Question 1

A company will visit a prospective vendor's business or have the prospective vendor make a presentation to the buying center during the _____ level of the evaluation-of-vendors stage of the b-to-b purchasing process.

Accepted Answer

A vendor audit involves a detailed evaluation of a prospective vendor's capabilities, often including a site visit or presentation to assess their suitability for a business partnership.

Question 2

The decision of whether to use one vendor or multiple vendors occurs during the _____ step of the business-to-business buying process.

Accepted Answer

The decision of whether to use one vendor or multiple vendors occurs during the selection of vendors step of the business-to-business buying process, which is the sixth step in the process..

Question 3

In most cases, it is the responsibility of the _____ to negotiate purchase terms and work out the final purchase agreement.

Accepted Answer

The buyer is typically responsible for negotiating purchase terms and finalizing the purchase agreement, as they are the ones making the purchase decision and handling the transaction.

Question 4

The primary difference between fabricated and component parts is that fabricated parts are not as identifiable in the finished product while component parts are.

Accepted Answer

The primary difference between fabricated and component parts is that fabricated parts are not as identifiable in the finished product while component parts are identifiable.

Question 5

In the production of an automobile, a fabricated part would be the transmission that is purchased from an outside vendor while a component part would be the stereo or radio system that is installed in the automobile.

Accepted Answer

A fabricated part is a part that is made from raw materials, while a component part is a part that is purchased from an outside vendor. In this case, the transmission is a fabricated part because it is made from raw materials, while the stereo or radio system is a component part because it is purchased from an outside vendor.

Question 6

Distributors and wholesalers will tend to push the brands that can be purchased at the lowest price or from manufacturers who offer the best deals.

Accepted Answer

Distributors and wholesalers will tend to push the brands that will benefit them the most, especially in terms of profit margins.

Question 7

Although manufacturers sell their products to wholesalers, distributors, and retailers, manufacturers must understand the consumer market and what consumers want.

Accepted Answer

Although manufacturers sell their products to wholesalers, distributors, and retailers, manufacturers must understand the consumer market and what consumers want in order to produce products that will be in demand.

Question 8

Legal counsel, medical services, CPA, auditing services, and consulting services would be examples of operating services a business can purchase.

Accepted Answer

Legal counsel, medical services, CPA, auditing services, and consulting services would be examples of professional services. Operating services would include telephone service, lawn service, and Internet service.

Question 9

In recent years, the trend has been for businesses to perform more functions internally and outsource fewer of their service operations.

Accepted Answer

In recent years, the trend has been for businesses to outsource more of their service operations so the business can concentrate on their core business.

Question 10

Because of the risk involved with hiring a new service provider, most businesses will stay with their current vendor unless they are unhappy with the service being provided by their current vendor or a competing vendor offers a substantially lower price.

Accepted Answer

Because of the risk involved with hiring a new service provider, most businesses will stay with their current vendor unless they are unhappy with the service being provided by their current vendor. Price will be a factor if the price is substantially lower than what they are currently paying.

Question 11

Examples of business customers are manufacturers, wholesalers, distributors, retailers, consumers, and nonprofit organizations.

Accepted Answer

Examples of business customers are manufacturers, wholesalers, distributors, retailers, various government agencies, and nonprofit organizations.

Question 12

Because of the rise of large retail chains, many manufacturers are being forced to sell their products through wholesalers or distributors to improve the flow of goods to the retailers.

Accepted Answer

Because of the rise of large retail chains, many manufacturers are selling their products directly to retailers, bypassing distributors and wholesalers.

Question 13

Because of the concept of derived demand in the business-to-business sector, it is much more difficult for a retailer to predict demand and to control inventory levels than it would be for a manufacturer.

Accepted Answer

Because of the concept of derived demand in the business-to-business sector, it is much more difficult for the manufacturer to predict demand and to control inventory levels than it would be for retailers.

Question 14

Because of the principle of derived demand, business-to-business markets face a much more volatile sales situation than business-to-consumer markets.

Accepted Answer

Derived demand in B2B markets means that demand for business products is dependent on consumer demand, leading to greater volatility as consumer preferences and economic conditions change.

Question 15

If a company is dissatisfied with its current vendor and decides to open a purchase situation up for bids, it would be considered a new buy situation only if the current vendor is not being considered.

Accepted Answer

It would be a modified rebuy situation regardless of the decision with the current vendor.

Question 16

The size and role of the various members of the buying center are determined by factors such as the dollar value of the purchase relative to the size of the company, the impact of the purchase on company operations, and the type of purchase situation.

Accepted Answer

The buying center's composition and roles are influenced by the purchase's significance, impact, and context, affecting decision-making processes.

Question 17

The role an individual plays in the buying center is fixed by his or her position in the company and rarely will change over time.

Accepted Answer

While a person's position in the company is a major factor in his/her role, it does not necessarily fix the role that is played in the buying center.

Question 18

In an organization with a decentralized structure, buying centers will tend to be larger with more active participation by its members.

Accepted Answer

In a decentralized structure, decision-making is spread across various levels, leading to larger buying centers with more members actively involved in the purchasing process.

Question 19

Individuals with formal power can be an impediment to open discussion about vendors and solutions within a buying center, even if the person with the formal power strives for open discussion.

Accepted Answer

Individuals with formal power can be an impediment to open discussion about vendors and solutions within a buying center, even if the person with the formal power strives for open discussion. It is very difficult for someone with power to solicit honest opinions.

Question 20

The higher a person's rank in an organization, the more legitimate power he or she will have and the greater will be his or her influence within the buying center.

Accepted Answer

Legitimate power is derived from a person's position or rank within an organization, which typically grants them authority and influence over decisions, including those made within a buying center.

Quiz 5: Business-To-Business Behavior