Question 1

Influencers influence the buying decision by helping define specifications and providing information for evaluating alternatives.

Accepted Answer

A) True 
 B)False

Question 2

Explain the concept of derived demand.

Accepted Answer

The answer of Explain the concept of derived demand....

Question 3

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 4

A new-task buyclass decision begins with which of the following steps?

Accepted Answer

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

Question 5

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.

Accepted Answer

A)  basic buying and selling 
B)  contractual transaction 
C)  collaborative 
D)  customer supply 
E)  customer is king

Question 6

Through its dedicated research team, CISCO Systems Inc. has developed new value-added business solutions which enable its variant class-II capacitors to provide incremental productivity of 10 to 20 percent over its competitors. This is an example of the ________ form of solution selling.

Accepted Answer

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

Question 7

Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects such as dams or pipelines.

Accepted Answer

A) True 
 B)False

Question 8

If Ampex Support Systems is the single supplier for a local manufacturing company's MRO (maintenance, repair, operating)supplies and needs, Ampex Support Systems is considered as providing ________ for the manufacturer.

Accepted Answer

A)  guided selling 
B)  purchasing support 
C)  turnkey logistics 
D)  decision support 
E)  systems contracting

Question 9

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Accepted Answer

A) True 
 B)False

Question 10

Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.

Accepted Answer

A) True 
 B)False

Question 11

Jason Riggs' company is considered to be an in-supplier for a lawn mower manufacturer. However, recently the lawn mower company has put out a memo to in- and out-suppliers indicating that it would like to change product specifications and delivery schedules. Which of the following buying situations is most likely to be in operation given this data?

Accepted Answer

A)  straight rebuy 
B)  single rebuy 
C)  rakeback rebuy 
D)  system buy 
E)  modified rebuy

Question 12

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

Question 13

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

Accepted Answer

A)  straight rebuy 
B)  modified rebuy 
C)  new task 
D)  secondary purchase 
E)  procure-to-pay

Question 14

As a seller in the business market, you have promised your customers that you have corporate credibility as one of your corporate goals. What three factors will have some bearing on whether you will be able to meet your goal and promise?

Accepted Answer

The answer of As a seller in the business market,...

Question 15

A supplier signs an agreement with a customer that states that $350,000 in savings will be earned by the customer over the next 18 months in exchange for a tenfold increase in the customer's share of supplies ordered by the customer. If the supplier achieves less than this promised savings, it will make up the difference. If the supplier achieves substantially more than promised, it participates in the extra savings. This is an example of ________.

Accepted Answer

A)  solution selling 
B)  price fixing 
C)  demand shifting 
D)  systems buying 
E)  risk and gain sharing

Question 16

The new, more strategically oriented purchasing departments have a mission. Which of the following most accurately describes that mission?

Accepted Answer

A)  Make the most profit possible and remain independent of entanglements. 
B)  Approach every purchasing opportunity as means to create interdependency. 
C)  Seek the best value from fewer and better suppliers. 
D)  Outsource the supply function. 
E)  Abandon all strategies except for systems selling and buying.

Question 17

Initiators are those who authorize the proposed action of deciders or buyers.

Accepted Answer

A) True 
 B)False

Question 18

When purchasing disposable surgical gowns, Mercy Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns. If the findings favor disposable gowns, then the operating-room administrator compares various competitors' products and prices and makes a choice. Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand. In this situation, the operating-room administrator performs the role of the ________.

Accepted Answer

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

Question 19

The demand for business goods is ultimately derived from the demand for ________.

Accepted Answer

A)  raw materials 
B)  consumer goods 
C)  services 
D)  business solutions 
E)  e-commerce

Question 20

KEK is a supplier of paper and paper products to several businesses. Name some contract restrictions that KEK can use to protect its margins when dealing with price-oriented buyers.

Accepted Answer

The answer of KEK is a supplier of paper and...

Exam 7: Analyzing Business Markets

Influencers influence the buying decision by helping define specifications and providing information for evaluating alternatives.

Explain the concept of derived demand.

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.

A new-task buyclass decision begins with which of the following steps?

Through its dedicated research team, CISCO Systems Inc. has developed new value-added business solutions which enable its variant class-II capacitors to provide incremental productivity of 10 to 20 percent over its competitors. This is an example of the ________ form of solution selling.

Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects such as dams or pipelines.

If Ampex Support Systems is the single supplier for a local manufacturing company's MRO (maintenance, repair, operating) supplies and needs, Ampex Support Systems is considered as providing ________ for the manufacturer.

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.

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.

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

As a seller in the business market, you have promised your customers that you have corporate credibility as one of your corporate goals. What three factors will have some bearing on whether you will be able to meet your goal and promise?

The new, more strategically oriented purchasing departments have a mission. Which of the following most accurately describes that mission?

Initiators are those who authorize the proposed action of deciders or buyers.

The demand for business goods is ultimately derived from the demand for ________.

KEK is a supplier of paper and paper products to several businesses. Name some contract restrictions that KEK can use to protect its margins when dealing with price-oriented buyers.