Question 1

An industrial firm

Accepted Answer

A)   is one that is independently owned and takes title to the merchandise it sells.
B)   buys physical goods and resells them again without any reprocessing.
C)   deals exclusively with federal, state, and local governments.
D)   in some way reprocesses a product or service it buys before selling it again to the next buyer.
E)   only produces a product, not a service.F) C) and D)
G) A) and D)

Question 2

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the

Accepted Answer

A)   Standard Industrial Code System (SICS) .
B)   United Nations Central Product Classification System (UNCPCS) .
C)   National Codes of Industry System (NCIS) .
D)   North American Industry Classification System (NAICS) .
E)   Federal System of International Organizations (FSIO) .F) A) and D)
G) A) and B)

Question 3

A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a

Accepted Answer

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

Question 4

Walmart asked that Procter & Gamble (P&G)  electronically link to its computerized cash register scanning system, allowing for direct electronic ordering and replenishing for all of its stores. This way, Walmart can tell P&G what merchandise it needs, along with how much, when, and to which store to deliver on a daily basis. Walmart is engaged in

Accepted Answer

A)   ISO 9000 certification.
B)   ISO 14000 certification.
C)   a supply partnership.
D)   sustainable development.
E)   cause marketing.F) A) and E)
G) A) and C)

Question 5

Reverse auctions

Accepted Answer

A)   are seller-initiated.
B)   benefit the sellers significantly more than the buyers.
C)   have an increasing number of buyers as the auction progresses.
D)   put downward pressure on prices.
E)   have many buyers.F) A) and B)
G) B) and D)

Question 6

When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a

Accepted Answer

A)   forward auction.
B)   reverse auction.
C)   Webfront auction.
D)   traditional auction.
E)   bidder's war.F) A) and C)
G) B) and D)

Question 7

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

Accepted Answer

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

Question 8

Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

Accepted Answer

A)   green marketing.
B)   regulatory exemptions.
C)   stakeholder procurement.
D)   ecological procurement.
E)   sustainable procurement.F) B) and D)
G) B) and E)

Question 9

At which stage of the organizational buying decision process would design and production engineers draft specifications?

Accepted Answer

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

Question 10

The practice of ________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.

Accepted Answer

A)   tying agreements
B)   just-in-time procurement
C)   quid pro quo
D)   supply partnerships
E)   reciprocityF) All of the above
G) B) and D)

Question 11

In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?

Accepted Answer

A)   traditional auction
B)   vertical auction
C)   reverse auction
D)   horizontal auction
E)   reciprocal auctionF) A) and D)
G) C) and D)

Question 12

A business firm buys products and services for one main reason, which is to

Accepted Answer

A)   increase profitability.
B)   beat its competitors.
C)   satisfy the needs of its suppliers.
D)   employ people.
E)   maintain updated inventory.F) C) and D)
G) A) and C)

Question 13

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) C) and E)
G) C) and D)

Question 14

List seven common organizational buying criteria.

Accepted Answer

Key organizational buying criteria: (1) ...

Question 15

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

Question 16

There are seven commonly used organizational buying criteria. One of them is

Accepted Answer

A)   warranty and claim policies.
B)   loyalty.
C)   longevity
D)   adaptability.
E)   responsive communication.F) None of the above
G) C) and D)

Question 17

The department's administrative assistant orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a

Accepted Answer

A)   new buy.
B)   straight rebuy.
C)   modified rebuy.
D)   make-buy.
E)   standard reorder.F) None of the above
G) A) and B)

Question 18

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

Accepted Answer

A)   gatekeeper.
B)   buying center.
C)   purchasing department.
D)   procurement committee.
E)   acquisition office.F) A) and B)
G) None of the above

Question 19

Apple Inc. custom-orders the microprocessors for its iMac and MacBook from Intel, which works with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This is an example of a

Accepted Answer

A)   symbiotic partnership.
B)   make-buy decision.
C)   reciprocal agreement.
D)   supply partnership.
E)   tying arrangement.F) A) and E)
G) A) and D)

Question 20

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) C) and E)
G) A) and E)

Exam 6: Understanding Organizations As Customers

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

Correct Answer
verified

At which stage of the organizational buying decision process would design and production engineers draft specifications?

Correct Answer
verified

A business firm buys products and services for one main reason, which is to

Correct Answer
verified

Apple Inc. custom-orders the microprocessors for its iMac and MacBook from Intel, which works with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This is an example of a

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

List seven common organizational buying criteria.

Correct Answer
verified
Key organizational buying criteria: (1) ...
View Answer

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

Correct Answer
verified

An industrial firm

Correct Answer
verified

A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a

Correct Answer
verified

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the

Correct Answer
verified

Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

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 practice of ________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.

Correct Answer
verified

Correct Answer
verified

When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a

Correct Answer
verified

There are seven commonly used organizational buying criteria. One of them is

Correct Answer
verified

In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?

Correct Answer
verified

The NAICS provides common industry definitions for

Correct Answer
verified

The department's administrative assistant orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a

Correct Answer
verified

Reverse auctions

Correct Answer
verified

Exam 6: Understanding Organizations As Customers

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

Correct AnswerverifiedShow Answer

At which stage of the organizational buying decision process would design and production engineers draft specifications?

Correct AnswerverifiedShow Answer

A business firm buys products and services for one main reason, which is to

Correct AnswerverifiedShow Answer

Apple Inc. custom-orders the microprocessors for its iMac and MacBook from Intel, which works with Apple to minimize costs for each type of chip while maximizing quality, ultimately giving customers good value for their money. This is an example of a

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

List seven common organizational buying criteria.

Correct AnswerverifiedKey organizational buying criteria: (1) ...View AnswerShow Answer

1-800 Contacts is based in Draper, Utah, and sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb, and CooperVision. It would most likely be classified as

Correct AnswerverifiedShow Answer

An industrial firm

Correct AnswerverifiedShow Answer

A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be a

Correct AnswerverifiedShow Answer

The system that provides common industry definitions for Canada, Mexico, and the United States is referred to as the

Correct AnswerverifiedShow Answer

Because many companies are concerned with the depletion of natural resources, supply partnerships often include provisions for

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 practice of ________, which can affect the normal operation of the free market and limit the flexibility of buyers, is disapproved of by the U.S. Justice Department.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a

Correct AnswerverifiedShow Answer

There are seven commonly used organizational buying criteria. One of them is

Correct AnswerverifiedShow Answer

In which type of auction is there a downward pressure on bid prices for the buyer's business as more would-be suppliers become involved?

Correct AnswerverifiedShow Answer

The NAICS provides common industry definitions for

Correct AnswerverifiedShow Answer

The department's administrative assistant orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of a

Correct AnswerverifiedShow Answer

Reverse auctions

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Key organizational buying criteria: (1) ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified