Exam 4: Business, Government, and Institutional Buying

Which of the following is the best example of a modified rebuy?

Identify the group which includes various types of resellers such as wholesalers and retailers that buy products from manufacturers and distribute them to consumers and other organizational buyers at a profit.

All of the following are reasons why an organization using a straight rebuy may shift to modified rebuy for making organizational purchases, except

Which of the following observations about the types of organizational purchases is true?

Metromedia Technologies, Inc. is one of the leading computer imaging companies in the nation. It makes computer painted vinyl signs that are seen stretched across billboards and truck bodies. It purchases rolls of sheet plastic vinyl to make the signs. Metromedia is an example of which type of business-to-business market?

CDS Cold Storage Public Warehouse needs to buy a new compressor for one of its refrigeration units. The compressor that is to be replaced is a Frick screw compressor, but the purchasing agent wants to consider other brand options before making a final decision. The purchasing agent is engaged in a

_____ or resellers purchase to resell at a profit.

Waddell Engineering manufactures molded plastic components for a leading toy manufacturer. Roy supervises the production line; he would like to see the company use an injection molding machine that has a faster cycle time. Petra and Robin are quality control managers for the company, and have just returned from a trade show with information on the new Logic Devices molding machines. They hand this information to Mike Waddell, CEO of the company, who is concerned about the $400,000 cost. Roy, Robin, and Petra meet with Mike and Ailene, the company's purchasing agent, to discuss why the company needs to buy the new machine. Robin does not think the company needs to invest in the machine and does not tell anyone that the same machine can be purchased for 30 percent less from another company. Who typifies the role of gatekeeper?

Which of the following statements about the types of organizational purchases is false?

The stages involved in the organizational buying process include all of the following except

What is the full form of NAICS?

Organizational buyers who regularly place their orders with a supplier whose quality and timely delivery can be counted on are using which type of purchase?

Steve, the purchasing agent for a carpet manufacturer received a memo indicating that an upcoming financial review would determine which employees were most successful at reducing costs within their departments. The review would also assess which employees would continue working for the company as a result of their cost-cutting efforts. A salesperson trying to sell a new weave-pattern machine to Steve claims that the machine would save costs for the company in the long-run. Steve, however, is faced with the risk of termination made by any false moves. In this case, _____ would influence the organizational buying decision.

Identify the type of purchase common among organizations practicing just-in-time inventory, and where buyers do not have time to search for potential suppliers and solicit bids.

A large organization that is highly decentralized is more likely to _____ for other than straight rebuys.

St. Paul's Hospital was one of the first hospitals to purchase endoscopes to check for lung and colon abnormalities. To clean endoscopes, the hospital technicians use a chemical called glutaraldehyde, which is ordered routinely from the same supplier. From this information, you would expect the purchase of glutaraldehyde to be a

A manufacturer of plastic, Tiffany-like light shades uses four cases of 3M Jet-melt Adhesives weekly. The adhesive can bond plastic just as well as hot melt adhesives without damaging the plastic. 3M holds the patent on this type of adhesive. The light shade manufacturer's purchasing agent would most likely treat the purchase of the 3M adhesive as a

Dell Computer buys computer chips from Intel for the purpose of making computers to be sold to consumers and other organizations. Dell is an example of which type of organizational buyer?

Carrie Guissop is an organizational buyer for a company that provides nursery products to Wal-Mart. In a management meeting, she proposes that the company replace the three currently used suppliers of plastic containers and trays - working with the company for the past 20 years - with a single supplier who guarantees on-time delivery. Attendees at the meeting are unenthusiastic about Carrie's proposal as they like the traditional suppliers and are unwilling to switch. Carrie, in order to maintain acceptance and status within the organization and to keep conflict to a minimum, suggests that they try the plan for three months, and revert to the original if it fails to work. What kind of an organizational climate is described in this example?

Organizational buyers are engaging in sole sourcing because they are more concerned with _____ than buying only on the factor of price.