Question 1

Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that

Accepted Answer

A)   purchase exclusively from one supplier.
B)   are exempt from state and local taxes.
C)   sell directly to ultimate consumers.
D)   sell goods and services for their own use.
E)   buy products and services for their own use or for resale.F) All of the above
G) None of the above

Question 2

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) None of the above
G) A) and E)

Question 3

Independent e-marketplaces act as a neutral third party, provide an Internet technology trading platform, and provide ________ market that enable exchanges between buyers and sellers.

Accepted Answer

A)   a centralized
B)   a deconsolidated
C)   a segregated
D)   an integrated
E)   a noncompetitiveF) A) and D)
G) C) and D)

Question 4

Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision?

Accepted Answer

A)   comparison of product performance with expectations
B)   purchase decisions based on the highest overall evaluation
C)   alternatives evaluated on important criteria
D)   information gathered from internal and external searches
E)   problem recognition triggered by self-actualization motivesF) None of the above
G) A) and B)

Question 5

Which of the following types of firms are in the industrial market?

Accepted Answer

A)   retailing
B)   fisheries
C)   wholesaling
D)   state governments
E)   federal regulatory agenciesF) A) and B)
G) A) and E)

Question 6

The North American Industry Classification System (NAICS)  designates industries with a numerical code in a defined structure. A six-digit coding system is used. The third digit designates

Accepted Answer

A)   an industry subsector.
B)   an industry group.
C)   a specific industry.
D)   an individual country-level national industry.
E)   a sector of the economy.F) A) and D)
G) A) and B)

Question 7

Beth is part owner of a chain of auto repair shops. Her company was considering adding tire sales in some of its facilities, and several people were slated to meet to discuss the idea. Beth gathered information about possible distributors. Her son had been laid off from a job with one of them, so she removed this company from the group she was preparing to present to the others. Here, Beth was acting in what role in the buying center?

Accepted Answer

A)   gatekeeper
B)   decider
C)   user
D)   obstructionist
E)   power brokerF) All of the above
G) C) and D)

Question 8

The primary organizational buying objective for business firms is to

Accepted Answer

A)   create an atmosphere of inclusiveness.
B)   help smaller companies stay in business.
C)   increase the efficiency of its buyers.
D)   help the firm increase profitability.
E)   turn inventory.F) A) and E)
G) A) and D)

Question 9

Which of the following statements about e-marketplaces that act as independent trading communities is false?

Accepted Answer

A)   These trading communities allow buyers to easily compare offerings from various sellers.
B)   Independent trading communities charge a fee for their service.
C)   Independent trading communities often consist of thousands of geographically dispersed buyers and sellers.
D)   This independent type of trading community is favored by large companies.
E)   Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.F) B) and D)
G) A) and E)

Question 10

Consider how buy classes affect buying center tendencies in different ways. Describe the buy-class situations, and discuss the implications for the organization of each type of buy class.

Accepted Answer

New buy. Here the organization is a first-time buyer of the product or service. This involves greater potential risks in the purchase, so the buying center is enlarged to include all those who have a stake in the new buy. Straight rebuy. Here the buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from the engineering, production, or quality control departments. Modified rebuy. In this buying situation the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier. Although the item purchased is largely the same as with the straight rebuy, the changes usually necessitate enlarging the buying center to include people outside the purchasing department. See Figure 6-4.

Question 11

What is the North American Industry Classification System (NAICS)?

Accepted Answer

The North American Industry Classificati...

Question 12

All of the following statements about the purchase involved in organizational buying are true except which?

Accepted Answer

A)   The length of time required to arrive at a purchase agreement can vary with size of purchase.
B)   The dollar value of a single purchase made by an organization often runs into thousands or millions of dollars.
C)   The size of purchase impacts who participates in the purchase decision.
D)   The size of purchase impacts who makes the final decision.
E)   The size of the purchase is typically smaller than it is in consumer buying but it is done more frequently.F) A) and C)
G) B) and E) E

Question 13

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 E)

Question 14

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) D) and E)
G) A) and B)

Question 15

Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy goods and services for their own use or for resale are referred to as

Accepted Answer

A)   multinational buyers.
B)   resellers.
C)   organizational buyers.
D)   ultimate consumers.
E)   institutional buyers.F) All of the above
G) A) and E)

Question 16

A ________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

Accepted Answer

A)   supplier development agreement
B)   reciprocal arrangement
C)   shareholder relationship
D)   supply partnership
E)   strategic allianceF) C) and E)
G) B) and E)

Question 17

The services market sells diverse services such as legal advice, auto repair, and dry cleaning, and this market represents 75 percent of all industrial firms. Which of the following is another such service firm?

Accepted Answer

A)   communication
B)   wholesalers
C)   retailers
D)   government units
E)   educational institutionsF) C) and D)
G) A) and C)

Question 18

At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?

Accepted Answer

A)   problem recognition
B)   information search
C)   alternative evaluation
D)   purchase decision
E)   postpurchase behaviorF) A) and B)
G) C) and D) C

Question 19

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

Accepted Answer

A)   Few large transactions are made over the Internet due to concerns of industrial espionage.
B)   Negotiations, purchases, and delivery occur in real time at an accelerated rate.
C)   There are often reciprocal arrangements and negotiations between buyers and sellers.
D)   Most purchases are made through government-licensed negotiators.
E)   Direct selling to organizational buyers is rare because it is cost-prohibitive.F) A) and D)
G) None of the above

Question 20

European Style Furniture (ESF) , headquartered in New York, acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

Accepted Answer

A)   a producer.
B)   a reseller.
C)   a service provider.
D)   a government agency.
E)   an industrial firm.F) C) and D)
G) A) and D)

Exam 6: Understanding Organizations As Customers

Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that

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

Independent e-marketplaces act as a neutral third party, provide an Internet technology trading platform, and provide ________ market that enable exchanges between buyers and sellers.

Correct Answer
verified

Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision?

Correct Answer
verified

Which of the following types of firms are in the industrial market?

Correct Answer
verified

The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The third digit designates

Correct Answer
verified

Correct Answer
verified

The primary organizational buying objective for business firms is to

Correct Answer
verified

Which of the following statements about e-marketplaces that act as independent trading communities is false?

Correct Answer
verified

Consider how buy classes affect buying center tendencies in different ways. Describe the buy-class situations, and discuss the implications for the organization of each type of buy class.

What is the North American Industry Classification System (NAICS)?

Correct Answer
verified
The North American Industry Classificati...
View Answer

All of the following statements about the purchase involved in organizational buying are true except which?

Correct Answer
verified
E

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

Correct Answer
verified

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

Correct Answer
verified

Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy goods and services for their own use or for resale are referred to as

Correct Answer
verified

A ________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

Correct Answer
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The services market sells diverse services such as legal advice, auto repair, and dry cleaning, and this market represents 75 percent of all industrial firms. Which of the following is another such service firm?

Correct Answer
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At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?

Correct Answer
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C

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

Correct Answer
verified

European Style Furniture (ESF) , headquartered in New York, acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

Correct Answer
verified

Exam 6: Understanding Organizations As Customers

Organizational buyers include manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that

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

Independent e-marketplaces act as a neutral third party, provide an Internet technology trading platform, and provide ________ market that enable exchanges between buyers and sellers.

Correct AnswerverifiedShow Answer

Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision?

Correct AnswerverifiedShow Answer

Which of the following types of firms are in the industrial market?

Correct AnswerverifiedShow Answer

The North American Industry Classification System (NAICS) designates industries with a numerical code in a defined structure. A six-digit coding system is used. The third digit designates

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The primary organizational buying objective for business firms is to

Correct AnswerverifiedShow Answer

Which of the following statements about e-marketplaces that act as independent trading communities is false?

Correct AnswerverifiedShow Answer

Consider how buy classes affect buying center tendencies in different ways. Describe the buy-class situations, and discuss the implications for the organization of each type of buy class.

What is the North American Industry Classification System (NAICS)?

Correct AnswerverifiedThe North American Industry Classificati...View AnswerShow Answer

All of the following statements about the purchase involved in organizational buying are true except which?

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Manufacturers, wholesalers, retailers, service companies, not-for-profit organizations, and government agencies that buy goods and services for their own use or for resale are referred to as

Correct AnswerverifiedShow Answer

A ________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

Correct AnswerverifiedShow Answer

The services market sells diverse services such as legal advice, auto repair, and dry cleaning, and this market represents 75 percent of all industrial firms. Which of the following is another such service firm?

Correct AnswerverifiedShow Answer

At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

European Style Furniture (ESF) , headquartered in New York, acquires fine furniture from several high-quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the United States. In this context, ESF is most likely classified as

Correct AnswerverifiedShow Answer

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The North American Industry Classificati...
View Answer

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E

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C

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