Question 1

The existence of reciprocal arrangements,long-term contracts,and in some cases,buyer-seller relationships that evolve into supply partnerships,are all examples of

Accepted Answer

A)  illegal activities that are a common weakness of organizational buying.
B)  illegal activities that result from collusion between buyers and sellers.
C)  activities that are strictly governed by the NAICS.
D)  activities that can result from relationships between buyers and sellers in organizational buying.
E)  activities that result from extreme competition between manufacturers when there are too few suppliers.F) B) and E)
G) A) and B)

Question 2

Keystone Foods,which invented the individual quick freeze process for beef,provides McDonald's with millions of pounds of chicken,beef,and fish annually for use in its restaurants.The firm sources the animal proteins from farms and processes them in a variety of ways,such as breading or freezing,before selling them to McDonald's.Keystone is operating in a(n) __________ market.

Accepted Answer

A)  consumer
B)  government
C)  service
D)  industrial
E)  resellerF) B) and E)
G) B) and D)

Question 3

The NAICS is consistent with the International Standard Industrial Classification of All Economic Activities,which is published by the __________ to facilitate measurement of global economic activity.

Accepted Answer

A)  United Nations (UN) 
B)  European Union (EU) 
C)  International Standards Organization (ISO) 
D)  North American Free Trade Agreement (NAFT
A)  
E)  North American Product Classification System (NAPCS) F) None of the above
G) C) and E)

Question 4

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 the

Accepted Answer

A)  Standard Industrial Code System (SICS) .
B)  United Nations Central Product Classification System (UNCPCS) .
C)  National Codes of Industry System (NCIS) .
D)  North American Industry Classification System (NAICS) .
E)  Federal System of International Organizations (FSIO) .F) None of the above
G) B) and D)

Question 5

Explain the differences between independent e-marketplaces and private exchanges.

Accepted Answer

Both are forms of e-marketplaces.Indepen...

Question 6

A straight rebuy is a(n) __________ while a modified rebuy is a(n) __________.

Accepted Answer

A)  exchange;resale
B)  routine reorder;exchange
C)  first-time order;routine reorder
D)  changed order;first-time order
E)  routine reorder;changed orderF) A) and E)
G) B) and D)

Question 7

Because orders in organizational buying are typically much larger than in consumer buying,buyers must often __________ when the order is above a specific amount,such as $5,000.

Accepted Answer

A)  pay estimated sales taxes in advance
B)  move up the time required to execute a purchase agreement
C)  get competitive bids from at least three prospective suppliers
D)  forgo the purchase because senior management is unlikely to approve it
E)  forgo identifying the members of the supplying center and their roles in the selling processF) B) and C)
G) B) and D)

Question 8

At the weekly meeting for Choice Hotels,the marketing manager said,"We need an inexpensive creative way to increase awareness of our hotels among people who travel by automobile.To do that,I want to find some new media that the other hotel chains are not using." The purchase of this new media for the hotel chains' advertising would be an example of a

Accepted Answer

A)  new buy.
B)  straight rebuy.
C)  converted rebuy.
D)  modified rebuy.
E)  initial buy.F) All of the above
G) A) and E)

Question 9

During the third stage of the organizational buying decision process,the organization engages in

Accepted Answer

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

Question 10

Several people often participate in the organizational buying process.Called a __________,these people share common goals,risks,and knowledge important to a purchase decision.

Accepted Answer

A)  buying center
B)  buying cohort
C)  sustainable procurement committee
D)  stakeholder group
E)  purchasing departmentF) A) and E)
G) None of the above

Question 11

Dell,Inc.sells surplus,refurbished,or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another.This is an example of a

Accepted Answer

A)  traditional auction.
B)  reverse auction.
C)  bidder's war.
D)  I-auction.
E)  Webfront auction.F) D) and E)
G) B) and D)

Question 12

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

Accepted Answer

A)  problem recognition
B)  information search
C)  purchase decision
D)  alternative evaluation
E)  postpurchase behaviorF) A) and E)
G) B) and E)

Question 13

A buy class situation affects buying center tendencies in different ways.If there are two or three people involved,the time required for a decision is moderate,and the problem definition has only minor modifications,the buy class situation is MOST LIKELY a

Accepted Answer

A)  new buy.
B)  straight rebuy.
C)  conditional rebuy.
D)  modified rebuy.
E)  standard reorder.F) B) and C)
G) B) and D)

Question 14

What are the five stages of the organizational buying process? Describe at least three differences from the consumer buying process.

Accepted Answer

The five stages of the organizational bu...

Question 15

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase each other's products and services.This practice is referred to as

Accepted Answer

A)  exclusive dealing.
B)  supply partnerships.
C)  reciprocity.
D)  strategic alliances.
E)  tying arrangements.F) A) and E)
G) C) and E)

Question 16

The practice of __________,which can affect the normal operation of the free market and limit the flexibility of buyers,is occasionally addressed in the ethics codes of companies or their purchasing policies.

Accepted Answer

A)  tying agreements
B)  just-in-time procurement
C)  quid pro quo
D)  supply partnerships
E)  reciprocityF) A) and D)
G) A) and B)

Question 17

E-Marketplaces refer to

Accepted Answer

A)  virtual or holographic purchasing marketspaces that allow manufacturers to estimate demand based upon different changes in environmental forces.
B)  websites that allow consumers to make direct purchases from a manufacturer rather than through a traditional retail outlet.
C)  online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information,money,products,and services.
D)  computer simulations that allow manufacturers to estimate how much inventory to keep on hand based upon different purchasing scenarios.
E)  a computer database co-sponsored by the U.S.Department of Commerce and the World Trade Organization (WTO) that houses all public access records for the purpose of aiding American and global businesses.F) A) and E)
G) B) and E)

Question 18

A reverse auction refers to an online auction

Accepted Answer

A)  where firms may sell their overstock-unused raw materials,packaging,and tools-to the highest bidder.
B)  in which a manufacturer offers to share its facilities,inventory,or services with other smaller firms that are invited to bid in competition with each other.
C)  in which a smaller manufacturer seeks to share the facilities,inventory,or services of a larger firm,and invites those firms to bid in competition with each other.
D)  in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
E)  where firms seek to purchase other firms' overstock-unused raw materials,packaging,and tools-while trying to find the lowest price possible.F) A) and E)
G) None of the above

Question 19

The concept in organizational buying that corresponds most closely to a consumer's consideration set in the consumer purchase decision process is the

Accepted Answer

A)  supplier index.
B)  bidder's directory.
C)  selection set.
D)  bidder's list.
E)  NAICS index.F) B) and C)
G) D) and E)

Question 20

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

Accepted Answer

A)  reactive demand,which is tied to the sales of appliances,not the sale of the pallets.
B)  unitary demand,which is tied to the sales of appliances.
C)  derived demand,which is tied to the sales of appliances.
D)  inelastic demand,which is tied to the cost of the components of the pallets.
E)  elastic demand,which is tied to the cost of the components of the pallets.F) All of the above
G) A) and C)

Exam 6: Understanding Organizations As Customers

E-Marketplaces refer to

Correct Answer
verified

The concept in organizational buying that corresponds most closely to a consumer's consideration set in the consumer purchase decision process is the

Correct Answer
verified

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase each other's products and services.This practice is referred to as

Correct Answer
verified

What are the five stages of the organizational buying process? Describe at least three differences from the consumer buying process.

Correct Answer
verified
The five stages of the organizational bu...
View Answer

Correct Answer
verified

Dell,Inc.sells surplus,refurbished,or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another.This is an example of a

Correct Answer
verified

The NAICS is consistent with the International Standard Industrial Classification of All Economic Activities,which is published by the __________ to facilitate measurement of global economic activity.

Correct Answer
verified

Because orders in organizational buying are typically much larger than in consumer buying,buyers must often __________ when the order is above a specific amount,such as $5,000.

Correct Answer
verified

A buy class situation affects buying center tendencies in different ways.If there are two or three people involved,the time required for a decision is moderate,and the problem definition has only minor modifications,the buy class situation is MOST LIKELY a

Correct Answer
verified

The existence of reciprocal arrangements,long-term contracts,and in some cases,buyer-seller relationships that evolve into supply partnerships,are all examples of

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The practice of __________,which can affect the normal operation of the free market and limit the flexibility of buyers,is occasionally addressed in the ethics codes of companies or their purchasing policies.

Correct Answer
verified

Correct Answer
verified

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 the

Correct Answer
verified

Several people often participate in the organizational buying process.Called a __________,these people share common goals,risks,and knowledge important to a purchase decision.

Correct Answer
verified

A straight rebuy is a(n) while a modified rebuy is a(n) .

Correct Answer
verified

A reverse auction refers to an online auction

Correct Answer
verified

Explain the differences between independent e-marketplaces and private exchanges.

Correct Answer
verified
Both are forms of e-marketplaces.Indepen...
View Answer

During the third stage of the organizational buying decision process,the organization engages in

Correct Answer
verified

Exam 6: Understanding Organizations As Customers

E-Marketplaces refer to

Correct AnswerverifiedShow Answer

The concept in organizational buying that corresponds most closely to a consumer's consideration set in the consumer purchase decision process is the

Correct AnswerverifiedShow Answer

A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase each other's products and services.This practice is referred to as

Correct AnswerverifiedShow Answer

What are the five stages of the organizational buying process? Describe at least three differences from the consumer buying process.

Correct AnswerverifiedThe five stages of the organizational bu...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Dell,Inc.sells surplus,refurbished,or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another.This is an example of a

Correct AnswerverifiedShow Answer

The NAICS is consistent with the International Standard Industrial Classification of All Economic Activities,which is published by the __________ to facilitate measurement of global economic activity.

Correct AnswerverifiedShow Answer

Because orders in organizational buying are typically much larger than in consumer buying,buyers must often __________ when the order is above a specific amount,such as $5,000.

Correct AnswerverifiedShow Answer

A buy class situation affects buying center tendencies in different ways.If there are two or three people involved,the time required for a decision is moderate,and the problem definition has only minor modifications,the buy class situation is MOST LIKELY a

Correct AnswerverifiedShow Answer

The existence of reciprocal arrangements,long-term contracts,and in some cases,buyer-seller relationships that evolve into supply partnerships,are all examples of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The practice of __________,which can affect the normal operation of the free market and limit the flexibility of buyers,is occasionally addressed in the ethics codes of companies or their purchasing policies.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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 the

Correct AnswerverifiedShow Answer

Several people often participate in the organizational buying process.Called a __________,these people share common goals,risks,and knowledge important to a purchase decision.

Correct AnswerverifiedShow Answer

A straight rebuy is a(n) __________ while a modified rebuy is a(n) __________.

Correct AnswerverifiedShow Answer

A reverse auction refers to an online auction

Correct AnswerverifiedShow Answer

Explain the differences between independent e-marketplaces and private exchanges.

Correct AnswerverifiedBoth are forms of e-marketplaces.Indepen...View AnswerShow Answer

During the third stage of the organizational buying decision process,the organization engages in

Correct AnswerverifiedShow Answer

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The five stages of the organizational bu...
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A straight rebuy is a(n) while a modified rebuy is a(n) .

Correct Answer
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Both are forms of e-marketplaces.Indepen...
View Answer

Correct Answer
verified