Question 1

Which of the following statements about Trek Bicycles is FALSE?

Accepted Answer

A) Trek's Eco Design initiative is an example of sustainable procurement. 
B) Trek has an extensive product line of bicycles. 
C) Trek has always been on the cutting edge, using the latest innovations in its designs. 
D) Trek views the bicycle as an important form of alternative transportation, not just as recreation. 
E) Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all terrain vehicles (ATVs). 
A) Trek's Eco Design initiative is an example of sustainable procurement. 
B) Trek has an extensive product line of bicycles. 
C) Trek has always been on the cutting edge, using the latest innovations in its designs. 
D) Trek views the bicycle as an important form of alternative transportation, not just as recreation. 
E) Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all terrain vehicles (ATVs). E

Question 2

Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.

Accepted Answer

A) Webfronts 
B) clicks-and-mortar 
C) e-marketplaces 
D) iMarkets 
E) integrated markets 
A) Webfronts 
B) clicks-and-mortar 
C) e-marketplaces 
D) iMarkets 
E) integrated markets C

Question 3

Describe the three types of organizational markets and give examples of each.

Accepted Answer

There are three types of organizational markets: (1) Industrial markets consist of industrial firms that reprocess a product or service they buy before selling it again to the next buyer. (Examples: mining, construction, insurance companies, and public utility firms). (2) Reseller markets are composed of wholesalers and retailers who buy physical products and resell them again without any reprocessing. (Examples: Sears, Walmart, and Target). (3) Government markets are comprised of federal, state, and local agencies that buy goods and services for the constituents they serve. (Examples: NASA, City of San Francisco, and New York City Police Department).

Question 4

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with __________, insurance, and real estate businesses, transportation, communication and public utility firms, and not for profits, these firms represent about 75 percent of all industrial firms.

Accepted Answer

A) finance 
B) wholesalers 
C) retailers 
D) government units 
E) educational institutions 
A) finance 
B) wholesalers 
C) retailers 
D) government units 
E) educational institutions

Question 5

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

Accepted Answer

A) information search 
B) supplier search 
C) alternative evaluation 
D) problem recognition 
E) purchase decision 
A) information search 
B) supplier search 
C) alternative evaluation 
D) problem recognition 
E) purchase decision

Question 6

-As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify?

Accepted Answer

A) forward auction. 
B) reverse auction. 
C) traditional auction. 
D) vertical auction. 
E) bidder's war. 
A) forward auction. 
B) reverse auction. 
C) traditional auction. 
D) vertical auction. 
E) bidder's war.

Question 7

If a purchase is a new buy for a manufacturer, the seller should

Accepted Answer

A) expect a long time for a buying decision to be reached. 
B) neutralize the typically high levels of conflict. 
C) maintain flexibility, since specifications are likely to be changed several times before the buy is completed. 
D) be prepared to do some favors for the decision makers. 
E) avoid making concessions or compromises. 
A) expect a long time for a buying decision to be reached. 
B) neutralize the typically high levels of conflict. 
C) maintain flexibility, since specifications are likely to be changed several times before the buy is completed. 
D) be prepared to do some favors for the decision makers. 
E) avoid making concessions or compromises.

Question 8

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 a(n) __________ market.

Accepted Answer

A) consumer 
B) government 
C) service 
D) reseller 
E) industrial 
A) consumer 
B) government 
C) service 
D) reseller 
E) industrial

Question 9

What is the North American Industry Classification System (NAICS)?

Accepted Answer

The North American Industry Classificati

Question 10

The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to __________.

Accepted Answer

A) increase profits through reducing costs 
B) increase profits through increasing donations 
C) diversify its services mix to survive the continued economic downturn 
D) meet the needs of the groups it serves 
E) maintain profits through reducing costs and increasing donations 
A) increase profits through reducing costs 
B) increase profits through increasing donations 
C) diversify its services mix to survive the continued economic downturn 
D) meet the needs of the groups it serves 
E) maintain profits through reducing costs and increasing donations

Question 11

The services market sells diverse services such as legal advice, auto repair, and dry cleaning; along with finance, insurance, and real estate businesses, and transportation, __________ and public utility firms, and not-for-profit organizations, these firms represent about 75 percent of all industrial firms.

Accepted Answer

A) wholesaling 
B) retailing 
C) government units 
D) communication 
E) manufacturing 
A) wholesaling 
B) retailing 
C) government units 
D) communication 
E) manufacturing

Question 12

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. 
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.

Question 13

Important product or service characteristics in organizational buying include which of the following?

Accepted Answer

A) A heavy emphasis is placed on loyalty programs and rebates. 
B) Direct selling to organizational buyers is rare. 
C) A fixed, nonnegotiable price is the norm. 
D) Many of the goods purchased are raw and semifinished. 
E) Personal relationships are preferred to online buying over the Internet. 
A) A heavy emphasis is placed on loyalty programs and rebates. 
B) Direct selling to organizational buyers is rare. 
C) A fixed, nonnegotiable price is the norm. 
D) Many of the goods purchased are raw and semifinished. 
E) Personal relationships are preferred to online buying over the Internet.

Question 14

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Accepted Answer

A) user 
B) gatekeeper 
C) influencer 
D) buyer 
E) decider 
A) user 
B) gatekeeper 
C) influencer 
D) buyer 
E) decider

Question 15

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Accepted Answer

A) The purchase decision is usually quick once the information search has been completed. 
B) Even after the bid is submitted and even accepted, further negotiation is likely. 
C) Even if several vendors make it onto the bidder's list, ultimately only one supplier is chosen. 
D) If a supplier on the bidder's list is not selected, it is rarely told the reason why it was rejected. 
E) Once an agreement has been formally reached, neither the buyer nor the seller is permitted to make changes to the terms of the contract. 
A) The purchase decision is usually quick once the information search has been completed. 
B) Even after the bid is submitted and even accepted, further negotiation is likely. 
C) Even if several vendors make it onto the bidder's list, ultimately only one supplier is chosen. 
D) If a supplier on the bidder's list is not selected, it is rarely told the reason why it was rejected. 
E) Once an agreement has been formally reached, neither the buyer nor the seller is permitted to make changes to the terms of the contract.

Question 16

All of the following people are part of the Trek buying center EXCEPT:

Accepted Answer

A) Trek executives. 
B) production workers. 
C) representatives from research and development. 
D) quality control employees. 
E) a purchasing manager. 
A) Trek executives. 
B) production workers. 
C) representatives from research and development. 
D) quality control employees. 
E) a purchasing manager.

Question 17

-In the breakdown for the NAICS code based on Figure 5-1 above, B represents the

Accepted Answer

A) two-digit industry sector code. 
B) three-digit industry subsector code. 
C) four-digit industry group code. 
D) five-digit industry code. 
E) six-digit U.S. national industry code 
A) two-digit industry sector code. 
B) three-digit industry subsector code. 
C) four-digit industry group code. 
D) five-digit industry code. 
E) six-digit U.S. national industry code

Question 18

At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier?

Accepted Answer

A) problem recognition 
B) information search 
C) purchase decision 
D) purchase review 
E) alternative evaluation 
A) problem recognition 
B) information search 
C) purchase decision 
D) purchase review 
E) alternative evaluation

Question 19

An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make a

Accepted Answer

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

Question 20

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the time required for a decision is short, and the problem definition is well-defined, the buy class situation is most likely a

Accepted Answer

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

Which of the following statements about Trek Bicycles is FALSE?

Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.

Describe the three types of organizational markets and give examples of each.

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with __________, insurance, and real estate businesses, transportation, communication and public utility firms, and not for profits, these firms represent about 75 percent of all industrial firms.

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

-As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify?

If a purchase is a new buy for a manufacturer, the seller should

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 a(n) __________ market.

What is the North American Industry Classification System (NAICS)?

The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to __________.

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

Important product or service characteristics in organizational buying include which of the following?

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

All of the following people are part of the Trek buying center EXCEPT:

-In the breakdown for the NAICS code based on Figure 5-1 above, B represents the

At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier?

An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make a

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the time required for a decision is short, and the problem definition is well-defined, the buy class situation is most likely a

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters

Exam 5: Understanding Organizations As Customers

Which of the following statements about Trek Bicycles is FALSE?

Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.

Describe the three types of organizational markets and give examples of each.

The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with __________, insurance, and real estate businesses, transportation, communication and public utility firms, and not for profits, these firms represent about 75 percent of all industrial firms.

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

-As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify?

If a purchase is a new buy for a manufacturer, the seller should

What is the North American Industry Classification System (NAICS)?

The American Red Cross provides disaster relief, among many other services. As a nonprofit organization, its primary buying objective is to __________.

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

Important product or service characteristics in organizational buying include which of the following?

The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram.

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

All of the following people are part of the Trek buying center EXCEPT:

-In the breakdown for the NAICS code based on Figure 5-1 above, B represents the

At which stage of the organizational buying decision process would a firm use key organizational buying criteria such as price, quality, delivery time, and technical capability to select a supplier?

An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make a

A buy class situation affects buying center tendencies in different ways. If there is one person involved, the time required for a decision is short, and the problem definition is well-defined, the buy class situation is most likely a

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

Understanding Consumer Behavior

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Developing New Products and Services

Managing Successful Products, Services, and Brands

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters