Question 1

_______________________ is the major source of information for bidding on contracts to provide goods and services to the Federal government.

Accepted Answer

The Commerce Business Daily is a daily publication that provides information on contracts available for bidding by private companies to provide goods and services to the Federal government. Therefore, it is the major source of information for bidding on such contracts. The other options listed are all general business newspapers/magazines and not specific to Federal government contracts.

Question 2

The last step in the buying process is the:

Accepted Answer

The answer of The last step in the buying process...

Question 3

Kevin works for Irish Pub Company, a design and construction outfit that sells completely finished, made-in-Ireland pubs--complete with everything from beer taps to mosaic floors to decorative bric-a-brac like antique whiskey bottles--to American entrepreneurs. Kevin is trying to sell the Irish pub concept to a retired New York City business executive who wants to own his own business. Since the executive is not an experienced pub owner and is reluctant to invest $300,000 in the project, Kevin should consider this to be a _____ buying situation.

Accepted Answer

The answer of Kevin works for Irish Pub Company, a...

Question 4

Eva is considering new items for her store and is concerned about her profit margin. She will ask the sales rep:

Accepted Answer

Knowing the unit cost and suggested retail price will allow Eva to calculate her profit margin and make an informed decision about whether or not to stock the item in her store. The other options do not directly address Eva's concern about profit margin.

Question 5

In which stage of the buying process was the chief executive of Norell, an agency that supplies businesses with temporary workers, when he realized that the health-care industry necessitated temporary workers as much if not more than goods-oriented businesses?

Accepted Answer

The realization that the health-care industry necessitated temporary workers as much if not more than goods-oriented businesses indicates that the chief executive recognized a need. Therefore, the correct answer is D.

Question 6

Handell has established a small company that manufactures decorative items for the home. One of the company's newest items is a line of thermometers reproduced from ones that were given away free before World War II. Since quality is essential to the company's success, it spent a great deal of time and effort locating the best suppliers for the metal, wood, paint, and mercury that went into its first production. The purchase of these components would be an example of a _____ buying situation

Accepted Answer

A new-task buying situation is when a company purchases a product or service for the first time and requires a lot of effort in evaluating and selecting suppliers, as described in the scenario.

Question 7

When P.C. Logic, a facsimile machine manufacturer, purchases ceramic printing heads from Kyocera to install in its fax machines, it is acting as a(n):

Accepted Answer

P.C. Logic is purchasing a component from Kyocera to use in its own product, making it an original equipment manufacturer.

Question 8

Salespeople need to understand that purchases made by their customers' customers exemplify:

Accepted Answer

Purchases made by customers' customers are an example of derived demand. This means that the demand for a product or service is derived from the demand for another product or service. For example, a company that produces car tires relies on the demand for cars. Therefore, salespeople need to understand the needs and demands of their customers' customers to ensure that they can meet their own customers' needs and maintain their own sales.

Question 9

The purchase of maintenance, repair, and operating (MRO) supplies:

Accepted Answer

The answer of The purchase of maintenance, repair, and operating...

Question 10

Alcoa Aluminum is a large manufacturer of "can sheets" used to manufacturer drink cans. Its ability to sell to Pearl Brewing Company is directly related how many people buy Pearl beer. This is an example of:

Accepted Answer

The scenario described represents derived demand, which is when the demand for one product or service is derived from the demand of another product or service. In this case, Alcoa's ability to sell to Pearl Brewing Company is derived from the demand for Pearl beer, which in turn is driven by consumer demand for that brand of beer.

Question 11

In which of the following buying situations is creeping commitment most likely to occur?

Accepted Answer

Creeping commitment is most likely to occur in the purchase of a LAN system because it is a high involvement, complex purchase decision that involves multiple stakeholders and a significant investment of time and money. As a result, decision makers may become more committed to their initial decision as they invest more resources into researching and evaluating the available options.

Question 12

Byorn, a purchasing manager, is part of team evaluating VOIP communication systems, a major capital investment for his telemarketing company. Byorn is involved in a ____________ situation.

Accepted Answer

A new task situation involves the evaluation of a product or service that the organization has not previously purchased. In this case, the company is evaluating VOIP communication systems, which is a new investment for the telemarketing company.

Question 13

Compared to consumer purchase decisions, organizational purchase decisions:

Accepted Answer

Organizational purchase decisions involve larger transactions since companies are purchasing for their entire organization, as opposed to an individual consumer. The purchase decisions may also involve multiple decision-makers and stakeholders, leading to a more complex and time-consuming process. Negotiations are often required to ensure the best value for the organization.

Question 14

Regan wants to develop a long-term relationship with his customers. To accomplish this objective Regan will pay close attention to:

Accepted Answer

The answer of Regan wants to develop a long-term relationship...

Question 15

Effective selling to government agencies requires:

Accepted Answer

The answer of Effective selling to government agencies requires:
...

Question 16

Westex makes uniforms and overalls for employees in any industry where there is a potential for fire injury. It uses Indura Tuf Stuf fabric in all of the uniforms it manufactures. If there is a decline in the chemical industry, then there will be a decrease in employment in that industry. Since fewer uniforms will be needed, then sales for Tuf Stuf fabric will decline. This is an example of:

Accepted Answer

This scenario demonstrates derived demand, as the demand for Tuf Stuf fabric is derived from the demand for uniforms in industries where fire injury is a potential hazard. The decline in employment in the chemical industry leads to a decrease in uniform needs, and therefore a decrease in the demand for Tuf Stuf fabric.

Question 17

Reginald is determining which new products he will add to his gift and card store. As a reseller, Reginald considers three elements:

Accepted Answer

As a reseller, Reginald's main goal is to maximize profit. Therefore, the most important elements he would consider when determining which new products to add are profit margin, turnover, and effort. Profit margin refers to the difference between the cost of acquiring a product and the price at which it can be sold. Turnover is the rate at which inventory is sold and replaced with new products, and effort refers to the resources (time, money, etc.) required to sell a particular product. These three factors are crucial in determining the potential success of a new product in Reginald's store.

Question 18

A manufacturer of aquariums for consumers' homes is most likely to go through all eight stages of the buying process when she is:

Accepted Answer

The answer of A manufacturer of aquariums for consumers' homes...

Question 19

Westex makes uniforms and overalls for employees in any industry where there is a potential for fire injury. It uses Indura Tuf Stuf fabric in all of the uniforms it manufacturers because Tuf Stuf has been rated the most fire-resistant fabric on the market today. Westex is an example of a(n):

Accepted Answer

Westex is an original equipment manufacturer because it manufactures uniforms and overalls using a particular fabric.

Question 20

Which of the following would be an example of a capital equipment purchase for a manufacturer of stained glass windows?

Accepted Answer

The building which houses the workers would be a capital equipment purchase for a manufacturer of stained glass windows, as it is a long-term investment in a fixed asset that is essential to the business operations. The other options listed are either supplies or expenses, not capital equipment.

Quiz 4: Buying Behavior and the Buying Process