Question 1

What is an initiator?&#10;A) A type of salesman who initiates first contact with a buyer.&#10;B) The person in the buying firm who first recognises a problem.&#10;C) The person in the firm who controls the flow of information.

Accepted Answer

The initiator is the person in the buying firm who first recognizes a problem or need that might be met by acquiring goods or services. This role is crucial in the purchasing process as it triggers the initial steps towards a buying decision.

Question 2

Which of these is NOT a member of the DMU?&#10;A) Gatekeeper.&#10;B) User.&#10;C) Salesperson.

Accepted Answer

The DMU (Decision Making Unit) in a business context includes roles such as Gatekeepers, who control information or access, and Users, who will directly use the product or service. Salespersons, however, are not part of the DMU; they are typically external to the buying organization and are involved in selling the product or service rather than in the decision-making process about purchasing it.

Question 3

Which of the following is NOT a risk avoidance tactic used by buyers?&#10;A) Multisource the order.&#10;B) Use an agent.&#10;C) Visit the vendor's operations.

Accepted Answer

Use an agent.&#10;

Question 4

Which of the following is NOT an organisational influence on buyers?&#10;A) Structures.&#10;B) Economy.&#10;C) Technology.

Accepted Answer

The economy is not an organisational influence on buyers; it is an external environmental factor that affects both organizations and individuals. Organisational influences typically refer to internal factors such as structures and technology that directly impact how an organization operates and makes purchasing decisions.

Question 5

What does OEM stand for?&#10;A) Original equipment manufacturer.&#10;B) Original energy marketer.&#10;C) Open-ended marketing.

Accepted Answer

OEM stands for Original Equipment Manufacturer, which refers to companies that produce parts and equipment that may be marketed by another manufacturer.

Question 6

What is a reseller organisation?&#10;A) An organisation which sells again to the same company.&#10;B) An organisation which buys goods in order to sell them to someone else.&#10;C) An organisation which resells goods which have been returned as faulty.

Accepted Answer

A reseller organisation is one that purchases goods with the intention of selling them to another party, rather than using them internally. This can include a wide range of businesses, from retail stores to online merchants, who buy products from manufacturers or wholesalers and then sell those products to consumers or other businesses.

Question 7

A customer which is involved in maintaining, repairing and overhauling products after they have been sold is called:&#10;A) An aftermarket customer.&#10;B) An institutional customer.&#10;C) A maintenance customer.

Accepted Answer

An aftermarket customer is involved in the activities of maintaining, repairing, and overhauling products after they have been sold, fitting the description provided.

Question 8

What is a modified rebuy?&#10;A) A repeat purchase in which the seller makes a better offer.&#10;B) A situation where the seller buys the goods back.&#10;C) A situation where the buyer places a repeat order, but with some modifications.

Accepted Answer

A modified rebuy is a situation in which the buyer has previously purchased a similar product or service but needs to make some modifications to the specifications, prices, terms, or suppliers for the current purchase.

Question 9

What is value in use?&#10;A) A measure of the life of a product.&#10;B) A measure of the money saved by using a product.&#10;C) A price that equates the overall costs and benefits of using one product rather than another.

Accepted Answer

Value in use is a concept that refers to the net benefit or utility derived from using a product, considering all the costs and benefits associated with its use compared to alternatives. It essentially measures the worth of a product based on its ability to meet the user's needs and preferences in the most cost-effective manner.

Question 10

Which of the following is NOT an approach to evaluating suppliers?&#10;A) Categorical plan.&#10;B) Economical plan.&#10;C) Cost-ratio plan.

Accepted Answer

The "Economical plan" is not a recognized approach to evaluating suppliers. Common approaches include the Categorical plan, which uses a categorization method, and the Cost-ratio plan, which focuses on analyzing costs.

Deck 2: How Business Organisations Buy