Question 1

A retail buyer who is "open to buy" has funds budgeted to spend during the current time period.

Accepted Answer

A) True 
 B)False

Question 2

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.

Accepted Answer

A) True 
 B)False

Question 3

A sales representative calls on a prospective business customer only to find that the customer has an established relationship with another supplier that seems to be working well. The customer is not interested in considering other suppliers. The customer is currently in a ____________________ situation.

Accepted Answer

A)   straight rebuy
B)   modified rebuy
C)   new-task
D)   extensive problem-solving
E)   limited problem-solvingF) A) and D)
G) D) and E)

Question 4

Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.

Accepted Answer

A) True 
 B)False

Question 5

When a purchasing manager knows roughly what is needed but can't describe it exactly--or when the purchasing arrangement may change as the job progresses--then buying is likely to be by:

Accepted Answer

A)   negotiated contract.
B)   description.
C)   inspection.D) B) and C)
E) All of the above

Question 6

Close buyer-seller relationships may not make sense because:

Accepted Answer

A)   Flexibility may be reduced for the firms involved.
B)   Not all purchases are important enough to the buyer to justify a close relationship with a supplier.
C)   Some suppliers do not want to deal with buyers who place small orders.
D)   There are situations when the buyer could get reduced prices by letting suppliers compete for the buyer's business.
E)   All of the above.F) A) and B)
G) A) and C)

Question 7

In the purchase of a new computer monitor, which of the following is an example of a user?

Accepted Answer

A)   A purchasing manager who arranges the terms of the sale.
B)   An IT manager who supplies information for evaluating alternatives.
C)   A secretary whose computer monitor is being replaced.
D)   A receptionist who controls the flow of information.
E)   A supply manager who helps write specifications.F) A) and B)
G) B) and D)

Question 8

During the purchase of new tooling at Acme Tool and Die, which of the following is an example of a gatekeeper?

Accepted Answer

A)   Sara, a purchasing manager, arranges the terms of the sale.
B)   Ross, from R&D, supplies information for evaluating alternatives.
C)   Charlotte, in manufacturing, has the power to select or approve suppliers.
D)   Andre, a research assistant, gathers and distributes information about alternatives.
E)   Rita, from the manufacturing floor, will use the new tooling.F) B) and C)
G) None of the above

Question 9

Which of the following is NOT one of the organizational buying processes discussed in the text?

Accepted Answer

A)   Multiple task buying.
B)   Modified rebuy buying.
C)   New-task buying.
D)   Straight rebuy buying.
E)   None of the above, i.e., all are buying processes.F) B) and C)
G) C) and D)

Question 10

Regarding buying by intermediaries,

Accepted Answer

A)   computer-controlled inventory systems make buyers more dependent on sales reps.
B)   buying committees are a way for supermarkets to handle the flood of new products.
C)   buyers are seldom influenced by their salespeople.
D)   wholesalers and retailers typically only carry products which they have judged "socially desirable."
E)   all of the above are true.F) A) and B)
G) A) and C)

Question 11

Most manufacturers are quite small, with 250 or fewer employees.

Accepted Answer

A) True 
 B)False

Question 12

The government is the largest customer group in all countries.

Accepted Answer

A) True 
 B)False

Question 13

So far, B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.

Accepted Answer

A) True 
 B)False

Question 14

If a firm targets business and organizational markets,

Accepted Answer

A)   the geographic location of the customer is likely to be less important than in segmenting consumer markets.
B)   NAICS codes may help in segmenting manufacturers but not producers of services.
C)   each customer may need to be treated as a different segment.
D)   All of the above are true.
E)   None of the above is true.F) A) and B)
G) None of the above

Question 15

Which of the following NAICS codes would be used by a marketing manager who wanted data that was the MOST SPECIFIC to a particular type of firm within an industry?

Accepted Answer

A)   31
B)   31522
C)   315
D)   3152
E)   There is no way to tell from the information provided.F) B) and C)
G) B) and E)

Question 16

A close buyer-seller relationship in a business market may reduce a firm's flexibility.

Accepted Answer

A) True 
 B)False

Question 17

When a company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth, in order to determine which suppliers to put on an approved list of suppliers for specific products, this process is called a(n) :

Accepted Answer

A)   JIT rating.
B)   resident buyer analysis.
C)   vendor analysis.
D)   ISO 9000 certification.
E)   buying center analysis.F) A) and D)
G) A) and C)

Question 18

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

Accepted Answer

A)   Selective buying
B)   Modified rebuy buying
C)   Intensive buying
D)   New-task buying
E)   Straight rebuy buyingF) C) and D)
G) C) and E)

Question 19

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

Accepted Answer

A)   gatekeeping
B)   resident buying
C)   competitive bidding
D)   outsourcing
E)   auctioningF) D) and E)
G) C) and E)

Question 20

A "buying center"

Accepted Answer

A)   may vary from purchase to purchase.
B)   refers to all the purchasing agents in a large firm.
C)   is usually identified on a firm's organization chart.
D)   is usually controlled by the purchasing manager.
E)   is usually located in major wholesale markets.F) C) and E)
G) All of the above

Exam 7: Business and Organizational Customers and Their Buying Behavior

A retail buyer who is "open to buy" has funds budgeted to spend during the current time period.

Correct Answer
verified

Which of the following is NOT one of the organizational buying processes discussed in the text?

Correct Answer
verified

The government is the largest customer group in all countries.

Correct Answer
verified

If a firm targets business and organizational markets,

Correct Answer
verified

Correct Answer
verified

A close buyer-seller relationship in a business market may reduce a firm's flexibility.

Correct Answer
verified

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

Correct Answer
verified

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

Correct Answer
verified

In the purchase of a new computer monitor, which of the following is an example of a user?

Correct Answer
verified

When a purchasing manager knows roughly what is needed but can't describe it exactly--or when the purchasing arrangement may change as the job progresses--then buying is likely to be by:

Correct Answer
verified

Close buyer-seller relationships may not make sense because:

Correct Answer
verified

During the purchase of new tooling at Acme Tool and Die, which of the following is an example of a gatekeeper?

Correct Answer
verified

Most manufacturers are quite small, with 250 or fewer employees.

Correct Answer
verified

So far, B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.

Correct Answer
verified

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.

Correct Answer
verified

Regarding buying by intermediaries,

Correct Answer
verified

Which of the following NAICS codes would be used by a marketing manager who wanted data that was the MOST SPECIFIC to a particular type of firm within an industry?

Correct Answer
verified

Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.

Correct Answer
verified

When a company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth, in order to determine which suppliers to put on an approved list of suppliers for specific products, this process is called a(n) :

Correct Answer
verified

A "buying center"

Correct Answer
verified

Exam 7: Business and Organizational Customers and Their Buying Behavior

A retail buyer who is "open to buy" has funds budgeted to spend during the current time period.

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the organizational buying processes discussed in the text?

Correct AnswerverifiedShow Answer

The government is the largest customer group in all countries.

Correct AnswerverifiedShow Answer

If a firm targets business and organizational markets,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A close buyer-seller relationship in a business market may reduce a firm's flexibility.

Correct AnswerverifiedShow Answer

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

Correct AnswerverifiedShow Answer

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

Correct AnswerverifiedShow Answer

In the purchase of a new computer monitor, which of the following is an example of a user?

Correct AnswerverifiedShow Answer

When a purchasing manager knows roughly what is needed but can't describe it exactly--or when the purchasing arrangement may change as the job progresses--then buying is likely to be by:

Correct AnswerverifiedShow Answer

Close buyer-seller relationships may not make sense because:

Correct AnswerverifiedShow Answer

During the purchase of new tooling at Acme Tool and Die, which of the following is an example of a gatekeeper?

Correct AnswerverifiedShow Answer

Most manufacturers are quite small, with 250 or fewer employees.

Correct AnswerverifiedShow Answer

So far, B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.

Correct AnswerverifiedShow Answer

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.

Correct AnswerverifiedShow Answer

Regarding buying by intermediaries,

Correct AnswerverifiedShow Answer

Which of the following NAICS codes would be used by a marketing manager who wanted data that was the MOST SPECIFIC to a particular type of firm within an industry?

Correct AnswerverifiedShow Answer

Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.

Correct AnswerverifiedShow Answer

When a company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth, in order to determine which suppliers to put on an approved list of suppliers for specific products, this process is called a(n) :

Correct AnswerverifiedShow Answer

A "buying center"

Correct AnswerverifiedShow Answer

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