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| 1 | |
Which of the following is a business or organizational customer, as opposed to an individual final consumer? |
| | A) | A wholesaler purchasing merchandise for resale. |
| | B) | A business executive who purchases a new suit. |
| | C) | A teacher who fills her car with gasoline. |
| | D) | A homeowner who buys flowers at a garden centre. |
| | E) | None of the above. |
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| 2 | |
Organizational customers: |
| | A) | Purchase goods and services in order to satisfy their customers and clients. |
| | B) | Are more emotional in their buying than final consumers. |
| | C) | Try to consider the total cost of selecting a supplier, not just the initial cost of the product. |
| | D) | Typically focus on behavioural needs instead of economic factors in making purchases. |
| | E) | Both A and C. |
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| 3 | |
A set of ________________ contains a written or electronic description of what a firm wants to buy. |
| | A) | requirements. |
| | B) | purchasing specifications. |
| | C) | blueprints. |
| | D) | quality certifications. |
| | E) | request forms. |
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| 4 | |
A purchasing manager: |
| | A) | is basically a clerk who fills out paperwork to place orders. |
| | B) | is the only person a business-to-business salesperson ever needs to see in order to make a sale to a buying organization. |
| | C) | may specialize by product area if he/she works for a large organization. |
| | D) | is only interested in finding the lowest possible price for a product. |
| | E) | all of the above. |
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| 5 | |
ABC Technologies manufactures computer accessories, such as modems and network cards. Even though the company has several purchasing managers, the company president has final authority on all purchases over $500, including the selection of the supplier. In the typical buying centre in this company, the company president would have the primary role of: |
| | A) | user. |
| | B) | buyer. |
| | C) | influencer. |
| | D) | decider. |
| | E) | gatekeeper. |
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| 6 | |
Vendor analysis: |
| | A) | has the sole objective of getting the lowest possible price on a particular product or service from the supplier. |
| | B) | does not take into account the behavioural needs of purchasing managers and others involved in the buying decision. |
| | C) | is a formal rating of suppliers on all relevant areas of performance. |
| | D) | all of the above. |
| | E) | A and C only. |
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| 7 | |
For which of the following would an organization most likely engage in new task buying? |
| | A) | A portable welding machine for use in making repairs. |
| | B) | A new desktop copying machine. |
| | C) | Dishwashing detergent powder for use in a restaurant. |
| | D) | A new desk chair to replace one that had broken. |
| | E) | A 10,000 square foot prefabricated steel building for use as a warehouse. |
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| 8 | |
A sales representative calls on a prospective business customer only to find that the customer has an established relationship with another supplier that seems to be working well. The customer is not interested in considering other suppliers. The customer is currently in a ___________ situation. |
| | A) | straight rebuy |
| | B) | modified rebuy |
| | C) | new-task |
| | D) | extensive problem-solving |
| | E) | limited problem-solving |
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| 9 | |
A publisher's sales representative calls on a college professor who has used another publisher's textbook in his class for several years. As they talk, the sales representative learns that the professor has not made a final decision on whether or not to continue using the book. When asked to explain, the professor mentions a couple of things about the text that he doesn't like. The sales rep then tries to convince the professor to use another book that he thinks would be better. The professor is currently in a _____________ situation. |
| | A) | straight rebuy. |
| | B) | modified rebuy. |
| | C) | new-task. |
| | D) | extensive problem solving. |
| | E) | routinized response behaviour. |
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| 10 | |
Which of the following statements about close buyer-seller relationships in business markets is FALSE? |
| | A) | In close relationships, buyers and suppliers can share tasks at a lower total cost of doing business. |
| | B) | The buyer can gain a more dependable source of supply. |
| | C) | Buyers and suppliers can engage in joint problem solving. |
| | D) | Long-term commitments on larger order quantities often cause the supplier to raise its selling price. |
| | E) | None of the above statements is false. |
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| 11 | |
Close buyer-seller relationships may not make sense because: |
| | A) | flexibility may be reduced for the firms involved. |
| | B) | not all purchases are important enough to the buyer to justify a close relationship with a supplier. |
| | C) | some suppliers do not want to deal with buyers who place small orders. |
| | D) | there are situations when the buyer could get reduced prices by letting suppliers compete for the buyer's business. |
| | E) | all of the above. |
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| 12 | |
Buzz Buchanan owns a successful sales and marketing consulting firm and pays Peter Osborne to be his chief financial advisor. Buzz lets Peter handle his insurance, investments, and other financial service needs. In turn, Peter purchases books, audio recordings, and other training materials from Buzz, and also recommends potential consulting clients to him. This arrangement is an example of: |
| | A) | reciprocity. |
| | B) | negotiated contract buying. |
| | C) | competitive bidding. |
| | D) | relationship-specific adaptations. |
| | E) | vendor analysis. |
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| 13 | |
An e-commerce site that directs suppliers to particular companies that need to make purchases is a: |
| | A) | company site. |
| | B) | catalogue site. |
| | C) | exchange. |
| | D) | procurement hub. |
| | E) | collaboration hub. |
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| 14 | |
Regarding the market composed of manufacturers in Canada: |
| | A) | most manufacturers are quite large. |
| | B) | manufacturers tend to be concentrated in specific areas. |
| | C) | there are a large number of manufacturers compared to the number of final consumers. |
| | D) | small manufacturers account for most of the "value added" by manufacturing. |
| | E) | all of the above. |
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| 15 | |
When looking at NAICS codes: |
| | A) | The fewer numbers in the code, the more general the industry classification is. |
| | B) | The more numbers in the code, the more general the industry classification is. |
| | C) | The fewer numbers in the code, the more specific the industry classification is. |
| | D) | The more numbers in the code, the more specific the industry classification is. |
| | E) | Both A and D. |
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| 16 | |
A sales rep for a producer of consumer electronics calls on a buyer for a large chain of retail stores. Before he begins his sales presentation, the buyer explains that the amount of money the retail chain budgeted for purchasing merchandise has all been spent. Assuming that the buyer is being honest, it appears that this buyer: |
| | A) | is trying to get a price reduction from the sales rep. |
| | B) | is not "open to buy." |
| | C) | has shelf space available for new products. |
| | D) | all of the above. |
| | E) | none of the above. |
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| 17 | |
The government market: |
| | A) | is one of the smallest customer groups in Canada. |
| | B) | often has buying processes that include purchase specifications and competitive bidding procedures. |
| | C) | never utilizes negotiated contract buying. |
| | D) | purchases a fairly narrow range of products dealing with public safety. |
| | E) | all of the above. |
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