Question 1

Purchasing managers are buying specialists for organizations and may have a lot of power.

Accepted Answer

A) True 
 B)False

Question 2

The U.S. government collects and publishes data by the NAICS codes.

Accepted Answer

A) True 
 B)False

Question 3

Charles Wood, purchasing manager for a company that makes golf carts, posted the purchase specifications for the seats on a new golf cart model his firm is building. Four suppliers submitted _____ that included the terms of sale each had to offer.

Accepted Answer

A)   operational linkages
B)   an auction
C)   negotiated contracts
D)   competitive bids
E)   defined sales procedures

Question 4

All of the following are key dimensions of relationships in business markets EXCEPT:

Accepted Answer

A)   cooperation.
B)   information sharing.
C)   operational linkages.
D)   non-specific adaptations.
E)   legal bonds.

Question 5

The government market:

Accepted Answer

A)   Is one of the smallest customer groups in the United States.
B)   Often has a buying process that includes purchase specifications and competitive bidding procedures.
C)   Purchases a fairly narrow range of products dealing with public safety.
D)   None of these alternatives is correct. B

Question 6

Which of the following statements about ISO 9000 is NOT TRUE?

Accepted Answer

A)   ISO 9000 is a way for a supplier to document its quality procedures according to internationally recognized standards.
B)   ISO 9000 reassures a customer that the supplier has effective quality checks in place after it conducts a personal quality audit.
C)   Some customers will not buy from a supplier who does not have ISO 9000 certification.
D)   One requirement for ISO 9000 certification is that a company must show outside auditors who is responsible for quality every step of the way.
E)   ISO 9000 helps organizational customers who are considering a new supplier.

Question 7

Most purchasing managers:

Accepted Answer

A)   reject "vendor analysis" as too subjective.
B)   want to be "sold" by persuasive salespeople.
C)   spend most of their time on new-task buying.
D)   stress dependability as well as lower cost and higher quality.
E)   dislike the higher risk that is involved in buying from a supplier that meets the ISO 9000 standard.

Question 8

ISO 9000 is relevant to both domestic and international suppliers.

Accepted Answer

A) True 
 B)False

Question 9

The Internet is not very useful for firms that want to target government markets.

Accepted Answer

A) True 
 B)False  False

Question 10

Which of the following is NOT an example of an organizational buyer?

Accepted Answer

A)   A government buyer purchasing a new desk for the mayor's office.
B)   A woman buying cookware to sell to her friends and neighbors.
C)   A sales rep buying a new necktie to make a good impression.
D)   A wholesaler buying a delivery truck.
E)   None of these is a good example of an organizational buyer.

Question 11

Regarding new-task organizational buying, which of the following are likely to be involved?

Accepted Answer

A)   Top managers.
B)   Purchasing manager.
C)   Production process engineers.
D)   Production line supervisors.
E)   All of these are likely to be involved in new-task organizational buying.

Question 12

A straight rebuy is MOST likely to occur for:

Accepted Answer

A)   a new computer network.
B)   a pension plan which meets the new government regulations.
C)   paper supplies for the copy equipment.
D)   electronic components for a new product.
E)   executive chairs for a new office building.

Question 13

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

A)   legal bonds
B)   relationship-specific adaptations
C)   cooperation
D)   operational linkages
E)   bid rigging

Question 14

John Deere is considered which type of organizational customer?

Accepted Answer

A)   Producer.
B)   Intermediary.
C)   Government.
D)   Nonprofit.

Question 15

When a large wholesaler or retailer uses a buying committee,

Accepted Answer

A)   the buyer still makes the final purchase decision.
B)   the sales rep may not be able to make a sales presentation to the committee.
C)   the impact of persuasive salespeople is increased.
D)   the intermediary is more likely to take a chance on a really new product that hasn't yet proved itself.
E)   none of these alternatives is correct.

Question 16

A "buying center"

Accepted Answer

A)   may vary from purchase to purchase.
B)   refers to all the purchasing agents in a large firm.
C)   is usually identified on a firm's organization chart.
D)   is usually controlled by the purchasing manager.
E)   is usually located in major wholesale markets.

Question 17

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

Accepted Answer

A)   Selective buying
B)   Modified rebuy buying
C)   Intensive buying
D)   New-task buying
E)   Straight rebuy buying

Question 18

All of the following are true of requisitions except

Accepted Answer

A)   it is a request to buy something.
B)   it is frequently handled online to cut time and paper shuffling.
C)   its processing usually takes a few hours for both simple and complex purchases.
D)   it is a form of centralized control.

Question 19

If a firm targets business and organizational markets,

Accepted Answer

A)   the geographic location of the customer is likely to be less important than in segmenting consumer markets.
B)   NAICS codes may help in segmenting manufacturers but not producers of services.
C)   each customer may need to be treated as a different segment.
D)   All of these alternatives are correct.

Question 20

When selling to government customers, competitive bids are common.

Accepted Answer

A) True 
 B)False  True

Exam 6: Business and Organizational Customers and Their Buying Behavior

Purchasing managers are buying specialists for organizations and may have a lot of power.

Correct AnswerverifiedShow Answer

The U.S. government collects and publishes data by the NAICS codes.

Correct AnswerverifiedShow Answer

Charles Wood, purchasing manager for a company that makes golf carts, posted the purchase specifications for the seats on a new golf cart model his firm is building. Four suppliers submitted _____ that included the terms of sale each had to offer.

Correct AnswerverifiedShow Answer

All of the following are key dimensions of relationships in business markets EXCEPT:

Correct AnswerverifiedShow Answer

The government market:

Correct AnswerverifiedB

Which of the following statements about ISO 9000 is NOT TRUE?

Correct AnswerverifiedShow Answer

Most purchasing managers:

Correct AnswerverifiedShow Answer

ISO 9000 is relevant to both domestic and international suppliers.

Correct AnswerverifiedShow Answer

The Internet is not very useful for firms that want to target government markets.

Correct AnswerverifiedFalse

Which of the following is NOT an example of an organizational buyer?

Correct AnswerverifiedShow Answer

Regarding new-task organizational buying, which of the following are likely to be involved?

Correct AnswerverifiedShow Answer

A straight rebuy is MOST likely to occur for:

Correct AnswerverifiedShow Answer

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Correct AnswerverifiedShow Answer

John Deere is considered which type of organizational customer?

Correct AnswerverifiedShow Answer

When a large wholesaler or retailer uses a buying committee,

Correct AnswerverifiedShow Answer

A "buying center"

Correct AnswerverifiedShow Answer

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

Correct AnswerverifiedShow Answer

All of the following are true of requisitions except

Correct AnswerverifiedShow Answer

If a firm targets business and organizational markets,

Correct AnswerverifiedShow Answer

When selling to government customers, competitive bids are common.

Correct AnswerverifiedTrue

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B

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False

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True