Question 1

When the requirements associated with a new-task purchase are changed the second or third time,this is called a ____ purchase.
A) modified rebuy
B) continued new-task
C) contractual
D) straight rebuy
E) negotiated rebuy

Accepted Answer

A modified rebuy is when the buyer has purchased the same product before, but there are changes in requirements, specifications or prices that require a new round of decision-making. In this case, the requirements for the new-task purchase have been changed multiple times, indicating a modified rebuy situation. The other options do not accurately describe this scenario.

Question 2

Goodyear is a manufacturer and marketer of tires for new passenger cars.In recent years,the company's business has declined because of the overall decrease in consumer demand for new cars.In this case,the demand for Goodyear's tire products is said to be ____ since it depends on the demand for new cars.
A) inelastic
B) fluctuating
C) derived
D) elastic
E) nonderived

Accepted Answer

The demand for Goodyear's tire products is derived, meaning it depends on the demand for the new cars that they are intended for. If the demand for new cars decreases, so does the demand for Goodyear's tires. This is not a reflection of the elasticity of demand for their products, but rather the nature of their market.

Question 3

When a business is making its initial purchase of an item to be used to perform a new job,it is known as a ____ purchase.
A) straight rebuy
B) reciprocal
C) delayed
D) new-task
E) modified rebuy

Accepted Answer

A new-task purchase is the best choice as it refers to the initial purchase of an item to be used to perform a new job or solve a new problem. This type of purchase involves a high level of decision-making as the buyer has less information and experience in the area, and the purchase is usually more complex and risky than other types of purchases.

Question 4

St.Jude's Hospital decides to redo its kitchen with new flooring,cabinets,counters,and appliances.The hospital compiles a description of the project and then asks sellers to submit bids.After determining the most attractive bids,the hospital will then work with two or three companies to determine who will get the contract.This is an example of using ____ for a purchase decision.
A) sampling
B) negotiation
C) inspection
D) elimination
E) description

Accepted Answer

This scenario involves the hospital soliciting bids from multiple sellers and then negotiating with the top two or three to determine who will get the contract. Therefore, the hospital is using negotiation as a purchasing decision.

Question 5

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
A) joint.
B) economically stable.
C) derived.
D) inelastic.
E) more fluctuating.

Accepted Answer

The fact that demand for business products is derived means that it is dependent on the demand for consumer goods and services. As such, it is not economically stable and can fluctuate depending on changes in consumer demand. The other choices do not accurately reflect this relationship between consumer and business demand.

Question 6

All of the following describe the demand for business products except
A) elastic.
B) derived.
C) joint.
D) inelastic.
E) fluctuating.

Accepted Answer

The answer of All of the following describe the demand...

Question 7

When a business routinely purchases the same product with similar terms of sale,the purchase is called a
A) new-task.
B) repetitive purchase.
C) straight rebuy.
D) modified rebuy.
E) standard order.

Accepted Answer

A straight rebuy is when a business routinely purchases the same product with similar terms of sale, without considering any other options or suppliers.

Question 8

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?
A) Negotiation
B) Sampling
C) Description
D) Inspection
E) Homogeneous selection

Accepted Answer

Sampling is the best method when products are highly homogeneous and examination of each item is not feasible. It involves selecting a representative sample of the products and examining them in order to make a decision about the entire batch. This method is commonly used in industries such as food, textiles and electronics.

Question 9

Most business purchases can be classified as belonging to one of three types:
A) delinquent,repetitive,or delivered.
B) repetitive,new-task,or modified rebuy.
C) modified rebuy,new-task,or straight rebuy.
D) delinquent,new-task,or reciprocal.
E) rebuy,reciprocal,or delayed.

Accepted Answer

The three types of business purchases are modified rebuy (when the buyer has bought the product before, but wants to make some modifications to the specifications), new-task (when the buyer is purchasing a product for the first time), and straight rebuy (when the buyer is purchasing the same product again without any modifications to the specifications). Delinquent, repetitive, and delivered (option A) are not types of business purchases. Option B includes new-task and modified rebuy, but adds a third category that is not commonly used. Option D includes delinquent and reciprocal as categories, which are not types of purchases. Option E includes rebuy and reciprocal, but adds delayed, which is not a commonly used category.

Question 10

Demand for business products is characterized as derived.From what is the demand derived?
A) Industrial demand
B) Modified demand
C) Demand for consumer products
D) Future product demand
E) The business cycle

Accepted Answer

The demand for business products is derived from the demand for consumer products, as businesses purchase goods or services to produce other goods or services that consumers ultimately buy.

Question 11

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need.The restaurant's orders are an example of which type of business purchase?
A) New-task
B) Modified rebuy
C) Straight rebuy
D) Bid
E) Negotiated

Accepted Answer

The restaurant's orders are a routine and recurring purchase, so it is an example of a straight rebuy. There is no need for the restaurant to go through any new evaluation or decision-making process, as they are simply reordering the same product from the same vendor.

Question 12

Safeway Supermarkets recently placed an order with the Kahn Corporation.Safeway has ordered these same products before under the same terms of sale.What type of purchase does this situation represent?
A) New-task
B) Repetitive
C) Institutional
D) Straight rebuy
E) Modified rebuy

Accepted Answer

This situation represents a straight rebuy, as Safeway has previously purchased the same products under the same terms of sale.

Question 13

Inelastic demand simply means that
A) buyers will not make a modified rebuy purchase.
B) demand depends on how many items are purchased.
C) a price increase or decrease will not significantly change the demand for an item.
D) when price goes up,demand goes down.
E) when supply is reduced,the price will increase.

Accepted Answer

Inelastic demand means that a change in price will not significantly affect the demand for a product. This is because the product is either a necessity or there are few substitutes available, so consumers are willing to pay the higher price.

Question 14

Which of the following products is most likely to be purchased on the basis of contract negotiation?
A) Eggs
B) Office supplies
C) Used cars
D) A custom-made bulldozer
E) Wheat

Accepted Answer

The answer of Which of the following products is most...

Question 15

Anderson Distribution Company has purchased 15 forklifts over the past two years.As it plans to place its next order for another five machines,management wonders if additional features may be needed in order to handle changes in the product lines it carries.For Anderson,these new forklifts represent a ____ purchase.
A) new-task
B) repetitive
C) straight rebuy
D) repetitive order
E) modified rebuy

Accepted Answer

Anderson is considering adding additional features to the forklifts, indicating that they are modifying their existing purchase. Therefore, this represents a modified rebuy.

Question 16

____ is(are)a major threat to the sales success of jointly demanded products.
A) Price changes
B) Shortages
C) Economic instability
D) Inventory buildup
E) Proliferation of brands

Accepted Answer

The answer of ____ is(are)a major threat to the sales...

Question 17

Inelastic demand in business markets refers to a situation where
A) demand for a given product fluctuates very little over time.
B) price increases or decreases will not significantly change demand for a given product.
C) demand for a given product fluctuates significantly over time.
D) demand for one product depends heavily on the demand for another product.
E) supply for a given product cannot keep pace with the demand for it.

Accepted Answer

Inelastic demand in business markets refers to a situation where price increases or decreases will not significantly change demand for a given product. This is because the product is considered a necessity and there are no close substitutes available. As a result, even if the price of the product goes up, customers will continue to purchase it at the same rate.

Question 18

A representative product taken from a lot or batch,evaluated,and purchased refers to
A) homogeneous selection.
B) description.
C) trust.
D) negotiated inspection.
E) sampling.

Accepted Answer

The process described in the question is a classic example of sampling. This involves taking a representative selection from a larger population or batch in order to evaluate it and make a decision on whether to purchase it or not. This method is commonly used in quality control and other areas of business to ensure that products meet certain standards before they are sold to customers. The other choices do not accurately describe this process.

Question 19

Perry Supply's sales and sales force have continued to expand.Now,the firm plans to add a fleet of company cars as part of its sales compensation package.For Perry Supply,these vehicles would represent a ____ purchase.
A) modified rebuy
B) straight rebuy
C) new-task
D) reevaluated
E) repetitive

Accepted Answer

Adding a fleet of company cars is a significant and new purchase for Perry Supply as it is not a regular part of their sales compensation package. This makes it a new-task purchase.

Question 20

Demand for business products is also known as ____ demand.
A) derived
B) corporate
C) business buying
D) manufacturing
E) industrial

Accepted Answer

The answer of Demand for business products is also known...

Quiz 7: Business Buying Behavior

When the requirements associated with a new-task purchase are changed the second or third time,this is called a ____ purchase.

When a business is making its initial purchase of an item to be used to perform a new job,it is known as a ____ purchase.

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is

All of the following describe the demand for business products except

When a business routinely purchases the same product with similar terms of sale,the purchase is called a

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible?

Most business purchases can be classified as belonging to one of three types:

Demand for business products is characterized as derived.From what is the demand derived?

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need.The restaurant's orders are an example of which type of business purchase?

Safeway Supermarkets recently placed an order with the Kahn Corporation.Safeway has ordered these same products before under the same terms of sale.What type of purchase does this situation represent?

Inelastic demand simply means that

Which of the following products is most likely to be purchased on the basis of contract negotiation?

____ is(are) a major threat to the sales success of jointly demanded products.

Inelastic demand in business markets refers to a situation where

A representative product taken from a lot or batch,evaluated,and purchased refers to

Perry Supply's sales and sales force have continued to expand.Now,the firm plans to add a fleet of company cars as part of its sales compensation package.For Perry Supply,these vehicles would represent a ____ purchase.

Demand for business products is also known as ____ demand.