Question 1

Which of the following is an advantage of using single sourcing?

Accepted Answer

Single sourcing allows for consistent quality control because the buyer is consistently using the same supplier for their materials, which allows for better relationship building and monitoring of quality.

Question 2

Business buyers often develop ________,which are written descriptions of the quality,size,weight,warranty,and delivery requirements for a purchase.

Accepted Answer

Product specifications are written descriptions of the quality, size, weight, warranty, and delivery requirements for a purchase, which are developed by business buyers. Requests for quotations (A) and requests for proposals (B) are documents used by buyers to request pricing and proposals from potential suppliers. Vendor analyses (C) involve assessing the capabilities and performance of potential suppliers before making a purchase. Evaluative metrics (E) refer to criteria used to evaluate the effectiveness or efficiency of a product or service, but do not necessarily include specific requirements for a purchase.

Question 3

Many businesses today are abandoning traditional business attire and allowing their employees to come to work in business casual that typically does not include ties,cufflinks,or business suits.There has been a decrease in the sale of silk ties as a result of this cultural trend.A decrease in consumer demand for silk ties has led to a decrease in demand for silk because the demand for silk is ________.

Accepted Answer

The demand for silk is derived since it depends on the demand for silk ties. As the demand for silk ties decreases, the demand for silk also decreases.

Question 4

Which of the following is NOT an example of business-to-business marketing?

Accepted Answer

Option C involves an individual purchasing a gift for their mother, which is a business-to-consumer transaction, not a business-to-business transaction. The other options all involve one business selling to another business.

Question 5

A vehicle manufacturer often won't buy a new product from a supplier unless the supplier's competitors are also capable of making the same item.The manufacturer is using ________.

Accepted Answer

The manufacturer is using multiple sourcing, which involves sourcing from multiple suppliers who have the same capabilities to ensure a stable supply chain in case one supplier fails or experiences issues. This reduces the risk of disruption in the manufacturing process. Single sourcing involves relying on only one supplier, while crowdsourcing involves obtaining goods or services from a large group of people, typically via the internet. Customer reference programming and reciprocity are not relevant to this scenario.

Question 6

During the ________ stage of the business buying decision process,the buying center assesses the proposals.

Accepted Answer

During the alternative evaluation stage, the buying center evaluates the proposals and weighs the pros and cons of each option before making a final decision. This is the stage where the buying center considers the different alternatives and decides which one is the best fit for their needs.

Question 7

What is the next step in the business buying decision process after the product specifications are written?

Accepted Answer

Once the product specifications are written, the next step in the business buying decision process is to obtain written or verbal bids from potential vendors to evaluate their pricing and offerings. This allows the buyer to compare and select the best option that fits their needs and budget.

Question 8

Which of the following statements about the product and supplier selection stage of the business buying decision process is true?

Accepted Answer

Before making a purchase decision, many businesses consider factors such as quality, reliability, durability, and after-the-sale service, in addition to price. This is because businesses want to make sure they are getting the most value for their money, and factors such as quality and after-the-sale service can affect the total cost of ownership of the product. Therefore, price is not the only factor considered at this stage of the business buying decision process.

Question 9

The ________ is the member of the buying center whose primary function is handling the details of the transaction.

Accepted Answer

The buyer is the member of the buying center who is responsible for handling the details of the transaction, such as negotiating price and terms of sale, issuing purchase orders, and coordinating delivery and payment. The gatekeeper is responsible for controlling access to the buying center and information flow, the decider makes the final decision on the purchase, the initiator is the member who first recognizes the need for the purchase, and the influencer provides information and recommendations to the buying center.

Question 10

During the ________ stage of the business buying decision process,total spending for the product is considered.

Accepted Answer

The answer of During the ________ stage of the business...

Question 11

A rifle manufacturer needs muzzles,trigger mechanisms,and wooden gunstocks to produce rifles.Without these items the manufacturer cannot produce its rifles.It will reduce its demand for trigger mechanisms and gunstocks if suppliers are unable to sell the muzzles it needs.This is an example of ________ demand.

Accepted Answer

This is an example of joint demand, where the demand for one product is directly tied to the demand for another product because they are used together in the production process.

Question 12

Sometimes supplier selection is based on ________,which means a buyer and a seller agree to purchase each other's goods and services even though the terms of the sales may not be the best available.

Accepted Answer

Reciprocity is when a buyer and seller agree to purchase each other's goods and services, even if it may not be the best available terms. This is often done as a gesture of goodwill or to maintain a long-term business relationship.

Question 13

A sign company creates and prints the full-sized vinyl sheets that make it quick and easy to change the promotion on a billboard.If a change in the price of petroleum (a necessary ingredient for the production of plastic)forced manufacturers of vinyl sheets to increase their price by 20 percent,the company would still need to buy the same amount to meet its customers' needs.Therefore,demand for vinyl sheets by companies that use this product to create billboard ads is ________.

Accepted Answer

The demand for vinyl sheets by companies that use it to create billboard ads is likely to be inelastic because even if the price of vinyl sheets increases by 20 percent, the sign company still needs to buy the same amount to meet its customers' needs. This suggests that the sign company has few or no close substitutes for vinyl sheets and therefore, cannot easily reduce their demand for it.

Question 14

Which member of the buying center typically has the most power?

Accepted Answer

The decider typically has the most power in the buying center as they are responsible for making the final decision on whether to purchase or not.

Question 15

The first step in the business buying decision process is ________.

Accepted Answer

The first step in the business buying decision process is to recognize the problem or need. This involves identifying a discrepancy between the current state and the desired state which could be met through a business purchase.

Question 16

________ is a business practice in which a buyer shapes a supplier's products and operations to satisfy its needs.

Accepted Answer

Reverse marketing is the practice where the buyer, instead of the seller, influences the product or service offerings of the supplier. This approach is used to ensure that the supplier's offerings are closely aligned with the buyer's needs and requirements.

Question 17

For complex purchases,the buying center will typically decide what type of sourcing to use in the ________ stage of the business buying decision process.

Accepted Answer

Product and supplier selection is the stage where the buying center decides on the options available and chooses the best supplier and product according to various criteria. At this stage, the buying center considers the type of sourcing to be used, such as single sourcing or multiple sourcing, to ensure that the sourcing decision meets the company's objectives, such as quality, price, delivery time, and risk management. Therefore, the choice of sourcing is made in the product and supplier selection stage.

Question 18

A Miami restaurant has created atmosphere through its subtle use of blue and green lighting,ceiling fans over each table,and frozen drinks.If its electrical energy supplier raises its prices,the restaurant will most likely ________.

Accepted Answer

The restaurant has created an atmosphere that relies heavily on the use of electricity, such as the lighting and ceiling fans. Therefore, it is likely that the demand for electricity is inelastic, meaning that even if the price of electricity increases, the restaurant will continue to operate as usual and just pay the higher price for electricity. Option A is incorrect because elastic demand means that the restaurant would change its electricity usage in response to a price increase, but the restaurant cannot easily change its atmosphere without compromising its customer experience. Option B is incorrect because other restaurants would not impact the cost of electricity. Option C is possible, but it is unlikely that the restaurant would be able to significantly reduce its electricity usage without affecting the customer experience. Option E is not a viable option for a business that aims to create a welcoming atmosphere for customers.

Question 19

When a business needs to make a complex purchase,it is most likely to form a buying center during the ________ stage of the business buying decision process.

Accepted Answer

The answer of When a business needs to make a...

Question 20

________ occurs when firms obtain outside vendors to provide goods or services that might otherwise be supplied in-house.

Accepted Answer

Outsourcing is the practice of obtaining goods or services from outside vendors instead of providing them in-house. It is a common business practice to cut costs, improve efficiency, and gain access to specialized skills or technology.

Quiz 6: Business-To-Business Markets: How and Why Organizations Buy