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Exam 6: Understanding Organizations As Customers

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Question 21

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Spruceland Millworks in Canada makes wood pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as

A) reactive demand, which is tied to primary economic drivers like the construction industry.
B) unitary demand, which is tied to the average income level for Spruceland and its competitors.
C) derived demand, which is tied to the sales of appliances.
D) inelastic demand, which is tied to the cost of the components of the pallets.
E) elastic demand, which is tied to the cost of the components of the pallets.

F) C) and D)
G) A) and C)

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Question 22

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Wholesalers and retailers that buy physical products and resell them without any reprocessing are referred to as

A) industrial firms.
B) reseller firms.
C) government agencies.
D) consumer product firms.
E) nonprofit firms.

F) A) and D)
G) B) and D)

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Question 23

Multiple Choice

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If a purchase is a new buy for a manufacturer, the seller should

JCPenney looks at several capabilities when selecting a paper supplier. These organizational buying criteria include on-time delivery, the availability, quality and quantity of selected grades of paper, forestry management and sustainable practices, and price. This examination would be done during the ________ stage of the organizational buying decision process.

Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the president and the accountant, to compare options for a new copier for the office. Since she made most of the copies, Becca wanted to see the features of the machines, though her boss would have to approve the final purchase. Becca has what role in the buying center?

Once an organization passes through the problem recognition stage of the organizational buying decision process, it reaches the ________ stage.

The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers is referred to as

At which stage of the organizational buying decision process would a firm select a supplier, negotiate terms, and award a contract?

In the organizational buying process, heavy emphasis is placed on which product or service characteristics?

Liberty Medical Supply is a home delivery service that sells diabetes testing supplies, prescription drugs, and other supplies directly to consumers to assist them in the management of their health-related conditions. Since Liberty Medical does not make any changes to the supplies that it obtains from manufacturers, it would most likely be classified as

Swiss specialty chemical company Ciba is the primary producer of the chemical triclosan, the antibacterial agent in many household products such as liquid soap. Consumers may have heard about research suggesting environmental and health risks associated with the cumulative effects of antibacterial agents. Changing consumer purchases provide an example of ________ demand for Ciba's triclosan product.

A sales representative for a pharmaceutical company visits the doctor's office, hoping to explain a new drug to the doctor. However, the office receptionist explains that the doctor is with patients and will not be able to see the sales rep. The receptionist is acting as

Federal, state, and local agencies that buy products and services for the constituents they serve are referred to as

A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of

A buying center refers to

What is the last stage of the organizational buying decision process?

Corning, Inc., which transforms an exotic blend of materials to create optical fiber capable of carrying much of the telephone traffic in the United States on a single strand, is operating in ________ market.

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 fifth digit designates

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the ________ for Ingram.

The people in the organization who actually consume the product or service are referred to as ________, which is one role in the buying center.