Question 1

GM employees work at large customer facilities to reduce materials-management spending. This is an example of the solutions to ________ form of solution selling.

Accepted Answer

A)  encourage partnerships 
B)  alter corporate culture 
C)  enhance customer revenues 
D)  decrease customer risks 
E)  reduce customer costs 
A)  encourage partnerships 
B)  alter corporate culture 
C)  enhance customer revenues 
D)  decrease customer risks 
E)  reduce customer costs E

Question 2

Explain risk and gain sharing with the help of an example.

Accepted Answer

Risk and gain sharing are two types of incentive programs that are often used in business to align the interests of employees with the overall goals of the organization.

Risk sharing involves employees taking on a portion of the financial risk associated with a project or initiative. This could involve a pay cut or a reduction in benefits if the project does not meet its goals. On the other hand, if the project is successful, employees may receive a bonus or other financial reward.

Gain sharing, on the other hand, involves employees sharing in the financial gains of a successful project or initiative. This could involve receiving a percentage of the profits or other financial benefits if the project meets or exceeds its goals.

To illustrate these concepts, let's consider an example. Imagine a manufacturing company that is looking to improve its production efficiency. The company decides to implement a new process that has the potential to increase output and reduce costs. In order to incentivize employees to support and adopt this new process, the company could implement a gain sharing program. If the new process leads to increased production and cost savings, employees could receive a bonus based on the financial gains achieved. However, if the new process does not meet its goals, employees may not receive the bonus.

In this example, employees are motivated to support the new process and work towards its success because they have a direct financial stake in the outcome. This helps to align their interests with the overall goals of the organization and can lead to improved performance and results.

Question 3

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________.

Accepted Answer

A)  inelastic demand 
B)  direct purchasing 
C)  the acceleration effect 
D)  a modified rebuy 
E)  a straight rebuy 
A)  inelastic demand 
B)  direct purchasing 
C)  the acceleration effect 
D)  a modified rebuy 
E)  a straight rebuy A

Question 4

Business buyers often select suppliers who also buy from them.

Accepted Answer

A) True 
 B)False

Question 5

Explain the concept of derived demand.

Accepted Answer

The demand for business goods is ultimat

Question 6

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

Accepted Answer

The buyer wants to modify prod

Question 7

Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.

Accepted Answer

A) True 
 B)False

Question 8

If you performed the role of the ________ in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center.

Accepted Answer

A)  initiator 
B)  influencer 
C)  decider 
D)  gatekeeper 
E)  approver 
A)  initiator 
B)  influencer 
C)  decider 
D)  gatekeeper 
E)  approver

Question 9

According to research studies, the closest relationships between customers and suppliers arise when ________.

Accepted Answer

A)  supply is important to the customer and there were procurement obstacles 
B)  procurement is simple 
C)  there are many undifferentiated vendors in the marketplace 
D)  the customer is highly price sensitive 
E)  the suppliers charge a premium for their products 
A)  supply is important to the customer and there were procurement obstacles 
B)  procurement is simple 
C)  there are many undifferentiated vendors in the marketplace 
D)  the customer is highly price sensitive 
E)  the suppliers charge a premium for their products

Question 10

As part of the buyer selection process, buying centers must decide how many suppliers to use. What might motivate a buyer to use multiple sources?

Accepted Answer

Companies that use multiple sources ofte

Question 11

________ occurs when customers are given a perspective or point of view that allows the firm to "put its best foot forward."

Accepted Answer

A)  Gatekeeping 
B)  Commoditization 
C)  Framing 
D)  Rebuying 
E)  Bartering 
A)  Gatekeeping 
B)  Commoditization 
C)  Framing 
D)  Rebuying 
E)  Bartering

Question 12

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance?

Accepted Answer

A)  institutional sale 
B)  business buying 
C)  opportunism 
D)  vertical integration 
E)  contractual transactionism 
A)  institutional sale 
B)  business buying 
C)  opportunism 
D)  vertical integration 
E)  contractual transactionism

Question 13

In the business market, small sellers concentrate on reaching as many participants as possible because their chances of success are slim.

Accepted Answer

A) True 
 B)False

Question 14

Product value analysis is an approach to efficiency that studies whether components can be redesigned or made by more efficient methods of production without adversely impacting product performance.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

In a straight rebuy, the purchasing depa

Question 16

A ________ plan establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time.

Accepted Answer

A)  stockless purchase 
B)  direct stock purchase 
C)  defined contribution 
D)  stock purchase 
E)  share purchase 
A)  stockless purchase 
B)  direct stock purchase 
C)  defined contribution 
D)  stock purchase 
E)  share purchase

Question 17

Which of the following is a step in the straight rebuy buyclass?

Accepted Answer

A)  problem recognition 
B)  general need description 
C)  product specification 
D)  supplier search 
E)  proposal solicitation 
A)  problem recognition 
B)  general need description 
C)  product specification 
D)  supplier search 
E)  proposal solicitation

Question 18

Which of the following is true about buying centers?

Accepted Answer

A)  One person may play multiple roles. 
B)  Several people can occupy the same role. 
C)  A buying center typically has five or six members. 
D)  A buying center can have dozens of members. 
E)  All of the above are true. 
A)  One person may play multiple roles. 
B)  Several people can occupy the same role. 
C)  A buying center typically has five or six members. 
D)  A buying center can have dozens of members. 
E)  All of the above are true.

Question 19

The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute. The value of a given configuration is determined by adding the average values of each of the given attributes.

Accepted Answer

A)  benchmarking 
B)  compositional 
C)  importance rating 
D)  focus-group 
E)  conjoint analysis 
A)  benchmarking 
B)  compositional 
C)  importance rating 
D)  focus-group 
E)  conjoint analysis

Question 20

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

Accepted Answer

A)  consumer packaged-goods companies 
B)  government organizations 
C)  health services vendors 
D)  educational institutions 
E)  households 
A)  consumer packaged-goods companies 
B)  government organizations 
C)  health services vendors 
D)  educational institutions 
E)  households

Exam 7: Analyzing Business Markets

GM employees work at large customer facilities to reduce materials-management spending. This is an example of the solutions to ________ form of solution selling.

Explain risk and gain sharing with the help of an example.

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________.

Business buyers often select suppliers who also buy from them.

Explain the concept of derived demand.

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

Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.

If you performed the role of the ________ in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center.

According to research studies, the closest relationships between customers and suppliers arise when ________.

As part of the buyer selection process, buying centers must decide how many suppliers to use. What might motivate a buyer to use multiple sources?

________ occurs when customers are given a perspective or point of view that allows the firm to "put its best foot forward."

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance?

In the business market, small sellers concentrate on reaching as many participants as possible because their chances of success are slim.

Product value analysis is an approach to efficiency that studies whether components can be redesigned or made by more efficient methods of production without adversely impacting product performance.

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

A ________ plan establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time.

Which of the following is a step in the straight rebuy buyclass?

Which of the following is true about buying centers?

The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute. The value of a given configuration is determined by adding the average values of each of the given attributes.

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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