1
More purchases are made by businesses and other organizations than by final consumers.A) True B) False 2
The number of buyers is larger in business markets compared to consumer markets.A) True B) False 3
Consumer markets tend to use more indirect channels than business markets.A) True B) False 4
Most of the workday of a purchasing manager spent with customers.A) True B) False 5
ISO 9000 is a way for a supplier to document its quality procedures according to internationally recognized standards.A) True B) False 6
Compared to consumer markets, business-to-business markets:A) use more personal selling. B) involve less leasing. C) have less complex negotiations. D) have more impersonal buyer-seller relationships. E) all of the above. 7
The cost-in-use of a product includes:A) the price paid. B) costs incurred in buying the product. C) costs in taking possession of the product. D) costs for using the product. E) all of the above. 8
Field defects, training, user labour, and disposal are:A) possession costs. B) sunk costs. C) total cost-in-use. D) usage costs. E) acquisition costs. 9
At Sally Chong's car dealership, owner Sally Chong read an article in the paper that the local municipality was collecting used motor oil. She instructed her service manager, Jeff Ford, to find more information on used oil collection systems that she recalled reading about in a trade magazine. After doing a Web search and making several phone calls, Jeff arranged for three companies to send brochures about their systems. He read them and set criteria for what he wanted. Then he invited two of the companies to send sales representatives to make a proposal. Sally agreed to allow Jeff to decide which system to purchase, to negotiate the price, and to make arrangements for its installation. Before making his final decision, Jeff also asked for the opinion of Mohammed, his senior mechanic. After it was installed, Mohammed and the rest of the mechanics began to use it. The person in the buyer role in this case was:A) Sally. B) Mohammed. C) Jeff. D) salespeople from the oil collection system companies. E) cannot determine from information provided. 10
Referring to question 9, Sally's role in the buying process was:A) initiator. B) decider. C) user. D) influencer/gatekeeper. E) buyer. 11
Referring to question 9, Sally and Jeff working together on this is an example of:A) split responsibility. B) lack of gatekeepers. C) not having need awareness. D) multiple buying influence. E) evaluation of the product. 12
Referring to question 9, the decider in this case was:A) Sally. B) Mohammed. C) Jeff. D) salespeople from the oil collection system companies. E) cannot determine from information provided. 13
Referring to question 9, Mohammed's role in the buying process was as a(n):A) initiator. B) influencer/gatekeeper. C) mechanic. D) buyer. E) user. 14
Reciprocity is best explained by:A) If you don't buy from me, I won't buy from your competitor. B) a barter system. C) two companies where each is a customer of the other. D) fierce competition. E) ISO 9000. 15
A straight rebuy:A) is a routine purchase that may have been made many times before. B) takes only a small amount of an organized buyer's time. C) is routinized by using requisitions. D) does not involve the buyer searching for new information or sources of supply. E) all of the above. 16
The North American Industry Classification System (NAICS):A) describes manufacturing industries only. B) is an internationally accepted, more detailed variation of the SIC system. C) is less detailed than SIC, but useful for selecting consumer target markets. D) is a very old system that is not well suited for new or changing industries. E) makes it easy for marketers to learn about consumers.