Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

A)   a user.
B)   an influencer.
C)   a buyer.
D)   a decider.
E)   a gatekeeper.F) C) and D)
G) A) and D)

Question 3

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Accepted Answer

A)   European Union (EU) .
B)   United Nations (UN) .
C)   North American Free Trade Agreement (NAFT
A)  .
D)   North Atlantic Treaty Organization (NATO) .
E)   World Trade Organization (WTO) .F) A) and E)
G) B) and C)

Question 4

The buying situation where an organization is a first-time buyer of the product or service is referred to as

Accepted Answer

A)   an initial buy.
B)   a new buy.
C)   a preliminary buy.
D)   a straight rebuy.
E)   a modified rebuy.F) C) and D)
G) D) and E)

Question 5

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

Question 6

A supply partnership refers to

Accepted Answer

A)   an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors.
B)   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.
C)   a supplier that requires a buyer purchasing some products from it to also buy others.
D)   a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer.
E)   the practice whereby a seller requires the purchaser of one product to also buy another item in the line.F) A) and B)
G) C) and D)

Question 7

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 that in consumer buying but it is done more frequently.F) C) and E)
G) B) and D)

Question 8

Which of the following characterizes organizational buyer-seller relationships?

Accepted Answer

A)   Purchases are often made after brief negotiations.
B)   Purchases are usually of small dollar values.
C)   Long-term contracts are often prevalent.
D)   Reciprocal arrangements are prohibited by the federal government.
E)   Delivery schedules are largely irrelevant.F) A) and B)
G) A) and C)

Question 9

During late summer and early fall,there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season.The demand for these containers is referred to as __________ demand.

Accepted Answer

A)   unitized
B)   derived
C)   reseller
D)   applied
E)   impliedF) A) and C)
G) A) and D)

Question 10

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)   create separate orders in amounts less than that the thresholdF) D) and E)
G) A) and E)

Question 11

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

Question 12

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 E)
G) D) and E)

Question 13

Figure 5-4 
-Figure 5-4 shows the three buy classes encountered by organizational buyers.C is referred to as a

Accepted Answer

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

Question 14

The system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) ,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 E)
G) B) and C)

Question 15

Large multistore chain retailers such as 7-Eleven convenience stores,Safeway,and Target use a highly formalized buying center that is referred to as

Accepted Answer

A)   an ad hoc committee.
B)   a buying committee.
C)   a merchandise procurement center.
D)   a purchasing department.
E)   a purchasing control system.F) B) and E)
G) B) and D)

Question 16

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.

Accepted Answer

A)   applied
B)   unitized
C)   industrial
D)   derived
E)   consumerF) A) and E)
G) All of the above

Question 17

The American Red Cross provides disaster relief,among many other services.As a nonprofit organization,its primary buying objective is to

Accepted Answer

A)   increase profits through reducing costs.
B)   increase profits through increasing donations.
C)   diversify its services mix to survive an economic downturn.
D)   meet the needs of the groups it serves.
E)   maintain purchase levels to support its suppliers.F) A) and E)
G) C) and D)

Question 18

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

Accepted Answer

A)   flexibility.
B)   past performance on contracts.
C)   adherence to government regulation.
D)   senior management directives.
E)   consumer demand.F) A) and D)
G) A) and B)

Question 19

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

Question 20

Organizational buying criteria serve the same purpose as __________ criteria used by consumers.

Accepted Answer

A)   consideration
B)   evaluative
C)   decision
D)   alternative
E)   prepurchaseF) A) and B)
G) C) and E)

Exam 5: Understanding Organizations As Customers

During late summer and early fall,there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season.The demand for these containers is referred to as __________ demand.

Correct Answer
verified

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

Correct Answer
verified

Organizational buying criteria serve the same purpose as __________ criteria used by consumers.

Correct Answer
verified

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

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

Correct Answer
verified

A supply partnership refers to

Correct Answer
verified

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

Correct Answer
verified

Which of the following characterizes organizational buyer-seller relationships?

Correct Answer
verified

Figure 5-4 -Figure 5-4 shows the three buy classes encountered by organizational buyers.C is referred to as a

Correct Answer
verified

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

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

Large multistore chain retailers such as 7-Eleven convenience stores,Safeway,and Target use a highly formalized buying center that is referred to as

Correct Answer
verified

The NAICS provides common industry definitions for

Correct Answer
verified

The system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) ,is referred to as the

Correct Answer
verified

The buying situation where an organization is a first-time buyer of the product or service is referred to as

Correct Answer
verified

Correct Answer
verified

The American Red Cross provides disaster relief,among many other services.As a nonprofit organization,its primary buying objective is to

Correct Answer
verified

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Correct Answer
verified

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

Correct Answer
verified

Exam 5: Understanding Organizations As Customers

During late summer and early fall,there is a large demand for containers in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season.The demand for these containers is referred to as __________ demand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Organizational buying criteria serve the same purpose as __________ criteria used by consumers.

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

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

Correct AnswerverifiedShow Answer

A supply partnership refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following characterizes organizational buyer-seller relationships?

Correct AnswerverifiedShow Answer

Figure 5-4 -Figure 5-4 shows the three buy classes encountered by organizational buyers.C is referred to as a

Correct AnswerverifiedShow Answer

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

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

Large multistore chain retailers such as 7-Eleven convenience stores,Safeway,and Target use a highly formalized buying center that is referred to as

Correct AnswerverifiedShow Answer

The NAICS provides common industry definitions for

Correct AnswerverifiedShow Answer

The system that provides common industry definitions for Canada,Mexico,and the United States,which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) ,is referred to as the

Correct AnswerverifiedShow Answer

The buying situation where an organization is a first-time buyer of the product or service is referred to as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The American Red Cross provides disaster relief,among many other services.As a nonprofit organization,its primary buying objective is to

Correct AnswerverifiedShow Answer

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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