Question 1

It is very common for manufacturers to concentrate in certain geographic areas and by type of industry.

Accepted Answer

Industrial markets are concentrated in certain geographic areas. There is also concentration by industry. In Germany, for example, the steel industry is concentrated in the Ruhr Valley. Similarly, U.S. manufacturers of high-tech electronics are concentrated in California's famous Silicon Valley near San Francisco and along Boston's Route 128.

Question 2

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 3

The U.S.government reports data on the number of firms,sales volume,and number of employees by NAICS code.

Accepted Answer

The U.S. government publishes data about number of establishments, sales volumes, and number of employees-broken down by geographic areas as per the NAICS code.

Question 4

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 5

In the U.S.,many factories are concentrated in rural areas.

Accepted Answer

In the United States, many factories are concentrated in big metropolitan areas-especially in New York, Pennsylvania, Ohio, Illinois, Texas, and California.

Question 6

The term "NAICS" stands for New Auto Industry Classification Survey.

Accepted Answer

NAICS stands for North American Industry Classification System.

Question 7

Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31.

Accepted Answer

The NAICS code breakdowns start with broad industry categories such as construction (23) that have 2 digits. These further break down to 3 digits and then 4, 5, and 6 digits. The more digits, the more detailed the data so that NAICS codes with 4 digits list firms that are more similar than codes with just 2 digits.

Question 8

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 9

Specific adaptations are usually made when the buying organization chooses to outsource.

Accepted Answer

Specific adaptations are usually made when the buying organization chooses to outsource.

Question 10

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 11

Compared to final consumers,manufacturers tend to be more spread out geographically.

Accepted Answer

Manufacturing industries are concentrated in certain geographic areas.

Question 12

In a market composed of service producers,most firms are small and geographically dispersed.

Accepted Answer

Given the fact that there are a large number of service firms in the United States, most of them are small in size. They're also more spread out around the country than manufacturing concerns.

Question 13

Negotiated contract buying would be used when the buyer knows precisely what he 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 14

The U.S.government collects and publishes data by the NAICS codes.

Accepted Answer

The U.S. government collects and publishes data by the North American Industry Classification System (NAICS) codes-groups of firms in similar lines of business.

Question 15

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 16

Most manufacturers are quite small,with 250 or fewer employees.

Accepted Answer

One of the most striking facts about manufacturers is that they are few in number when compared to number of final consumers. Statistics presented in Exhibit 6-8 show that only about 3 percent of all plants have 250 or more employees.

Question 17

There are about 17 times as many service firms as manufacturing firms.

Accepted Answer

The United States has almost 6 million service firms-more than 17 times as many as it has manufacturers.

Question 18

Relationship-specific adaptations are usually not required when the buying organization uses outsourcing.

Accepted Answer

Specific adaptations are usually made when the buying organization chooses to outsource.

Question 19

To protect themselves from unpredictable events,most purchasing managers seek several dependable sources of supply.

Accepted Answer

Buyers often look for several dependable sources of supply to protect themselves from unpredictable events such as strikes, fires, or floods in one of their suppliers' plants.

Question 20

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.

Quiz 8: Business and Organizational Customers and Their Buying Behavior

It is very common for manufacturers to concentrate in certain geographic areas and by type of industry.

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

The U.S.government reports data on the number of firms,sales volume,and number of employees by NAICS code.

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

In the U.S.,many factories are concentrated in rural areas.

The term "NAICS" stands for New Auto Industry Classification Survey.

Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31.

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.

Specific adaptations are usually made when the buying organization chooses to outsource.

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

Compared to final consumers,manufacturers tend to be more spread out geographically.

In a market composed of service producers,most firms are small and geographically dispersed.

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

The U.S.government collects and publishes data by the NAICS codes.

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

Most manufacturers are quite small,with 250 or fewer employees.

There are about 17 times as many service firms as manufacturing firms.

Relationship-specific adaptations are usually not required when the buying organization uses outsourcing.

To protect themselves from unpredictable events,most purchasing managers seek several dependable sources of supply.

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