better offer and gain new business. A) straight rebuy B) new task C) reverse auction D) modified rebuy E) solutions selling

D) modified rebuy

19) In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms, or suppliers. A) reverse auction B) straight rebuy C) new task D) modified rebuy E) absolute auction

D) modified rebuy

56) Factors such as a firm's objectives, procedures, and systems are examples of ________ influences on the business buyer behavior. A) political B) interpersonal C) technological D) organizational E) cultural

D) organizational

71) By showing buyers a better way to make an object, outside sellers can ________ that give them a chance to obtain new business. A) turn straight rebuy situations into modified rebuy situations B) reduce delivery times and save money C) provide incentives for larger orders D) turn straight rebuy situations into new task situations E) discourage straight rebuys

D) turn straight rebuy situations into new task situations

105) The demand for many business goods tends to change more slowly than the demand for consumer goods.

False

107) In a straight rebuy, the buyer wants to alter product specifications, prices, terms, or suppliers.

False

110) Gatekeepers have formal or informal power to select or approve the final suppliers.

False

111) Nancy Willis works for the LeBray Beverage Company. She helps define product specifications and also provides information for evaluating alternatives. Nancy plays the role of a gatekeeper.

False

113) Product value analysis is an approach to enhancing productivity.

False

115) In the supplier selection stage, the buyer reviews supplier performance.

False

121) E-procurement has caused the time between order and delivery to increase significantly.

False

122) The government market consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.

False

109) Influencers often help define specifications and also provide information for evaluating alternatives.

True

99) The main differences between business and consumer markets are in market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved.

True