Deck 6: Understanding Organizations As Customers

Question 1

Organizational buyers include manufacturers, wholesalers, retailers, and government agencies

A)that purchase exclusively from one supplier.
B)that are exempt from state and local taxes.
C)that sell directly to ultimate consumers.
D)that employ at least 1000 workers.
E)that buy goods and services for their own use or resale.

Answer 1

E

Question 2

The highest percentage of firms in industrial markets are classified as

A)manufacturing firms.
B)construction firms.
C)agricultural firms.
D)mining companies.
E)service firms.

Answer 2

E

Question 3

The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as

A)integrated marketing.
B)institutional marketing.
C)business marketing.
D)reseller marketing.
E)agricultural marketing.

Answer 3

C

Question 4

When JCPMedia buys paper, it considers the supplier's forest management practices and its environmental practices.How the supplier assumes its __________ is important in the selection of a paper supplier for JCPMedia.

A)profit responsibility
B)societal responsibility
C)ecological accountability
D)environmental autonomy
E)stakeholder responsibility

Question 5

A business market is also referred to as

A)the transactional market.
B)the ultimate market.
C)a relational enterprise.
D)entrepreneurship.
E)an industrial market.

Question 6

Kim Nagele, the senior procurement agent at JCPMedia purchases tons of publication paper annually at a cost of hundreds of millions of dollars.In the buying center, Kim Nagele performs the role of the

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

Question 7

Which of the following statements represents an organizational buying decision?

A)The local baker buys sugar to make cookies with his children at home.
B)A dentist buys a new VCR for her den.
C)Mr.Langley hires a housecleaning service to clean his apartment.
D)The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.
E)The city mayor purchases a new suit to wear to a wedding.

Question 8

JCPMedia

A)buys the fashions that are sold in JCPenney stores.
B)is an advertising agency for industrial companies seeking brand recognition.
C)is the print and paper purchasing arm of JCPenney.
D)is a marketing research company that monitors e-commerce activities.
E)buys and sells media space for newspapers.

Question 9

These buyers purchase raw materials and parts to reprocess into the finished goods they sell.

A)retailers
B)wholesalers
C)manufacturers' agents
D)manufacturers
E)ultimate consumers

Question 10

The size and number of JCPenney catalogs designed and mailed to consumers would determine how much paper JCPMedia would need to buy.This is an example of

A)derived demand.
B)reciprocity.
C)a tying agreement.
D)a transactional sale.
E)elastic supply.

Question 11

Organizational buyers can be divided into three different markets.They are

A)industrial, wholesaler, and retailer markets.
B)industrial, retailer, and government markets.
C)retailer, manufacturer, and government markets.
D)industrial, government, and ultimate consumer.
E)industrial, reseller, and government markets.

Question 12

Organizational buyers refer to

A)manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for resale.
B)manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
C)manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for their own use.
D)nonprofit organizations that make purchases at a reduced or nominal fee and are exempt from most governmental taxes.
E)manufacturing cooperatives that purchase large quantities in order to take advantage of economies of scale that they could not be able to attain otherwise.

Question 13

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

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

Question 14

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.

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

Question 15

Archer Daniels Midland (ADM) Co.is the world's largest cocoa-bean processor.It buys cocoa beans and converts the beans into cocoa powder and cocoa butter, which it sells to companies that manufacture consumer products that contain chocolate.The cocoa-bean processor is operating in a(n) __________ market.

A)tax regulated
B)governmental
C)renewable resource
D)product-intensive
E)industrial

Question 16

Business marketing refers to

A)the marketing of goods and services to companies, governments, or ultimate consumers for use in the creation of goods and services.
B)the marketing of goods and services to not-for-profit organizations at a reduced or nominal fee, for use in the creation of goods and services that they can produce and market to others.
C)the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.
D)the marketing of services in the area of intellectual property such as legal, financial, or creative consulting.
E)the marketing of an idea to create interest or generate goodwill, not for an individual brand, but for entire industry or product class.

Question 17

A firm that reprocesses a good or service it buys before selling the product again to the next buyer is referred to as a(n)

A)industrial firm.
B)reseller firm.
C)government agency.
D)wholesaler.
E)retail firm.

Question 18

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

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

Question 19

Which of these statements regarding organizational buyers is most accurate?

A)Wholesalers and retailers resell the goods they buy without reprocessing them.
B)Wholesalers and retailers alter the products they sell to meet the specific needs of their customers prior to sale.
C)Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers.
D)Ultimate consumers can be considered organizational buyers when they purchase in large quantities or they make long-term purchase agreements.
E)Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers.

Question 20

An industrial firm is a firm that

A)is distinguished by the amount of energy it uses and potential for pollution to the environment.
B)has more than 500 employees who are paid at least minimum wage and receive some form of additional benefit.
C)deal exclusively with federal, state, and local governments and traditionally holds a long-term contract.
D)in some way reprocesses a good or service it buys before selling the product again to the next buyer.
E)is most likely to be located in the eastern U.S., and operates out of a factory.

Question 21

Wholesalers and retailers that buy physical products and resell them without any reprocessing are

A)industrial firms.
B)reseller firms.
C)government firms.
D)facilitators.
E)non-profit firms.

Question 22

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 designate a(n)

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

Question 23

The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) is referred to as

A)Strategic International Classification (SIC).
B)Federated Domestic and International Classification (FDIC).
C)Federated Trade Codification (FTC).
D)the North American Industry Classification System (NAICS).
E)Federated System of Listing International Corporations (FSLIC).

Question 24

North American Industry Classification System (NAICS) refers to

A)the system that provides common industry definitions for North America, Central America, and South America, which makes it easier to measure economic activity in the three member countries involved.
B)the system that provides common industry definitions between Canada the United States, which makes it easier to measure economic activity and releases barriers of trade for manufacturing and distribution for cross-border firms.
C)the system that provides common industry definitions for North America, Africa, and Asia, which makes it easier to measure economic activity in the three member continents involved.
D)the system that provides common industry definitions between Canada the United States, which makes it easier to measure economic activity and reduces barriers of trade for pharmaceuticals.
E)the system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

Question 25

The International Standard Industrial Classification of All Economic Activities, published by the __________ to facilitate global economic activity, is similar in form to the North American Industry Classification system (NAICS).

A)Fiscal Development International Coalition (FDIC)
B)North American Free Trade Agreement (NAFTA)
C)North Atlantic Treaty Organization (NATO)
D)European Union (EU)
E)United Nations (UN)

Question 26

Itex Corporation, marketer of Photostat products used in the graphic arts field, buys sensitized paper from Eastman Kodak Company, packages it with the Photostat brand name on it, and sells it directly to amateur photographers.In this context, Itex Corporation is most accurately classified as a

A)manufacturer.
B)reseller.
C)industrialist.
D)cooperative wholesaler.
E)branding manufacturer.

Question 27

The reseller market includes

A)manufacturers and service providers.
B)transportation providers and other facilitators.
C)government agencies and service providers.
D)agricultural markets and the mining industry.
E)retailers and wholesalers.

Question 28

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 fourth digit represents a(n)

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

Question 29

Mile High Frozen Foods is a distributor for McDonalds.They also bake the buns used by McDonalds in several states.They purchase flour, yeast, sesame seeds, manufacture the buns, and then distribute them to the McDonald's stores.Mile High Frozen Foods is operating in a(n) __________ market.

A)tax regulated
B)government
C)institutional
D)consumer dominant
E)industrial

Question 30

In terms of organizational buyers, Amazon.com, Lands' End, and JCPenney would all be classified as __________.

A)capitalists
B)resellers
C)monopolists
D)facilitators
E)industrialists

Question 31

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 first two digits designate a(n)

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

Question 32

FIGURE 6-1
The NAICS Logo (see Figure 6-1 above) provides common industry definitions for

A)Canada, England, and the United States
B)Canada, France, and the United States
C)Canada, Europe, and the United States
D)Canada, Russia, and the United States
E)Canada, Mexico, and the United States

Question 33

FIGURE 6-1
The acronym on the NAICS Logo (see Figure 6-1 above) stands for

A)National Association of Industrial Compliance Standards.
B)National Association of Industrial Communication Systems.
C)North American Industrial Computer Standards.
D)North American Industry Classification System.
E)North Atlantic Industrial Classification System.

Question 34

When Louisiana State University buys new laptops for its faculty it is operating as a(n)

A)industrial market.
B)business market.
C)government unit.
D)facilitating agent.
E)service provider.

Question 35

Which of the following statements about the North American Industry Classification System (NAICS) is most accurate?

A)After being used for more than 50 years, NAICS was replaced by the Standard Industrial Classification (SIC system).
B)NAICS permits comparability across countries but does not accurately measure new or emerging industries.
C)One drawback to NAICS is that it is inconsistent with the International Standard Industrial Classification of All Economic Activities published by the United Nations (UN).
D)NAICS groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies.
E)NAICS is a five digit code that allows comparison of industries even when information is limited.

Question 36

Federal, state, and local agencies that buy goods and services for the constituents they serve are referred to as

A)industrial markets.
B)reseller markets.
C)cooperative markets.
D)government units.
E)facilitating agents.

Question 37

The North American Industry Classification System (NAICS) permits a firm to

A)find the NAICS codes of its present customers and then obtain NAICS-coded lists for similar firms.
B)learn the names of the purchasing agents of all prospective customers.
C)sell to any company within North America as long as it is not a monopoly.
D)engage in benchmarking with companies manufacturing and/or marketing similar products.
E)conduct an industry-wide SWOT analysis to determine internal strengths and weaknesses of current and prospective competitors.

Question 38

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 sixth digit designate a(n)

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

Question 39

When the Federal Aviation Administration purchases 3,000 computerized workstations for 22 major air traffic control centers in the U.S., it is operating as a(n)

A)industrial market.
B)business market.
C)government unit.
D)facilitating agent.
E)service provider.

Question 40

Graham-Field Health Products makes hospital beds and wheelchairs from component parts and materials it buys.It sells its products to hospitals, nursing homes, and retailers of health care products.Graham-Field Health Products operates in a(n) __________ market.

A)consumer dominated
B)government
C)industrial
D)sustainable
E)renewable resource

Question 41

Important market characteristics in organizational buying behavior include derived demand for industrial products and services and

A)fewer customers but with larger orders.
B)diminishing international opportunities as more firms enter the market.
C)more customers placing progressively larger orders.
D)unlimited markets but orders are becoming progressively smaller.
E)a market that functions independently of consumer demand.

Question 42

Firms selling consumer goods or services often try to reach thousands or millions of individuals or households.Firms selling to organizations are often

A)inclined to try to reach tens of millions.
B)restricted to far fewer buyers.
C)hoping to obtain similar numbers of non-consumer customers.
D)restricted by government regulations to only a few industrial categories.
E)simultaneously purchasing from organizational buyers and ultimate consumers.

Question 43

Which of the following statements about organizational buying compared to consumer buying is most accurate?

A)Perceived risk is lower in organizational buying.
B)Brand loyalty exists in both organizational and consumer buying.
C)More organizational buying decisions are lower in involvement.
D)Organizational buyers are more influenced by lifestyle factors.
E)Derived demand is more important in consumer buying.

Question 44

Derived demand refers to

A)the demand for consumer products and services that is driven by excess inventory of manufacturers, distributors, or suppliers.
B)the demand for industrial products and services that is driven by demand for consumer products and services.
C)the formula used to determine the greatest number of potential buyers based upon the lowest price they would be willing to pay.
D)the point on a demand curve where supply and demand intersect.
E)the formula used to determine which element of the marketing mix has the greatest impact on increases or decreases in demand.

Question 45

Important marketing mix characteristics in organizational buying behavior include: advertising and other forms of promotion are technical in nature; price is often negotiated, evaluated as part of broader seller and product or service qualities, and frequently affected by quantity discounts; and

A)few large transactions are made over the Internet due to concerns of industrial espionage.
B)products must be easily adaptable in form and function to accommodate consumer tastes.
C)negotiations, purchases, and delivery occur in real time at an accelerated rate.
D)direct selling to organizational buyers is the rule, and distribution is very important.
E)sellers rather than buyers, are responsible for post-purchase evaluation of their goods or services.

Question 46

Unfortunately, the NAICS system will not allow marketing managers to gather information about

A)import competition in domestic markets.
B)geographic distribution of industries.
C)market share in a pure competition environment.
D)demand for goods and services.
E)data on industries that are oligopolies.

Question 47

Derived demand means the demand for industrial products and services is driven by, or derived, from

A)NAICS statistical models.
B)the Gross National Product.
C)demand for consumer goods and services.
D)demand for industrial goods.
E)the GNP index.

Question 48

Important buying process characteristics in organizational buying behavior include: technically qualified and professional buyers who follow established purchasing policies and procedures; buying objectives and criteria are typically spelled out, there are multiple buying influences and parties participating the purchase decision, and

A)few large transactions are made over the Internet due to concerns of industrial espionage.
B)there are often reciprocal arrangements and negotiations between buyers and sellers.
C)negotiations, purchases, and delivery occur in real time at an accelerated rate.
D)most purchases are made through government licensed negotiators.
E)sellers, rather than the buyers, are responsible for post-purchase evaluation of their goods or services.

Question 49

How might a marketing manager, for a manufacturer of turboprop engines used in private jet planes, use the North American Industry Classification (NAICS) system to help with his or her marketing planning? A.She could record the NAICS numbers for each of her firm's best customers, and then obtain lists of companies with the same NAICS numbers.
B)She could go to a library to find the NAICS numbers for all government units-federal, state, and local.
C)She could identify all NAICS numbers that reflect the classifications of her firm's customers and compare them to previous SIC codes.
D)She could poll her field sales organization to see if her company's sales representatives know what NAICS numbers mean.
E)She could forgo using the NAICS system because it is a dated concept that has no current usefulness.

Question 50

You are the research director of a major marketing-research consulting firm.You need to select an NAICS (North American Industry Classification System) code that gives you the most detail about the competitors in a client's industry.Which of the following levels of classification would provide the greatest detail?

A)Code 512
B)Code 5175
C)Code 51721
D)Code 517212
E)Code 5172122

Question 51

If there is a downturn in U.S.passenger air travel, a number of U.S.airlines would very likely cancel some of their orders for new planes.The relationship between passenger air travel and the need for new planes is referred to as

A)derived demand.
B)the price-quality relationship.
C)the acceleration principle.
D)price-elasticity.
E)price-inelasticity.

Question 52

Concert Staging Company provides the stage, the roof system, and lighting and sound for outdoor concerts and theaters.It is typically hired by the organization sponsoring the event.When the economy slows down, consumers are more likely to save their money for a rainy day than buy a concert or theater ticket.The number of concert and theater events determines how many times the company gets to provide its services.Demand for the services provided by Concert Staging Company is __________ demand.

A)derived
B)unitized
C)industrial
D)applied
E)consumer

Question 53

Which of the following possible aspects of consumer buying decisions is least likely to enter into an organizational buying decision?

A)Comparison of product performance with expectations.
B)Decision based on 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.

Question 54

Which of the following statements accurately characterizes buying behavior in organizational markets?

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 or derived because companies, not ultimate consumers, determine the quantity of goods produced.
C)Fewer customers typically exist in organizational markets than in consumer markets.
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 55

FIGURE 6-2
According to Figure 6-2 above, what is the industry represented by NAICS code 51?

A)manufacturing
B)fisheries
C)information
D)publishing
E)retailing

Question 56

Important product or service characteristics in organizational buying behavior include: products or services of a technical nature, purchased on the basis of specifications; a large portion of goods are purchased in a raw or semi-finished state, and

A)a heavy emphasis on quantity price discounts, extended contracts, and customer loyalty.
B)a heavy emphasis placed on delivery time, technical assistance, and postsale service.
C)flexibility with delivery schedules, technical assistance, and renewable contracts.
D)market sensitive pricing, sales incentives, and postsale service.
E)flexibility with product specifications, limited liability, and adherence to government regulations.

Question 57

The demand for industrial products and services that is driven by demand for consumer products and services is

A)derivative marketing.
B)derived demand.
C)reciprocal marketing.
D)demand continuum.
E)product-service exigency.

Question 58

Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.

A)derived
B)unitized
C)industrial
D)applied
E)consumer

Question 59

FIGURE 6-2
According to Figure 6-2 above, what is the NAICS code for cable and other subscription programming?

A)511
B)5152
C)51512
D)51520
E)511515

Question 60

Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators.The demand for Spruceland pallets would be classified as

A)reactive demand, which is tied to the sales of appliances, not the sale of the pallets.
B)derived demand, which is tied to the sales of appliances, but independent of the sales of pallets.
C)derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances.
D)inelastic demand, tied to the cost of the components of the pallets.
E)elastic demand, tied to the cost of the components of the pallets.

Question 61

When John Deere Company employs engineers who work full-time with the company's suppliers to improve their efficiency and quality and reduce their costs, it is practicing

A)buyer development.
B)organizational development.
C)relational organization skills.
D)supplier development.
E)directive purchasing.

Question 62

Which of the following characterizes organizational buyer-seller relationships?

A)Purchases are often made after brief negotiations.
B)Purchases are usually of large dollar values.
C)Short-term relationships are often prevalent.
D)Reciprocal arrangements rarely exist.
E)Delivery schedules are less important than production capacity.

Question 63

An industry buying practice in which two organizations agree to purchase each other's products and services is called

A)buyer development.
B)organizational development.
C)supplier development.
D)reciprocity.
E)sustainability.

Question 64

The primary organizational buying objective is to

A)help the firm achieve its objectives.
B)create an atmosphere of inclusiveness.
C)help smaller companies stay in business.
D)increase the proficiency of its buyers.
E)balance inventory.

Question 65

The objective attributes of the supplier's goods and services and the capabilities of the supplier itself are collectively referred to as

A)supplier evaluative dimensions.
B)derived demand factors.
C)evaluative criteria.
D)performance measures.
E)organizational buying criteria.

Question 66

Organizational buying criteria serve the same purpose as __________ criteria used by consumers.

A)consideration
B)evaluative
C)decision
D)alternative
E)pre-purchase

Question 67

Harley-Davidson is admired by its suppliers for involving suppliers in future products, referring to suppliers as stakeholders, using quality benchmarks, and

A)building long-term relationships.
B)signing lifetime contracts to demonstrate loyalty.
C)offering their products at cost for all key supplier personnel.
D)listing the names of all suppliers on their Harley-Davidson promotional material.
E)extending Harley-Davidson healthcare benefits to supplier' employees.

Question 68

The primary buying objective for business firms is usually to

A)increase profits through increasing costs and increasing revenues.
B)increase profits through reducing costs and decreasing revenues.
C)increase profits through reducing costs or increasing revenues.
D)maintain profits through reducing costs and increasing revenues.
E)reduce profits through reducing costs and reducing revenues.

Question 69

production facilities and capacity.

A)price
B)loyalty
C)flexibility
D)adaptability
E)consumer demand

Question 70

The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers is referred to as

A)buyer development.
B)organizational development.
C)relational organization.
D)supplier development.
E)buyer-seller reciprocity.

Question 71

production facilities and capacity.

A)flexibility and adaptability
B)ability to meet the quality specifications required for the item
C)adherence to governmental policies
D)senior management directives
E)consumer demand

Question 72

Organizational buying criteria refer to

A)the specific qualifications of a potential supplier based upon price, delivery time, and product availability.
B)the specific qualifications of a potential supplier based upon past performance, reliability, and consistency.
C)the subjective attributes of the supplier's goods and services and the capabilities of the supplier itself.
D)the objective attributes of the supplier's goods and services and the capabilities of the supplier itself.
E)the need of suppliers to become qualified bidders by adhering to all written specifications, in a timely manner, and in compliance with government regulation.

Question 73

Harley-Davidson (HD) is admired by its suppliers because

A)HD has its own financial fund making it unnecessary for suppliers to seek outside credit for purchases.
B)HD will purchase surplus goods in order for suppliers to take advantage of economies of scale.
C)HD tells them exactly what to do and the suppliers simply follow directions.
D)HD builds long-term relationships with its suppliers.
E)HD does not require suppliers to participate in planning and development.

Question 74

production facilities and capacity.

A)consumer demand
B)flexibility and adaptability
C)technical capability
D)promotional incentives
E)senior management directives

Question 75

production facilities and capacity.

A)flexibility and adaptability
B)ability to meet required delivery schedules
C)consumer demand
D)senior management directives
E)adherence to governmental policies

Question 76

To be a Wal-Mart supplier, a firm must be able to deliver its products to Wal-Mart distribution centers within a 15-minute window.If the driver arrives before or after the scheduled window they will be turned away and fined.Wal-Mart's insistence of choosing a supplier based upon their ability to provide on-time delivery is an example of a(n)

A)supplier value dimension.
B)derived demand factor.
C)evaluative criterion.
D)external performance measure.
E)organizational buying criterion.

Question 77

An industrial buying practice in which two organizations agree to purchase each other's products and services is referred to as __________.

A)a tying arrangement
B)exclusive dealing
C)reciprocity
D)transactional marketing
E)noncompetitive bidding

Question 78

Supplier development refers to

A)the deliberate effort by suppliers to build relationships that shape buyers' products, services, and capabilities to fit both the buyer's and seller's needs, as well as the needs of the ultimate consumer.
B)the practice of dividing up large orders amongst a number of suppliers rather than only one, to avoid possible delays due to environmental forces such as bad weather, plant mishaps, union issues, etc.
C)the practice of establishing a close relationship with one supplier rather than many to insure loyalty and preferred treatment when filling exceptionally large orders.
D)the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers.
E)the shift of a firm from that of supplier to manufacturer when repeated experience with a product and excellent buyer/seller relationships make the shift both more feasible and profitable.

Question 79

Harley-Davidson emphasizes

A)Supplier collaboration in its product design.
B)signing lifetime contracts to demonstrate loyalty.
C)offering their products at cost for all key supplier personnel.
D)listing the names of all suppliers on their Harley-Davidson promotional material.
E)extending Harley-Davidson healthcare benefits to supplier' employees.

Question 80

production facilities and capacity.

A)adherence to governmental policies
B)flexibility and adaptability
C)past performance on previous contracts
D)consumer demand
E)senior management directives