14 Aug Marketing Questions quizAnalyzing Business Markets GENERAL CONCEPT QUESTIONS

Marketing Questions quizAnalyzing Business Markets

GENERAL
CONCEPT QUESTIONS

Multiple
Choice

1. To create and capture value, sellers need to understand business
organizations needs, resources, policies, and ________.
a. demands
b. protocols
c. strategies
d. buying procedures
e. personnel policies

2. Webster
and Wind define ________ as the decision-making process by which formal
organizations establish the need for purchased products and services and
identify, evaluate, and choose among
alternative brands and suppliers.
a. marketing channels
b. organizational buying
c. demand-oriented buying
d. purchasing
e. inventory control

3. The
________ 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. business market
b. consumer market
c. e-commerce market
d. global market
e. supplier market

4. Business markets have
several characteristics that contrast sharply with those of consumer markets.
All of the following would be among
those characteristics EXCEPT ________.
a. fewer, larger buyers
b. close supplier-customer
relationship
c. professional purchasing
d. inverted demand
e. multiple sales calls

5. All
of the following would be among the
major industries that make up the business market EXCEPT ________.
a. agriculture, forestry, and
fisheries
b. manufacturing
c. construction
d. banking, finance, and
insurance
e. the Internet

6. Trained
purchasing agents, who must follow their organizations ________, often
purchase business goods.
a. culture
b. past purchasing history
c. purchasing policies,
constraints, and requirements
d. needs
e. financial budgets

7. Ultimately,
the amount of steel sold to General
Motors depends on the consumers demand for GM cars and trucks. From the standpoint of the steel manufacturer,
which of the following demand forms is most
pertinent?
a. Derived demand
b. Inelastic demand
c. Geographic demand
d. Relational demand
e. Static demand

8. The
demand for business goods is ultimately derived from the demand for ________.
a. raw materials
b. consumer goods
c. electronics
d. business solutions
e. e-commerce

9. The
business buyer faces many decisions in making a purchase. The number of
decisions depends on the buying situation. All of the following examples are appropriate to the preceding EXCEPT
________.
a. complexity
of the problem being solved
b. newness of the buying
requirement
c. number of people involved
d. applicability of situation
to mission statement
e. time required

10. The
purchasing department buys office supplies on a routine basis. This type of
purchase is classified as a ________.
a. straight rebuy
b. modified rebuy
c. new task
d. secondary purchase
e. preordained purchase

11. There
are a series of guidelines for selling to small businesses. Which of the
following should not be among those
guidelines?
a. Dont waste their time.
b. Do keep it simple.
c. Do use the Internet.
d. Dont forget about direct
contact.
e. Do lump
small and midsize businesses together for efficiency sake.

12. The business buyer
makes the fewest decisions in the ________.
a. modified rebuy
b. regular buy
c. straight rebuy
d. new rebuy
e. new task buy

13. Many
business buyers prefer to buy a total solution to a problem from one seller.
________ is the correct term for this process.
a. Channel consolidation
b. Systems buying
c. Vertical buying
d. Horizontal buying
e. Supply buying

14. Xerox
offers a ________ approach to prospective clients when it offers a complete turnkey procedure, operation, and management
of the clients information and communication need.
a. supply buying
b. primary buying
c. systems buying
d. co-op
buying system
e. direct buying

15. If Ampex
Support Systems is the single supplier for a local manufacturing companys MRO (maintenance, repair, operating)
supplies and needs, Ampex Support
Systems would then be considered as providing ________ for the manufacturer.
a. systems buying
b. purchasing support
c. turnkey logistics
d. decision support
e. systems contracting

16. ________ is a key industrial
marketing strategy in bidding to build large-scale industrial products (e.g.,
dams, pipelines, et cetera).
a. Systems contracting
b. Systems buying
c. Systems selling
d. Solutions buying
e. Turnkey logistics

17. ________
is composed of all those individuals
and groups who participate in the
purchasing decision-making process, who share some common
goals and the risks arising from
their decisions.
a. The buying center
b. The marketing sales team
c. Strategic management
d. Engineering support
e. The logistics center

18. In the purchasing decision
process, the ________ arethose who request that something be
purchased. They may be users or others in the organization.
a. users
b. initiators
c. influencers
d. deciders
e. approvers

19. In the purchasing decision
process, the ________ arethose who have the power to prevent sellers
or information from reaching members of the buying center.
a. gatekeepers
b. buyers
c. initiators
d. approvers
e. deciders

20. The typical buying center
has a minimum of ________ members.
a. 23
b. 34
c. 45
d. 56
e. 10

21. Webster
cautions that ultimately, ________ make purchasing decisions.
a. only senior managers
b. individuals, not
organizations
c. organizations, not
individuals
d. third parties
e. systems contractors

22. Small sellers concentrate
their marketing efforts on reaching ________.
a. approvers
b. initiators
c. key buying influencers
d. users
e. the purchasing staff

23. To the ________ price is
everything and transactional selling is used.
a. solution-oriented customers
b. income-oriented customers
c. gold-standard customers
d. strategic-value customers
e. price-oriented customers

24. The
strategic-value customers want a fairly
permanent sole-supplier relationship with your company.
Which of the following would be the best selling format to use with the
strategic-value customer?
a. Transactional selling
b. Consultative selling
c. Quality selling
d. Enterprise selling
e. Indirect demand selling

25. Some customers are willing
to handle price-oriented buyers by setting a lower price, but establishing
restrictive conditions. All of the following would be among
those conditions EXCEPT ________.
a. limiting the quantity that
can be purchased
b. no refunds
c. no adjustments
d. no services
e. no customer advertising

26. If a supplier signs an
agreement with a customer that states $350,000 in savings will be earned by the
customer over the next 18 months in
an exchange for a ten-fold increase in the customers share of supplies ordered
by the customer, the two parties will have participated in what is called
________.
a. solution selling
b. consultative selling
c. risk and gain sharing
d. strategic alignment
e. demand shifting

27. W.W. Grainger employees work at large customer facilities to reduce
materials-management costs. Which of the following forms of solution selling is
W.W. Grainger using?
a. Solutions to partnerships.
b. Solutions to alter corporate
culture.
c. Solutions to enhance
customer revenues.
d. Solutions to decrease
customer risks.
e. Solutions to reduce customer
costs.

28. In principle, business
buyers seek to ________ in relation a market offerings costs.
a. spread risks
b. obtain the highest benefit
package
c. maintain everyday-low-prices
d. outsource as much as is
possible
e. eliminate partners shares
in profits as much as possible

29. In
the past, what position did purchasing departments hold in the management
hierarchy of most organizations?
a. A high level because of
their role in managing the companys
costs.
b. A moderate
level because of their spotty record on controlling costs.
c. A low level despite the fact
that they manage more than half of
the companys costs.
d. A secretive position.
e. There has been no
determination of this position.

30. The
new, more strategically-oriented
purchasing departments have a mission. Which of the following most accurately describes that mission?
a. Make the most profit possible and remain independent of
entanglements.
b. Approach every purchasing
opportunity as means to create interdependency.
c. Seek the best value from
fewer and better suppliers.
d. Outsource the supply
function.
e. Abandon all strategies
except for systems selling and buying.

31. When thepurchasers
focus is short term and tactical and they are rewarded on their ability to
obtain the lowest price from suppliers for the given level of quality and
availability, this is referred to as ________.
a. procurement orientation
b. supply chain management
orientation
c. buying orientation
d. sellers orientation
e. market orientation

32. Whenbuyers
simultaneously seek quality improvements
and cost reductions and they develop collaborative relationships with major suppliers and seek savings through
better management of acquisition, conversion, and disposal costs, this is
referred to as ________.
a. sellers orientation
b. supply chain management
orientation
c. market orientation
d. procurement orientation
e. buying orientation

33. When thepurchasing
role is further broadened to become a more
strategic, value-adding operation, this is referred to as ________.
a. supply chain management
orientation
b. buying orientation
c. sellers orientation
d. procurement orientation
e. routine orientation

34. Peter
Kraljic distinguished four product-related purchasing processes. Which of the
following matches to products that have high value and cost to the customer but
involve little risk of supply because many companies
make them?
a. Strategic products
b. Bottleneck products
c. Leverage products
d. Routine products
e. Commodity
products

35. The products thathave
high value and cost to the customer and also involve high risk (e.g., mainframe
computers) are called ________.
a. strategic products
b. bottleneck products
c. leverage products
d. routine products
e. commodity
products

36. Most purchasing
professionals describe their jobs as more
________, technical, team-oriented, and involving more
responsibility than ever before.
a. risky
b. strategic
c. ethically difficult
d. Web-based
e. human-based

37. Robinson and Associates have
identified eight stages and called them buyphases. This model is called the ________ framework.
a. buygrid
b. buying/selling
c. seller-centered
d. commercial
e. buy-analysis

38. The
first step (buyphase) in the straight rebuy buyclass is ________.
a. problem recognition
b. general need description
c. product specification
d. supplier search
e. proposal solicitation

39. A
new task buyclass decision begins with which of the following buyphases?
a. Problem recognition
b. General need description
c. Product specification
d. Supplier search
e. Proposal solicitation

40. Business
marketers can stimulate problem recognition by ________.
a. trade directories
b. direct mail, telemarketing,
and calling on prospects
c. encouraging the Better
Business Bureau to release statistics
d. consumer advertising
e. requesting testimonials from existing customers

41. When
Hewlett-Packard sells such complex
products as a network computer
system, it is engaging in what it calls the ________ concept because it offers
information and specific solutions to unique problems.
a. product specification
b. price de-escalation
c. systems selling
d. trusted advisor
e. strategic alliance

42. U.S.
businesses spent about ________ on online transactions with other businesses in
2002 as compared to consumer online
purchases of $71 billion during the same time period.
a. $650 billion
b. $500 billion
c. $482 billion
d. $225 billion
e. $53 billion

43. With
respect to e-procurement, Web sites are organized around two types of e-hubs:
________.
a. vertical and horizontal hubs
b. vertical and functional hubs
c. functional hubs and
organizational hubs
d. supplier and user hubs
e. manufacturer and supplier
hubs

44. With respect to
e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo,
Gillette, P&G, and several other companies
joined forces to form a ________ called Transora to use their combined leverage
to obtain lower prices for raw materials.
a. manufacturers
co-op
b. suppliers
co-op
c. middleman group
d. buying alliance

45. Business-to-business
cyberbuying is flourishing on the Internet. So far, most
of the products that businesses are buying electronically are ________, and
travel and entertainment services.
a. promotion
services such as advertising
b. HR services (e.g., employee recruitment)
c. MRO materials (maintenance,
repair, and operations)
d. food services
e. marketing research services

46. Moving
into e-procurement has many benefits. Which of the following would not be among those benefits?
a. Aggregating purchasing
across multiple departments gains larger volume discounts.
b. Aggregating purchasing
across multiple departments gains centrally negotiated volume discounts.
c. There is less buying of
substandard goods from outside the approved list of suppliers.
d. A smaller purchasing staff
is required.
e. Purchasing gains a
significant leverage with top management because of its management team.

47. With respect to
e-procurement commitment, in 2003 ________ was named number one in BtoBmagazines annual ranking of the
top B-to-B Web sites because of its ability to generate sales (about 55 percent
of the companys total sales) and
commitment to the process.
a. Coca-Cola
b. Dell Computers
c. Hewlett-Packard
d. Cadillac
e. Boeing

48. In the proposal solicitation
process, ________ should be marketing documents that describe value and
benefits in customer terms.
a. written proposals
b. oral proposals
c. e-proposals
d. alliance proposals
e. global proposals
49. Xerox qualifies only
suppliers who meet the ISO 9000 quality standards, but to win the companys top awardcertification statusa supplier
must first complete ________.
a. government
certification
b. an extensive ethics
statement evaluation
c. the Xerox Multinational
Supplier Quality Survey
d. a company
training and indoctrination period
e. a Malcolm Baldridge National
Quality Award entry form and then enter

50. All of the following are
considered to be methods of assessing customer value EXCEPT ________.
a. direct survey questions
b. exit interviewing
c. focus-group value assessment
d. conjoint analysis
e. benchmarks
Answer: b Page:
226 Level of
difficulty: Medium

51. According
to purchasing professionals, which of the following is considered to be the
major responsibility of the purchasing agent in supplier negotiations?
a. Forming networks for future business.
b. Assuring quality
conformance.
c. Being fair with all parties.
d. To use a team approach in
negotiations.
e. Negotiating price.

52. If
an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessee gains
several advantages. Which of the following would NOT be among
those advantages?
a. Higher quality products.
b. Conserving capital.
c. Getting the latest products.
d. Receiving better service.
e. Some tax advantages.

53. OTIFNE is a term that
summarizes three desirable outcomes of a B-to-B transaction: OTdeliver on
time; IFin full; and, NE________.
a. no error
b. no emergencies
c. non-experimental
d. new entrepreneurs
e. need equipment
54. Corporate credibility
depends on three factors: corporate expertise, corporate trustworthiness, and
________.
a. corporate manpower
b. corporate mission statement
c. corporate likeability
d. corporate governance
e. corporate management
structure

55. Cannon
and Perreault found that buyer-suppler relationships
differed according to four factors. Which of the following would NOT be among those factors?
a. Importance
of supply.
b. Complexity
of supply.
c. Availability of
alternatives.
d. Supply market dynamism.
e. Demand market conservatism.

56. According to Cannon and
Perreault, buyer-supplier relationships
fall into eight different categories. Which of the following relationships is characterized as being one that has much trust
and commitment leading to a true partnership?
a. Mutually adaptive
b. Collaborative
c. Basic buying and selling
d. Customer supply
e. Cooperative systems

57. In the ________ category of
Cannon and Perreaults buyer-supplier relationship categorization, 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.
a. contractual transaction
b. cooperative system
c. collaborative
d. mutually adaptive
e. customer is king

58. Vertical coordination can
facilitate stronger customer-seller ties but at the same time may increase the
risk to consumers and suppliers ________ (e.g., those expenditures tailored
to a particular company and value
chain partner).
a. logistics channel
b. independent operations
c. specific investments
d. leverage ability
e. liquidity situation

59. The ________ market consists
of schools, hospitals, nursing homes, prisons, and other institutions that must
provide goods and services to people in their care.
a. vertical
b. nonprofit
c. spot
d. secondary business
e. institutional

60. With purchases of $200
billion annually in goods and services, ________ is the largest customer in the
world.
a. Wal-Mart
b. Grainger
c. the State of California
d. the U.S. government
e. Latin
America

1. To create and capture value, sellers need to understand business
organizations needs, resources, policies, and ________.a. demandsb. protocolsc. strategiesd. buying procedurese. personnel policies2. Webster
and Wind define ________ as the decision-making process by which formal
organizations establish the need for purchased products and services and
identify, evaluate, and choose among
alternative brands and suppliers.a. marketing channelsb. organizational buyingc. demand-oriented buyingd. purchasinge. inventory control3. The
________ 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. business marketb. consumer marketc. e-commerce marketd. global markete. supplier market4. Business markets have
several characteristics that contrast sharply with those of consumer markets.
All of the following would be among
those characteristics EXCEPT ________.a. fewer, larger buyersb. close supplier-customer
relationshipc. professional purchasingd. inverted demande. multiple sales calls5. All
of the following would be among the
major industries that make up the business market EXCEPT ________.a. agriculture, forestry, and
fisheriesb. manufacturingc. constructiond. banking, finance, and
insurancee. the Internet6. Trained
purchasing agents, who must follow their organizations ________, often
purchase business goods.a. cultureb. past purchasing historyc. purchasing policies,
constraints, and requirementsd. needse. financial budgets7. Ultimately,
the amount of steel sold to General
Motors depends on the consumers demand for GM cars and trucks. From the standpoint of the steel manufacturer,
which of the following demand forms is most
pertinent?a. Derived demandb. Inelastic demandc. Geographic demandd. Relational demande. Static demand

8. The
demand for business goods is ultimately derived from the demand for ________.a. raw materialsb. consumer goodsc. electronicsd. business solutionse. e-commerce9. The
business buyer faces many decisions in making a purchase. The number of
decisions depends on the buying situation. All of the following examples are appropriate to the preceding EXCEPT
________.a. complexity
of the problem being solvedb. newness of the buying
requirementc. number of people involvedd. applicability of situation
to mission statemente. time required10. The
purchasing department buys office supplies on a routine basis. This type of
purchase is classified as a ________.a. straight rebuyb. modified rebuyc. new taskd. secondary purchasee. preordained purchase

11. There
are a series of guidelines for selling to small businesses. Which of the
following should not be among those
guidelines?a. Dont waste their time.b. Do keep it simple.c. Do use the Internet.d. Dont forget about direct
contact.e. Do lump
small and midsize businesses together for efficiency sake.

12. The business buyer
makes the fewest decisions in the ________.a. modified rebuyb. regular buyc. straight rebuyd. new rebuye. new task buy13. Many
business buyers prefer to buy a total solution to a problem from one seller.
________ is the correct term for this process.a. Channel consolidationb. Systems buyingc. Vertical buyingd. Horizontal buyinge. Supply buying14. Xerox
offers a ________ approach to prospective clients when it offers a complete turnkey procedure, operation, and management
of the clients information and communication need. a. supply buyingb. primary buyingc. systems buyingd. co-op
buying systeme. direct buying15. If Ampex
Support Systems is the single supplier for a local manufacturing companys MRO (maintenance, repair, operating)
supplies and needs, Ampex Support
Systems would then be considered as providing ________ for the manufacturer.a. systems buyingb. purchasing supportc. turnkey logisticsd. decision supporte. systems contracting16. ________ is a key industrial
marketing strategy in bidding to build large-scale industrial products (e.g.,
dams, pipelines, et cetera).a. Systems contractingb. Systems buyingc. Systems sellingd. Solutions buyinge. Turnkey logistics

17. ________
is composed of all those individuals
and groups who participate in the
purchasing decision-making process, who share some common
goals and the risks arising from
their decisions.a. The buying centerb. The marketing sales teamc. Strategic managementd. Engineering supporte. The logistics center18. In the purchasing decision
process, the ________ arethose who request that something be
purchased. They may be users or others in the organization.a. usersb. initiatorsc. influencersd. deciderse. approvers19. In the purchasing decision
process, the ________ arethose who have the power to prevent sellers
or information from reaching members of the buying center.a. gatekeepersb. buyersc. initiatorsd. approverse. deciders20. The typical buying center
has a minimum of ________ members.a. 23b. 34c. 45d. 56e. 1021. Webster
cautions that ultimately, ________ make purchasing decisions.a. only senior managersb. individuals, not
organizationsc. organizations, not
individualsd. third partiese. systems contractors22. Small sellers concentrate
their marketing efforts on reaching ________.a. approversb. initiatorsc. key buying influencersd. userse. the purchasing staff23. To the ________ price is
everything and transactional selling is used.a. solution-oriented customersb. income-oriented customersc. gold-standard customersd. strategic-value customerse. price-oriented customers24. The
strategic-value customers want a fairly
permanent sole-supplier relationship with your company.
Which of the following would be the best selling format to use with the
strategic-value customer?a. Transactional sellingb. Consultative sellingc. Quality sellingd. Enterprise sellinge. Indirect demand selling25. Some customers are willing
to handle price-oriented buyers by setting a lower price, but establishing
restrictive conditions. All of the following would be among
those conditions EXCEPT ________.a. limiting the quantity that
can be purchasedb. no refundsc. no adjustmentsd. no servicese. no customer advertising26. If a supplier signs an
agreement with a customer that states $350,000 in savings will be earned by the
customer over the next 18 months in
an exchange for a ten-fold increase in the customers share of supplies ordered
by the customer, the two parties will have participated in what is called
________. a. solution sellingb. consultative sellingc. risk and gain sharingd. strategic alignmente. demand shifting27. W.W. Grainger employees work at large customer facilities to reduce
materials-management costs. Which of the following forms of solution selling is
W.W. Grainger using?a. Solutions to partnerships.b. Solutions to alter corporate
culture.c. Solutions to enhance
customer revenues.d. Solutions to decrease
customer risks.e. Solutions to reduce customer
costs.28. In principle, business
buyers seek to ________ in relation a market offerings costs.a. spread risksb. obtain the highest benefit
packagec. maintain everyday-low-pricesd. outsource as much as is
possiblee. eliminate partners shares
in profits as much as possible29. In
the past, what position did purchasing departments hold in the management
hierarchy of most organizations?a. A high level because of
their role in managing the companys
costs.b. A moderate
level because of their spotty record on controlling costs.c. A low level despite the fact
that they manage more than half of
the companys costs.d. A secretive position.e. There has been no
determination of this position.30. The
new, more strategically-oriented
purchasing departments have a mission. Which of the following most accurately describes that mission?a. Make the most profit possible and remain independent of
entanglements.b. Approach every purchasing
opportunity as means to create interdependency.c. Seek the best value from
fewer and better suppliers.d. Outsource the supply
function.e. Abandon all strategies
except for systems selling and buying.31. When thepurchasers
focus is short term and tactical and they are rewarded on their ability to
obtain the lowest price from suppliers for the given level of quality and
availability, this is referred to as ________.a. procurement orientationb. supply chain management
orientationc. buying orientationd. sellers orientatione. market orientation32. Whenbuyers
simultaneously seek quality improvements
and cost reductions and they develop collaborative relationships with major suppliers and seek savings through
better management of acquisition, conversion, and disposal costs, this is
referred to as ________.a. sellers orientationb. supply chain management
orientationc. market orientationd. procurement orientatione. buying orientation33. When thepurchasing
role is further broadened to become a more
strategic, value-adding operation, this is referred to as ________.a. supply chain management
orientationb. buying orientationc. sellers orientationd. procurement orientatione. routine orientation34. Peter
Kraljic distinguished four product-related purchasing processes. Which of the
following matches to products that have high value and cost to the customer but
involve little risk of supply because many companies
make them?a. Strategic productsb. Bottleneck productsc. Leverage productsd. Routine productse. Commodity
products35. The products thathave
high value and cost to the customer and also involve high risk (e.g., mainframe
computers) are called ________.a. strategic productsb. bottleneck productsc. leverage productsd. routine productse. commodity
products 36. Most purchasing
professionals describe their jobs as more
________, technical, team-oriented, and involving more
responsibility than ever before.a. riskyb. strategicc. ethically difficultd. Web-basede. human-based37. Robinson and Associates have
identified eight stages and called them buyphases. This model is called the ________ framework.a. buygridb. buying/sellingc. seller-centeredd. commerciale. buy-analysis38. The
first step (buyphase) in the straight rebuy buyclass is ________.a. problem recognitionb. general need descriptionc. product specificationd. supplier searche. proposal solicitation39. A
new task buyclass decision begins with which of the following buyphases?a. Problem recognitionb. General need descriptionc. Product specificationd. Supplier searche. Proposal solicitation40. Business
marketers can stimulate problem recognition by ________.a. trade directoriesb. direct mail, telemarketing,
and calling on prospectsc. encouraging the Better
Business Bureau to release statisticsd. consumer advertisinge. requesting testimonials from existing customers41. When
Hewlett-Packard sells such complex
products as a network computer
system, it is engaging in what it calls the ________ concept because it offers
information and specific solutions to unique problems.a. product specificationb. price de-escalationc. systems sellingd. trusted advisore. strategic alliance42. U.S.
businesses spent about ________ on online transactions with other businesses in
2002 as compared to consumer online
purchases of $71 billion during the same time period.a. $650 billionb. $500 billionc. $482 billiond. $225 billione. $53 billion43. With
respect to e-procurement, Web sites are organized around two types of e-hubs:
________.a. vertical and horizontal hubsb. vertical and functional hubsc. functional hubs and
organizational hubsd. supplier and user hubse. manufacturer and supplier
hubs44. With respect to
e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo,
Gillette, P&G, and several other companies
joined forces to form a ________ called Transora to use their combined leverage
to obtain lower prices for raw materials.a. manufacturers
co-opb. suppliers
co-opc. middleman groupd. buying alliance45. Business-to-business
cyberbuying is flourishing on the Internet. So far, most
of the products that businesses are buying electronically are ________, and
travel and entertainment services.a. promotion
services such as advertisingb. HR services (e.g., employee recruitment)c. MRO materials (maintenance,
repair, and operations)d. food servicese. marketing research services46. Moving
into e-procurement has many benefits. Which of the following would not be among those benefits?a. Aggregating purchasing
across multiple departments gains larger volume discounts.b. Aggregating purchasing
across multiple departments gains centrally negotiated volume discounts.c. There is less buying of
substandard goods from outside the approved list of suppliers.d. A smaller purchasing staff
is required.e. Purchasing gains a
significant leverage with top management because of its management team.47. With respect to
e-procurement commitment, in 2003 ________ was named number one in BtoBmagazines annual ranking of the
top B-to-B Web sites because of its ability to generate sales (about 55 percent
of the companys total sales) and
commitment to the process.a. Coca-Colab. Dell Computersc. Hewlett-Packardd. Cadillace. Boeing48. In the proposal solicitation
process, ________ should be marketing documents that describe value and
benefits in customer terms.a. written proposalsb. oral proposalsc. e-proposalsd. alliance proposalse. global proposals49. Xerox qualifies only
suppliers who meet the ISO 9000 quality standards, but to win the companys top awardcertification statusa supplier
must first complete ________.a. government
certificationb. an extensive ethics
statement evaluationc. the Xerox Multinational
Supplier Quality Surveyd. a company
training and indoctrination periode. a Malcolm Baldridge National
Quality Award entry form and then enter50. All of the following are
considered to be methods of assessing customer value EXCEPT ________.a. direct survey questionsb. exit interviewingc. focus-group value assessmentd. conjoint analysise. benchmarksAnswer: b Page:
226 Level of
difficulty: Medium51. According
to purchasing professionals, which of the following is considered to be the
major responsibility of the purchasing agent in supplier negotiations?a. Forming networks for future business.b. Assuring quality
conformance.c. Being fair with all parties.d. To use a team approach in
negotiations.e. Negotiating price.52. If
an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessee gains
several advantages. Which of the following would NOT be among
those advantages?a. Higher quality products.b. Conserving capital.c. Getting the latest products.d. Receiving better service.e. Some tax advantages.53. OTIFNE is a term that
summarizes three desirable outcomes of a B-to-B transaction: OTdeliver on
time; IFin full; and, NE________.a. no errorb. no emergenciesc. non-experimentald. new entrepreneurse. need equipment54. Corporate credibility
depends on three factors: corporate expertise, corporate trustworthiness, and
________.a. corporate manpowerb. corporate mission statementc. corporate likeabilityd. corporate governancee. corporate management
structure55. Cannon
and Perreault found that buyer-suppler relationships
differed according to four factors. Which of the following would NOT be among those factors?a. Importance
of supply.b. Complexity
of supply.c. Availability of
alternatives.d. Supply market dynamism.e. Demand market conservatism.56. According to Cannon and
Perreault, buyer-supplier relationships
fall into eight different categories. Which of the following relationships is characterized as being one that has much trust
and commitment leading to a true partnership?a. Mutually adaptiveb. Collaborativec. Basic buying and sellingd. Customer supplye. Cooperative systems57. In the ________ category of
Cannon and Perreaults buyer-supplier relationship categorization, 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.a. contractual transactionb. cooperative systemc. collaboratived. mutually adaptivee. customer is king58. Vertical coordination can
facilitate stronger customer-seller ties but at the same time may increase the
risk to consumers and suppliers ________ (e.g., those expenditures tailored
to a particular company and value
chain partner).a. logistics channelb. independent operationsc. specific investmentsd. leverage abilitye. liquidity situation59. The ________ market consists
of schools, hospitals, nursing homes, prisons, and other institutions that must
provide goods and services to people in their care.a. verticalb. nonprofitc. spotd. secondary businesse. institutional 60. With purchases of $200
billion annually in goods and services, ________ is the largest customer in the
world.a. Wal-Martb. Graingerc. the State of Californiad. the U.S. governmente. Latin
America

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