Question 1

All of the following are commonly used organizational buying criteria except

Accepted Answer

A) warranties 
B) technical capabilities 
C) price 
D) personal relationships

Question 2

Industry Canada feels that restrictions to the normal operation of a free market are created when two legal companies engage in:

Accepted Answer

A) quid pro quo 
B) just-in-time management 
C) reciprocity 
D) transactional benefit

Question 3

Many organizational buyers today are making deliberate efforts to build relationships that shape suppliers' products, services, and capabilities to their needs and those of their customers. This is known as:

Accepted Answer

A) inverse marketing 
B) inside-out marketing 
C) demarketing 
D) supplier development

Question 4

Canada manufacturers export over _________ percent of all goods manufactured.

Accepted Answer

A) 40 
B) 60 
C) 50 
D) 30

Question 5

Reverse auctions:

Accepted Answer

A) have a decreasing number of bidders as the auction progresses. 
B) have sequential bidding. 
C) are buyer-initiated. 
D) benefit the sellers significantly more than the buyers.

Question 6

Apex Therapeutic buys medical supplies and services for people with hemophilia and other related blood diseases from a multitude of sources. It then sells these products to anyone who needs them. When it sells directly to a person who is a hemophiliac, it would be classified as a(n):

Accepted Answer

A) reseller. 
B) monopoly. 
C) industrialist . 
D) change agent.

Question 7

Many industrial buyers for manufacturing firms place great importance on delivery time because they often rely on a just-in-time inventory system. This system has increased the importance of which organizational buying criterion?

Accepted Answer

A) customer service and follow-up 
B) low prices 
C) high quality 
D) on-time delivery

Question 8

Which one of the following statements does not accurately describe organizational buying behaviour?

Accepted Answer

A) It is the decision-making process organizations use to establish the need for products and identify, evaluate, and choose among alternative brands and suppliers. 
B) It always involves highly formalized buying centres. 
C) It will require organizational members to formulate a make-buy decision. 
D) It is similar to consumer buying behaviour.

Question 9

Users, influencers, or deciders in the buying centre want to change product specifications, price, delivery schedule, or suppliers in which situation?

Accepted Answer

A) straight rebuy 
B) modified rebuy 
C) buy class 
D) new buy

Question 10

Campus Living Centres offer college and universities all of the following except:

Accepted Answer

A) managing existing residences 
B) building and financing new residences 
C) academic guidance on student life and living programs 
D) property management services

Question 11

Which of the following is not considered a market for organizational buyers?

Accepted Answer

A) retailer 
B) government agencies 
C) industrial 
D) reseller

Question 12

In a regular buying situation, which role is likely to have the ultimate decision authority?

Accepted Answer

A) purchaser 
B) buyer 
C) influencer 
D) decider

Question 13

Which of the following is NOT a characteristic of the organizational buying process?

Accepted Answer

A) Multiple parties participate in purchase decisions. 
B) Negotiation between buyers and sellers is commonplace. 
C) Online buying over the Internet is uncommon. 
D) Online buying over the Internet is widespread.

Question 14

What are the five stages of the organizational buying process?

Accepted Answer

The answer of What are the five stages of the...

Question 15

What are independent e-marketplaces? What are the features of the settings they may exist in?

Accepted Answer

The answer of What are independent e-marketplaces? What are the...

Question 16

Which of the following statements is true regarding organizational versus consumer buying decisions?

Accepted Answer

A) Reciprocal arrangements exist. 
B) More organizational buying decisions are lower in involvement. 
C) Organizational buyers are more influenced by lifestyle factors. 
D) Perceived risk is lower in organizational buying.

Question 17

At which point in the buying decision process would a firm use a formal vendor rating system to evaluate the quality of the vendor's product and customer service?

Accepted Answer

A) purchase decision 
B) information search 
C) post-purchase behaviour 
D) problem recognition

Question 18

The system that provides common industry definitions for Canada, Mexico, and the United States to facilitate the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA)is called:

Accepted Answer

A) Federated Trade Codification (FT
C) . 
B) the North American Industry Classification System (NAICS). 
C) Federated Domestic and International Classification (FDI
C) . 
D) Strategic International Classification (SI
C) .

Question 19

When compared to consumer marketing, industrial marketing is simpler because:

Accepted Answer

A) firms have buying centres. 
B) industrial orders are smaller. 
C) the buying objectives of industrial buyers are easily identifiable. 
D) it is easy to forecast derived demand.

Question 20

Which of the following is not considered a type of organizational buying class?

Accepted Answer

A) straight rebuy 
B) new buy 
C) modified rebuy 
D) indirect rebuy

Exam 6: Understanding Organizations As Customers