Q&A Hero

Q: 1-800 Contacts is a company based in Draper, Utah that sells contact lenses manufactured by other well-known companies, including Johnson & Johnson Vision Care, Ciba Vision, Bausch & Lomb and CooperVision. It would most likely be classified as a(n) __________.A. industrial service providerB. healthcare providerC. resellerD. industrial firmE. government agency

Q: European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the U.S. In this context, ESF is most likely classified as aA. producer.B. reseller.C. service provider.D. government agency.E. industrial firm.

Q: The reseller market includesA. manufacturers.B. logistics and supply chain providers.C. government agencies.D. end-user service providers.E. retailers and wholesalers.

Q: 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.A. consumerB. governmentC. serviceD. industrialE. reseller

Q: __________ comprise the highest percentage of firms in industrial markets.A. Manufacturing firmsB. Construction firmsC. Agricultural firmsD. Mining companiesE. Service companies

Q: Which of the following is a service business within the industrial market?A. constructionB. miningC. insuranceD. governmentE. farming

Q: Which of the following types of firms comprises an industrial market?A. retailingB. constructionC. wholesalingD. state governmentsE. federal regulatory agencies

Q: Mining companies, farms, financial services, and fisheries are all examples ofA. consumer markets.B. cooperative markets.C. reseller markets.D. industrial markets.E. government markets.

Q: A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as a(n)A. industrial firm.B. reseller firm.C. government agency.D. wholesaler.E. retailer.

Q: An industrial firmA. is one that is independently owned and takes title to the merchandise it sells.B. buys physical goods and resells them again without any reprocessing.C. deals exclusively with federal, state, and local governments.D. in some way reprocesses a product or service it buys before selling it again to the next buyer.E. only produces a product, not a service.

Q: Which of the following represents an organizational buyer?A. A local baker buys sugar at the grocery store to make cookies with his children at home.B. A dentist buys a new LG SmartTV 55-inch 3D OLED HDTV for her den.C. Mr. Langley hires a housecleaning service to clean his apartment.D. The owner of a sushi restaurant hires a window washing service to clean exterior windows.E. The city mayor rents a tuxedo to wear to his daughter's wedding.

Q: Organizational buyers can be divided into three different markets, which areA. industrial, wholesaler, and retailer.B. industrial, retailer, and government.C. retailer, manufacturer, and government.D. industrial, government, and ultimate consumer.E. industrial, reseller, and government.

Q: All of the following are organizational buyers EXCEPT:A. industrial firms.B. government units.C. ultimate consumers.D. resellers.E. wholesalers.

Q: Which of these statements regarding organizational buyers is most accurate?A. Wholesalers and retailers resell the goods they buy without reprocessing them.B. Wholesalers and retailers alter the goods they sell to meet the specific needs of their customers prior to resale.C. Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers.D. Ultimate consumers can be considered organizational buyers when they purchase in large quantities.E. Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers.

Q: Organizational buyers include manufacturers, wholesalers, retailers, and government agencies thatA. purchase exclusively from one supplier.B. are exempt from state and local taxes.C. sell directly to ultimate consumers.D. sell goods and services for their own use.E. buy goods and services for their own use or for resale.

Q: Organizational buyers refer toA. manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for resale.B. manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.C. manufacturers, wholesalers, retailers, and government agencies that buy goods and services exclusively for their own use.D. firms that buy physical goods and resell them again without any reprocessing.E. firms that in some way reprocess a good or service they buy before selling it again to the next buyer.

Q: A business market is also referred to asA. a transactional market.B. a corporate market.C. a government market.D. a reseller market.E. an industrial market.

Q: Business marketing refers toA. the marketing of goods to companies, governments, or ultimate consumers for use in the creation of goods and services.B. the marketing of products to not-for-profit organizations at a reduced fee or nominal cost for use in the creation of goods and services that they can produce and market to others.C. the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of products that they can produce and market to others.D. the marketing of services in the area of intellectual property such as legal, financial, or creative consulting.E. the marketing of an idea to create interest or generate goodwill, not just for an individual brand but also for an entire industry or product class.

Q: JCPenney looks at several capabilities when selecting a paper supplier. These organizational buying criteria include on-time delivery, the availability, quality and quantity of selected grades of paper, forestry management and sustainable practices, and price. This examination would be done during the __________ stage of the organizational buying decision process.A. procurement analysisB. break-even analysisC. purchase decisionD. information searchE. alternative evaluation

Q: Kim Nagele, senior sourcing manager at JCPenney, purchases tons of publication paper annually at a cost of hundreds of millions of dollars. As described and inferred in the text, Mr. Nagele performs all of the following roles in the JCPenney buying center EXCEPT:A. userB. gatekeeperC. influencerD. buyerE. decider

Q: When JCPenney buys paper, it considers suppliers' forest management and other sustainability practices. For JCPenney, these are importantA. profit responsibilities.B. organizational buying criteria.C. ecological mandates.D. legal authorities.E. buying center roles.

Q: The size and number of JCPenney direct mail pieces like catalogs that are designed and mailed to consumers would determine how much paper JCPenney needs to buy. This is an example of __________.A. derived demandB. reciprocityC. a tying agreementD. derived supplyE. elastic supply

Q: According to the textbook, JCPenney buys paper for which of the following medium(s)?A. in-store signageB. special advertising inserts in magazines such as CosmopolitanC. newspaper inserts and direct mail piecesD. annual and 10K reportsE. point-of-purchase displays

Q: Figure 5-5Figure 5-5 above summarizes how buy classes affect buying center tendencies in different ways. Identify the buy-class situations A, B, and C.

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

Q: Which of the following statements about Trek Bicycles is FALSE?A. Trek's Eco Design initiative is an example of sustainable procurement.B. Trek has an extensive product line of bicycles.C. Trek has always been on the cutting edge, using the latest innovations in its designs.D. Trek views the bicycle as an important form of alternative transportation, not just as recreation.E. Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all terrain vehicles (ATVs).

Q: Figure 5-6B In Figure 5-6B above, as the number of sellers increases, the price A. increases. B. stays the same. C. has no relation to the number of sellers. D. decreases. E. fluctuates depending on economic conditions.

Q: Figure 5-6B Which type of auction does Figure 5-6B above represent? A. traditional auction B. vertical auction C. reverse auction D. horizontal auction E. reciprocal auction

Q: Figure 5-6B As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify? A. forward auction. B. reverse auction. C. traditional auction. D. vertical auction. E. bidder's war.

Q: Reverse auctionsA. are buyer-initiated.B. benefit the sellers significantly more than the buyers.C. have an increasing number of buyers as the auction progresses.D. do not allow sequential bidding.E. have many buyers at the start of the auction.

Q: Reverse auctionsA. are seller-initiated.B. benefit the sellers significantly more than the buyers.C. have an increasing number of buyers as the auction progresses.D. put downward pressure on prices.E. have many buyers.

Q: A reverse auction refers to an online auctionA. 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.

Q: Figure 5-6A In Figure 5-6A above, as the number of buyers increases, the price A. increases. B. decreases. C. stays the same. D. has no relation to the number of buyers. E. fluctuates depending on economic conditions.

Q: Figure 5-6A Which type of auction does Figure 5-6A above represent? A. reverse auction B. horizontal auction C. vertical auction D. diagonal auction E. traditional auction

Q: Figure 5-6A As shown in Figure 5-6A above, what type of online auction does one seller and many buyers typify? A. forward auction. B. reverse auction. C. traditional auction. D. vertical auction. E. bidder's war.

Q: eBay is the predominant person-to-person trading community in the world. eBay is an example of a(n)A. Webfront operation.B. clicks-and-mortar store.C. e-marketplace.D. noncompetitive market.E. integrated market.

Q: The predominant person-to-person trading community in the world isA. Facebook.B. Amazon.C. NASDAQ.D. CraigsList.E. eBay.

Q: Which of the following statements about e-marketplaces that act as independent trading communities is FALSE?A. These trading communities allow buyers to easily compare offerings from various sellers.B. Independent trading communities charge a fee for their service.C. Independent trading communities often consist of thousands of geographically dispersed buyers and sellers.D. This independent type of trading community is favored by large companies.E. Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.

Q: For e-marketplaces, large companies tend to favor __________ that link them with their network of qualified suppliers and customers.A. centralized marketsB. decentralized marketsC. private exchangesD. segregated marketsE. independent trading communities

Q: Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.A. WebfrontsB. clicks-and-mortarC. e-marketplacesD. iMarketsE. integrated markets

Q: E-marketplace can take two different formats, which areA. bricks-and-mortar exchanges and clicks-and-mortar exchanges.B. privately-owned trading communities and open-to-the-public trading communities.C. networked exchanges or public trading communities.D. independent trading communities or private exchanges.E. public exchanges and networked exchanges.

Q: Another name for an e-marketplace is a(n)A. WebXChange.B. WebMart.C. 2B1 marketplace.D. C2C market forum.E. B2B exchange.

Q: Another name for an e-marketplace is a(n)A. e-hub.B. E-place.C. e-trade.D. E-xchange.E. 4NXchange.

Q: E-Marketplaces refer toA. 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.

Q: Online buying in organizational markets is prominent because Internet technologyA. allows companies to increase their innovation cycles.B. substantially increases brand loyalty.C. can convey timely information quickly.D. narrows the potential customer base for many products.E. totally eliminates marketing costs.

Q: Business-to-business electronic commerce over the InternetA. is nearly equivalent to consumer electronic commerce when measured by the total dollar value of all online transactions.B. is at least four times greater than consumer electronic commerce when measured by the total dollar value of all online transactions.C. has dramatically decreased since face-to-face communication between a firm's salesforce and its potential customers is so important.D. is impossible to estimate since companies will not share information.E. has never been popular since timely information is unavailable or deemed to be proprietary.

Q: A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be aA. modified rebuy.B. straight rebuy.C. new buy.D. standard reorder.E. class buy.

Q: A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of aA. new buy.B. straight rebuy.C. make-buy.D. modified rebuy.E. standard reorder.

Q: The department secretary orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of aA. new buy.B. straight rebuy.C. modified rebuy.D. make-buy.E. standard reorder.

Q: An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make aA. new buy.B. straight rebuy.C. modified rebuy.D. make-buy.E. standard reorder.

Q: 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 aA. new buy.B. straight rebuy.C. converted rebuy.D. modified rebuy.E. initial buy.

Q: Buy classes refer to the three types of organizational buying situations:A. buy, lease, and rent.B. new buy, make, and reprocess.C. manufacturing contracts, consulting contracts, service contracts.D. new buy, straight rebuy, and modified rebuy.E. new buy, refurbish, and used buy.

Q: The three types of organizational buy classes areA. industrial, reseller, and government.B. consumer products, industrial goods, and services.C. users, influencers, and deciders.D. straight purchase, barter, and countertrade.E. new buy, straight rebuy, and modified rebuy.

Q: Organizations face three specific kinds of buying situations. They are new buy, straight rebuy, and modified rebuy. Collectively, these situations are referred to asA. industrial buying behavior.B. reseller buying behavior.C. buy classes.D. purchase criteria.E. consideration sets.

Q: Beth is part owner of a chain of auto repair shops. Her company was considering adding tire sales in some of its facilities, and several people were slated to meet to discuss the idea. Beth gathered information about possible distributors. Her son had been laid off from a job with one of them, so she removed this company from the group she was preparing to present to the others. Here, Beth was acting in what role in the buying center?A. gatekeeperB. deciderC. userD. obstructionistE. power-broker

Q: Cassidy is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway, a successful trucking firm, regularly buys Cassidy's secretary lunch. The representative does this because she views the secretary as a(n) __________ and wants to be sure that information about her company reaches Cassidy.A. gatekeeperB. deciderC. influencerD. obstructionistE. power-broker

Q: An IT engineer specifies the type of electronic shopping cart to be used on the company's new website. The engineer also chooses the supplier who receives the contract to provide the software. In the buying center, this person is the __________.A. gatekeeperB. deciderC. brokerD. influencerE. user

Q: For routine orders, the decider is usuallyA. the buyer or purchasing manager.B. the CEO.C. the COO.D. the head of R&D.E. the customer.

Q: Within the buying center, deciders are people whoA. have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.B. control the flow of information in the buying center.C. have the formal or informal power to select or approve the supplier that receives the contract.D. affect the buying decision usually by helping define the specifications for what is bought.E. actually use and evaluate the product or service.

Q: Lara assumed the __________ role in the buying center when she shook the salesperson's hand and said, "Ms. Hron, we would like to accept your bid. I'll expect 48 boxes of ring shank nails to be delivered by November 8th, and we will pay the agreed-upon price of $21.74 per box."A. gatekeeperB. brokerC. buyerD. influencerE. user

Q: Within the buying center, influencers are people whoA. have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.B. control the flow of information in the buying center.C. affect the buying decision usually by helping define the specifications for what is bought.D. have the formal or informal power to select or approve the supplier that receives the contract.E. actually use and evaluate the product or service.

Q: Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the President and the accountant, to compare options for a new copier for the office. Since she made most of the copies, Becca wanted to see the features of the machines, though her boss would have to approve the final purchase. Becca has what role in the buying center?A. purchasing agentB. deciderC. buyerD. userE. motivator

Q: On a visit to Conner Industries, a West Plains Band Saw salesperson heard a production employee saying, "This band saw has a 36-inch wheel that could really save us time, and with its adjustable height, it can be operated by someone tall like me as well as by our shorter workers. I bet this would speed up my production time by 30 percent. Why don't we order this band saw?" The person the salesperson heard giving input has which buying center role?A. purchasing agentB. deciderC. buyerD. userE. motivator

Q: Buying Center PhotoAs shown in buying center photo above, an organization's buying center includes individuals who can play one or more of the following roles EXCEPT:A. gatekeepers.B. deciders.C. buyers.D. product champions.E. influencers.

Q: All of the following are roles in a buying center EXCEPT:A. specifiers.B. deciders.C. buyers.D. influencers.E. users.

Q: Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant?A. The composition of the buying center remains constant over long periods of time.B. The buying center avoids cross-functional teams whenever possible.C. The composition of the buying center depends on the specific item being purchased.D. The purchasing manager is an occasional member of the buying center.E. Most government units use a formal buying center to arrive at buying decisions.

Q: Most large multistore chain resellers use __________ that are highly formalized to arrive at buying decisions.A. buying committeesB. merchandise procurement centersC. sustainable procurement committeesD. stakeholder groupsE. purchasing divisions

Q: Large multistore chain retailers such as Sears, Safeway, and Target use a highly formalized buying center that is referred to as a(n)A. ad hoc committee.B. buying committee.C. merchandise procurement center.D. purchasing department.E. purchasing control system.

Q: A buying center refers toA. an online trading community that brings together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.B. the department within a firm responsible for the logistics of placing, tracking, and delivering orders to other departments within the firm.C. the department within a firm responsible for the logistics of placing, tracking, and delivering orders to ultimate consumers.D. the group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.E. the department within a firm that allows purchases to be made from a centralized location from multiple vendors at the same time.

Q: General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which stage in the organizational buying decision process would GE make this evaluation?A. purchase decision stageB. information search stageC. postpurchase behavior stageD. alternative evaluation stageE. problem recognition stage

Q: What is the last stage of the organizational buying decision process?A. information searchB. postpurchase behaviorC. alternative evaluationD. purchase decisionE. purveyor review

Q: During the next-to-last stage of the organizational buying decision process, the organizationA. drafts specifications.B. formally rates suppliers that were used.C. evaluates supplier facilities.D. awards the contract.E. recognizes a need for change.

Q: At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?A. problem recognitionB. information searchC. alternative evaluationD. purchase decisionE. postpurchase behavior

Q: The second stage in the consumer purchase decision process involves searching for information, which may include an internal search and/or an external search. What is this stage called?A. postpurchase behaviorB. alternative evaluationC. purchase decisionD. problem recognitionE. information search

Q: VALS groups of consumers who are motivated by __________ are those who desire social or physical activity, variety, and risk.A. idealsB. rewardsC. achievementD. self-expressionE. success

Q: In the VALS framework, achievement-motivated consumers who have a lower levels of education and household income than Achievers are called __________.A. BelieversB. ExperiencersC. StriversD. MakersE. Survivors

Q: The initial stage in the consumer purchase decision process involves perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. What is this stage called?A. postpurchase behaviorB. alternative evaluationC. purchase decisionD. problem recognitionE. information search

Q: Consumer behavior refers toA. the aspects of a consumer's decision-making processes that cannot be measured.B. the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.C. the five stages a buyer passes through in making choices about which product and service to investigate, purchase, and consume.D. the mental and social processes related to purchasing that are innate in a person from birth.E. those purchasing behaviors that result from (1) repeated experience and (2) reasoning.

Q: The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions, are referred to asA. purchase intentions.B. market research.C. consumer behavior.D. consumer conduct.E. purchase protocols.

Q: Many automobile dealerships employ a non-negotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new or used car would pay the posted price. These dealers probably adopted this pricing policy becauseA. the industry was discussing the abandonment of self-regulation practices.B. women have an intense dislike of price negotiation, yet still want to buy a car.C. many recent immigrants into the United States are not accustomed to negotiation.D. women distrust men in general and car salesmen in particular.E. a sluggish economy guarantees that negotiations would produce negative profit per vehicle.