Question 1

Milso Manufacturing emphasizes

Accepted Answer

A) signing lifetime contracts with suppliers to demonstrate its loyalty to them. 
B) supplier partnerships when designing products for its customers. 
C) reciprocity arrangements with its customers so that each can maximize profit. 
D) cobranding as a form of supply partnerships with customers. 
E) extending healthcare benefits to its suppliers' employees as a result of the Affordable Care Act. 
A) signing lifetime contracts with suppliers to demonstrate its loyalty to them. 
B) supplier partnerships when designing products for its customers. 
C) reciprocity arrangements with its customers so that each can maximize profit. 
D) cobranding as a form of supply partnerships with customers. 
E) extending healthcare benefits to its suppliers' employees as a result of the Affordable Care Act. B

Question 2

If there is a prolonged downturn in U.S.passenger air travel,a number of U.S.airlines would very likely cancel some of their orders for new planes from Boeing and Airbus,among other manufacturers.The relationship between passenger air travel and the demand for new planes is referred to as

Accepted Answer

A) ultimate consumer demand. 
B) derived demand. 
C) manufacturer demand. 
D) reseller demand. 
E) the price-inelasticity of demand. 
A) ultimate consumer demand. 
B) derived demand. 
C) manufacturer demand. 
D) reseller demand. 
E) the price-inelasticity of demand. B

Question 3

Large multistore chain retailers such as Macy's,Safeway,and Target use a highly formalized buying center that is referred to as a(n)

Accepted Answer

A) ad hoc committee. 
B) buying committee. 
C) merchandise procurement center. 
D) purchasing department. 
E) purchasing control system. 
A) ad hoc committee. 
B) buying committee. 
C) merchandise procurement center. 
D) purchasing department. 
E) purchasing control system. B

Question 4

Trek uses several organizational buying criteria to evaluate potential suppliers.These include all of the following EXCEPT:

Accepted Answer

A) price. 
B) environmental impact. 
C) warranties and claim policies. 
D) quality. 
E) delivery capabilities. 
A) price. 
B) environmental impact. 
C) warranties and claim policies. 
D) quality. 
E) delivery capabilities.

Question 5

Derived demand refers to

Accepted Answer

A) a graph relating the quantity sold and price,which shows the maximum number of units that will be sold at a given price. 
B) the demand for industrial products and services that is driven by the demand for consumer products and services. 
C) the relationship between total revenue and total cost to determine profitability at various levels of output. 
D) the point on a demand curve where supply and demand intersect. 
E) the percentage change in quantity demanded relative to a percentage change in price. 
A) a graph relating the quantity sold and price,which shows the maximum number of units that will be sold at a given price. 
B) the demand for industrial products and services that is driven by the demand for consumer products and services. 
C) the relationship between total revenue and total cost to determine profitability at various levels of output. 
D) the point on a demand curve where supply and demand intersect. 
E) the percentage change in quantity demanded relative to a percentage change in price.

Question 6

For routine orders,the decider is usually

Accepted Answer

A) the buyer or purchasing manager. 
B) the CEO. 
C) the COO. 
D) the head of R&D. 
E) the customer. 
A) the buyer or purchasing manager. 
B) the CEO. 
C) the COO. 
D) the head of R&D. 
E) the customer.

Question 7

Starbucks purchases from coffee growers located in more than 20 countries.Starbucks: (1)pays the coffee farmers a fair price for the beans; (2)the coffee is grown in an ecologically sound manner;and (3)Starbucks invests in the farming communities where the coffees are produced.This is an example of

Accepted Answer

A) green marketing. 
B) ISO 14000 certification. 
C) sustainable procurement. 
D) ecological procurement. 
E) cause marketing. 
A) green marketing. 
B) ISO 14000 certification. 
C) sustainable procurement. 
D) ecological procurement. 
E) cause marketing.

Question 8

Important market characteristics in organizational buying behavior include which of the following?

Accepted Answer

A) Organizational buying behavior is similar to consumer buying behavior since individuals are involved in both processes. 
B) Demand for industrial products is elastic instead of inelastic. 
C) Demand for industrial products and services is derived. 
D) Purchase orders much more frequent but they are usually small. 
E) Forecasting is not as important in organizational buying as in consumer buying. 
A) Organizational buying behavior is similar to consumer buying behavior since individuals are involved in both processes. 
B) Demand for industrial products is elastic instead of inelastic. 
C) Demand for industrial products and services is derived. 
D) Purchase orders much more frequent but they are usually small. 
E) Forecasting is not as important in organizational buying as in consumer buying.

Question 9

As shown in Figure 6-6B 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 10

An organization buys products and services for one main reason,which is to

Accepted Answer

A) achieve its own objectives. 
B) beat its competitors. 
C) satisfy the needs of its suppliers. 
D) employ people. 
E) maintain inventory. 
A) achieve its own objectives. 
B) beat its competitors. 
C) satisfy the needs of its suppliers. 
D) employ people. 
E) maintain inventory.

Question 11

At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their quality control?

Accepted Answer

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

Question 12

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.

Question 13

A supply partnership refers to

Accepted Answer

A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. 
B) the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer. 
C) when a supplier requires a buyer purchasing some products from it to also buy others. 
D) a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives,policies,and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer. 
E) the practice whereby a seller requires the purchaser of one product to also buy another item in the line. 
A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors. 
B) the illegal practice of refusing to purchase a seller's products unless the seller agrees not to purchase that product or any similar products from any other buyer. 
C) when a supplier requires a buyer purchasing some products from it to also buy others. 
D) a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives,policies,and procedures for the purpose of lowering the cost of or increasing the value of products and services delivered to the ultimate consumer. 
E) the practice whereby a seller requires the purchaser of one product to also buy another item in the line.

Question 14

During the next-to-last stage of the organizational buying decision process,the organization

Accepted Answer

A) drafts specifications. 
B) formally rates suppliers that were used. 
C) evaluates supplier facilities. 
D) awards the contract. 
E) recognizes a need for change. 
A) drafts specifications. 
B) formally rates suppliers that were used. 
C) evaluates supplier facilities. 
D) awards the contract. 
E) recognizes a need for change.

Question 15

During late summer and early fall,there is a large demand for containers located in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season.The demand for these containers is referred to as __________ demand.

Accepted Answer

A) unitized 
B) derived 
C) reseller 
D) applied 
E) implied 
A) unitized 
B) derived 
C) reseller 
D) applied 
E) implied

Question 16

S.-based Pratt & Whitney sells aircraft engines to Europe's Airbus S.A.S. ,which in turn sells passenger airplanes to Japan Airlines that flies businesspeople around the world.This is an example of

Accepted Answer

A) the product life cycle. 
B) reseller dynamics. 
C) a global organizational market. 
D) ISO 9000. 
E) the business cycle. 
A) the product life cycle. 
B) reseller dynamics. 
C) a global organizational market. 
D) ISO 9000. 
E) the business cycle.

Question 17

Which of the following statements about marketing mix characteristics in organizational buying behavior is MOST ACCURATE?

Accepted Answer

A) Few large transactions are made over the Internet. 
B) The actual buyer retains all of the influence in the buying decision. 
C) Advertising is very simplistic in nature. 
D) Direct selling to organizational buyers is the rule. 
E) Only finished goods are sold in this way. 
A) Few large transactions are made over the Internet. 
B) The actual buyer retains all of the influence in the buying decision. 
C) Advertising is very simplistic in nature. 
D) Direct selling to organizational buyers is the rule. 
E) Only finished goods are sold in this way.

Question 18

Another name for an e-marketplace is a(n)

Accepted Answer

A) e-hub. 
B) E-place. 
C) e-trade. 
D) E-xchange. 
E) 4NXchange. 
A) e-hub. 
B) E-place. 
C) e-trade. 
D) E-xchange. 
E) 4NXchange.

Question 19

The North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The third digit designates a(n)

Accepted Answer

A) industry subsector. 
B) industry group. 
C) specific industry. 
D) individual country-level national industry. 
E) sector of the economy. 
A) industry subsector. 
B) industry group. 
C) specific industry. 
D) individual country-level national industry. 
E) sector of the economy.

Question 20

Which of the following possible characteristics of consumer buying is LEAST LIKELY to enter into an organizational buying decision?

Accepted Answer

A) comparison of product performance with expectations 
B) purchase decisions based on the highest overall evaluation 
C) alternatives evaluated on important criteria 
D) information gathered from internal and external searches 
E) problem recognition triggered by self-actualization motives 
A) comparison of product performance with expectations 
B) purchase decisions based on the highest overall evaluation 
C) alternatives evaluated on important criteria 
D) information gathered from internal and external searches 
E) problem recognition triggered by self-actualization motives

Exam 6: Understanding Organizations As Customers

Milso Manufacturing emphasizes

If there is a prolonged downturn in U.S.passenger air travel,a number of U.S.airlines would very likely cancel some of their orders for new planes from Boeing and Airbus,among other manufacturers.The relationship between passenger air travel and the demand for new planes is referred to as

Large multistore chain retailers such as Macy's,Safeway,and Target use a highly formalized buying center that is referred to as a(n)

Trek uses several organizational buying criteria to evaluate potential suppliers.These include all of the following EXCEPT:

Derived demand refers to

For routine orders,the decider is usually

Starbucks purchases from coffee growers located in more than 20 countries.Starbucks: (1)pays the coffee farmers a fair price for the beans; (2)the coffee is grown in an ecologically sound manner;and (3)Starbucks invests in the farming communities where the coffees are produced.This is an example of

Important market characteristics in organizational buying behavior include which of the following?

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

An organization buys products and services for one main reason,which is to

At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their quality control?

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

A supply partnership refers to

During the next-to-last stage of the organizational buying decision process,the organization

During late summer and early fall,there is a large demand for containers located in Asia that are used to ship consumer products from Asia to the United States in time for the holiday selling season.The demand for these containers is referred to as __________ demand.

S.-based Pratt & Whitney sells aircraft engines to Europe's Airbus S.A.S. ,which in turn sells passenger airplanes to Japan Airlines that flies businesspeople around the world.This is an example of

Which of the following statements about marketing mix characteristics in organizational buying behavior is MOST ACCURATE?

Another name for an e-marketplace is a(n)

The North American Industry Classification System (NAICS)system designates industries with a numerical code in a defined structure.A six-digit coding system is used.The third digit designates a(n)

Which of the following possible characteristics of consumer buying is LEAST LIKELY to enter into an organizational buying decision?

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility in Marketing

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

Services Marketing

Building the Price Foundation

Arriving at the Final Price

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

Pulling It All Together: the Strategic Marketing Process

Building an Effective Marketing Plan

Financial Aspects of Marketing

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