Question 1

Organizational buying criteria refer to

Accepted Answer

A)   the restrictions placed on potential solutions to a problem in a purchase decision.
B)   the specific qualifications of a potential customer based upon past performance, reliability, and consistency regarding the purchase of an organization's offerings.
C)   the qualifications of the supplier's products and services based on recommendations from competitors.
D)   the objective attributes of the supplier's products and services and the capabilities of the supplier itself.
E)   the factors that an ultimate consumer would consider that represent both the objective attributes of a brand and the subjective ones to compare different products and brands.F) A) and E)
G) C) and E)

Question 2

Among organizational markets, the reseller market includes

Accepted Answer

A)   manufacturers.
B)   logistics and supply chain providers.
C)   government agencies.
D)   end-user service providers.
E)   retailers and wholesalers.F) B) and E)
G) B) and D)

Question 3

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

Accepted Answer

A)   the consumer purchase decision process.
B)   the industrial purchase procedure.
C)   organizational buying behavior.
D)   the offering purchase framework.
E)   the sustainable procurement process.F) A) and B)
G) C) and D)

Question 4

The NAICS groups economic activity to permit studies of

Accepted Answer

A)   multilanguage advertising.
B)   market share, demand, or import competition.
C)   growth potential in emerging markets.
D)   best practices for manufacturers.
E)   job outsourcing and trade flow impacts.F) B) and C)
G) B) and D)

Question 5

Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, the ________ stage is more formal, often involving a vendor rating system.

Accepted Answer

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

Question 6

Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process,

Accepted Answer

A)   only four stages are used.
B)   fewer individuals are involved.
C)   firms are not affected by derived demand.
D)   the post-purchase evaluation behavior is more formalized.
E)   there is less reliance on gatekeepers to control product information.F) C) and D)
G) B) and E)

Question 7

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

Accepted Answer

A)   industrial markets.
B)   reseller markets.
C)   consumer markets.
D)   government units.
E)   global markets.F) B) and C)
G) C) and E)

Question 8

When the John Deere Co. employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

Accepted Answer

A)   buyer development.
B)   make-buy decisions.
C)   supply partnerships.
D)   supplier development.
E)   directive purchasing.F) B) and C)
G) B) and E)

Question 9

Mark manages a small family-owned amusement park. He believes the park can increase its profits if its owners will buy three food concession trailers. Mark has contacted three dealers of such trailers, which come fully customized to user specifications. After receiving three bids, Mark concluded that Century Industries has the best offer. He will present only the Century Industries information to the family tomorrow. What buying center roles does Mark perform?

Accepted Answer

A)   gatekeeper and buyer
B)   decider and user
C)   buyer and decider
D)   influencer and buyer
E)   influencer, gatekeeper, and deciderF) B) and D)
G) A) and C)

Question 10

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

Question 11

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

Question 12

Important product or service characteristics in organizational buying include which of the following?

Accepted Answer

A)   A heavy emphasis is placed on loyalty programs and rebates.
B)   Direct selling to organizational buyers is rare.
C)   A fixed, nonnegotiable price is the norm.
D)   Many of the products and services are technical in nature.
E)   Personal relationships are preferred to online buying over the Internet.F) D) and E)
G) A) and D)

Question 13

The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is

Accepted Answer

A)   new federal government regulations require it.
B)   they can help a firm meet or exceed its objectives in sales, profits, or customer satisfaction.
C)   it is the socially responsible action expected of leading organizations.
D)   it can attract new target markets.
E)   these companies will work harder for less money.F) A) and C)
G) A) and B)

Question 14

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

Question 15

A buy class situation affects buying center tendencies in different ways. If the buying objective is to find a good solution, the suppliers considered are both new and present, and the buying influence includes technical and operating personnel, the buy class situation is most likely a

Accepted Answer

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

Question 16

Purchasing that aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the impact on human health and the physical environment is referred to as

Accepted Answer

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

Question 17

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

Question 18

Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee farmers a fair price for the beans, the coffee is grown in an ecologically sound manner, and Starbucks invests in the farming communities where the coffees are produced. This is an example of

Accepted Answer

A)   green marketing.
B)   ISO 14000 certification.
C)   sustainable procurement.
D)   ecological procurement.
E)   cause marketing.F) C) and D)
G) B) and D)

Question 19

Identify and describe the five roles an individual can play in a buying center.

Accepted Answer

There are five roles an individual can p...

Question 20

Derived demand refers to

Accepted Answer

A)   a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price.
B)   the demand for industrial products and services that is driven by the demand for consumer products and services.
C)   the relationship between total revenue and total cost to determine profitability at various levels of output.
D)   the point on a demand curve where supply and demand intersect.
E)   the percentage change in quantity demanded relative to a percentage change in price.F) A) and B)
G) B) and D)

Exam 5: Understanding Organizations As Customers

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
verified

Among organizational markets, the reseller market includes

Correct Answer
verified

Purchasing that aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the impact on human health and the physical environment is referred to as

Correct Answer
verified

The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is

Correct Answer
verified

Identify and describe the five roles an individual can play in a buying center.

Correct Answer
verified
There are five roles an individual can p...
View Answer

Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, the ________ stage is more formal, often involving a vendor rating system.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Derived demand refers to

Correct Answer
verified

Important product or service characteristics in organizational buying include which of the following?

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

The NAICS groups economic activity to permit studies of

Correct Answer
verified

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

Correct Answer
verified

Organizational buying criteria refer to

Correct Answer
verified

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

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

A buy class situation affects buying center tendencies in different ways. If the buying objective is to find a good solution, the suppliers considered are both new and present, and the buying influence includes technical and operating personnel, the buy class situation is most likely a

Correct Answer
verified

When the John Deere Co. employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

Correct Answer
verified

Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process,

Correct Answer
verified

Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee farmers a fair price for the beans, the coffee is grown in an ecologically sound manner, and Starbucks invests in the farming communities where the coffees are produced. This is an example of

Correct Answer
verified

Exam 5: Understanding Organizations As Customers

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

Among organizational markets, the reseller market includes

Correct AnswerverifiedShow Answer

Purchasing that aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the impact on human health and the physical environment is referred to as

Correct AnswerverifiedShow Answer

The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is

Correct AnswerverifiedShow Answer

Identify and describe the five roles an individual can play in a buying center.

Correct AnswerverifiedThere are five roles an individual can p...View AnswerShow Answer

Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, the ________ stage is more formal, often involving a vendor rating system.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Derived demand refers to

Correct AnswerverifiedShow Answer

Important product or service characteristics in organizational buying include which of the following?

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

The NAICS groups economic activity to permit studies of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Organizational buying criteria refer to

Correct AnswerverifiedShow Answer

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

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

A buy class situation affects buying center tendencies in different ways. If the buying objective is to find a good solution, the suppliers considered are both new and present, and the buying influence includes technical and operating personnel, the buy class situation is most likely a

Correct AnswerverifiedShow Answer

When the John Deere Co. employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

Correct AnswerverifiedShow Answer

Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process,

Correct AnswerverifiedShow Answer

Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee farmers a fair price for the beans, the coffee is grown in an ecologically sound manner, and Starbucks invests in the farming communities where the coffees are produced. This is an example of

Correct AnswerverifiedShow Answer

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Correct Answer
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There are five roles an individual can p...
View Answer

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