Question 1

All of the following are difficulties associated with selling to government buyers EXCEPT ________.

Accepted Answer

The question is asking about difficulties associated with selling to government buyers. Low sales volume is not a difficulty, but rather a result of selling to government buyers. Therefore, Choice D is the correct answer.

Question 2

Total government spending is determined by ________ rather than by any ________ to develop this market.

Accepted Answer

Total government spending is determined by elected officials rather than by any marketing effort to develop this market. The other choices are either not relevant or not accurate in this context.

Question 3

The world's major buyers of products and services are ________.

Accepted Answer

The answer of The world's major buyers of products and...

Question 4

Shop N Save buys a lot of frozen turkey products at Christmas due to high consumer demand.This is an example of ________ demand.

Accepted Answer

Derived demand refers to the demand for a product that is based on the demand for another product or service. In this case, the demand for frozen turkey products by Shop N Save is based on the demand from consumers during the Christmas season.

Question 5

Many institutional markets are characterized by ________ and ________.

Accepted Answer

Institutional markets often have low budgets and serve captive patrons, such as schools or hospitals, where the consumers have limited choice in their service providers.

Question 6

Under a(n)________,buyers share sales and inventory information directly with key suppliers.

Accepted Answer

Vendor-managed inventory system allows buyers to share sales and inventory information directly with key suppliers. This system enables suppliers to monitor and manage inventory levels, reducing the likelihood of stockouts and overstocks.

Question 7

Helping Hands Inc.provides food services to schools,hospitals,and nursing homes in Thailand.Management at Helping Hands is involved in the ________ market.

Accepted Answer

Helping Hands Inc. provides food services to institutions such as schools, hospitals, and nursing homes. Therefore, they are involved in the institutional market.

Question 8

ABC Enterprises sold 9,000 units @ $2.99/unit in July.The firm sold 9,000 units @ $4.29/unit in August.This illustrates ________ demand.

Accepted Answer

The demand is inelastic because the quantity sold remained the same (9,000 units) despite an increase in price from $2.99 to $4.29 per unit.

Question 9

GE operates a company trading site on which it posts its buying needs and invites bids,negotiates terms,and places orders.GE is utilizing a(n)_______________ .

Accepted Answer

GE is using an e-procurement system, which allows it to connect with vendors electronically and streamline the procurement process through online bidding, negotiation, and ordering.

Question 10

A firewall is a(n)________.

Accepted Answer

A firewall is a commonly used technique to safeguard Internet and extranet transactions by monitoring and blocking unauthorized access to a network or system. It acts as a barrier between a trusted internal network and an untrusted external network, such as the Internet, and helps prevent unauthorized access and attacks.

Question 11

Government organizations tend to favor ________ suppliers over ________ suppliers.

Accepted Answer

Government organizations have a preference for sourcing goods and services from domestic suppliers because it is seen as a way to create and support local jobs and to help stimulate the economy. In many countries, it is often mandated by law that government agencies must prioritize domestic suppliers over foreign ones when making procurement decisions.

Question 12

B2B e-procurement yields many benefits.These include all of the following EXCEPT:

Accepted Answer

B2B e-procurement can bring numerous benefits, including reduced transaction costs, more efficient purchasing for both buyers and sellers, reducing the time between order and delivery, and freeing purchasing people to focus on more strategic issues. However, it cannot completely eliminate inventory problems, as it still relies on accurate inventory management and forecasting.

Question 13

The rapidly expanding use of E-procurement presents some problems to purchasing professionals,including ________.

Accepted Answer

The rapid expansion of E-procurement presents problems such as the erosion of long-term relationships, as suppliers might feel less connected to buyers and might prioritize price over quality. Security problems may arise due to the online transactions, and the risk of hacking or data breaches. Therefore, choices A and B are valid concerns. Choice C, the creation of extensive drudgery work, is not a commonly recognized problem of E-procurement.

Question 14

Demand for wet suits depends on consumers taking up scuba diving lessons and scuba diving holiday packages.This is an example of ________ demand.

Accepted Answer

Derived demand refers to the demand for a product or service that results from the demand for another product or service. In this case, the demand for wet suits is derived from the demand for scuba diving lessons and holiday packages. The other options do not accurately describe this situation - fluctuating demand implies inconsistent demand patterns over time, joint demand refers to the demand for two or more products that are used together, contrived demand describes situations where demand is artificially created through marketing or other means, and leisure demand refers to the demand for products or services that are consumed for leisure or recreation.

Question 15

Which of the following statements about E-procurement security issues is true?

Accepted Answer

Providing E-procurement security can involve a company spending millions. E-procurement systems require strong security measures to protect sensitive information such as financial data, supplier information, and transaction details. Companies must invest in security tools such as encryption, authentication, and intrusion detection to safeguard their systems from cyber threats. Failure to invest in robust security measures can lead to data breaches, financial losses, and reputational damage. Therefore, providing E-procurement security can involve a significant financial commitment.

Question 16

FedEx serves both consumer and business markets,but most of its revenues come from its business customers.FedEx has become a strategic logistics ally for many of its business customers,going far beyond offering delivery services to offering inventory management,international trade management,and even financing to its commercial customers.This is an example of which of the following differences between the consumer and business markets?

Accepted Answer

The fact that FedEx has become a strategic logistics ally for many of its business customers and offers additional services beyond delivery shows that buyers and sellers in the business market build close, long-term relationships. None of the other options directly address this difference.

Question 17

There are many factors considered in government buying,but ________ is typically the most important.

Accepted Answer

Government agencies are obliged to spend taxpayers' money wisely, which means they must be cost-effective and choose the most competitively priced option. The cost is always a crucial consideration in government buying.

Question 18

A problem with the rapidly expanding use of e-purchasing is that it ________.

Accepted Answer

The rapidly expanding use of e-purchasing can erode established customer-supplier relationships because the emphasis is usually on finding the lowest price rather than building long-term relationships with suppliers.

Question 19

Although E-procurement through email and home banking transactions can be protected by basic encryption,the _______________ that businesses need to carry out confidential interactions is often still lacking.

Accepted Answer

Basic encryption can protect data during transmission, but businesses need a secure environment for confidential interactions, such as firewalls, access control, and other security measures to prevent unauthorized access and data breaches.

Question 20

Which of the following is NOT part of the business market?

Accepted Answer

Sue buying a gift for her mother is a consumer market transaction, not a business market transaction. The other options involve businesses buying or selling products/services to other businesses.

Quiz 6: Business Markets and Business Buyer Behavior

All of the following are difficulties associated with selling to government buyers EXCEPT ________.

Total government spending is determined by rather than by any to develop this market.