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58.
Using the life-cycle costing approach, salespeople can demonstrate that:
59.
An automobile firm wants to purchase either machine A or machine B. The initial cost of
machines A and B are $40,000 and $50,000, respectively. The power consumption per year
of machines A and B are 120 MWh and 100 MWh, respectively. The power cost is
$40/MWh. The estimated life of both machines is 10 years. The estimated operating and
maintenance cost over 10 years is $30,000 for machine A and $20,000 for machine B.
According to the life-cycle costing approach, the overall cost of machines A and B are:
60.
Which of the following members of the buying center would typically be involved in a value
analysis?
61.
Which of the following sources of information would customers usually view to be less
credible than the others?
62.
LifeStream Industries has used BrightLight light bulbs for years. When it needs new light
bulbs, it uses a straight rebuy. The distributor of Tungsram LED light bulbs would like an
opportunity to get his product considered by LifeStream. A(n) _____ would be particularly
useful for Tungsram, the out-supplier.
63.
To reduce the uncertainty and risk involved in buying raw materials from multiple vendors,
Miguel always buys the raw materials for his firm from a preferred vendor. From the
perspective of an out-supplier, Miguel's account would be treated as:
64.
The need for risk reduction is one of the factors affecting an individual making an
organizational buying decision. What can a salesperson do to help reduce the risk?
65.
Foster has decided to buy all his maintenance, repair, and overhaul (MRO) supplies from
Alexia's Supply House. For competitors, Foster's account is:
66.
Vincent has been purchasing goods for his firm from a single supplier for many years. On
every purchase, the supplier gives him reasonable discounts. Even though other vendors
sell the same goods at lower rates, Vincent states that he has never considered an
alternate supplier because the quality of goods provided by his existing supplier has
always been exceptional. This is an example of:
67.
Jackson likes his major parts supplier for his automobile repair business but always buys
some of the parts from another competitor. Jackson is using a(n) _____ strategy.
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68.
The business environment is changing dramatically, and organizational buying is also
changing. As organizations are pressured to improve product quality, control costs, and
minimize inventory, they are:
69.
Ryan wants a vendor who will provide ingredients for his restaurant each day according to
the number of reservations he has for that evening. Ryan is looking for a vendor who will
provide:
70.
Mike's Autos uses a supply chain management system to schedule the delivery of auto
parts to arrive at its plants exactly thirty minutes before the parts are to be used in the
assembly process. The company uses a(n) _____ system.
71.
To develop the close coordination needed for just-in-time (JIT) inventory control systems,
manufacturers tend to rely on one supplier. Based on which criterion is the supplier
selected?
72.
Hammond Inc. supplies its retailers with handheld Crownlink electronic data interchange
terminals. All of its retailers use these terminals to transmit merchandise orders to
Hammond in Kansas City. Their inventories are always stocked as needed. Shipments are
made daily as required by individual retailers. This is an example of a(n) _____ system.
73.
TMV Auto uses a computer-to-computer linkage, called HarpLink, to manage its annual
export of 65,000 vehicles. HarpLink provides worldwide control, invoicing, and information
about ports, carriers, and custom documentation. HarpLink exemplifies _____.
74.
Which of the following statements is true about automatic replenishment (AR)
management?
75.
Rock-Tenn Corporation continually receives data on production schedules from its
customers. It uses the information to determine the quantity of boxes to be shipped to
them. Rock-Tenn has established a(n) _____ relationship with its customers.
76.
Automatic replenishment (AR) and electronic data interchange (EDI) are elements of:
77.
In the context of changing the perceived value of a product, which of the following could
be considered a dangerous strategy if employed by a salesperson?
78.
When firms want to influence the perceived value of one of its products among customers,
which of the following strategies is typically used as a last resort?
79.
_____ is a strategy by which organizational buyers evaluate the relative importance of
suppliers and use that information to determine with whom they want to develop
partnerships.
