Question 1

Operational linkages are

Accepted Answer

Operational linkages refer to the direct ties between the internal operations of buyer and seller firms. This means that both firms work closely together to ensure that the buyer's production and purchasing departments are linked seamlessly to the seller's operations. This can involve sharing information, coordinating production schedules, and aligning quality control processes. Operational linkages are essential for ensuring efficient supply chain management, reducing costs, and improving customer satisfaction.

Question 2

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

All of these options (Information sharing, Legal bonds, Cooperation, Operational linkages) are considered key dimensions of buyer-seller relationships in business markets. Each plays a crucial role in establishing and maintaining strong, effective partnerships between businesses.

Question 3

A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant's customers. This situation is an example of:

Accepted Answer

The development of a close relationship and coordination between the catalog merchant and UPS, resulting in a distribution center design that improves inventory management, storage, shipping, and returns, is an example of relationship-specific adaptations. These adaptations are specific to the relationship between the two companies and result in improvements in efficiency and cost savings.

Question 4

All of the following are key dimensions of relationships in business markets EXCEPT:

Accepted Answer

The key dimensions of relationships in business markets include cooperation, information sharing, operational linkages, and legal bonds. Non-specific adaptations do not fall under a key dimension of relationships in business markets.

Question 5

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

Relationship-specific recycling is not a key dimension of buyer-seller relationships in business markets. The other dimensions - legal bonds, cooperation, operational linkages, and information sharing - are all important factors in creating strong and successful relationships between buyers and sellers in business markets.

Question 6

Suppliers to business markets often

Accepted Answer

Suppliers to business markets often provide information about the industry trends, manage inventory and delivery carefully to provide customers with just-in-time delivery, serve as technical consultants to their customers, and may have to agree to contracts that allow for changes in the purchase arrangements. Therefore, all the choices are correct.

Question 7

Chu's Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of

Accepted Answer

The decision of designing a set of four paint colors exclusively for Walker County Choppers is an example of a relationship-specific adaptation. This decision shows that Chu's Coating Services is customizing its services to meet the specific needs of its client, which helps establish a long-term relationship with the client.

Question 8

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

While competition may have an impact on the buyer-seller relationship, it is not considered a key dimension of that relationship. The other options listed (information sharing, relationship-specific adaptations, operational linkages, and legal bonds) are all widely recognized as important elements of buyer-seller relationships in business markets.

Question 9

Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves

Accepted Answer

This is an example of negotiated contract buying, as the price was negotiated between Rico Paving Contractors and Valley Supply. The condition that allows for prices to be revised if costs go up more than $1 per bag also indicates that there was some bargaining between the two parties.

Question 10

A close buyer-seller relationship in a business market:

Accepted Answer

All of the given options may be part of a close buyer-seller relationship. Relationship-specific adaptations may be required by either party to ensure the continuation of the relationship. Accepting a lower price may become necessary to maintain the relationship. A close relationship may increase the buyer's "switching costs," making it less likely for them to switch to another seller. Additionally, while a contract can be a part of a close relationship, it may not necessarily spell out each party's responsibilities.

Question 11

Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve:

Accepted Answer

Negotiated contracts allow for flexibility and collaboration between the buyer and supplier, which is important when a buyer cannot specify all of its future needs. Auctions and competitive bids are more suitable for situations where buyers have well-defined and specific requirements. Procurement hubs may be useful for streamlining the procurement process, but they don't necessarily offer the flexibility needed when requirements are uncertain.

Question 12

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

New-task sharing is not considered a key dimension of buyer-seller relationships in business markets. The key dimensions typically include aspects like legal bonds, cooperation, operational linkages, and information sharing, which are all directly related to how the buyer and seller interact and support each other in a business context. New-task sharing, while it could be part of a relationship, is not categorized as a fundamental dimension of these relationships.

Question 13

_____ refers to reliably getting products there exactly before the customer needs them.

Accepted Answer

Just-in-time delivery refers to a system of manufacturing and inventory control in which materials are supplied and products are made just in time to meet demand. It aims to minimize inventory costs by having products arrive exactly when they are needed, reducing the need for storage space and inventory tracking. This ensures that products are reliably delivered before the customer needs them, making just-in-time delivery the best fit for the given description.

Question 14

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by:

Accepted Answer

When the requirements for a purchase are uncertain or subject to change, a negotiated contract is the best option. This allows the purchasing manager and supplier to work together to define the requirements and terms of the purchase as the job progresses. A description contract may be too rigid, and an inspection contract may not be feasible for items that require customization or development.

Question 15

Which of the following statements about operational linkages is FALSE?

Accepted Answer

Operational linkages involve continuous or frequent coordination and integration of activities between buying and selling firms, not just occasional coordination.

Question 16

When a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner, this transaction is most likely a(n):

Accepted Answer

A negotiated contract buy is the most likely scenario when a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner. This is because the complexity, value, and specificity of the product require detailed negotiations regarding specifications, price, delivery schedules, and other terms.

Question 17

With respect to buyer-seller relationships in business markets,

Accepted Answer

Some customers prioritize efficiency, cost-effectiveness, or flexibility over the benefits of a close, long-term relationship with a supplier. They may prefer transactional interactions that allow for competitive bidding and less dependency on a single vendor.

Question 18

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

Bid rigging is not a key dimension of buyer-seller relationships in business markets. Bid rigging is an illegal activity in which suppliers collude with each other to manipulate the bidding process to their advantage. It is not a legitimate aspect of buyer-seller relationships in business markets. The other choices (legal bonds, relationship-specific adaptations, cooperation, and operational linkages) are all key dimensions of buyer-seller relationships in business markets.

Question 19

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Accepted Answer

Joint inspection is not typically classified as a key dimension of buyer-seller relationships in business markets. The main dimensions often include aspects like legal bonds, adaptations specific to the relationship, operational linkages, and information sharing, which are focused on how the parties interact, share information, and legally bind themselves to each other, rather than on specific activities like joint inspection.

Question 20

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.

Accepted Answer

Creative Electronics is looking for a supplier to design and manufacture the product. In this case, it will most likely use negotiated contract buying as it involves a long-term relationship with the supplier for the design and manufacture of the product. This form of buying involves negotiating terms and conditions with the supplier before entering into a contract.

Quiz 6: Business and Organizational Customers and Their Buying Behavior

Operational linkages are

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

All of the following are key dimensions of relationships in business markets EXCEPT:

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Suppliers to business markets often

Chu's Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves

A close buyer-seller relationship in a business market:

Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve:

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

_____ refers to reliably getting products there exactly before the customer needs them.

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by:

Which of the following statements about operational linkages is FALSE?

When a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner, this transaction is most likely a(n) :

With respect to buyer-seller relationships in business markets,

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.