183) When a seller puts an item up for sale and would-be buyers are invited to bid in competition
with one another, it is referred to as a(n)
A) reverse auction.
B) traditional auction.
C) bidder’s war.
D) e-auction.
E) Webfront auction.
184) When prospective buyers observe the bids of others and decide whether or not to increase
the bid price, it is called a
A) forward auction.
B) reverse auction.
C) Webfront auction.
D) traditional auction.
E) bidder’s war.
185) 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(n)
A) traditional auction.
B) reverse auction.
C) bidder’s war.
D) I-auction.
E) Webfront auction.
186) What type of online auction includes one seller and many buyers?
A) forward auction
B) reverse auction
C) traditional auction
D) vertical auction
E) bidder’s war
187) In which type of auction is there an upward pressure on bid prices as more would-be buyers
become involved?
A) reverse auction
B) horizontal auction
C) vertical auction
D) diagonal auction
E) traditional auction
188) In an e-marketplace, an online auction 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 is referred to
as a
A) vertical auction.
B) reverse auction.
C) horizontal auction.
D) traditional auction.
E) reciprocal auction.
189) A reverse auction refers to an online auction
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.
190) Reverse auctions
A) 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.
191) Reverse auctions
A) 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.
192) What type of online auction includes one buyer and many sellers?
A) forward auction
B) reverse auction
C) include
D) traditional auction
E) vertical auction
F) bidder’s war
193) In which type of auction is there a downward pressure on bid prices for the buyer’s business
as more would-be suppliers become involved?
A) traditional auction
B) vertical auction
C) reverse auction
D) horizontal auction
E) reciprocal auction
194) In a reverse auction, 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.
195) 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).
196) All of the following people are part of the Trek buying center except which?
A) Trek executives
B) production workers
C) representatives from research and development
D) quality control employees
E) a purchasing manager
197) Trek uses several organizational buying criteria to evaluate potential suppliers. These
include all of the following except which?
A) price
B) environmental impact
C) warranties and claim policies
D) quality
E) delivery capabilities
198) When Trek orders a seat or saddle for one of its models that has a slightly different material
for the cover only, but the other components are the same as existing saddles used on other bikes,
this purchase situation is known as a
A) new buy.
B) straight rebuy.
C) standard reorder.
D) modified rebuy.
E) make-buy.
199) Describe the three types of organizational markets and give examples of each.
200) What is the North American Industry Classification System (NAICS)?
201) What are the characteristics of organizational buying behavior?
202) List seven organizational buying criteria.
203) What are the five stages of the organizational buying process? Describe at least three
differences from the consumer buying process.
204) What is a buying center? In what type of business would a buying center most likely be
found?
205) Identify and describe the five roles an individual can play in a buying center.
206) Consider how buy classes affect buying center tendencies in different ways. Describe the
buy-class situations, and discuss the implications for the organization of each type of buy class.
207) What are the three types of organizational buying situations or buy classes? Give an
example of each.
208) Explain the differences between independent e-marketplaces and private exchanges.
209) Differentiate between traditional and reverse auctions.