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117) Attributes that a buying center may look for in a supplier include all of the following
EXCEPT ________.
A) product quality
B) off-shore manufacturing
C) service quality
D) on-time delivery
E) competitive prices
118) Many buyers prefer multiple sources of supplies ________.
A) to avoid being totally dependent on one supplier
B) to keep companies interested in doing business with them
C) to ensure that suppliers do not become complacent
D) to encourage their salespeople to develop broader networks of contacts
E) to prepare in case of a work stoppage
119) The stage of the business buying process in which the chosen supplier(s) is given the final
order is the ________ stage.
A) performance review
B) proposal solicitation
C) order-routine specification
D) vendor-managed inventory
E) product specification
120) A ________ creates a long-term relationship in which the supplier promises to resupply
the buyer as needed at agreed prices for a set time period.
A) blanket contract
B) request for proposal
C) supplier proposal
D) change order
E) noncompete clause
121) In which stage of the business buying process does a buyer ask users to rate their
satisfaction with the supplied materials?
A) problem recognition
B) performance review
C) supplier search
D) supplier selection
E) order-routine specification
122) Luke Price, a manager in an automobile factory, wanted his subordinates to rate their
satisfaction about the new pistons that arrived last month. He asked them to rate the product
based on strength and ease of handling. Which of the following is evident here?
A) order-routine specifications
B) supplier selection
C) performance review
D) general needs description
E) proposal solicitation
123) Under ________, buyers share sales and inventory information directly with key suppliers
who monitor and replenish the buyer's stock automatically as needed.
A) supplier selection
B) proposal solicitation
C) general need specification
D) vendor-managed inventory
E) procurement
Refer to the scenario below to answer the following question(s).
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to
industry design changes and consumer demands, for the next financial year, six of those
stampings will require a slight change: two will have an extra hole punched through the side,
two will require an extra plating process, and two will require an additional weld operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of
Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and
steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected
his suppliers based on quality and price, but the major consideration had been the type of steel
required and the specialized production processes of his respective suppliers. Not all of Alpha's
suppliers could produce the exact grades of steel needed; some suppliers were better at
producing certain types of steel than others.
Richard contacted several employees at Alpha who had worked with the various types of steel
in the past. The quality control manager and line inspector, for example, could help to
determine which suppliers had the capabilities of producing specific types of steel. The
production control manager could provide input regarding which types of steel worked best in
which presses. The warehouse foreman gave inputs regarding how long various types of steel
could be held in inventory before rust spots began to form on their surfaces. Each person
contributed the necessary information to help Richard in making his decision.
124) In this instance, Richard plays the role of a(n) ________.
A) decider
B) gatekeeper
C) influencer
D) proposal solicitor
E) product designer
125) Product value analysis is an approach to enhancing productivity.
126) In the general needs description of the buying process, the buyer describes the
characteristics and quantity of the needed item.
127) In the proposal solicitation stage of the business buying process, the buyer invites
qualified suppliers to submit proposals.
128) The newer the buying task, and the more complex and costly the item, the lesser the
amount of time the buyer will spend searching for suppliers.
129) In the supplier selection stage, the buyer reviews supplier performance.
130) During proposal solicitation, the buying center often will draw up a list of desired supplier
attributes and their relative importance.
131) The order-routine specification includes the final order with the chosen supplier or
suppliers and lists items such as technical specifications, quantity needed, expected delivery
time, return policies, and warranties.
132) In the performance review stage, the seller or the buyer may modify, continue, or cancel
the business arrangement.
133) All business buying decisions follow all steps of the business buying process.
134) How does the buying process typically begin?
135) What is product value analysis?
136) What does the proposal solicitation stage of the business buying process involve?
137) Describe the advantage of selecting multiple sources of supplies.
138) Briefly describe the eight steps in the business buying process.
139) ________ refers to purchasing through electronic connections between buyers and
sellers—usually online.
A) E-procurement
B) General need specification
C) Strategic sourcing
D) Proposal solicitation
E) Value chain management
140) SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo
Limited through its Web site in 2016. This is an example of ________.
A) order-routine specification
B) supplier selection
C) e-procurement
D) proposal solicitation
E) customer relations management
141) Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate
sharing of expertise. It allows Pace retailers to connect with each other for seeking managerial
and marketing advice. It also allows Pace retailers to ask their suppliers about product usage,
deliveries, and warranties, and send new-product information directly to the retailers. In this
instance, Pace Hardware is facilitating communication through ________.
A) extranet links
B) podcasts
C) search engines
D) trading exchanges
E) reverse auctions
142) Which of the following is true with regard to e-procurement?
A) E-procurement has significantly declined in recent years.
B) Typically, business marketers do not favor e-procurement as it offers them little benefit.
C) E-procurement has been widely practiced since the 1950s.
D) E-procurement adds to existing inefficiencies in the supply chain.
E) E-procurement hastens order processing and delivery.
143) In ________, companies put their purchasing requests online and invite suppliers to bid
for the business.
A) product specification
B) supplier search
C) reverse auctions
D) procurement
E) problem recognition
144) In ________, companies work together to facilitate the trading process.
A) reverse auctions
B) trading exchanges
C) procurement
D) supplier selection
E) order-routine specification
145) Which of the following is LEAST likely a characteristic of business-to-business e-
procurement?
A) greater access to new suppliers
B) lower purchasing costs
C) quick order processing and delivery
D) an increase in the derived demand
E) less paperwork
146) Which of the following can help a company create direct procurement accounts with
suppliers, through which company buyers can purchase equipment, materials, and supplies
directly?
A) backsourcing
B) extranet
C) company blog
D) reverse auction
E) trade exchange
147) Which of the following is true about business-to-business e-procurement?
A) E-procurement increases transaction costs for suppliers.
B) Because of an overwhelming demand, e-procurements usually have a huge time gap
between order and response.
C) Many buyers now use the power of the Internet to pit suppliers against one another and
search out better deals, products, and turnaround times on a purchase-by-purchase basis.
D) E-procurement doesn't enhance customer-supplier relationships.
E) Due to extensive paperwork, the relatively important strategic issues, such as finding better
supply sources and working with suppliers to reduce costs and develop new products, are
sidelined.
148) Digital and social media's role in business-to-business marketing enhances all of the
following EXCEPT ________.
A) targeting individuals that affect buying decisions within the target businesses
B) facilitating anytime and anywhere connections between people at the selling and buying
organizations
C) giving sellers more control of and access to important information
D) meeting in person with customers at trade shows or conferences
E) giving buyers more control of and access to important information
149) The benefits of e-procurement include access to new suppliers, lower purchasing costs,
and more time-efficient order processing and delivery.
150) E-procurement has caused the time between order and delivery to increase significantly.
151) Companies can allow their suppliers access to online sites on which the company posts its
buying needs, requests bids, negotiates terms, and places orders, thus minimizing research steps
and costs.
152) Digital and social media are useful primarily for consumer products and services
companies.
153) What is e-procurement? Briefly describe its major advantages.
154) The ________ market consists of schools, hospitals, nursing homes, prisons, and the like
that provide goods and services to people in their care.
A) government
B) consumer
C) wholesale
D) for-profit
E) institutional
155) Sage Hospitals, a nonprofit organization, provides healthcare to the people in the
Midwest. Management at Sage is involved in the ________ market.
A) government
B) consumer
C) wholesale
D) institutional
E) resell
156) All of the following organizations are likely part of the institutional market EXCEPT
________.
A) LaGrange Community Hospital
B) Worthampshire Prison
C) Lancaster Real Estate Company
D) Water Street Nursing Home
E) Millersville Community College
157) In several major cities in the United States, the ________ operates business service centers
with staffs to provide a complete education on the way government agencies buy, the steps that
suppliers should follow, and the procurement opportunities available.
A) Defense Logistics Agency
B) Federal Business Agency
C) Small Business Administration
D) General Services Administration
E) U.S. Commerce Department
158) All of the following are difficulties associated with selling to government buyers EXCEPT
________.
A) excessive paperwork
B) bureaucracy
C) strict regulations
D) high advertising costs
E) decision-making delays
159) Government buyers are affected by all of the following factors EXCEPT ________
factors.
A) environmental
B) cultural
C) organizational
D) interpersonal
E) individual
160) Which of the following plays the most important role in government buying?
A) price
B) product differentiation
C) advertising
D) personal selling
E) customer relationship management
161) Total government spending is determined by ________.
A) legal treatises
B) marketing efforts
C) elected officials
D) court rulings
E) technology needs
162) Some companies sell primarily to government buyers as prime contractors or
subcontractors. This allows these companies to ________, participate in the product
specification phase, gather competitive intelligence, prepare bids carefully, and produce
stronger communication to describe and enhance their companies' reputations.
A) lobby elected officials to fund projects
B) anticipate government needs and projects
C) develop relationships with government procurers
D) identify cost-cutting measures
E) invest in new technologies
163) The ________ Web site provides a single point of entry through which commercial
vendors and government buyers can post, search, monitor, and retrieve opportunities solicited
by the entire federal contracting community.
A) U.S. Small Business Administration
B) Center for Regulatory Effectiveness
C) Federal Business Opportunities
D) Federal Civil Defense Authority
E) U.S. Commerce Department
164) The institutional market is characterized by high budgets, while its buying objective is
profit.
165) The government market consists of schools, hospitals, nursing homes, prisons, and other
institutions that provide goods and services to people in their care.
166) Government organizations typically require suppliers to submit bids, and normally they
award the contract to the lowest bidder.
167) What are the noneconomic criteria that influence government buying?
168) What are the major characteristics of institutional markets?
169) What are the major characteristics of government markets?
