14 Aug 101. Business markets have several characteristics that contrast sharply with th

101. Business markets have several
characteristics that contrast sharply with those of consumer markets. Name and
briefly characterize five of those contrasts.

102. Illustrate the differences between a straight
rebuy, modified rebuy, and a new
task purchase.

103. List and briefly describe the seven roles
played by members of a buying center.

104. In defining target market segments, four types of business
customers can often be identified with corresponding marketing implications. List and briefly describe each of these
business customers.

105. Explain the concept of solution
selling. Give one example of this
approach.

106. The
upgrading of purchasing means that business marketers must upgrade their sales
personnel to match the higher caliber of the business buyers. List and briefly
describe the three company
purchasing orientations that buyers select from.

107. Peter
Kraljic distinguished four product-related purchasing processes. List and
briefly describe each of these four product groups.

108. List the stages (buyphases) of the
industrial buying process.

109. List
and briefly characterize five methods of assessing customer value.

110. Cannon and Perreault found that
buyer-supplier relationships
differed according to four factors: availability of alternatives; importance of supply; complexity
of supply; and supply market dynamism. Based on these four factors, they
classified buyer-supplier relationships
into eight different categories. What are those categories?

APPLICATION QUESTIONS

Multiple Choice

111. German software company
SAP has become a leading seller to the business market by specializing in
software to automate business functions. SAPs ________ strategy is to focus
carefully on what customers want, and shows them how SAPs software
applications can improve profits,
raise revenue, or reduce costs.
a. product
b. service
c. leadership
d. concentrated
e. simplistic

112. The ________ market consists of all the
organizations that acquire goods and services used in the production of other
products or services that are sold, rented, or supplied to others.
a. non-profit
b. business
c. hardware
d. software
e. government

113. IBM counts small to
midsize businesses as 20 percent of its business and has launched ________, a
line of hardware, software services, and financing, for this market.
a. Impresario
b. Express
c. Datacount
d. Smallbiz
e. TaxMan

114. More than half of U.S. business
buyers are concentrated in seven states. Which of the following states WOULD
NOT be among those favored by
business buyers?
a. Texas
b. New York
c. California
d. Pennsylvania
e. Ohio

115. Jason Riggs company
is considered to be an in-supplier for a lawn mower
manufacturer. However, recently the lawn mower
company has put out a memo to in- and out-suppliers indicating that it would
like to modify product
specifications and delivery schedules. Which of the following buying situations
is most likely to be in operation
given the data above?
a.
Straight rebuy
b. Elastic
rebuy
c. Fluctuating
rebuy
d. Flatten
rebuy
e. Modified
rebuy

116. All of the following are considered to be
guidelines for selling to small businesses EXCEPT ________.
a. do not use the Internet
b. do keep it simple
c. dont lump small and midsize businesses together
d. dont forget about direct contact
e. do provide after the sale
support

117. Ford Motor Co. has
forged supplier and manufacturing relationships
around the world. Today, an accurate
description of this automotive giant
is one where it is characterized as being mainly a car ________.
a. designer
b. manufacturer
c. assembler
d. distributor
e. promoter

118. If you decided to go
into the systems contractingbusiness,
which of the following categories would constitute your main area of expertise
in that this area would be what service you provide for customers.
a. Computer
applications
b. Database management
c. Manufacturing
d. Promotion
management
e. MRO (maintenance, repair,
operating) supplies

119. Think about what you
have learned about a buying center. If you performed the role of the ________,
you would be the person that has the power to prevent sellers or information
from them in reaching other members of the buying center.
a. initiator
b. influencer
c. decider
d. gatekeeper
e. approver

120. According to Webster,
with respect to buying center influences, senior managers should remember that
people are ________.
a. not buying productsthey are
buying solutions to problems
b. buying products that they
personally will not use
c. buying surrogates that must
appreciate that role
d. are human shopping bots
e. limited in their scope of
overall business operations

121. Consider
yourself as an upper-level marketing executive a large seller of fleet trucks. Which of the following strategies would be most appropriate in reaching buying center targets?
a.
Concentrate on key buying influencers.
b.
Use multilevel in-depth selling.
c.
Use trade-based promotions.
d.
Begin all sales efforts with the secretarial support
staff.
e. Move all operations to the
Net.

122. Billijean Monk tells her supplier, Price
is everything! I mean if its not priced
right, I am out of here fast. To succeed in selling to Ms. Monk, which of the
following strategies would be most
appropriate?
a. Consultative selling
b. Quality selling
c. Enterprise selling
d. Transactional selling
e. High pressure, high risk
selling

123. The Tuxax Company
has decided that handling price-oriented buyers can be profitable under certain
conditions. Conditions that would make good sense for Tuxax Company would be all of the following EXCEPT ________.

a. limiting the quantity that
can be purchased
b. no services
c. no adjustments
d. no refunds
e. no packaging or crating

124. The new, more
strategically oriented purchasing departments have a mission to ________.
a. always make a profit
b. always take the lowest bid
c. seek the best value from
fewer and better suppliers
d. continue to seek outsourcing
as their primary strategy
e. use consultants whenever
possible

125. If a buyer is using the buying tactic of commoditization, he or she has a ________ as their
purchasing orientation.
a. buying orientation
b. procurement orientation
c. supply chain management orientation
d. raw materials orientation
e. simultaneous orientation

126. Spare parts are considered to be an example of a ________ product in that they have a low
value and cost to the customer but they involve some risk with respect to
reliability.
a. routine
b. leverage
c. strategic
d. bottleneck
e. strangle-hold

127. Which of the following buyclasses uses the least number of
buyphases (stages) in the industrial buying process?
a. Straight rebuy
b. Modified rebuy
c. New task
d. Global task
e. Relational rebuy

128. Japan
has an extremely well organized organizational buying process; however, because
of its strategic bottleneck position, the ________ is critical to the success
of any venture.
a. marketing department
b. production department
c. delivery department
d. accounting department
e. inventory control department

129. Which of the following methods for assessing customer value
would you consider to be appropriate if you asked your customers to attach a monetary value to each of three alternative levels
of a given attribute? Those values would then be added together for any offer
configuration.
a. Direct survey questions
b. Importance
ratings
c. Compositional
approach
d. Benchmarks
e. Conjoint analysis

130. With respect to buyer-seller relationships,
which of the following categories would you believe to be the most appropriate description of a situation where
there was a traditional custom supply situation where competition
rather than cooperation was the dominant form of governance?
a. Bare bones
b. Contractual transaction
c. Collaborative
d. Customer supply
e. Customer is king

Short Answer

131. The business market consists of all the
organizations that acquire goods and services used in the production of other
products or services that are sold, rented, or supplied to others. What are the
major industries that make up the business market?

132. Define
organizational buying.

133. Explain how fluctuating demand impacts
business markets differently than consumer markets.

134. If you were a purchasing agent facing a modified
rebuy situation, how would you describe that situation?

135. In systems buying, the U.S. government often solicits bids from primary contractors.
What do primary contractors do?

136. Systems selling is a key industrial marketing strategy in
bidding to build large-scale industrial projects. Competition
for these projects is fierce. What are the main areas of competition for these project engineering firms?

137. Webster and Wind call the
decision-making unit of a buying organization the buying center.What is the composition of the buying center?

138. Assume that you are buying center manager who has decided to
pursue a market segment called the gold-standard customers. What would be the
best strategy to reach these customers?

139. Assume that you are a purchasing manager that has adopted a buying
orientation in making this years purchases. What two tactics are often used
by purchasing managers with this orientation?

140. Peter Kraljic distinguished four
product-related purchasing processes. Which of these processes would be most appropriate for a buyer of mainframe computers?

141. E-procurement Web sites are organized around two types of
e-hubs. If you were in the advertising business and were seeking to take
advantage of e-procurement, what type of e-hub should be constructed by your company?

Suggested Answer:The two types of hubs are vertical hubs (centered on industries such as
plastics) and functional hubs (centered on functions such as advertising).
Therefore, you would construct a functional hub.

142. Business-to-business (B2B) cyberbuying has become increasingly
popular between purchasing agents and buying centers. How could pure play
auction sites be used to conduct cyberbuying?

143. In 2003,Hewlett-Packard was named number one in BtoBmagazines annual ranking of the
top B-to-B Web sites. What does this Web site allow companies
to do that makes it worthy of the distinction mentioned?

144. Assume that you have been given the task of assessing customer
value at your organization. Further, you have been instructed to use the compositional approach to make this assessment.
Describe what you would do if you used the compositional
approach in assessing customer value.

145. In the buygrid framework model where the major stages of the industrial
buying process are listed and characterized, supplier selection is an important process. What follows supplier selection and
what occurs in this phase?

146. A customer tells a supplier that he or she would like OTIFNE
as a desired outcome of upcoming purchase transaction. What has the customer
indicated that he or she wants by using this acronym?

147. As a seller in the business market, you
have promised your customers that you have, as a corporate goal, corporate
credibility. What three factors will have some bearing on whether you will be
able to meet your goal and promise?

148. Cannon and Perreault found that
buyer-supplier relationships could
be classified into eight different categories. What category would be
appropriate for a relationship where, although bonded by a close, cooperative
relationship, the seller adapts to meet the customers needs without expecting
much adaptation or change on the part of the customer in exchange?

149. Your organization is considering selling its products to the
institutional market. What type of customers will you be making your appeals
to? Give specific examples.

150. As a purchasing manager, you have just completed a large contract with the U.S. government where your company
sold the government several tech-oriented
products and services. What three tips
would be appropriate to pass along to those that would also like to tap into
this large market?

101. Business markets have several
characteristics that contrast sharply with those of consumer markets. Name and
briefly characterize five of those contrasts.
102. Illustrate the differences between a straight
rebuy, modified rebuy, and a new
task purchase. 103. List and briefly describe the seven roles
played by members of a buying center.104. In defining target market segments, four types of business
customers can often be identified with corresponding marketing implications. List and briefly describe each of these
business customers. 105. Explain the concept of solution
selling. Give one example of this
approach.106. The
upgrading of purchasing means that business marketers must upgrade their sales
personnel to match the higher caliber of the business buyers. List and briefly
describe the three company
purchasing orientations that buyers select from.107. Peter
Kraljic distinguished four product-related purchasing processes. List and
briefly describe each of these four product groups.
108. List the stages (buyphases) of the
industrial buying process. 109. List
and briefly characterize five methods of assessing customer value. 110. Cannon and Perreault found that
buyer-supplier relationships
differed according to four factors: availability of alternatives; importance of supply; complexity
of supply; and supply market dynamism. Based on these four factors, they
classified buyer-supplier relationships
into eight different categories. What are those categories? APPLICATION QUESTIONS111. German software company
SAP has become a leading seller to the business market by specializing in
software to automate business functions. SAPs ________ strategy is to focus
carefully on what customers want, and shows them how SAPs software
applications can improve profits,
raise revenue, or reduce costs.a. productb. servicec. leadershipd. concentratede. simplistic112. The ________ market consists of all the
organizations that acquire goods and services used in the production of other
products or services that are sold, rented, or supplied to others.a. non-profitb. businessc. hardwared. softwaree. government113. IBM counts small to
midsize businesses as 20 percent of its business and has launched ________, a
line of hardware, software services, and financing, for this market.a. Impresariob. Expressc. Datacountd. Smallbize. TaxMan114. More than half of U.S. business
buyers are concentrated in seven states. Which of the following states WOULD
NOT be among those favored by
business buyers?a. Texasb. New Yorkc. Californiad. Pennsylvaniae. Ohio115. Jason Riggs company
is considered to be an in-supplier for a lawn mower
manufacturer. However, recently the lawn mower
company has put out a memo to in- and out-suppliers indicating that it would
like to modify product
specifications and delivery schedules. Which of the following buying situations
is most likely to be in operation
given the data above?a.
Straight rebuyb. Elastic
rebuyc. Fluctuating
rebuyd. Flatten
rebuye. Modified
rebuy116. All of the following are considered to be
guidelines for selling to small businesses EXCEPT ________. a. do not use the Internetb. do keep it simplec. dont lump small and midsize businesses togetherd. dont forget about direct contacte. do provide after the sale
support117. Ford Motor Co. has
forged supplier and manufacturing relationships
around the world. Today, an accurate
description of this automotive giant
is one where it is characterized as being mainly a car ________.a. designerb. manufacturerc. assemblerd. distributore. promoter118. If you decided to go
into the systems contractingbusiness,
which of the following categories would constitute your main area of expertise
in that this area would be what service you provide for customers.a. Computer
applicationsb. Database managementc. Manufacturingd. Promotion
managemente. MRO (maintenance, repair,
operating) supplies119. Think about what you
have learned about a buying center. If you performed the role of the ________,
you would be the person that has the power to prevent sellers or information
from them in reaching other members of the buying center.a. initiatorb. influencerc. deciderd. gatekeepere. approver120. According to Webster,
with respect to buying center influences, senior managers should remember that
people are ________.a. not buying productsthey are
buying solutions to problemsb. buying products that they
personally will not usec. buying surrogates that must
appreciate that roled. are human shopping botse. limited in their scope of
overall business operations121. Consider
yourself as an upper-level marketing executive a large seller of fleet trucks. Which of the following strategies would be most appropriate in reaching buying center targets?a.
Concentrate on key buying influencers.b.
Use multilevel in-depth selling.c.
Use trade-based promotions.d.
Begin all sales efforts with the secretarial support
staff.e. Move all operations to the
Net.122. Billijean Monk tells her supplier, Price
is everything! I mean if its not priced
right, I am out of here fast. To succeed in selling to Ms. Monk, which of the
following strategies would be most
appropriate? a. Consultative sellingb. Quality sellingc. Enterprise selling d. Transactional sellinge. High pressure, high risk
selling123. The Tuxax Company
has decided that handling price-oriented buyers can be profitable under certain
conditions. Conditions that would make good sense for Tuxax Company would be all of the following EXCEPT ________.
a. limiting the quantity that
can be purchasedb. no servicesc. no adjustmentsd. no refundse. no packaging or crating124. The new, more
strategically oriented purchasing departments have a mission to ________.a. always make a profitb. always take the lowest bidc. seek the best value from
fewer and better suppliersd. continue to seek outsourcing
as their primary strategye. use consultants whenever
possible125. If a buyer is using the buying tactic of commoditization, he or she has a ________ as their
purchasing orientation.a. buying orientationb. procurement orientationc. supply chain management orientationd. raw materials orientatione. simultaneous orientation126. Spare parts are considered to be an example of a ________ product in that they have a low
value and cost to the customer but they involve some risk with respect to
reliability.a. routineb. leveragec. strategicd. bottlenecke. strangle-hold127. Which of the following buyclasses uses the least number of
buyphases (stages) in the industrial buying process? a. Straight rebuyb. Modified rebuyc. New taskd. Global taske. Relational rebuy128. Japan
has an extremely well organized organizational buying process; however, because
of its strategic bottleneck position, the ________ is critical to the success
of any venture. a. marketing departmentb. production departmentc. delivery departmentd. accounting departmente. inventory control department129. Which of the following methods for assessing customer value
would you consider to be appropriate if you asked your customers to attach a monetary value to each of three alternative levels
of a given attribute? Those values would then be added together for any offer
configuration.a. Direct survey questionsb. Importance
ratingsc. Compositional
approachd. Benchmarkse. Conjoint analysis130. With respect to buyer-seller relationships,
which of the following categories would you believe to be the most appropriate description of a situation where
there was a traditional custom supply situation where competition
rather than cooperation was the dominant form of governance?a. Bare bonesb. Contractual transactionc. Collaboratived. Customer supplye. Customer is kingShort Answer131. The business market consists of all the
organizations that acquire goods and services used in the production of other
products or services that are sold, rented, or supplied to others. What are the
major industries that make up the business market?132. Define
organizational buying.133. Explain how fluctuating demand impacts
business markets differently than consumer markets.134. If you were a purchasing agent facing a modified
rebuy situation, how would you describe that situation?135. In systems buying, the U.S. government often solicits bids from primary contractors.
What do primary contractors do?136. Systems selling is a key industrial marketing strategy in
bidding to build large-scale industrial projects. Competition
for these projects is fierce. What are the main areas of competition for these project engineering firms?137. Webster and Wind call the
decision-making unit of a buying organization the buying center.What is the composition of the buying center? 138. Assume that you are buying center manager who has decided to
pursue a market segment called the gold-standard customers. What would be the
best strategy to reach these customers?139. Assume that you are a purchasing manager that has adopted a buying
orientation in making this years purchases. What two tactics are often used
by purchasing managers with this orientation? 140. Peter Kraljic distinguished four
product-related purchasing processes. Which of these processes would be most appropriate for a buyer of mainframe computers? 141. E-procurement Web sites are organized around two types of
e-hubs. If you were in the advertising business and were seeking to take
advantage of e-procurement, what type of e-hub should be constructed by your company?Suggested Answer:The two types of hubs are vertical hubs (centered on industries such as
plastics) and functional hubs (centered on functions such as advertising).
Therefore, you would construct a functional hub.142. Business-to-business (B2B) cyberbuying has become increasingly
popular between purchasing agents and buying centers. How could pure play
auction sites be used to conduct cyberbuying?143. In 2003,Hewlett-Packard was named number one in BtoBmagazines annual ranking of the
top B-to-B Web sites. What does this Web site allow companies
to do that makes it worthy of the distinction mentioned?144. Assume that you have been given the task of assessing customer
value at your organization. Further, you have been instructed to use the compositional approach to make this assessment.
Describe what you would do if you used the compositional
approach in assessing customer value. 145. In the buygrid framework model where the major stages of the industrial
buying process are listed and characterized, supplier selection is an important process. What follows supplier selection and
what occurs in this phase?146. A customer tells a supplier that he or she would like OTIFNE
as a desired outcome of upcoming purchase transaction. What has the customer
indicated that he or she wants by using this acronym? 147. As a seller in the business market, you
have promised your customers that you have, as a corporate goal, corporate
credibility. What three factors will have some bearing on whether you will be
able to meet your goal and promise?148. Cannon and Perreault found that
buyer-supplier relationships could
be classified into eight different categories. What category would be
appropriate for a relationship where, although bonded by a close, cooperative
relationship, the seller adapts to meet the customers needs without expecting
much adaptation or change on the part of the customer in exchange?149. Your organization is considering selling its products to the
institutional market. What type of customers will you be making your appeals
to? Give specific examples.150. As a purchasing manager, you have just completed a large contract with the U.S. government where your company
sold the government several tech-oriented
products and services. What three tips
would be appropriate to pass along to those that would also like to tap into
this large market?

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