Question 1

A straight rebuy is a(n) __________ while a modified rebuy is a(n) __________.

Accepted Answer

A)  exchange; resale
B)  routine reorder; exchange
C)  first-time order; routine reorder
D)  changed order; first-time order
E)  routine reorder; changed orderF) None of the above
G) A) and E)

Question 2

Harley-Davidson is admired by its suppliers for involving them in future product development,referring to them as stakeholders,using quality benchmarks,and

Accepted Answer

A)  building long-term relationships.
B)  signing lifetime contracts to demonstrate loyalty.
C)  offering discounts for all key supplier personnel.
D)  listing the names of key suppliers in its Harley-Davidson promotional material.
E)  extending Harley-Davidson health care benefits to its suppliers' employees.F) All of the above
G) A) and B)

Question 3

If General Motors (GM) purchases Borg-Warner transmissions,and Borg-Warner buys trucks and cars from GM,they would be demonstrating which type of buyer-seller interaction?

Accepted Answer

A)  exclusive dealing
B)  supply partnerships
C)  tying arrangements
D)  noncompetitive bidding
E)  reciprocityF) A) and C)
G) B) and D)

Question 4

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

Accepted Answer

A)  construction
B)  mining
C)  insurance
D)  government
E)  farmingF) B) and C)
G) A) and C)

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 a(n)

Accepted Answer

A)  industrial market.
B)  business market.
C)  government unit.
D)  consumer market.
E)  service provider.F) A) and D)
G) C) and E)

Question 6

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

Accepted Answer

A)  reactive demand,which is tied to the sales of appliances,not the sale of the pallets.
B)  derived demand,which is tied to the sales of appliances,but independent of the sales of pallets.
C)  derived demand,which is tied to the sales of pallets,which in turn,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)

Question 7

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)  gatekeepers.
B)  buying center.
C)  purchasing department.
D)  procurement committee.
E)  acquisition office.F) A) and B)
G) A) and C)

Question 8

E-Marketplaces refer to

Accepted Answer

A)  virtual or holographic purchasing marketspaces that allow manufacturers to estimate demand based upon different changes in environmental forces.
B)  websites that allow consumers to make direct purchases from a manufacturer rather than through a traditional retail outlet.
C)  online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information,money,products,and services.
D)  computer simulations that allow manufacturers to estimate how much inventory to keep on hand based upon different purchasing scenarios.
E)  a computer database cosponsored by the U.S.Department of Commerce and the World Trade Organization (WTO) that houses all public access records for the purpose of aiding American and global businesses.F) C) and E)
G) B) and C)

Question 9

Organizational buyers refer to

Accepted Answer

A)  manufacturers,wholesalers,retailers,and government agencies that buy products and services exclusively for resale.
B)  manufacturers,wholesalers,retailers,and government agencies that buy products and services for their own use or for resale.
C)  manufacturers,wholesalers,retailers,and government agencies that buy products and services exclusively for their own use.
D)  firms that buy physical products and resell them again without any reprocessing.
E)  firms that in some way reprocess a product or service they buy before selling it again to the next buyer.F) B) and E)
G) B) 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
E)  forgo identifying the members of the supplying center and their roles in the selling processF) A) and E)
G) C) and E)

Question 11

The North American Industry Classification System (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 B)
G) A) and C)

Question 12

-Consider the NAICS logo above,which provides common industry definitions for

Accepted Answer

A)  Canada,England,and the United States.
B)  North America,Asia,and Europe.
C)  North America,Central America,and South America.
D)  Canada,England,Australia.
E)  Canada,Mexico,and the United States.F) B) and E)
G) None of the above

Question 13

-The acronym of the NAICS logo above stands for

Accepted Answer

A)  National Association of Industrial Compliance Standards.
B)  National Association of Industrial Communication Systems.
C)  North American Industrial Communication Standards.
D)  North American Industry Classification System.
E)  North Atlantic Industrial Classification System.F) D) and E)
G) A) and D)

Question 14

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

Accepted Answer

A)  flexibility
B)  ability to meet the quality specifications required for the item
C)  adherence to government regulation
D)  senior management directives
E)  consumer demandF) A) and E)
G) A) and D)

Question 15

Supplier development refers to

Accepted Answer

A)  the deliberate effort by suppliers to build relationships that shape buyers' products,services,and capabilities to fit both the buyer's and seller's needs,as well as the needs of ultimate consumers.
B)  the deliberate effort by organizational buyers to build relationships that shape suppliers' products,services,and capabilities to fit a buyer's needs and those of its customers.
C)  the practice of dividing up large orders among several suppliers rather than a single one to avoid possible manufacturing delays due to bad weather,plant mishaps,union issues,etc.
D)  the practice of establishing a close relationship with one supplier rather than many to insure loyalty and preferential treatment when filling exceptionally large orders.
E)  the shift of a firm from that of supplier to manufacturer when repeated experience with a product and excellent buyer/seller relationships make the shift both more feasible and profitable.F) C) and D)
G) B) and D)

Question 16

A business market is also referred to as

Accepted Answer

A)  a transactional market.
B)  a corporate market.
C)  organizational buyers.
D)  a reseller market.
E)  an industrial market.F) All of the above
G) A) and D)

Question 17

When the John Deere Company 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) None of the above
G) C) and D)

Question 18

During late summer and early fall,there is a large demand for containers located 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) All of the above
G) A) and C)

Question 19

Buy classes refer to the three types of organizational buying situations:

Accepted Answer

A)  buy,lease,and rent.
B)  new buy,make,and reprocess.
C)  manufacturing contracts,consulting contracts,service contracts.
D)  new buy,straight rebuy,and modified rebuy.
E)  new buy,refurbish,and used buy.F) B) and E)
G) C) and D)

Question 20

A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as a(n)

Accepted Answer

A)  industrial firm.
B)  reseller firm.
C)  government agency.
D)  wholesaler.
E)  retailer.F) B) and D)
G) B) and C)

Exam 5: Understanding Organizations As Customers

Harley-Davidson is admired by its suppliers for involving them in future product development,referring to them as stakeholders,using quality benchmarks,and

Correct AnswerverifiedShow Answer

If General Motors (GM) purchases Borg-Warner transmissions,and Borg-Warner buys trucks and cars from GM,they would be demonstrating which type of buyer-seller interaction?

Correct AnswerverifiedShow Answer

-The acronym of the NAICS logo above stands for

Correct AnswerverifiedShow Answer

-Consider the NAICS logo above,which provides common industry definitions for

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

A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as a(n)

Correct AnswerverifiedShow Answer

The North American Industry Classification System (NAICS) provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

Correct AnswerverifiedShow Answer

A straight rebuy is a(n) __________ while a modified rebuy is a(n) __________.

Correct AnswerverifiedShow Answer

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

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 a(n)

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

During late summer and early fall,there is a large demand for containers located 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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Buy classes refer to the three types of organizational buying situations:

Correct AnswerverifiedShow Answer

Organizational buyers refer to

Correct AnswerverifiedShow Answer

E-Marketplaces refer to

Correct AnswerverifiedShow Answer

A business market is also referred to as

Correct AnswerverifiedShow Answer

Supplier development refers to

Correct AnswerverifiedShow Answer

When the John Deere Company 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

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A straight rebuy is a(n) while a modified rebuy is a(n) .

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