marketing chap 6

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

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

D) deciders

true or false Gatekeepers have formal or informal power to select or approve the final suppliers

false

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

E) gatekeeper

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

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

________ 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

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

Which of the following is true about business purchases? A) Business purchases involve more professional purchasing effort than consumer purchases. B) Business purchases involve fewer 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.

________ refers to purchasing through electronic connections between buyers and sellers—usually online. A) E-procurement B) General need specification C) Strategic sourcing D) Proposal solicitation E) Value chain management

A) E-procurement

________ 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) Business buying C) Supplier quality assurance D) Relationship management E) Executive development

A) Supplier development

________ 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) Performance review C) Problem recognition D) Proposal solicitation E) General need specification

A) Systems selling

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

Rudolf Technologies Inc. decided to enter the automobile service market. Consequently, the company decided to procure the tools and machines needed from a reputable 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

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

Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of produci

A) decider

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

A) derived

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

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

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

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

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

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

A) order routine specification

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

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

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

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

Phoi Nguyen, a manufacturing mechanic, determines that the molds for manufacturing plastic jar lids are wearing out sooner than expected. Phoi contacts her manager to request that the parts be reordered. In this instance, Phoi played the role of a(n) ________. A) user B) buyer C) gatekeeper D) influencer E) decider

A) user

________ refer to members of the buying organization who help define specifications and provide information for evaluating alternatives. A) Gatekeepers B) Influencers C) Users D) Deciders E) Buyers

B) Influencers

________ 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

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?

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

The United States Environmental 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

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

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

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

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

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

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

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

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

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

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

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

In new product buying, the users are often the ________. A) monitors B) influencers C) gatekeepers D) deciders E) primary advertisers

B) influencers

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

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 substandard. Which of the following stages in the business buying process is Ross' company currently in? A) general needs description B) problem recognition C) product specification D) order-routine specification E) performance review

B) problem recognition

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.

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.

________ 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

________ may help shape product specifications, but their major role is to select vendors and to negotiate. A) Gatekeepers B) Deciders C) Buyers D) Influencers E) Users

C) Buyers

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

________ 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

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.

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

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

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

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

The ________ refer(s) to all the individuals and units that play a role in the purchase decision-making process. A) users B) influencers C) buying center D) gatekeepers E) systems sellers

C) buying center

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

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

C) derived

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 ________ demand. A) primary B) negative C) derived D) elastic E) business

C) derived

SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo Limited through its Web site in 2013. This is an example of ________. A) order-routine specification B) supplier selection C) e-procurement D) proposal solicitation E) customer relations management

C) e-procurement

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

C) elected officials

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

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

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

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

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

Johann 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

In ________, companies put their purchasing requests online and invite suppliers to bid for the business. A) product specification B) supplier search C) reverse auctions D) procurement E) problem recognition

C) reverse auctions

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

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

Which of the following is LEAST likely a characteristic of business-to-business e-procurement? A) greater access to new 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

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

Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of produci

D) derived

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

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

Sage Hospitals, a nonprofit 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

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

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

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

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

D) problem recognition

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

By showing buyers a better way to make an object, outside sellers can ________ . 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

Under ________, buyers share sales and inventory information directly with key suppliers who monitor and replenish the buyer's stock automatically as needed. A) supplier selection B) proposal solicitation C) general need specification D) vendor-managed inventory E) procurement

D) vendor-managed inventory

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.

________ 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

________ 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

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.

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

E) decider

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

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) product proposal D) order-routine specification E) general need description

E) general need description

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 ________ demand. A) derived B) negative C) highly elastic D) composite E) inelastic

E) inelastic

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

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

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

Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of produci

false

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

false

true or false E-procurement has caused the time between order and delivery to increase significantly

false

true or false In the supplier selection stage, the buyer reviews supplier performance.

false

true or false Product value analysis is an approach to enhancing productivity.

false

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

false

true or false 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

true or false 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

Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of produci

true

True or False In the general needs description of the buying process, the buyer describes the characteristics and quantity of the needed item.

true

true or false Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder

true

true or false In the proposal solicitation stage of the business buying process, the buyer invites qualified suppliers to submit proposals.

true

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

true

true or false 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