Principles of marketing ninth canadian edition canadian 9th edition kotler test bank

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Chapter 07: Business Markets and Business Buyer Behaviour 1.0 - Part I True/False Questions 1.0.1. Business buyer behaviour refers to the buying behaviour of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. a True b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-01 218 Recall

Answer: a. True 1.0.2. The main differences between business and consumer markets include market structure and demand, the nature of the buying unit, and the types of decisions. a True b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-02 219 Recall

Answer: a. True 1.0.3. One set of business purchases is made for each set of consumer purchases. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-03 219 Recall

Answer: b. False 1.0.4. A business marketer normally deals with far fewer buyers than the consumer marketer does. a

True

b

False

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Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-04 219 Recall

Answer: a. True 1.0.5. Business demand ultimately derives from the demand for consumer goods and services. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-05 219 Recall

Answer: a. True 1.0.6. Demand in business markets is subject to more fluctuation than in consumer markets. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-06 219 Recall

Answer: a. True 1.0.7. A small percentage increase in consumer demand can cause large increases in business demand. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

1 07-1-07 220 Recall

Answer: a. True 1.0.8. Business buyers usually face more complex buying decisions than do consumer buyers. a

True

b

False

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Difficulty: QuestionID: Page-Reference: Skill:

1 07-1-08 220 Recall

Answer: a. True 1.0.9. Buyer and seller are less dependent upon each other in the business buying process than in the consumer buying process. a True False

b

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-09 221 Recall

Answer: b. False 1.0.10. The marketer need not be aware of what happens within the organization to turn stimuli into purchase responses. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-10 221 Recall

Answer: b. False 1.0.11. Straight rebuy is a business buying situation in which the buyer routinely reorders something without any modifications. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-11 223 Applied

Answer: a. True

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1.0.12. Rob Taylor is the buyer for Major Memories. He regularly orders inexpensive merchandise in a fairly routine fashion without any modifications. He may choose other suppliers from time to time. Rob's decisions take the form of a modified rebuy. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-12 224 Applied

Answer: b. False 1.0.13. Of the different types of buying situations, the modified rebuy presents the fewest decisions for a business buyer to make. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-13 224 Applied

Answer: b. False 1.0.14. The buying centre is not a fixed or formally identified unit within an organization. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

3 07-1-14 225 Recall

Answer: a. True 1.0.15. Nancy Zahm works for LeBray Beverage Company. She often helps to define product specifications and also provides information for evaluating alternatives. In this role she is acting as a gatekeeper. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-15 225 Applied

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Answer: b. False 1.0.16. The decider is the person in the business buying process who controls the flow of information to others involved. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 3 07-1-16 225 Recall

Answer: b. False 1.0.17. In business buying decisions, the role of emotion is negligible in comparison to the role of reason. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

3 07-1-17 226 Applied

Answer: b. False 1.0.18. Environmental, organizational, interpersonal, and individual factors all influence business buyer behaviour. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 1 07-1-18 227 Recall

Answer: a. True 1.0.19. Buyers have different buying styles influenced by interpersonal factors, such as age, income, education, professional identification, and attitudes toward risk. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-19 227 Recall

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Answer: b. False 1.0.20. Buying centre participants with the highest rank always have the most influence. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

1 07-1-20 227-228 Recall

Answer: b. False 1.0.21. A statement prepared by a business buyer describing the quantity and general characteristics of the items needed is a product specification description. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 1 07-1-21 230-231 Recall

Answer: b. False 1.0.22. In the product specification stage of the business buying process, the buyer ranks the importance of reliability, price, and other desired product characteristics. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 1 07-1-22 230 Recall

Answer: b. False 1.0.23. According to the stages of the business buying process, after completing a general need description, a business buyer should next invite qualified suppliers to submit proposals. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 3 07-1-23 230-231 Recall

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Answer: b. False 1.0.24. Proposals should be marketing documents and not just technical documents. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-24 231 Recall

Answer: a. True 1.0.25. Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 3 07-1-25 231 Applied

Answer: b. False 1.0.26. When conducting a performance review, the seller monitors different factors than those monitored by the buyer to make sure that the seller is giving the expected satisfaction. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 3 07-1-26 232 Recall

Answer: b. False 1.0.27. A customer relationship might involve many different types of purchases ongoing at a given time, all in different stages of the buying process. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 3 07-1-27 232 Recall

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Answer: a. True 1.0.28. Online purchasing is standard procedure for most companies today. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

3 07-1-28 232 Recall

Answer: a. True 1.0.29. E-procurement typically reduces drudgery and paperwork, thereby freeing purchasing personnel to focus on more strategic issues. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-29 232 Recall

Answer: a. True 1.0.30. The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-30 232 Recall

Answer: a. True 1.0.31. E-procurement shaves transaction costs and results in more efficient purchasing for both buyers and suppliers, and it also reduces the time between order and delivery. a True b Difficulty: QuestionID: Page-Reference: Skill:

False 2 07-1-31 232 Recall

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Answer: a. True 1.0.32. Unfortunately, most governments do not provide would-be suppliers with detailed guides describing how to sell to the government. a True False

b Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-32 235 Recall

Answer: b. False 1.0.33. It is rare that noneconomic factors play a role in government buying. a

True

b

False

Difficulty: QuestionID: Page-Reference: Skill:

2 07-1-33 235 Recall

Answer: b. False 2.0 - Part II Multiple Choice Questions 2.0.1. According to the text, the majority of large companies sell to ________ as a part of their normal operations. consumers not-for-profit companies employees other organizations the service sector Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-01 218 Recall

Answer: other organizations

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2.0.2. The act of buying goods and services for use in the production of products that are sold and supplied to others is called ________. consumer buying behaviour business buyer behaviour retail buyer behaviour postpurchase dissonance interpretive business research Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-02 218 Recall

Answer: business buyer behaviour 2.0.3. Business buying behaviour refers to the buying behaviour of organizations that buy ________. products for use in production of other products services for use in homes products purchased for homes service products for sale products purchased for personal consumption Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-03 218 Recall

Answer: products for use in production of other products 2.0.4. In some ways, business markets are ________ consumer markets. much larger than smaller than approximately the same as somewhat larger than less complex than Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-04 219 Recall

Answer: approximately the same as

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2.0.5. Business and consumer markets are similar in this regard.

Satisfaction of needs through purchases Nature of the buying unit Market structure and demand Types of decisions Decision processes Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-05 219 Recall

Answer: Satisfaction of needs through purchases 2.0.6. Which of the following is true about consumer marketers in comparison to business marketers?

They deal with far fewer but far larger buyers.

They deal with far more but far smaller buyers.

They deal with a more elastic market.

They deal with fewer demands in fluctuation.

They deal with the same decision buying process.

Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-06 219 Recall

Answer: They deal with far more but far smaller buyers.

2.0.7. Dell buys microprocessor chips because consumers buy computers. This demonstrates an economic principle called ________. elastic demand fluctuating demand market demand joint demand derived demand Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-07 219 Applied

Answer: derived demand

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2.0.8. 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?

Business purchases involve more buyers.

Buyers and sellers in the business market build close, long-term relationships.

Business markets contain more and larger buyers.

Business buyer demand is derived.

Demand in business markets is inelastic.

Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-08 219 Applied

Answer: Buyers and sellers in the business market build close, long-term relationships.

2.0.9. ABC Enterprises sold 9000 units @ $2.99/unit in July. The firm sold 9000 units @ $4.29/unit in August. This illustrates ________ demand. derived contrived fluctuating joint inelastic Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-09 220 Applied

Answer: inelastic 2.0.10. Bernie's Funeral Home produces caskets, a product with a very stable demand even though the price has changed several times in the past two years. Caskets are a product with ________ demand. joint service elastic inelastic fluctuating

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Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-10 220 Applied

Answer: inelastic 2.0.11. Business goods and services demand tends to change more, and more quickly, than the demand for consumer goods and services does. This type of changing demand is referred to as ________ demand. supplier derived inelastic elastic fluctuating Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-11 220 Recall

Answer: fluctuating 2.0.12. The business buying decision process is often more ________ than the consumer buying decision process is. For example, large business purchasers usually call for detailed product specifications, written purchase orders, careful supplier searches, and formal approval where small purchasers may not. independent creative relationship-oriented formalized concentrated Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-12 220 Recall

Answer: formalized

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2.0.13. In most organizations the buying activity can be divided into the buying ________ and the buying ________. centre; decision process time; reorder point economic order quantity; reorder point committee; time deciders; influencers Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-13 223 Recall

Answer: centre; decision process 2.0.14. The _________ buying situation is both the marketer's greatest opportunity and also its greatest challenge. modified rebuy straight rebuy system rebuy multiple rebuys new task Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-14 224 Recall

Answer: new task 2.0.15. A supplier will most likely focus on maintaining product and service quality in the __________ type of buying situation. systems task modified rebuy new task straight rebuy solutions task Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-15 224 Recall

Answer: straight rebuy

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2.0.16. ____________ is when a company provides a complete system to meet the customer's needs and solve the customer's problems.

Customer relationship management Team selling Cross-functional skill Solutions selling Promotions Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-16 224 Applied

Answer: Solutions selling 2.0.17. Another name for solutions selling is ________ selling. periodic purchase blanket contract vendor-managed inventory negotiated contract systems Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-17 224 Recall

Answer: systems 2.0.18. The buying centre of a buying organization is also called the ________. business buyer supplier-development centre buying system business-to-business market decision-making unit Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-18 225 Recall

Answer: decision-making unit

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2.0.19. Which of the following statements about buying centres is true?

The buying centre is like a standing committee.

The buying centre roles are specified on the organizational chart.

The typical buying centre has five employees, one to assume each of the buying centre's roles.

An individual's role in the buying centre does not change.

The buying centre may involve informal participants who are not obvious to sellers.

Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-19 226 Recall

Answer: The buying centre may involve informal participants who are not obvious to sellers.

2.0.20. When you are considering 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 you are considering the _____________. supplier development team cross-functional team quality management centre buying centre partnership management team Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-20 225 Recall

Answer: buying centre 2.0.21. 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. modified rebuy new task straight rebuy solution selling value analysis Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-21 224 Applied

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Answer: modified rebuy 2.0.22. Which of the following is most likely true about a straight rebuy?

It requires little customer relationship management.

It is more complex than a new-task situation.

It often involves products with low risks.

It occurs when a buyer wants to locate the best deal on the market.

It involves more opportunities for "out" buyers than other types of purchasing situations do.

Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-22 223 Applied

Answer: It often involves products with low risks.

2.0.23. 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. modified rebuy new task straight rebuy solution selling value analysis Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-23 223 Applied

Answer: straight rebuy 2.0.24. Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use.

This purchase of coops is an example of a ________. modified rebuy new task straight rebuy solution selling situation value analysis

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Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-24 224 Applied

Answer: modified rebuy 2.0.25. The EPA has mandated that, in order to reduce local pollution, your printing plant switch from oilbased to water-based inks. This will require entirely new printing presses and a new printing plate technology. After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work, the printing plant's buying centre will be ready to make this ________ purchase. modified rebuy new task straight rebuy straight task situational analysis Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-25 224 Applied

Answer: new task 2.0.26. In routine buying situations, which members of the buying centre have formal or informal power to select or approve the final suppliers?

Users Influencers Gatekeepers Deciders Buyers Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-26 225 Recall

Answer: Deciders

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2.0.27. A(n) ________ controls the flow of information to others in the buying centre. user influencer buyer gatekeeper decider Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-27 225 Recall

Answer: gatekeeper 2.0.28. Someone who provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing is often called a(n) ________. user gatekeeper decider influencer buyer Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-28 225 Recall

Answer: gatekeeper 2.0.29. Often people who have formal authority to select the suppliers and arrange terms of purchase for items a company uses are called ________. users buyers influencers deciders gatekeepers Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-29 225 Recall

Answer: buyers

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2.0.30. A buying centre is not a fixed, formally identified unit within an organization but, rather, a set of ________ assumed by different people for different purchases. budgetary limits informal job titles buying roles status roles marketing positions Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-30 225 Recall

Answer: buying roles 2.0.31. 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 ________. user; buyer buyer; influencer buyer; gatekeeper decider; buyer gatekeeper; influencer Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-31 225 Applied

Answer: decider; buyer 2.0.32. 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 centre, the dental assistant had the role of ________. initiator buyer gatekeeper influencer liaison

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Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-32 225 Applied

Answer: influencer 2.0.33. 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 centre, Dr. Albrecht had the role of ________. initiator decider agent influencer liaison Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-33 225 Applied

Answer: decider 2.0.34. A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel. In terms of the buying centre, the truck drivers who must make sure that the trucks do not run out of fuel are the ________. initiators deciders buyers influencers users Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-34 225 Applied

Answer: users

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2.0.35. When suppliers' offers are very similar, business buyers have little basis for strictly ________. emotional choice rational choice personal choice intuitive choice independent choice Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-35 227 Recall

Answer: rational choice 2.0.36. When competing products differ greatly, business buyers are more accountable for their purchase choices and tend to pay more attention to ________. economic factors emotional choice intuition personal factors creative factors Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-36 227 Recall

Answer: economic factors 2.0.37. Which environmental factor is the reason that many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply?

The level of primary demand The economic outlook The cost of money Culture and customs Shortages in key materials Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-37 227 Recall

Answer: Shortages in key materials

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2.0.38. To ensure an adequate and available supply of key scarce materials, many companies are now willing to ________. decrease levels of demand buy and hold large inventories of the materials eliminate distribution and warehousing partners experiment with just-in-time technologies reduce the length of the supply chain Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-38 227 Recall

Answer: buy and hold large inventories of the materials 2.0.39. The major influences on the buying process at General Aeronautics include company policies and systems, technological change, and economic developments. The influences on the buying process in this scenario are most accurately categorized as ________ and ________. individual; environmental organizational; interpersonal individual; organizational environmental; interpersonal organizational; environmental Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-39 227 Recall

Answer: organizational; environmental 2.0.40. The ______________ factors influencing a buying centre are often the most difficult factors for marketers to assess. economic interpersonal technological organizational political Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-40 227 Recall

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Answer: interpersonal 2.0.41. Policies, procedures, and systems are all examples of ________ influences on business buyer behaviour. environmental authoritative interpersonal organizational cultural Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-41 227 Recall

Answer: organizational 2.0.42. Status, empathy, and persuasiveness are all examples of ________ influences on business buyer behaviour. environmental individual interpersonal organizational cultural Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-42 227 and 229 Recall

Answer: interpersonal 2.0.43. Which of the following accurately describes a cultural difference international marketers should be aware of?

Outside of English-speaking countries, most business leaders do not speak English.

British businesspeople are accustomed to making more business deals over the telephone than in person.

German people tend to be impressed by overstatement and showiness.

Japanese people tend to put a high value on rank.

French businesspeople are accustomed to building relationships between buyer and seller through quick and easy familiarity.

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Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-43 229 Recall

Answer: Japanese people tend to put a high value on rank.

2.0.44. Charlie Nolan, 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. straight rebuy modified rebuy new task buying limited budget independent buying Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-44 229 Applied

Answer: new task buying 2.0.45. Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition?

A buyer gets a new idea from an advertisement.

A buyer gets a new idea at a trade show.

A buyer is unhappy with a current supplier's price.

A buyer receives a call from a salesperson offering better service terms.

A buyer learns about a new product at an industry convention.

Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-45 230 Recall

Answer: A buyer is unhappy with a current supplier's price.

2.0.46. The first step of the business buying process is ________. general need description alternative evaluations problem recognition order-routine specification performance review

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Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-46 230 Recall

Answer: problem recognition 2.0.47. Business marketers that alert customers to potential problems and then show how their products provide solutions are trying to influence the ________ stage of the business buying process. general need description alternative evaluations performance review order-routine specification problem recognition Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-47 230 Recall

Answer: problem recognition 2.0.48. 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) ________. value analysis product specifications list general need description order-routine specification product proposal Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-48 230 Recall

Answer: general need description

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2.0.49. In which stage of the business buying process is a supplier most likely to provide a buyer with information about the values of different product characteristics?

Problem recognition General need description Supplier search Supplier selection Order-routine specification Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-49 230 Recall

Answer: General need description 2.0.50. The buying centre uses _____________ when deciding on the best product characteristics. product specifications general need descriptions marketing myopias purchase orders value analysis Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-50 230 Recall

Answer: product specifications 2.0.51. 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?

Proposal solicitation General need description Order-routine specification Performance review Product specification Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-51 230-231 Recall

Answer: Product specification

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2.0.52. In the generally accepted stages of the business buying process, the step following problem recognition is ________. proposal solicitation supplier search product value analysis general need description performance review Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-52 230 Recall

Answer: general need description 2.0.53. Worthington Farm raises chickens. For years, it has used wooden coops for hauling its poultry to market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Worthington was at which stage of the business buying process when he decided to replace his old coops?

Problem recognition General need description Product specification Product value analysis Performance review Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-53 230 Applied

Answer: Problem recognition 2.0.54. 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. problem recognition general need description product specification supplier search proposal solicitation

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Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-54 230-231 Applied

Answer: product specification 2.0.55. The executive for Just In Time Party Services have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of party products. This is an example of ________ management. supplier development network relationship channel captain core channel value chain Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-55 221 Recall

Answer: supplier development 2.0.56. In what type of buying situation would a seller most likely send only a catalogue to the buyer during the proposal solicitation stage of the business buying process?

New task Modified rebuy Straight rebuy Solution selling Independent task Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-56 231 Applied

Answer: Straight rebuy

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2.0.57. Most newspapers rely on ________ so they do not need to rely on only one supplier to provide the tons of paper that they use annually. single sourcing multiple sourcing cross-docking vendor-managed inventory blanket contracting Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-57 231 Applied

Answer: multiple sourcing 2.0.58. The Gro-Fast company uses ___________ to find the best suppliers. value analysis performances review supplier control supplier search supplier selection Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-58 231 Applied

Answer: supplier search 2.0.59. A buyer would be most likely to review trade directories in which stage of the business buying process?

Problem recognition General need description Product specification Supplier search Supplier selection Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-59 231 Recall

Answer: Supplier search

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2.0.60. In the generally accepted stages of the business buying process, the step following product specification is ________. proposal solicitation supplier search problem recognition general need description order-routine specification Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-60 231 Recall

Answer: supplier search 2.0.61. Members of the buying centre 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 centre at ABC Kid's World engaged?

Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-61 231 Applied

Answer: Supplier selection

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2.0.62. Which of the following statements about the supplier selection stage of the business buying decision process is true?

Price is the only factor businesses consider before making a purchase decision.

Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier.

Price and warranty are the only two factors businesses consider before making a purchase decision.

Buyers do not negotiate for better terms before making a final supplier selection.

Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behaviour, and honest communication.

Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-62 231 Recall

Answer: Before selecting a supplier, many companies consider the supplier's reputation, ethical corporate behaviour, and honest communication.

2.0.63. During the ________ stage of the business buying decision process, the buying centre assesses the proposals. proposal solicitation supplier selection product value analysis order-routine specification performance review Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-63 231 Recall

Answer: supplier selection 2.0.64. In the case of maintenance, repair, and operating items, buyers may use a ________ rather than periodic purchase orders. blanket contract negotiable instrument binding purchase order locked-in sale solutions purchase

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Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-64 231 Recall

Answer: blanket contract 2.0.65. In which stage of the business buying process is a supplier's task to make sure that the supplier is giving the buyer the expected satisfaction?

Problem recognition Performance review Supplier search Supplier selection Order-routine specification Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-65 232 Recall

Answer: Performance review 2.0.66. Following a purchase, the buyer and seller would both monitor which phase of the new-task buying situation?

Order-routine specifications Supplier selection Performance review Value analysis Vendor analysis Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-66 232 Recall

Answer: Performance review 2.0.67. Under a ________, a supplier monitors and replenishes a buyer's stock automatically as needed. vendor-managed inventory negotiated contract stand-alone contract periodic purchase order blanket contract

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Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-67 232 Recall

Answer: vendor-managed inventory 2.0.68. Instead of focusing on managing individual purchases, a seller should focus on managing ________. building a good reputation in the marketplace the organizational environment the use of blanket contracts order-routine specifications the total customer relationship Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-68 232 Recall

Answer: the total customer relationship 2.0.69. Which of the following would allow a company to create direct procurement accounts with suppliers such as Dell or Office Depot through which company buyers can purchase equipment, materials, and supplies directly?

An intranet An extranet Buying centres A reverse auction A trading exchange Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-69 232 Recall

Answer: An extranet 2.0.70. Reverse auctions, trading exchanges, and company buying sites are all ways that companies can participate in ________. secure extranets product value analysis vendor-managed inventory systems blanket contracts e-procurement

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Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-70 232 Recall

Answer: e-procurement 2.0.71. A problem with the rapidly expanding use of e-purchasing is that it ________. can erode established customer-supplier relationships saves less time than expected generates more transactions to document generates less cost savings than predicted reduces the amount of time purchasing people can spend on strategic issues Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-71 236 Recall

Answer: can erode established customer-supplier relationships 2.0.72. 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) ________. extranet intranet search engine trading exchange reverse auction Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-72 232 Applied

Answer: extranet

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2.0.73. Which of the following was most likely being used when Boeing received orders for $100 million in spare parts in the first year its website was in operation?

E-procurement An intranet Single sourcing Blanket contracting A reverse auction site Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-73 232 Applied

Answer: E-procurement 2.0.74. Which of the following statements about e-procurement security issues is true?

There are no security risks for companies doing business on the Internet.

Firewalls provide adequate security for all Internet exchanges.

Hackers are not interested in many business-to-business transactions.

Extranet users and Internet users face the same security risks and use the same security tools.

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

Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-74 232 Recall

Answer: Providing e-procurement security can involve a substantial financial investment from a company.

2.0.75. Sage Inc. provides food services to schools, hospitals, and nursing homes in the Midwest.

Management at Sage is involved in the ________ market. government not-for-profit local institutional global Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-75 233 Applied

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Answer: institutional 2.0.76. Many institutional markets are characterized by ________ and ________. low budgets; vague criteria special needs; vague criteria low budgets; captive patrons captive patrons; limited access mismanagement; disgruntled workers Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-76 233 Recall

Answer: low budgets; captive patrons 2.0.77. Government organizations tend to favour ________ suppliers over ________ suppliers. local; domestic unionized; nonunionized foreign; domestic domestic; foreign nonunionized; unionized Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-77 235 Recall

Answer: domestic; foreign 2.0.78. Information about bidding opportunities in the federal government is widely available online through the electronic tendering system _______.

NAFTA MERX AIT PWSCG StatsCan Difficulty: QuestionID: Page-Reference: Skill:

1 07-2-78 235 Recall

Answer: MERX

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2.0.79. There are many factors considered in government buying, but ________ is, above all, the most important. price product differentiation advertising personal selling packaging Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-79 235 Recall

Answer: price 2.0.80. Total government spending is determined by ________ rather than by any ________ to develop this market. price; contracts elected officials; contracts elected officials; marketing effort marketing effort; elected officials' effort product and service availability; marketing strategies Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-80 235 Recall

Answer: elected officials; marketing effort 2.0.81. One unique thing about government buying is that it is _______. affected by environmental factors decided by a buying centre carefully watched by outside publics affected by organizational factors prone to human error Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-81 234 Recall

Answer: carefully watched by outside publics

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2.0.82. Refer to the scenario below to answer the following question.

A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model 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, the purchasing agent Richard Koehl has been asked to reduce the number of A-1'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 a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1'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 A-1 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 producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.

The demand for A-1 Stampings' products is ultimately based on the demand for new automobiles in the consumer market. This is an example of ________ demand. inelastic static increasing derived independent Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-82 219 Applied

Answer: derived

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2.0.83. Refer to the scenario below to answer the following question.

A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model 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, the purchasing agent Richard Koehl has been asked to reduce the number of A-1'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 a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1'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 A-1 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 producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.

In this scenario, which of the following had the greatest influence on the business buying behaviour at A-1 Stampings?

Regulatory developments Organizational structure Shifting authority Technological changes Individuals' risk attitudes Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-83 227 Applied

Answer: Technological changes

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2.0.84. Refer to the scenario below to answer the following question.

A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model 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, the purchasing agent Richard Koehl has been asked to reduce the number of A-1'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 a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1'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 A-1 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 producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.

The quality control manager and line inspector at A-1 could help to determine which suppliers had the capabilities of producing specific types of steel. What role can each play in the purchase decision process?

Influencer Gatekeeper Decider Buyer User Difficulty: QuestionID: Page-Reference: Skill:

3 07-2-84 225 Applied

Answer: Influencer

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2.0.85. Refer to the scenario below to answer the following question.

A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model 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, the purchasing agent Richard Koehl has been asked to reduce the number of A-1'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 a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1'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 A-1 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 producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.

Richard Koehl is the purchasing agent at A-1 Stampings Inc. What role will he play in the purchase decision process?

Influencer Gatekeeper Decider Buyer User Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-85 225 Applied

Answer: Buyer

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2.0.86. Refer to the scenario below to answer the following question.

A-1 Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes for the next model 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, the purchasing agent Richard Koehl has been asked to reduce the number of A-1'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 a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1'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 A-1 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 producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.

Due to ________ factors, Richard Koehl is now more willing to buy and hold larger inventories of scarce materials to ensure adequate supply. environmental technological organizational political competitive Difficulty: QuestionID: Page-Reference: Skill:

2 07-2-86 227 Applied

Answer: environmental

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