Question 1

The goal of vendor analysis is to maximize the total costs associated with purchases in order to ensure maximum product quality.

Accepted Answer

The goal of vendor analysis is not just to get a low price from the supplier on a given part or service.Rather,the goal is to lower the total costs associated with purchases.

Question 2

The best vendor is one that helps the customer reduce costs of excess inventory,retooling of equipment,or defective parts.

Accepted Answer

The best vendor is one that helps the customer reduce costs of excess inventory,retooling of equipment,or defective parts.The goal of vendor analysis is not just to get a low price from the supplier on a given part or service.Rather,the goal is to lower the total costs associated with purchases.

Question 3

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.

Accepted Answer

Some firms set up or participate in a procurement website that directs suppliers to companies (or divisions of a company)that need to make purchases.

Question 4

Internet tools used in the B2B market that focus primarily on lowering price do not always lower total purchasing costs.

Accepted Answer

Internet tools used in the B2B market helps increase the number of suppliers competing for the business,which can in turn drive down prices or provide more beneficial terms of sale.But sometimes dealing with one supplier with which a firm already has a good relationship is more important and lowers total cost.

Question 5

In business markets,buyer-seller relationships tend to be an "all or nothing" arrangement-either very close or not at all close.

Accepted Answer

Buyer-seller relationships are not "all or nothing" arrangements.Many firms may have a close relationship in some ways and not in others.

Question 6

Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.

Accepted Answer

Sometimes the buyer and seller know roughly what is needed but can't fix all the details in advance.Then the relationship may involve negotiated contract buying,which means agreeing to contracts that allow for changes in the purchase arrangements.

Question 7

Although we talk about close relationships between firms in business markets,in practice it is just the relationship between the salesperson and purchasing manager that becomes close.

Accepted Answer

Purchasing managers for the buying firm and salespeople for the supplier usually coordinate the different dimensions of a relationship.However,close relationships often involve direct contacts between a number of people from different areas in both firms-R&D,Quality,Accounting,Marketing,Production,Engineering,Finance.

Question 8

The Internet is making it faster and easier for organizational buyers to use competitive bidding procedures.

Accepted Answer

Rather than search for suppliers,buyers sometimes post their requirements and invite qualified suppliers to submit a bid.Some firms set up or participate in a procurement website that directs suppliers to companies (or divisions of a company)that need to make purchases.

Question 9

Just-in-time delivery reliably helps to get products and store them long before the customer needs them.

Accepted Answer

Just-in-time delivery involves reliably getting products there,just before the customer needs them.

Question 10

In cooperative relationships in a business market,the buyer and seller work together to jointly achieve both mutual and individual objectives.

Accepted Answer

In cooperative relationships,the buyer and seller work together to achieve both mutual and individual objectives.The buyer and seller firms treat problems that arise as a joint responsibility.

Question 11

A long-term commitment by an organization to a partner may reduce flexibility.

Accepted Answer

Although close relationships can produce benefits,they are not always best.A long-term commitment to a partner may reduce flexibility.

Question 12

Negotiated contract buying would be used when the buyer knows precisely what he or she wants and the requirements of the job aren't likely to change as the job is done.

Accepted Answer

Sometimes the buyer and seller know roughly what is needed but can't fix all the details in advance.Then the relationship may involve negotiated contract buying,which means agreeing to contracts that allow for changes in the purchase arrangements.

Question 13

At a procurement site,competition among sellers is likely to increase.

Accepted Answer

Procurement websites increase the number of suppliers competing for the business,which in turn drives down prices or provides more beneficial terms of sale.

Question 14

So far,B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.

Accepted Answer

B2B e-commerce has had tremendous effect on the way organizations make purchase decisions and deal with suppliers.Search engines help in gathering information; and websites with useful content,procurement websites,and online communities help buyers make purchase decisions.

Question 15

In business markets,suppliers usually want close relationships with customers; however,there's little benefit to the customer of having closer relationships with suppliers.

Accepted Answer

There are often significant benefits of a close working relationship between a supplier and a customer firm.Such relationships are becoming common.

Question 16

Just-in-time relationships between buyers and sellers usually require operational linkages and information sharing.

Accepted Answer

Closer relationships between buyers and sellers involve operational linkages and information sharing that lower costs and increase efficiency.

Question 17

Firms can add sustainability to a vendor analysis,but it will never result in cost savings.

Accepted Answer

Many firms find that adding sustainability to a vendor analysis results in unexpected savings.

Question 18

In business markets,a seller would always prefer to have a closer relationship with a customer.

Accepted Answer

It may at first appear that a seller would always prefer to have a closer relationship with a customer,but that is not the case.Some customers place orders that are too small or require too much attention to be profitable.

Question 19

Relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

Accepted Answer

Managing relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.Industrial suppliers often custom design a new product for just one customer.This may require investments in R&D or new manufacturing technologies.

Question 20

A close buyer-seller relationship in a business market may reduce a firm's flexibility.

Accepted Answer