Question 1

Which of the following methods is most likely to be used by buyers to review the performance of chosen suppliers?

Accepted Answer

The buyer might aggregate the cost of poor performance to come up with adjusted costs of purchase, including price. This method allows buyers to consider not just the upfront cost of purchasing from a supplier but also the potential costs associated with poor quality or service, providing a more comprehensive view of supplier performance.

Question 2

In the ________ method for assessing customer value,company engineers use laboratory tests to estimate the product's performance characteristics.However,this ignores the fact that in different applications,the product will have different economic value.

Accepted Answer

The correct answer is A) internal engineering assessment because it describes a method where company engineers use laboratory tests to estimate a product's performance characteristics, which may not account for the varying economic value of the product in different applications.

Question 3

In the ________ method for assessing customer value,customers are asked to rate the importance of different attributes and their suppliers' performance on these attributes.

Accepted Answer

The importance ratings method involves asking customers to rate the importance of different attributes and their suppliers' performance on these attributes. This method directly gathers customer perceptions and evaluations, making it distinct from the other options listed.

Question 4

With respect to e-procurement,which of the two types of e-hubs are Web sites organized around?

Accepted Answer

The answer of With respect to e-procurement,which of the two...

Question 5

In reordering office supplies,the only stages that the buyer passes through are the product specification stage and the ________ stage.

Accepted Answer

The answer of In reordering office supplies,the only stages that...

Question 6

With respect to e-procurement,Coca-Cola,Sara Lee,Kraft,PepsiCo,P&G,and several other companies joined forces to form a ________ called Transora to use their combined leverage to obtain lower prices for raw materials.

Accepted Answer

The question is asking about a group of companies joining forces to use their combined leverage to obtain lower prices for raw materials through e-procurement. The term commonly used for such a group is a "buying alliance." Therefore, choice D is the best option. Choices A, B, and C are not specific to this scenario and do not accurately describe the purpose of the group. Choice E includes a negative connotation that is not appropriate in a professional setting.

Question 7

Business buyers may get new ideas at a trade show,see an ad,or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier.These situations spur the ________ stage.

Accepted Answer

The situation described in the question refers to a change in the buyer's circumstances or preferences that triggers the need to search for a new supplier. This is the problem recognition stage of the buying process, where the buyer realizes that they have a need for a particular product or service that is not being met by their current supplier.

Question 8

A ________ establishes a long-term relationship in which the supplier promises to resupply the buyer as needed,at agreed-upon prices,over a specified period of time.

Accepted Answer

A stockless purchase plan involves the supplier maintaining inventory and delivering goods to the buyer as needed, without the buyer actually owning the inventory. This type of plan often involves a long-term relationship and agreements on pricing and delivery over a specific period of time. The other choices listed are all related to finance and investing, and do not pertain to the establishment of a supplier relationship.

Question 9

The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute.The value of a given configuration is determined by adding the average values of each of the given attributes.

Accepted Answer

The answer of The ________ approach to consumer research asks...

Question 10

In the ________ method for assessing customer value,customers are asked to place a direct dollar value on one or more changes in the market offering.

Accepted Answer

The direct survey method involves asking customers directly to place a dollar value on changes in a product or service, making it a straightforward approach to assessing customer value.

Question 11

Business marketers can stimulate problem recognition by ________.

Accepted Answer

Direct mail, telemarketing, and calling on prospects are all ways that business marketers can directly reach out to potential customers and highlight problem areas that their product or service can address. This direct approach can help stimulate problem recognition in the minds of potential customers. The other options listed may have some benefit in promoting a business, but are less likely to directly impact problem recognition in the same way as direct outreach to potential customers.

Question 12

Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers.Plastics.com is an example of a(n)________.

Accepted Answer

Plastics.com is a vertical market, as it specifically focuses on connecting buyers and sellers within the plastics industry.

Question 13

Which of the following relationships is characterized by much trust and commitment leading to a true partnership?

Accepted Answer

A collaborative relationship is characterized by much trust and commitment leading to a true partnership. In this type of relationship, both parties work together to achieve common goals, share resources and knowledge, and have a mutual willingness to resolve conflicts. The other options are not necessarily focused on building a true partnership and do not include such a high level of trust and commitment.

Question 14

In the ________ method for assessing customer value,customers are asked to rank their preference for alternative market offerings or concepts.Statistical analysis is used to estimate the implicit value placed on each attribute.

Accepted Answer

Conjoint analysis involves asking customers to rank their preference for alternative market offerings or concepts, and statistical analysis is used to estimate the implicit value placed on each attribute. This method is also known as choice modeling or trade-off analysis. The other options do not involve asking customers to rank their preference for alternative market offerings or concepts, nor do they use statistical analysis to estimate customer value.

Question 15

In the ________ method for assessing customer value,customers are asked how costs of using a new product compare to those of using an incumbent.

Accepted Answer

The given method is called the field value-in-use assessment, where customers are asked to compare the costs of using a new product to those of using an incumbent. This is done by observing the customers using the product in a real-life setting and assessing their experience with it. Therefore, option C is the correct answer. The other options either do not involve comparing costs or are not relevant to this method of assessing customer value.

Question 16

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________.

Accepted Answer

Product value analysis (PVA) is the approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance. Option A, maintenance, repair, and operating (MRO), focuses on reducing the costs associated with maintaining and repairing equipment. Option C, vendor-managed inventories (VMI), involves suppliers managing the inventory levels of their customers. Option D, supplier performance management (SPM), is the process of evaluating and monitoring the performance of suppliers. Option E, supplier added value effort (SAVE), involves collaborating with suppliers to identify and implement cost-saving measures.

Question 17

On an online ________ ,prices change by the minute.

Accepted Answer

The term "spot market" refers to a market where goods are sold for immediate delivery, and prices can often fluctuate rapidly based on supply and demand. As such, it is the best fit for the given scenario of prices changing by the minute on an online platform. The other answer choices are either unrelated or don't accurately describe the situation.

Question 18

Which of the following is an example of a vertical hub?

Accepted Answer

The answer of Which of the following is an example...

Question 19

In the ________ method for assessing customer value,customers are shown a "benchmark" offering and then a new market offering.They are asked how much more they would pay for the new offering or how much less they would pay if certain features were removed from the benchmark offering.

Accepted Answer

Benchmarking is a method for assessing customer value by showing customers a "benchmark" offering and then a new market offering. Customers are asked how much more they would pay for the new offering or how much less they would pay if certain features were removed from the benchmark offering.

Question 20

In the ________ category of buyer-supplier relationships,competition rather than cooperation is the dominant form of governance.

Accepted Answer

The answer of In the ________ category of buyer-supplier relationships,competition...

Quiz 7: Analyzing Business Markets