Question 1

Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.

Accepted Answer

A)  pay estimated sales taxes in advance
B)  move up the time required to execute a purchase agreement
C)  get competitive bids from at least three prospective suppliers
D)  forgo the purchase because senior management is unlikely to approve it
E)  forgo identifying the members of the supplying center and their roles in the selling processF) B) and D)
G) A) and D)

Question 2

The buying objective for nonprofit firms and government agencies is usually to

Accepted Answer

A)  meet the needs of the groups they serve.
B)  increase profits through reducing costs.
C)  increase profits through increasing revenues.
D)  maintain profits through reducing costs and increasing revenues.
E)  reduce profits through reducing costs and reducing revenues.F) B) and D)
G) None of the above

Question 3

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

Question 4

During the third stage of the organizational buying decision process, the organization engages in

Accepted Answer

A)  information search.
B)  post-purchase behavior.
C)  alternative evaluation.
D)  purchase decision.
E)  problem recognition.F) None of the above
G) C) and D)

Question 5

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) All of the above
G) C) and D)

Question 6

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) C) and D)
G) None of the above

Question 7

An organization buys products and services for one main reason, which is to

Accepted Answer

A)  achieve its own objectives.
B)  beat its competitors.
C)  satisfy the needs of its suppliers.
D)  employ people.
E)  maintain inventory.F) D) and E)
G) A) and B)

Question 8

Which of the following is a service business within the industrial market?

Accepted Answer

A)  construction
B)  mining
C)  insurance
D)  government
E)  farmingF) All of the above
G) D) and E)

Question 9

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase one another's products. This practice is referred to as

Accepted Answer

A)  exclusive dealing.
B)  supply partnerships.
C)  reciprocity.
D)  strategic alliances.
E)  tying arrangements.F) C) and E)
G) A) and E)

Question 10

A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

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 firs...

Question 13

Cassidy is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway, a successful trucking firm, regularly buys Cassidy's secretary lunch. The representative does this because she views the secretary as __________ and wants to be sure that information about her company reaches Cassidy.

Accepted Answer

A)  a gatekeeper
B)  a decider
C)  an influencer
D)  an obstructionist
E)  a power brokerF) A) and D)
G) B) and E)

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)  rebuy class
E)  modified rebuyF) D) and E)
G) A) and D)

Question 15

__________ 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) B) and D)
G) All of the above

Question 16

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) B) and C)
G) B) and E)

Question 17

Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as __________ demand.

Accepted Answer

A)  unitized
B)  reseller
C)  applied
D)  implied
E)  derivedF) A) and D)
G) A) and C)

Question 18

South Cape Ostrich Tanning (SCOT)  is a producer of fine ostrich leathers, which are sold to manufacturers that make a variety of products from shoes to car interiors. Demand for SCOT's leather is a result of consumer interest in products such as Via La Moda handbags made from this exotic and expensive leather. SCOT has __________ demand for its product.

Accepted Answer

A)  derived
B)  unitized
C)  industrial
D)  applied
E)  resellerF) A) and C)
G) C) and D)

Question 19

When a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other, it is referred to as

Accepted Answer

A)  a reverse auction.
B)  a traditional auction.
C)  a bidder's war.
D)  an e-auction.
E)  a Webfront auction.F) B) and D)
G) A) and E)

Question 20

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

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

Exam 6: Understanding Organizations As Customers

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 fifth digit designates

Correct Answer
verified

A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a

Correct Answer
verified

Reverse auctions

Correct Answer
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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

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

Correct Answer
verified

The buying objective for nonprofit firms and government agencies is usually to

Correct Answer
verified

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase one another's products. This practice is referred to as

Correct Answer
verified

An organization buys products and services for one main reason, which is to

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.

Correct Answer
verified
New buy. Here the organization is a firs...
View Answer

Which of the following is a service business within the industrial market?

Correct Answer
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When a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other, it is referred to as

Correct Answer
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During the third stage of the organizational buying decision process, the organization engages in

Correct Answer
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__________ comprise the highest percentage of firms in industrial markets.

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

Correct Answer
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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
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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
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Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.

Correct Answer
verified

Correct Answer
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Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as __________ demand.

Correct Answer
verified

Exam 6: Understanding Organizations As Customers

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 fifth digit designates

Correct AnswerverifiedShow Answer

A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of a

Correct AnswerverifiedShow Answer

Reverse auctions

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

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

Correct AnswerverifiedShow Answer

The buying objective for nonprofit firms and government agencies is usually to

Correct AnswerverifiedShow Answer

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase one another's products. This practice is referred to as

Correct AnswerverifiedShow Answer

An organization buys products and services for one main reason, which is to

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.

Correct AnswerverifiedNew buy. Here the organization is a firs...View AnswerShow Answer

Which of the following is a service business within the industrial market?

Correct AnswerverifiedShow Answer

When a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other, it is referred to as

Correct AnswerverifiedShow Answer

During the third stage of the organizational buying decision process, the organization engages in

Correct AnswerverifiedShow Answer

__________ comprise the highest percentage of firms in industrial markets.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still, demand for its products often depends on rates of air travel among consumers. Demand for Airbus products is referred to as __________ demand.

Correct AnswerverifiedShow Answer

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New buy. Here the organization is a firs...
View Answer

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