Question 1

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in ________ market.

Accepted Answer

A)   a consumer
B)   a government
C)   a service
D)   an industrial
E)   a resellerF) D) and E)
G) All of the above

Question 2

The NAICS provides common industry definitions for

Accepted Answer

A)   Canada, the United Kingdom, and the United States.
B)   North America, Asia, and Europe.
C)   North America, Central America, and South America.
D)   Canada, England, and Australia.
E)   Canada, Mexico, and the United States.F) A) and C)
G) A) and B)

Question 3

________ comprise the highest percentage of firms in industrial markets.

Accepted Answer

A)   Manufacturing firms
B)   Construction firms
C)   Agricultural firms
D)   Mining companies
E)   Service companiesF) A) and B)
G) All of the above

Question 4

A buy class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is a minor modification, and the suppliers considered are the present ones, the buy class situation is most likely a

Accepted Answer

A)   conditional buy.
B)   straight rebuy.
C)   new buy.
D)   modified rebuy.
E)   standard buy.F) All of the above
G) C) and E)

Question 5

Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald's with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The firm sources the animal proteins from farms and processes them in a variety of ways, such as breading or freezing, before selling them to McDonald's. Keystone is operating in ________ market.

Accepted Answer

A)   a heavy goods
B)   a government
C)   a service
D)   an industrial
E)   a resellerF) None of the above
G) A) and B)

Question 6

In a buyer-seller relationship, reciprocity refers to

Accepted Answer

A)   the practice whereby a seller requires the purchaser of one product to buy another item in the line.
B)   an industrial buying practice in which two organizations, in this case a manufacturer and a supplier, agree to purchase each other's products and services.
C)   an arrangement a manufacturer makes with a reseller to only handle its products and not those of competitors.
D)   the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer.
E)   when a supplier requires a buyer purchasing some of its products to also buy others.F) B) and E)
G) None of the above

Question 7

In a buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract.

Accepted Answer

A)   buyers
B)   gatekeepers
C)   adopters
D)   influencers
E)   usersF) B) and E)
G) B) and D)

Question 8

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Accepted Answer

A)   The purchase decision is usually quick once the information search has been completed.
B)   After the bid is submitted and even once accepted, terms must still be negotiated.
C)   Even if several vendors make it onto the bidder's list, ultimately only one supplier is chosen.
D)   If a supplier on the bidder's list is not selected, it is rarely told the reason it was rejected.
E)   Once an agreement has been formally reached, neither the buyer nor the seller is permitted to make changes to the terms of the contract.F) C) and D)
G) B) and C)

Question 9

The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

Accepted Answer

A)   secondary marketing.
B)   derived demand.
C)   reciprocal supply.
D)   demand elasticity.
E)   sequential demand.F) A) and B)
G) A) and C)

Question 10

Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1)  to be supplied by 100 percent renewable energy, (2)  to create zero-waste, and (3)  to increase the sale of renewably produced products. Walmart is focusing on

Accepted Answer

A)   using ecological buying centers.
B)   complying with government regulations.
C)   engaging in cause marketing.
D)   increasing its sustainable procurement.
E)   meeting ISO 9000 standards.F) B) and E)
G) C) and E)

Question 11

Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a

Accepted Answer

A)   traditional auction.
B)   reverse auction.
C)   bidder's war.
D)   I-auction.
E)   Webfront auction.F) All of the above
G) B) and C)

Question 12

When the General Services Administration (GSA) , an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as

Accepted Answer

A)   an industrial market.
B)   a business market.
C)   a consumer market.
D)   a government unit.
E)   a service provider.F) A) and C)
G) D) and E)

Question 13

The three types of organizational buy classes are

Accepted Answer

A)   industrial, reseller, and government.
B)   consumer products, industrial goods, and services.
C)   users, influencers, and deciders.
D)   straight purchase, barter, and countertrade.
E)   new buy, straight rebuy, and modified rebuy.F) D) and E)
G) B) and C)

Question 14

In a ________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.

Accepted Answer

A)   derived buy
B)   straight rebuy
C)   make-buy
D)   new buy
E)   modified rebuyF) A) and B)
G) A) and E)

Question 15

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the problem is well-defined, and the buying objective is to find a low-priced supplier, the buy class situation is most likely a

Accepted Answer

A)   modified buy.
B)   straight rebuy.
C)   conditional rebuy.
D)   new buy.
E)   standard buy.F) A) and B)
G) A) and C)

Question 16

Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant?

Accepted Answer

A)   The composition of the buying center remains constant over long periods of time.
B)   The buying center avoids cross-functional teams whenever possible.
C)   The individuals in the buying center may vary depending on the specific item being purchased.
D)   The purchasing manager is an occasional member of the buying center.
E)   The participants are also part of a buying committee.F) C) and D)
G) D) and E)

Question 17

Important market characteristics in organizational buying behavior include which of the following?

Accepted Answer

A)   large markets but orders become progressively smaller over time
B)   diminishing international opportunities as more firms enter the market
C)   many customers placing progressively larger orders over time
D)   fewer customers but with larger orders
E)   a market that functions independently of consumer demandF) A) and B)
G) A) and E)

Question 18

Which of the following statements about Trek Bicycles is false?

Accepted Answer

A)   Trek's funds a nonprofit organization called Dream Bikes to teach youth to fix and repair donated bikes.
B)   Trek has an extensive product line of bicycles.
C)   Trek has always been on the cutting edge, using the latest innovations in its designs.
D)   Trek views the bicycle as an important form of alternative transportation, not just as recreation.
E)   Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all-terrain vehicles (ATVs) .F) B) and E)
G) A) and D)

Question 19

The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers is referred to as

Accepted Answer

A)   buyer development.
B)   a supply partnership.
C)   a make-buy decision.
D)   supplier development.
E)   buyer-seller reciprocity.F) B) and C)
G) B) and D)

Question 20

When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a

Accepted Answer

A)   new buy.
B)   straight rebuy.
C)   standard reorder.
D)   modified rebuy.
E)   make-buy.F) A) and E)
G) B) and C)

Exam 5: Understanding Organizations As Customers

The NAICS provides common industry definitions for

Correct Answer
verified

________ comprise the highest percentage of firms in industrial markets.

Correct Answer
verified

In a buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract.

Correct Answer
verified

The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

Correct Answer
verified

When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a

Correct Answer
verified

Correct Answer
verified

Which of the following statements about Trek Bicycles is false?

Correct Answer
verified

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Correct Answer
verified

The three types of organizational buy classes are

Correct Answer
verified

Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100 percent renewable energy, (2) to create zero-waste, and (3) to increase the sale of renewably produced products. Walmart is focusing on

Correct Answer
verified

The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers is referred to as

Correct Answer
verified

When the General Services Administration (GSA) , an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as

Correct Answer
verified

In a ________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.

Correct Answer
verified

In a buyer-seller relationship, reciprocity refers to

Correct Answer
verified

Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a

Correct Answer
verified

Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant?

Correct Answer
verified

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in ________ market.

Correct Answer
verified

A buy class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is a minor modification, and the suppliers considered are the present ones, the buy class situation is most likely a

Correct Answer
verified

Important market characteristics in organizational buying behavior include which of the following?

Correct Answer
verified

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the problem is well-defined, and the buying objective is to find a low-priced supplier, the buy class situation is most likely a

Correct Answer
verified

Exam 5: Understanding Organizations As Customers

The NAICS provides common industry definitions for

Correct AnswerverifiedShow Answer

________ comprise the highest percentage of firms in industrial markets.

Correct AnswerverifiedShow Answer

In a buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract.

Correct AnswerverifiedShow Answer

The demand for industrial products and services that is driven by demand for consumer products and services is referred to as

Correct AnswerverifiedShow Answer

When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about Trek Bicycles is false?

Correct AnswerverifiedShow Answer

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Correct AnswerverifiedShow Answer

The three types of organizational buy classes are

Correct AnswerverifiedShow Answer

Recently, Matt Kistler, a senior vice president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100 percent renewable energy, (2) to create zero-waste, and (3) to increase the sale of renewably produced products. Walmart is focusing on

Correct AnswerverifiedShow Answer

The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers is referred to as

Correct AnswerverifiedShow Answer

When the General Services Administration (GSA) , an agency of the federal government, purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as

Correct AnswerverifiedShow Answer

In a ________ situation, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers, though the product is largely the same.

Correct AnswerverifiedShow Answer

In a buyer-seller relationship, reciprocity refers to

Correct AnswerverifiedShow Answer

Dell, Inc., sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a

Correct AnswerverifiedShow Answer

Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant?

Correct AnswerverifiedShow Answer

Graham-Field Health Products makes hospital beds and wheelchairs from the component parts and materials it buys. It sells these manufactured products to hospitals, nursing homes, and retailers of health care products. Graham-Field Health Products operates in ________ market.

Correct AnswerverifiedShow Answer

A buy class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is a minor modification, and the suppliers considered are the present ones, the buy class situation is most likely a

Correct AnswerverifiedShow Answer

Important market characteristics in organizational buying behavior include which of the following?

Correct AnswerverifiedShow Answer

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the problem is well-defined, and the buying objective is to find a low-priced supplier, the buy class situation is most likely a

Correct AnswerverifiedShow Answer

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