Question 1

As part of the buyer selection process, buying centers must decide how many suppliers to use. What might motivate a buyer to use multiple sources?

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Question 2

In systems buying, the U.S. government often solicits bids from prime contractors. What do prime contractors do?

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Question 3

The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. List the major industries that make up the business market.

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Question 4

Which type of buying situation would be preferred if the management wants to minimize decision-making time and effort.

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Question 5

As a seller in the business market, you have promised your customers that you have corporate credibility as one of your corporate goals. What three factors will have some bearing on whether you will be able to meet your goal and promise?

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Question 6

With reference to online buying, what are vertical markets? Give an example of a vertical market.

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Question 7

What do you understand by vendor-managed inventory (VMI)?

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Question 8

Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects. Competition for these projects is fierce. What are the main areas of competition for these project engineering firms?

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Question 9

Explain the concept of derived demand.

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Question 10

List the seven roles played by members of a buying center.

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Question 11

In the buygrid framework model, where the major stages of the industrial buying process are listed and characterized, supplier selection is an important process. What follows supplier selection and what occurs in this phase?

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Question 12

If you were a purchasing agent facing a modified rebuy situation, how would you describe that situation?

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Question 13

Explain risk and gain sharing with the help of an example.

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Question 14

Mason's is a supplier of specialty chemicals to a number of companies. The company previously supplied just three big clients, but the CEO is considering targeting the small business market. Selling to small businesses presents a huge opportunity, he says, but some board members disagree, saying it also presents huge challenges. Explain the challenges the firm might face in targeting small businesses.

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Question 15

BEL is a small seller of specialized auto parts, while MES is a large seller of auto parts. Both firms want to approach the same car company with a view to supplying parts to it. How will their approaches differ?

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Question 16

E-procurement Web sites are organized around two types of e-hubs. If you were in the advertising business and were seeking to take advantage of e-procurement, what type of e-hub should be constructed by your company?

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Question 17

Define organizational buying.

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Question 18

KEK is a supplier of paper and paper products to several businesses. Name some contract restrictions that KEK can use to protect its margins when dealing with price-oriented buyers.

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Question 19

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments. What are specific investments and why are they risky?

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Question 20

Researchers have found that buyer-supplier relationships differed according to four factors: availability of alternatives; importance of supply; complexity of supply; and supply market dynamism. Based on these four factors, they classified buyer-supplier relationships into eight different categories. What are those categories?

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Quiz 7: Analyzing Business Markets