88) Which of the following statements is true about customer relationships in business markets?
A) A strong impersonal relationship with customers is critical in maintaining one’s business.
B) One-on-one personal communication is the most important tool in developing and
maintaining customer relationships.
C) An impersonal relationship in B2B markets often connotes a greater emphasis on technology.
D) Customers demand not only an impersonal relationship with their vendors but also an
efficient one.
E) Customers prefer direct communication mediums such as e-mail and direct mail for any
correspondence.
89) It is said that B2B demand is more ________ in general than B2C demand for products or
services.
A) elastic
B) bimodal
C) inelastic
D) systemic
E) variable
90) A ________ chain is the synchronized movement of goods through the channel.
A) delphi
B) value
C) supply
D) time-series
E) demand
91) The relationship between consumer demand for products and demand for B2B products is
known as ________ demand.
A) psychographic
B) fluctuating
C) derived
D) latent
E) inelastic
92) Small changes in consumer demand can lead to considerable shifts in business product
demand and are referred to as the ________.
A) transactional effect
B) transverse effect
C) degree of affiliation
D) acceleration effect
E) multi-attribute model
93) Reordering products that are used on a consistent basis is called a(n) ________.
A) new purchase
B) transactional purchase
C) aspirational purchase
D) modified rebuy
E) straight rebuy
94) When Ford Motor Company is familiar with a product and supplier, but decides to seek
additional information on new products in the marketplace, it is in the process of a(n) ________.
A) straight rebuy
B) modified rebuy
C) new purchase
D) adapted rebuy
E) aspirational purchase
95) Johnson & Marshall, a growing producer of organic tea, creates a group to make purchase
decisions that is made up of people from the purchasing department, senior management with
financial knowledge, and engineers with design expertise. This group best represents a(n)
________.
A) ad hoc group
B) gate keeping group
C) data warehouse
D) buying center
E) customer touch point
96) Paul is the groundskeeper for a golf course. He not only mows the greens and fairways but is
also an expert on the grass that is used and how to care for it. The golf pro and club manager
consult with him about what new equipment the club needs to maintain the greens. Paul plays the
role of a(n) ________ in the buying process.
A) market maven
B) user
C) decider
D) opinion leader
E) gatekeeper
97) Gatekeepers are important in the B2B buying process because ________.
A) they provide the organization with relevant expertise in particular purchase decisions
B) they engineer costly capital equipment purchases by employing a wide range of financial
tools
C) they act as a buffer between the buying center members and consumers in the buying process
D) they limit the number of vendors in a given buying process
E) they act as initiators in certain scenarios of the purchase decision process
98) Deciders are an important group for the salesperson to identify because ________.
A) they make the ultimate purchase decision
B) they decide what characteristics the product should possess
C) they decide what price the company should pay
D) they have control over who is allowed to be a vendor
E) they decide who are the most significant influencers in the buying center
99) Mark is trying to sell a metal-bending machine to a manufacturing firm. He decides to talk to
people inside the firm who have expertise in metal bending—who can then provide this
information to the buying center. The people he is targeting are known as ________.
A) influencers
B) users
C) gatekeepers
D) initiators
E) aggregators
100) Maryanne noticed that one of the manufacturing teams lost productivity over a six-month
period. She puts together a document that describes the productivity loss and does a study to
determine the cause. She finds that one of the key machines in the process breaks down often.
Maryanne asks several machine manufacturers to come in to make proposals for new machines.
Maryanne is playing the role of a(n) ________.
A) influencer
B) gatekeeper
C) initiator
D) arbitrator
E) reseller
101) Boris Jankowski is a salesperson for a manufacturer of beer making equipment. He learns
that a regional microbrewery is going to expand into another state. It has created a buying center
to purchase the needed equipment. Boris’s first job is to ________.
A) discover the budget for the purchase
B) develop criteria for the purchase
C) discover the most important influencer
D) discover who is part of the buying center
E) develop a presentation for the buying center
102) Which of the following statements is TRUE about North American Industrial Classification
System (NAICS) codes?
A) The NAICS codes are considered to be perfect codes that adjust to a country’s own unique
economic structure.
B) The NAICS codes apply to the major economies of the world except Mexico and Canada.
C) The NAICS codes make it possible to purchase detailed information on each of the codes in
the system.
D) The NAICS code defines 10 business sectors based on a four-digit hierarchical code.
E) The NAICS code classifies companies on the basis of their tertiary output.
103) MRO supplies are generally purchased through a ________.
A) modified rebuy
B) new purchase
C) transactional purchase
D) straight rebuy
E) contractual rebuy
104) Companies like Home Depot sell to the B2B market and B2C market out of the same store.
This puts the company in the category of a(n) ________.
A) gatekeeper
B) reseller
C) out supplier
D) market maven
E) cottage industry
105) Which of the following statements is TRUE about government purchases?
A) They require minimal information regarding product specifications.
B) The purchase process is very simple and less time-consuming.
C) The U.S. government is the single largest buyer of goods and services in the world.
D) Profitability is the fundamental driver in making these purchases.
E) These purchases often include an emotional component.
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106) The primary difference between selling to the profit-oriented market and the nonprofit
market is that nonprofits ________.
A) generally opt for a new purchase rather than a straight or modified rebuy
B) have a more rational decision process
C) place more emphasis on their business goals than performance specifications
D) have a limited number of resources compared to their for-profit counterparts
E) entail purchase decisions that often include an emotional component to them
107) In the purchase process, once a problem has been identified, the next step is to ________.
A) seek sales proposals
B) identify potential suppliers
C) clearly define the need and develop product specifications
D) prepare a distribution document resembling the request for proposal
E) evaluate equally-qualified vendors and purchase criteria
108) In the purchase process, the purpose of outlining product specifications is ________.
A) to identify purchase agents who are experts at preparing a request for proposal
B) to guide potential suppliers
C) to ensure people buy the product
D) to clearly and concisely present the timeline for the steps leading to the final decision
E) to ensure that the customer has accepted the value proposition
109) In the purchase process, once the company’s needs have been identified and product
specifications have been outlined, the next step would involve ________.
A) identifying potential problems in the purchase decision process
B) evaluating the purchase decision
C) evaluating suitable vendors to award contracts
D) identifying and determining potential suppliers
E) seeking sales proposals in response to a request for proposal
110) A request for proposal (RFP) is the process ________.
A) of evaluating service recovery strategies adopted by a company to reacquire customers
B) by which customer computers communicate directly with supplier computers
C) undertaken by organizations to gain access to critical information withheld by gatekeepers
D) of putting product specifications into a document for distribution
E) of handing out sales contracts to vendors, preferably those on the supplier list
111) When a company solicits RFPs from suppliers with an open vendor search, the goal is to
________.
A) get several proposals to help with negotiations
B) get one good response from a preferred vendor
C) get as many responses so as to gain a competitive advantage
D) opt for a vendor who uses well-developed service recovery strategies to gain customers
E) opt for a vendor who focuses primarily on the service criteria rather than on developing value
112) ________ criteria are a set of analyses and metrics grouped together to assess the cost of
ownership.
A) Financial
B) Service
C) Transactional
D) End user
E) Value
113) The most fundamental criterion in vendor selection is ________.
A) degree of affiliation
B) risk tolerance
C) reliability
D) location
E) intangibility
114) Any influence on the product and supplier choice is an organizational factor. The primary
organizational factor is ________.
A) database marketing
B) customer-relationship management
C) psychographic segmentation
D) organizational learning
E) risk tolerance
115) Electronic data interchange (EDI) allows ________.
A) organizations to request RFPs from potential vendors
B) customer computers to communicate directly with supplier computers
C) computers to fulfill the functions of a buying center on a virtual network
D) customers to determine the real cost of a purchase through a set of computer metrics
E) organizations to maintain a more personal relationship with customers through e-mail
116) Melony Inc., an automobile manufacturer, has created an integrated website to assist its
purchasing department in purchasing and supplying products online. In this scenario, Melony’s
initiative best reflects a method of ________.
A) e-resource
B) e-retailing
C) e-sourcing
D) e-procurement
E) e-governance
117) When evaluating purchase alternatives, research has found that consumers make product
choices primarily from three perspectives: emotional, attitude-based, and attribute-based.
Describe each of these.
118) Detail the five major roles of members of the buying center: users, initiators, influencers,
gatekeepers, and deciders.
119) Explain the business market purchase decision process by taking a fictional company
through the six stages of the process.
120) Discuss the four e-procurement methods and give an example of when each might be used.