Question 1

Archer Daniels Midland Co. (ADM)  is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in ________ market.

Accepted Answer

A)   a consumer
B)   a government
C)   an industrial
D)   a processor
E)   a resellerF) None of the above
G) All of the above

Question 2

In a buyer-seller relationship, reciprocity refers to

Accepted Answer

A)   the practice whereby a seller requires the purchaser of one product to buy another item in the line.
B)   an industrial buying practice in which two organizations agree to purchase each other's products and services.
C)   an arrangement a manufacturer makes with a reseller to only handle its products and not those of competitors.
D)   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.
E)   when a supplier requires a buyer purchasing some of its products to also buy others.F) A) and B)
G) A) and C)

Question 3

Concert Staging Co. provides the stage, roof system, lighting, and sound for outdoor concerts and theatrical events. The number of concert and theater events sponsored by various organizations determines how many times the company is hired to provide its services, which often depends on consumer willingness to buy event tickets. Demand for the services provided by Concert Staging Co. is considered

Accepted Answer

A)   derived.
B)   unitized.
C)   industrial.
D)   applied.
E)   reseller.F) A) and E)
G) B) and D)

Question 4

People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as

Accepted Answer

A)   deciders.
B)   obstructionists.
C)   gatekeepers.
D)   filters.
E)   influencers.F) B) and C)
G) C) and D)

Question 5

The existence of reciprocal arrangements, the long-term contracts, and the buyer-seller relationships that evolve into supply partnerships are all examples of

Accepted Answer

A)   illegal activities that are a common weakness of organizational buying.
B)   illegal activities that result from collusion between buyers and sellers.
C)   activities that are strictly governed by the NAICS.
D)   the nature of relationships between buyers and sellers in organizational buying.
E)   activities that result from extreme competition between manufacturers when there are too few suppliers.F) A) and C)
G) C) and D)

Question 6

What type of online auction includes one seller and many buyers?

Accepted Answer

A)   forward auction
B)   reverse auction
C)   traditional auction
D)   vertical auction
E)   bidder's warF) B) and C)
G) A) and E)

Question 7

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 E)
G) B) and D)

Question 8

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)   new buy
E)   modified rebuyF) A) and B)
G) A) and E)

Question 9

Milsco Manufacturing emphasizes

Accepted Answer

A)   signing lifetime contracts with suppliers to demonstrate its loyalty to them.
B)   supply partnerships when designing products for its customers.
C)   reciprocity arrangements with its customers so that each can maximize profit.
D)   co-branding as a form of supply partnerships with customers.
E)   extending health care benefits to its suppliers' employees as a result of the Affordable Care Act.F) A) and B)
G) A) and E)

Question 10

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

Accepted Answer

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

Question 11

In a buying center, ________ have the formal or informal power to select or approve the supplier that receives the contract.

Accepted Answer

A)   gatekeepers
B)   deciders
C)   buyers
D)   influencers
E)   usersF) All of the above
G) D) and E)

Question 12

Reverse auctions

Accepted Answer

A)   are buyer-initiated.
B)   benefit the sellers significantly more than the buyers.
C)   have an increasing number of buyers as the auction progresses.
D)   do not allow sequential bidding.
E)   have many buyers at the start of the auction.F) A) and B)
G) D) and E)

Question 13

In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as

Accepted Answer

A)   agents.
B)   procurement sources.
C)   resellers.
D)   shops.
E)   vendors.F) None of the above
G) D) and E)

Question 14

When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only, but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a

Accepted Answer

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

Question 15

Lara assumed the ________ role in the buying center when she shook the salesperson's hand and said, "Ms. Hron, we would like to accept your bid. I'll expect 48 boxes of ring shank nails to be delivered by November 8, and we will pay the agreed-upon price of $21.74 per box."

Accepted Answer

A)   gatekeeper
B)   broker
C)   buyer
D)   influencer
E)   userF) B) and D)
G) D) and E)

Question 16

Which of these statements regarding organizational buyers is most accurate?

Accepted Answer

A)   Wholesalers and retailers resell the goods they buy without reprocessing them.
B)   Wholesalers and retailers alter the goods they sell to meet the specific needs of their customers prior to resale.
C)   Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers.
D)   Ultimate consumers can be considered organizational buyers when they purchase in large quantities.
E)   Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers.F) A) and B)
G) A) and C)

Question 17

A buy-class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is minor modification, and the suppliers considered are the present, the buy-class situation is most likely a

Accepted Answer

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

Question 18

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

Question 19

For e-marketplaces, large companies tend to favor ________ that link them with their network of qualified suppliers and customers.

Accepted Answer

A)   centralized markets
B)   decentralized markets
C)   private exchanges
D)   segregated markets
E)   independent trading communitiesF) B) and C)
G) All of the above

Question 20

In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes input from various people, depending on the purchase situation. Individuals may include key personnel from several departments, including research and development, finance, marketing, shipping, and sales. This is a description of Ford's

Accepted Answer

A)   acquisition committee.
B)   sustainable procurement department.
C)   purchasing unit.
D)   buying center.
E)   buying task force.F) A) and C)
G) None of the above

Exam 6: Understanding Organizations As Customers

In a buyer-seller relationship, reciprocity refers to

Correct Answer
verified

For e-marketplaces, large companies tend to favor ________ that link them with their network of qualified suppliers and customers.

Correct Answer
verified

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
verified

A buy-class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is minor modification, and the suppliers considered are the present, the buy-class situation is most likely a

Correct Answer
verified

Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in ________ market.

Correct Answer
verified

Lara assumed the ________ role in the buying center when she shook the salesperson's hand and said, "Ms. Hron, we would like to accept your bid. I'll expect 48 boxes of ring shank nails to be delivered by November 8, and we will pay the agreed-upon price of $21.74 per box."

Correct Answer
verified

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

Correct Answer
verified

In a buying center, ________ have the formal or informal power to select or approve the supplier that receives the contract.

Correct Answer
verified

Correct Answer
verified

Milsco Manufacturing emphasizes

Correct Answer
verified

What type of online auction includes one seller and many buyers?

Correct Answer
verified

When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only, but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a

Correct Answer
verified

Reverse auctions

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

The existence of reciprocal arrangements, the long-term contracts, and the buyer-seller relationships that evolve into supply partnerships are all examples of

Correct Answer
verified

Which of these statements regarding organizational buyers is most accurate?

Correct Answer
verified

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

Correct Answer
verified

In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as

Correct Answer
verified

Correct Answer
verified

People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as

Correct Answer
verified

Exam 6: Understanding Organizations As Customers

In a buyer-seller relationship, reciprocity refers to

Correct AnswerverifiedShow Answer

For e-marketplaces, large companies tend to favor ________ that link them with their network of qualified suppliers and customers.

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

A buy-class situation affects buying center tendencies in different ways. If there are two or three people involved, the problem is minor modification, and the suppliers considered are the present, the buy-class situation is most likely a

Correct AnswerverifiedShow Answer

Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa beans and converts them into cocoa powder and cocoa butter, which it then sells to companies like Hershey's that manufacture consumer products containing chocolate. ADM is operating in ________ market.

Correct AnswerverifiedShow Answer

Lara assumed the ________ role in the buying center when she shook the salesperson's hand and said, "Ms. Hron, we would like to accept your bid. I'll expect 48 boxes of ring shank nails to be delivered by November 8, and we will pay the agreed-upon price of $21.74 per box."

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a buying center, ________ have the formal or informal power to select or approve the supplier that receives the contract.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Milsco Manufacturing emphasizes

Correct AnswerverifiedShow Answer

What type of online auction includes one seller and many buyers?

Correct AnswerverifiedShow Answer

When Trek orders a seat or saddle for one of its models that has a slightly different material for the cover only, but the other components are the same as existing saddles used on other bikes, this purchase situation is known as a

Correct AnswerverifiedShow Answer

Reverse auctions

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

The existence of reciprocal arrangements, the long-term contracts, and the buyer-seller relationships that evolve into supply partnerships are all examples of

Correct AnswerverifiedShow Answer

Which of these statements regarding organizational buyers is most accurate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as

Correct AnswerverifiedShow Answer

Correct Answer
verified

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