Question 1

The business environment is changing dramatically and organizational buying is also changing. As organizations attempt to improve product quality, control costs, and minimize inventory, they will:
A) decentralize purchasing
B) strip purchasing agents of most of their power
C) use global sourcing
D) implement product-life-cycle pricing
E) do all of the above

Accepted Answer

Organizations are increasingly using global sourcing to improve product quality, control costs, and minimize inventory by accessing a wider range of suppliers and competitive pricing.

Question 2

Because DLS Aquatics has proven to be a satisfactory supplier of aquarium filters for Fins Aloft, a tropical fish retailer, the store's owner has _____, which is illustrated by his continued buying from that company in spite of sales calls from salespeople from other distributors.
A) vendor loyalty
B) brand equity
C) buyer allegiance
D) top-of-mind awareness
E) creeping commitment

Accepted Answer

The scenario describes the store owner's loyalty towards DLS Aquatics as a supplier of aquarium filters, indicating that he continues to purchase from them in spite of calls from salespeople of other distributors. This indicates vendor loyalty. Brand equity refers to the value of a brand in the market, buyer allegiance is not an established term, top-of-mind awareness is the level of awareness a brand has in a consumer's mind, and creeping commitment refers to a situation where a consumer gradually becomes committed to a brand or product.

Question 3

Material requirements planning and electronic data interchange are all elements of:
A) just-in-time inventory control
B) value analysis
C) total quality management
D) vendor analysis
E) life-cycle costing

Accepted Answer

Material requirements planning and electronic data interchange are both components of just-in-time inventory control, which aims to minimize inventory levels by efficiently managing the flow of materials and information throughout the supply chain. Value analysis, total quality management, vendor analysis, and life-cycle costing are also important concepts within supply chain management, but they are not directly related to MRP or EDI.

Question 4

To develop the close coordination needed for just-in-time (JIT) inventory control systems, manufacturers tend to rely on one supplier. How is this supplier selected?
A) by lowest item-by-item cost
B) by its ability to be flexible
C) by product quality
D) by size of operation
E) by lowest overall cost

Accepted Answer

The supplier selected for just-in-time (JIT) inventory control systems is chosen based on their ability to be flexible. JIT requires close coordination between the manufacturer and supplier, and a flexible supplier can adjust to rapid changes in demand or production schedules. The lowest item-by-item cost or overall cost may not be the most important factor in selecting a supplier for JIT. Quality is also important, but it is assumed that suppliers meeting quality standards are already being considered. The size of the operation may also not be as important as flexibility.

Question 5

To make its world famous barbecue, the Old Smoke House restaurant needs a steady supply of hickory wood. Because the Old Smoke House's owner believes in _____, she has used the same wood supplier for almost fifteen years.
A) value loyalty
B) purchase certainty
C) supplier devotion
D) supplier allegiance
E) vendor loyalty

Accepted Answer

The answer of To make its world famous barbecue, the...

Question 6

The objective of a(n) _____ system is to minimize inventory by having frequent deliveries, sometimes daily, as needed for assembly into a final product.
A) efficient consumer response
B) total quality management
C) just-in-time inventory control
D) zero-defect management
E) material requirements planning

Accepted Answer

Just-in-time inventory control system aims to reduce inventory by having frequent deliveries as needed for assembly into a final product. Efficient consumer response and material requirements planning focus on efficient inventory management but do not specifically aim to minimize inventory levels. Total quality management and zero-defect management focus on ensuring product quality and minimizing defects rather than inventory control.

Question 7

Daimler-Chrysler uses a supply chain management system called ______ to schedule delivery of auto parts to arrive at its plants thirty minutes before the parts are to be used in the assembly process.
A) efficient consumer response
B) total quality management
C) just-in-time inventory control
D) zero-defect management
E) material requirements planning

Accepted Answer

The practice of scheduling delivery of auto parts to arrive just-in-time for use in the assembly process is known as just-in-time inventory control. Daimler-Chrysler uses this system to increase efficiency and decrease waste in the supply chain.

Question 8

Hallmark supplies its retailers with handheld Crownlink electronic data interchange terminals. All of its retailers use these terminals to transmit merchandise orders to Hallmark in Kansas City. Inventory is stocked as needed. Stockouts cannot occur. Shipments will be placed daily if that is what the individual retailer needs. This is an example of a _____ system.
A) efficient consumer response
B) total quality management
C) marketing information
D) zero-defect management
E) material requirements planning

Accepted Answer

The answer of Hallmark supplies its retailers with handheld Crownlink...

Question 9

_____ systems are used to forecast sales, develop production schedules, and select inventory dates that minimize costs.
A) Efficient consumer response
B) Total quality management
C) Marketing research
D) Zero-defect management
E) Material requirement planning

Accepted Answer

Material requirement planning (MRP) systems use computer software to calculate the materials needed to produce a product and generate a production schedule based on anticipated demand. This helps to minimize inventory costs and ensure that adequate materials are available to meet production needs. MRP systems are commonly used in manufacturing and production industries.

Question 10

Foster has decided to buy all his MRO supplies from Alexia's Supply House. For competitors, Foster's account is:
A) always-a-share
B) JIT
C) a modified rebuy
D) lost-for-good
E) derived demand

Accepted Answer

The answer of Foster has decided to buy all his...

Question 11

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:
A) elevating their purchasing directors to reflect the increasing importance of this function
B) replacing just-in-time inventory control with a more practical technique
C) using less global sourcing to reduce transportation costs
D) using less value analysis
E) doing all of the above

Accepted Answer

The question is asking for the changes occurring in organizational buying, and option A correctly identifies that organizations are elevating their purchasing directors to reflect the increasing importance of this function. The other options are incorrect as they do not reflect the changes occurring in organizational buying.

Question 12

Jackson likes his major parts supplier for his automobile repair business but always buys some of his parts from another competitor. Jackson is using a __________________ strategy.
A) value loyalty
B) always-a-share
C) supplier devotion
D) straight rebuy
E) derived demand

Accepted Answer

Jackson is practicing an "always-a-share" strategy, which means that he always buys some parts from another competitor, even though he likes his major parts supplier. This strategy allows him to consistently compare prices and ensure that he is getting the best value for his money.

Question 13

To effectively sell to a centralized purchasing department, many suppliers use a _____ to coordinate the firm's efforts so that it can satisfy a major customer.
A) supply chain manager
B) manager trained in centralization
C) national account manager
D) house account manager
E) marketing vice-president for key accounts

Accepted Answer

A national account manager is typically responsible for managing a company's relationship with a major customer, such as a centralized purchasing department. This person coordinates the firm's efforts to ensure customer satisfaction and maintain a strong relationship with the customer. The other options listed may have some relevance, but a national account manager is specifically designed to handle this type of situation.

Question 14

In which stage of the buying process are personal, noncommercial sources of information most important?
A) need recognition
B) development of specifications
C) sales calls
D) proposal evaluation
E) order replacement

Accepted Answer

The answer of In which stage of the buying process...

Question 15

Ryan wants a vendor who will provide ingredients for her restaurant each day, adjusted for the number of reservations he has for that evening. Ryan is looking for a vendor who will provide:
A) risk reduction
B) just-in-time inventory control
C) material requirements planning
D) supply chain management
E) outsourcing

Accepted Answer

Just-in-time inventory control involves arranging for supplies to arrive precisely when they are needed in the production process. In this case, Ryan is looking for a vendor who will adjust ingredient quantities based on the number of reservations, which is an example of just-in-time inventory control. None of the other options (risk reduction, material requirements planning, supply chain management, outsourcing) specifically address this requirement.

Question 16

LifeStream Industries has used GE light bulbs for years. When it needs new light bulbs, it uses a straight rebuy. The distributor of Tungstram LED light bulbs would like an opportunity to get his product considered by LifeStream. A _____ would be particularly useful for Tungstram, the out supplier.
A) quality-service analysis
B) organizational audit
C) environmental assessment
D) value analysis
E) multi-attribute model

Accepted Answer

Value analysis would be the best choice for the distributor of Tungstram LED light bulbs to get their product considered by LifeStream. This would involve analyzing the cost and benefits of switching from GE light bulbs to Tungstram LED light bulbs in terms of their value to LifeStream Industries.

Question 17

Which of the following statements about a material requirements planning (MRP) system is true?
A) The MRP system can be used to forecast sales.
B) An MRP system would never be implemented by a company trying to use a total quality management approach to managing its business.
C) The MRP system is most often used to uncover needs or problem areas within an organization's various functional departments.
D) An MRP system is a type of JIT program.
E) The MRP system often creates bottlenecks.

Accepted Answer

A material requirements planning (MRP) system is primarily used for production planning and inventory control. It is not used for forecasting sales.

Question 18

The need for risk reduction is one of the factors affecting the individual making the organizational buying decision. What can a salesperson do to help reduce the risk?
A) Turn a straight rebuy situation into a modified rebuy situation.
B) Provide the buyer with product information from independent sources not connected with the company for which the salesperson works.
C) Send the buyer the complete portfolio of all collateral sales materials.
D) Make the buyer understand that every buy should be a new-task buy situation.
E) Persuade the buyer to not perform vendor analyses.

Accepted Answer

Providing the buyer with product information from independent sources not connected with the company for which the salesperson works can help reduce the perceived risk of the purchase. This type of information can provide a more objective evaluation of the product, which can increase the buyer's confidence and reduce the perceived risk.

Question 19

The organizational buyer for Van Bloom Gardens frequently uses a _____ to make sure that all important factors are considered, such as bulb size, delivery speed, bulb sprouting time, and level of sales support, before selecting a supplier.
A) vendor analysis
B) marketing audit
C) outsourcing
D) needs assessment
E) value analysis

Accepted Answer

A vendor analysis is a systematic approach used by organizations to evaluate and compare potential suppliers based on various criteria, ensuring all important factors are considered before making a decision.

Question 20

Material requirements planning (MRP) systems:
A) are an important element in JIT programs
B) can be used to forecast sales
C) can be used to develop production schedules
D) will minimize costs by scheduling delivery dates that minimize the amount of inventory needed
E) are described by all of the above

Accepted Answer

MRP systems are an important part of JIT programs as they allow for efficient production scheduling and inventory management. They can also be used to forecast sales and minimize costs by scheduling delivery dates that align with inventory needs. Therefore, all of the above choices are correct.

Quiz 4: Buying Behavior and the Buying Process

The business environment is changing dramatically and organizational buying is also changing. As organizations attempt to improve product quality, control costs, and minimize inventory, they will:

Because DLS Aquatics has proven to be a satisfactory supplier of aquarium filters for Fins Aloft, a tropical fish retailer, the store's owner has _____, which is illustrated by his continued buying from that company in spite of sales calls from salespeople from other distributors.

Material requirements planning and electronic data interchange are all elements of:

To develop the close coordination needed for just-in-time (JIT) inventory control systems, manufacturers tend to rely on one supplier. How is this supplier selected?

To make its world famous barbecue, the Old Smoke House restaurant needs a steady supply of hickory wood. Because the Old Smoke House's owner believes in _____, she has used the same wood supplier for almost fifteen years.

The objective of a(n) _____ system is to minimize inventory by having frequent deliveries, sometimes daily, as needed for assembly into a final product.

Daimler-Chrysler uses a supply chain management system called ______ to schedule delivery of auto parts to arrive at its plants thirty minutes before the parts are to be used in the assembly process.

_____ systems are used to forecast sales, develop production schedules, and select inventory dates that minimize costs.

Foster has decided to buy all his MRO supplies from Alexia's Supply House. For competitors, Foster's account is:

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:

Jackson likes his major parts supplier for his automobile repair business but always buys some of his parts from another competitor. Jackson is using a __________________ strategy.

To effectively sell to a centralized purchasing department, many suppliers use a _____ to coordinate the firm's efforts so that it can satisfy a major customer.

In which stage of the buying process are personal, noncommercial sources of information most important?

Ryan wants a vendor who will provide ingredients for her restaurant each day, adjusted for the number of reservations he has for that evening. Ryan is looking for a vendor who will provide:

LifeStream Industries has used GE light bulbs for years. When it needs new light bulbs, it uses a straight rebuy. The distributor of Tungstram LED light bulbs would like an opportunity to get his product considered by LifeStream. A _____ would be particularly useful for Tungstram, the out supplier.

Which of the following statements about a material requirements planning (MRP) system is true?

The need for risk reduction is one of the factors affecting the individual making the organizational buying decision. What can a salesperson do to help reduce the risk?

The organizational buyer for Van Bloom Gardens frequently uses a _____ to make sure that all important factors are considered, such as bulb size, delivery speed, bulb sprouting time, and level of sales support, before selecting a supplier.

Material requirements planning (MRP) systems: