Question 1

A hospital is considering changing its supplier of replacement joints.While surgeons make the final decision,the hospital's purchasing department is promoting Kyocera because it manufactures one of the cheapest and most durable hip joints on the market.In terms of the buying center,the purchasing department is a(n):
A) decider.
B) influencer.
C) judge.
D) user.
E) demand deriver.

Accepted Answer

The purchasing department is an influencer in the buying center because they are promoting Kyocera as the preferred supplier of replacement joints to the surgeons who will ultimately make the final decision.

Question 2

Plasto is a Spanish company that manufactures stadium seating for sports venues.It is one of many such manufacturers.The city of Marsia,which is going to host the next Olympic games,forms a committee to make purchases of equipment that would be required at its venues.The committee has limited knowledge of the products,but eventually decides to purchase Plasto stadium seating for the venues.This purchase by the recently formed committee would be an example of a _____ situation.
A) derived demand
B) just-in-time delivery
C) modified rebuy
D) straight rebuy
E) new-task

Accepted Answer

This is a new-task situation because the committee is purchasing stadium seating for the first time for the Olympic venues, indicating a new and unique buying situation.

Question 3

In which of the following buying situations is creeping commitment most likely to occur?
A) The purchase of a replacement hydraulic motor for a forklift
B) The purchase of a new goldfish to replace the dead one
C) The purchase of the annual Christmas tree from Farmer Gregson
D) The purchase of a case of paper towels for a service station
E) None of the above

Accepted Answer

The answer of In which of the following buying situations...

Question 4

Using the life-cycle costing approach,salespeople can demonstrate that:
A) a product in the decline stage of its product life cycle will have little, if any, service.
B) a product with a higher initial cost will have lower overall costs.
C) operational costs do not change over the life time of capital equipment.
D) a product in the introductory stage of its product life cycle will have more problems than one in a later stage.
E) operational costs actually decrease over the life time of capital equipment due to increased familiarity.

Accepted Answer

Using the life-cycle costing approach, salespeople can demonstrate that a product with a higher initial cost will have lower overall costs. This is because the costs associated with maintenance, repairs, and replacements are typically lower for products with higher quality and durability. By investing more upfront, customers can save money in the long run.

Question 5

A manufacturer of aquariums for consumers' homes is most likely to go through all eight steps of the buying process when she is:
A) renewing subscriptions to trade journals.
B) purchasing a new computerized inventory system.
C) ordering glass sheets from the firm's usual supplier.
D) restocking the glue needed to make the tanks leak-proof.
E) buying cleaning supplies from the list left by the maintenance staff.

Accepted Answer

Purchasing a new computerized inventory system is a significant investment and change for the business, likely requiring thorough evaluation and decision-making, thus involving all eight steps of the buying process.

Question 6

The salesperson for the Big Apple Sign Corporation was trying to get a hardware storeowner to buy a new kind of advertising tool called floor graphics-an opaque vinyl film that applies directly to the floor,is easy to remove,and can be used to promote in-store specials.Since the storeowner has purchased advertising before-just not this particular kind of advertising-this is an example of a _____ situation.
A) derived rebuy
B) straight-rebuy
C) derived-demand
D) value-added
E) modified rebuy

Accepted Answer

The situation described is not a straight-rebuy because the storeowner has not purchased the specific product before. However, it is not a derived-demand situation either because the storeowner is not responding to a customer's request for a specific item. This situation falls under modified rebuy because the storeowner is considering a new type of advertising tool, but still has some purchasing experience in this area.

Question 7

Which of the following members of the buying center would typically be involved in a value analysis?
A) A representative from the engineering department
B) Members of the purchasing department
C) Technical experts from the production department
D) Technical experts from the quality control department
E) All of the above

Accepted Answer

Value analysis often involves input from multiple departments, including engineering, purchasing, production, and quality control, to evaluate and improve product value.

Question 8

The human resource director at a commercial laundry is having trouble providing the labor needed for the business.In a trade journal,he read about a VAC Soil Counting System that is a computerized system for sorting and counting incoming soiled clothes.The system can reduce labor costs by up to 50 percent.He called the toll-free number in the ad and spoke to the salesperson.The VAC salesperson had been trying to get an appointment with the owner of the laundry for over a year,so he was pleased when the HR director showed interest in the product and expressed willingness to take the information to the owner.In terms of the buying center,the HR director is acting as a(n):
A) initiator.
B) buyer.
C) user.
D) decider.
E) gatekeeper.

Accepted Answer

The HR director is the one who showed interest and initiated the process of considering the VAC Soil Counting System. However, the ultimate decision to purchase the system would be made by the owner, who would act as the decider. The HR director may also be a user of the system, but that is not relevant to their role in the buying center. The gatekeeper would typically control access to information, but there is no indication that this is the case here. The buyer would be the person responsible for making the actual purchase, which could be the HR director or someone else.

Question 9

The evaluation and selection of products and suppliers are affected by the needs of both the organization and the individuals making the decision.These needs are categorized as:
A) emotional and rational.
B) formal and informal.
C) verbal and nonverbal.
D) external and internal.
E) behavioral and attitudinal.

Accepted Answer

Emotional and rational needs are the two main factors that affect the evaluation and selection of products and suppliers. Emotional needs are subjective and include personal preferences, biases, and emotions, while rational needs are objective and based on factors such as price, quality, and reliability. Both types of needs must be considered when making a purchasing decision to ensure that the best product and supplier are chosen. The other options, formal and informal, verbal and nonverbal, and external and internal, are not relevant to the evaluation and selection process. Behavioral and attitudinal needs may be related to emotional and rational needs but are not commonly used terminologies in this context.

Question 10

Ruth markets rock concerts.She is looking for a company that will handle all of the various mailings needed to promote the purchase of concert tickets.She wants to use Graham Mail House because she is a very good friend of the mailing house's operations manager,but others involved in the decision making want to take bids from other mailing houses.In this example Ruth is expressing a(n)_____ need in the buying process.
A) emotional
B) formal
C) external
D) impersonal
E) rational

Accepted Answer

Ruth's preference for Graham Mail House is based on her personal relationship with the operations manager, indicating an emotional need rather than a rational or formal business decision.

Question 11

Regan wants to develop a long-term relationship with his customers.To accomplish this objective,Regan will pay close attention to:
A) the acquisition and analysis of proposals.
B) the definition of the type of product needed.
C) the evaluation of product performance.
D) the receipt of an order.
E) the recognition of a need or problem.

Accepted Answer

Focusing on the evaluation of product performance helps ensure customer satisfaction and loyalty, which are crucial for developing long-term relationships.

Question 12

The last step in the buying process is the:
A) establishment of a long-term relationship with the seller.
B) receipt of the product.
C) vendor analysis.
D) evaluation of product performance.
E) placement of the order.

Accepted Answer

The last step in the buying process is the evaluation of product performance, where the buyer assesses whether the product meets their expectations and requirements.

Question 13

The manufacturer of Fancy Feast cat food has purchased "can sheets" for making its cans from Altum Aluminum for years,but it has recently decided to become more environmentally friendly.In doing so,it plans to talk to Reynolds Aluminum about its recycling project.In this instance,the purchase of can sheets from Reynolds would be an example of a _____ situation.
A) new-task
B) straight-rebuy
C) direct demand
D) value-added
E) modified rebuy

Accepted Answer

The situation is a modified rebuy because the buyer has had a long-term relationship with Altum Aluminum but is exploring a new supplier (Reynolds Aluminum) due to a change in its environmental goals.

Question 14

Mark's supervisor introduces a new product in the market.Mark's supervisor is acting as the _____ in the buying process.
A) initiator
B) gatekeeper
C) decider
D) influencer
E) user

Accepted Answer

The role of the initiator is to recognize a problem or need that can be solved by a product or service. In this case, Mark's supervisor introduced a new product in the market, suggesting that they were the one who recognized the need for the product and initiated the process of introducing it.

Question 15

Most purchase decisions involving capital equipment or the initial purchase of original equipment manufacturer (OEM)products are _____.
A) irrational purchases
B) new tasks
C) end user emotional needs
D) straight rebuys
E) modified MROs

Accepted Answer

These types of purchases are typically new tasks because they involve significant investment and decision-making processes, often requiring extensive research and evaluation.

Question 16

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 pieces 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 run his own business,but 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.
A) new-task
B) straight-rebuy
C) derived-demand
D) value-added
E) modified rebuy

Accepted Answer

This is a new-task buying situation because the retired executive is unfamiliar with the concept and has no prior experience in owning or running a pub, making it a new and significant purchase decision.

Question 17

By showing a paper products manufacturer that the C.G.Bretting napkin-folding machine could fold 2,000 paper napkins per minute,twice the rate of the manufacturer's current machine,the Bretting salesperson:
A)forced the manufacturer to perform a vendor analysis.
B)showed the manufacturer that it needed this product to improve its efficiency.
C)created derived demand.
D)created a need for more MRO equipment.
E)all of the above.

Accepted Answer

By demonstrating that the Bretting napkin-folding machine could double the rate of paper napkin production, the salesperson showed the manufacturer that they needed this product to improve their efficiency. This created a demand for the product, based on the manufacturer's desire to improve their operations. The other options (A, C, D, E) are not relevant in this scenario.

Question 18

_____ control the flow of information and limit the alternatives considered.
A) Deciders
B) Influencers
C) Buyers
D) Users
E) Gatekeepers

Accepted Answer

Gatekeepers control the flow of information by deciding what information to allow through to decision-makers and other employees, and limiting the alternatives considered. They can be individuals or departments within an organization, and often act as a filtering mechanism to ensure that only relevant information makes it through to decision-makers.

Question 19

Handell has established a small company that manufactures decorative items for homes.One of the company's latest items is a line of thermometers reproduced from ones that were given away for 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 round of production.The purchase of these components would be an example of a _____ buying situation.
A) new-task
B) straight-rebuy
C) derived-demand
D) value-added
E) modified-rebuy

Accepted Answer

A new-task buying situation occurs when a buyer purchases a product or service for the first time, and it requires a significant amount of time and effort to obtain the necessary information to make a decision. In this case, the company is purchasing components for a new product line, and it is important that they find the best suppliers to ensure quality. This requires a significant amount of time and effort, making it an example of a new-task buying situation.

Question 20

When using life-cycle costing as one of the criteria for evaluating and selecting a supplier for a new oil well drilling platform,a purchasing agent should look at:
A) the initial cost of the platform.
B) the estimated maintenance cost for the platform over a ten-year period.
C) how soon the platform will need to be replaced.
D) the cost of installing the platform at a drilling site.
E) all of the above

Accepted Answer

When using life-cycle costing, it is important to consider the initial cost of the platform (A), the estimated maintenance cost over a ten-year period (B), and how soon the platform will need to be replaced (C). It is also important to consider the cost of installing the platform at a drilling site (D). Therefore, all of the above options (E) should be considered when evaluating and selecting a supplier for a new oil well drilling platform.

Quiz 3: Buying Behavior and the Buying Process

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

Using the life-cycle costing approach,salespeople can demonstrate that:

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

Which of the following members of the buying center would typically be involved in a value analysis?

The evaluation and selection of products and suppliers are affected by the needs of both the organization and the individuals making the decision.These needs are categorized as:

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

The last step in the buying process is the:

Mark's supervisor introduces a new product in the market.Mark's supervisor is acting as the _____ in the buying process.

Most purchase decisions involving capital equipment or the initial purchase of original equipment manufacturer (OEM) products are _____.

By showing a paper products manufacturer that the C.G.Bretting napkin-folding machine could fold 2,000 paper napkins per minute,twice the rate of the manufacturer's current machine,the Bretting salesperson:

_____ control the flow of information and limit the alternatives considered.

When using life-cycle costing as one of the criteria for evaluating and selecting a supplier for a new oil well drilling platform,a purchasing agent should look at: