MKT101 chapter 6
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
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
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
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
Instead of focusing on individual purchases, a seller should focus on managing the ________. A) buyer's reputation in the marketplace B) organizational environment C) use of blanket contracts D) order-routine specifications E) total customer relationship
E
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
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
Economic, technological, and political factors are all ________ that affect the business buying process. A) organizational factors B) environmental factors C) interpersonal influences D) individual influences E) marketing stimuli
B
Giant Food Stores buys 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) static E) inelastic
B
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
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
In which stage of the business buying process is a supplier most likely to provide a buyer with information about the importance of different product characteristics? A) problem recognition B) general need description C) supplier search D) supplier selection E) order-routine specification
B
In which stage of the business buying process is it 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
Most newspapers use ________ 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
A firewall is a(n) ________. A) commonly used technique to safeguard Internet and extranet transactions B) method of communicating with e-commerce customers C) tool used by hackers to infiltrate corporate Web sites D) method for increasing employee productivity E) effective method for efficiently linking buyer and seller Web sites
A
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
Another name for systems selling is ________ selling. A) solutions B) blanket contract C) vendor-managed inventory D) negotiated contract E) periodic purchase
A
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
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
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
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
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
There are many factors considered in government buying, but ________ is typically the most important. A) price B) public relations C) advertising D) personal selling E) packaging
A
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
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
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
A
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
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
Worthington Farm raises chickens. For years, it has used wooden coops to haul 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
Worthington Farm raises chickens. For years, it has used wooden coops to haul 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
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
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
) 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, your 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
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
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
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
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
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
When suppliers' offers are very similar, business buyers have little basis for a strictly ________. A) emotional choice B) rational choice C) personal choice D) intuitive choice E) independent choice
B
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
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
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
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
Empire Products has begun a process to find the best suppliers. Empire Products is actively engaged in ________. A) value analysis B) performance review C) supplier search D) supplier control E) supplier selection
C
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
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
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
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
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
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
Status, empathy, and persuasiveness are all examples of ________ influences on business buyer behavior. A) environmental B) individual C) interpersonal D) organizational E) cultural
C
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
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
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
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
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
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 efforts; elected officials' effort E) product and service availability; marketing strategies
C
Using a(n) ________, a company puts its purchasing requests online and invites suppliers to bid for the business. A) intranet B) vendor-managed inventory system C) reverse auction D) trading exchange E) router
C
When compared to consumer markets, business markets are ________. A) approximately the same B) smaller C) huge D) somewhat larger E) less complex
C
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
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
Which of the following is NOT part of the business market? A) Scott Sign Systems sells interior signs to an Alabama resort. B) A country club buys chemicals for its swimming pool. 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
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
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
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
Which of the following is the last stage of the business buying process? A) order-routine specifications B) supplier selection C) performance review D) value analysis E) vendor analysis
C
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
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
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
A(n) ________ controls the flow of information to others in the buying center. A) user B) influencer C) buyer D) gatekeeper E) decider
D
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
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) postpurchase dissonance C) retail buyer behavior D) business buyer behavior E) interpretive business research
D
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
Government organizations tend to favor ________ suppliers over ________ suppliers. A) local; domestic B) part-time; full-time C) foreign; domestic D) domestic; foreign E) nonunionized; unionized
D
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
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
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
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
Policies, procedures, and systems are all examples of ________ influences on business buyer behavior. A) environmental B) authoritative C) interpersonal D) organizational E) cultural
D
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 E) global
D
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
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
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
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
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
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
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
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
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
In which of the following ways is Boeing 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 an investment division. D) Most of its business comes from final consumers. E) Most of its business comes from commercial and industrial customers.
E
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
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
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
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
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
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 for ethical corporate behavior and honest communication.
E
