Question 1

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 so. Some customers place orders that are too small or require too much attention to be profitable.

Question 2

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 3

A competitive bid is the terms of sale offered by a supplier in response to the purchase specifications posted by a buyer.

Accepted Answer

When buyers in B2B markets have identified potential suppliers, they sometimes ask them to submit a competitive bid-the terms of sale offered by the supplier in response to the purchase specifications posted by a buyer.

Question 4

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 5

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. And such relationships are becoming common.

Question 6

White papers, case studies, blogs, and videos are all ways for a seller's website to provide a buyer with useful content.

Accepted Answer

White papers often advocate a seller's solution; case studies help in learning about how other companies have addressed similar needs. Video content and blogs also make a seller's website more useful.

Question 7

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 8

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; websites with useful content, procurement websites, and online communities help buyers make purchase decisions.

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

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 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

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 13

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 14

A close buyer-seller relationship in a business market may reduce a firm's 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 15

Online communities are one way for buyers to connect with others who have already dealt with a similar need.

Accepted Answer

Buyers especially value recommendations from others that have already dealt with a similar need. Online social networks are making it easier to connect with other buyers.

Question 16

As B2B buyers rely more on social networks, it's more likely that communications from sellers will have even more influence.

Accepted Answer

As buyers rely more on social networks, communications from marketers may have less influence on buyers' attitudes and choices.

Question 17

A business buyer who uses general purpose and/or specialized search engines may reduce the need to arrange for custom-produced items.

Accepted Answer

A search across the whole web can often locate off-the-shelf products, eliminating the need to buy expensive, custom-made items.

Question 18

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 19

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 20

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.

Quiz 6: Business and Organizational Customers and Their Buying Behavior