Question 1

In the proposal solicitation process,________ should be marketing documents that describe value and benefits in customer terms.

Accepted Answer

Written proposals are the most common type of proposals used in the solicitation process. These proposals should be marketing documents that describe the value and benefits of the proposed solution in customer terms. This means focusing on the customer's needs and desires, and explaining how the proposed solution addresses those needs and provides benefits that are valuable to the customer. Effective written proposals should be persuasive and convincing, as well as clear and concise, and should communicate the unique value proposition of the proposed solution.

Question 2

With respect to e-procurement,Web sites are organized around two types of e-hubs: ________.

Accepted Answer

The answer of With respect to e-procurement,Web sites are organized...

Question 3

The ________ market consists of schools,hospitals,nursing homes,prisons,and other institutions that must provide goods and services to people in their care.

Accepted Answer

The given description perfectly matches the characteristics of the institutional market, which includes schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care. Therefore, option E (institutional) is the correct answer.

Question 4

As an alternative to reducing price,sellers may handle price-oriented buyers by establishing any of the following purchasing conditions EXCEPT ________.

Accepted Answer

The answer of As an alternative to reducing price,sellers may...

Question 5

Vertical coordination may increase the risk to consumer's and supplier's ________ (e.g. ,those expenditures tailored to a particular company and value chain partner).

Accepted Answer

Specific investments are expenditures tailored to a particular company and value chain partner. When there is vertical coordination between these partners, there is a risk of these investments not being beneficial or profitable for the consumer or supplier. For example, if a supplier invests in specialized equipment to supply a particular product to a buyer, and then the buyer cancels the order, the supplier may suffer a loss. Similarly, if a buyer invests in developing a product that is highly dependent on a particular supplier, and the supplier fails to deliver, the buyer may suffer a loss.

Question 6

Several major companies regard ________ as a major responsibility of their purchasing managers.

Accepted Answer

The answer of Several major companies regard ________ as a...

Question 7

All of the following are methods of assessing customer value EXCEPT ________.

Accepted Answer

The answer of All of the following are methods of...

Question 8

Which of the following would NOT be among those advantages gained through leasing heavy equipment such as machinery and trucks,rather than purchasing it?

Accepted Answer

Leasing heavy equipment may provide advantages such as conserving capital, getting the latest products, receiving better service, and some tax advantages. However, higher-quality products are not necessarily an advantage of leasing compared to purchasing. Purchasing may allow for more control over the quality of equipment chosen.

Question 9

In the ________ category of buyer-supplier relationship,although bonded by a close,cooperative relationship,the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange.

Accepted Answer

In the "customer is king" category of buyer-supplier relationship, the seller is highly adaptive to meet the customer's needs, often without expecting the customer to make significant adaptations in return. This relationship is characterized by the seller's willingness to go above and beyond to satisfy the customer's demands, prioritizing the customer's preferences and requirements.

Question 10

When buyers cannot easily monitor supplier performance,the supplier might shirk or cheat and not deliver the expected value.________ is "some form of cheating or undersupply relative to an implicit or explicit contract."

Accepted Answer

The definition provided describes opportunism, which is the act of a supplier not fulfilling their end of the implicit or explicit contract. The other options listed do not relate to the concept of a supplier shirking or cheating.

Question 11

The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute.The value of a given configuration is determined by adding the average values of each of the given attributes.

Accepted Answer

The answer of The ________ approach to consumer research asks...

Question 12

In the ________ category of buyer-supplier relationships,competition rather than cooperation is the dominant form of governance.

Accepted Answer

The answer of In the ________ category of buyer-supplier relationships,competition...

Question 13

Which of the following relationships is characterized as being one that has much trust and commitment leading to a true partnership?

Accepted Answer

A collaborative relationship is characterized by shared goals, extensive communication, joint problem-solving, mutual trust, and commitment. It is a true partnership where both parties work together for mutual benefit and success. Mutually adaptive, basic buying and selling, customer supply, and cooperative systems do not necessarily involve a high level of trust and commitment that characterizes a collaborative relationship.

Question 14

In most countries,________ are the major buyers of goods and services.

Accepted Answer

The answer of In most countries,________ are the major buyers...

Question 15

Research has found that buyer-suppler relationships differed according to four factors.Which of the following would NOT be among those factors?

Accepted Answer

The four factors identified in the research that affect buyer-supplier relationships are importance of supply, complexity of supply, availability of alternatives, and supply market dynamism. Demand market conservatism is not identified as one of these factors.

Question 16

Which of the following methods may be used by buyers to review the performance of chosen suppliers?

Accepted Answer

All of the above methods may be used by buyers to review the performance of chosen suppliers. The buyer may contact the end users and ask for their evaluations, rate the supplier on several criteria using a weighted-score method, or aggregate the cost of poor performance to come up with adjusted costs of purchase, including price. Using multiple methods can provide a more comprehensive view of supplier performance.

Question 17

A supplier signs an agreement with a customer that states $350,000 in savings will be earned by the customer over the next 18 months in an exchange for a tenfold increase in the customer's share of supplies ordered by the customer.This is an example of ________.

Accepted Answer

This is an example of risk and gain sharing, where the supplier and customer share risks and rewards associated with a project or initiative. The agreement states that the customer will earn $350,000 in savings, which is a gain that is shared between the two parties. Additionally, the customer is required to increase their share of supplies ordered, which is a risk that is shared between the two parties as well.

Question 18

Moving into e-procurement has many benefits.Which of the following would not be among those benefits?

Accepted Answer

The option "Purchasing gains a significant leverage with top management because of its management team" is not necessarily a benefit of e-procurement. While e-procurement can certainly streamline the purchasing process, it is not guaranteed to enhance the purchasing department's status within the organization or improve its leverage with top management.

Question 19

Using the ________ form of solution selling,W.W.Grainger employees work at large customer facilities to reduce materials-management costs.

Accepted Answer

The question mentions "W.W.Grainger employees work at large customer facilities to reduce materials-management costs." This suggests that the focus is on reducing the customer's costs. Therefore, the best choice is E, solutions to reduce customer costs.

Question 20

Which of the following reflects high trust between business sellers and buyers?

Accepted Answer

Customers being involved in designing products individually or through committees reflects a high level of trust between business sellers and buyers as it shows that the seller values the input and feedback of the customer, and is willing to work collaboratively with them to create the best possible product. Distorted and hidden information, incentive alignment for seller gains, limited/biased product comparisons and advice, and minimal customer education and support all reflect low levels of trust between business sellers and buyers.

Quiz 7: Analyzing Business Markets