Question 1

You call in a department manager to assist in a purchase of industrial equipment.You are considering a change in product specifications,terms,and possibly suppliers.This is most likely a ________ situation.

Accepted Answer

A modified rebuy situation involves making some changes in the product specifications, terms, and possibly even suppliers. In this scenario, you are considering changing these factors, which makes it a modified rebuy situation. Calling in a department manager shows that you are trying to make an informed decision with the help of someone who has expertise in the area.

Question 2

A trucking company is considering purchasing new trucks that are powered by natural gas instead of diesel fuel.In terms of the buying center,the truck drivers who must make sure that the trucks do not run out of gas are the ________.

Accepted Answer

The truck drivers who are responsible for making sure that the trucks do not run out of gas are the users in this buying decision. They are the ones who will have direct experience with the new trucks and will need to adapt to using natural gas instead of diesel fuel. As such, their input and opinion will be important for the company's decision-making process.

Question 3

The government has mandated that in order to reduce local pollution,your printing plant switch from oil-based to water-based inks.This will require entirely new printing presses and a new printing plate technology.After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work,your printing plant's buying center will be ready to make this ________ purchase.

Accepted Answer

The scenario describes a situation where the buying center is considering purchasing an entirely new type of equipment that requires new technology. This fits the definition of a new task purchase, which typically involves significant investment and risk, and requires a thorough evaluation process. The fact that the decision was made to switch from oil-based to water-based inks also suggests that this is not a routine or simple purchase, ruling out the possibility of a straight rebuy. A modified rebuy involves changing some aspect of an existing purchase, which is not the case here. Straight task and situational analysis are not terms typically used to describe the buying decision-making process.

Question 4

Refer to the scenario below to answer the following questions.
A-1 Stampings Ltd. produces 14 metal stampings for the automotive industry. Due to industry design changes, for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.
In the meantime, the purchasing agent Richard Koh has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.
-The demand for A-1 Stampings' products is ultimately based on the demand for new automobiles in the consumer market.This is an example of ________ demand.

Accepted Answer

The demand for A-1 Stampings' products is ultimately derived from the demand for new automobiles in the consumer market. The demand for A-1 Stampings' products is not independent of the demand for automobiles, nor is it static or increasing. Also, since the stampings are produced for a specific industry, the demand is unlikely to be inelastic. Therefore, the best choice is derived demand.

Question 5

John Heng's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments.This approach to cost reduction likely took place in the ________ stage of the business buying process.

Accepted Answer

Standardizing the size of paper bags is part of product specification stage, where the company is defining the characteristics and requirements for the product it intends to purchase. This approach helps to reduce costs by using fewer varieties of bags across store departments.

Question 6

Brad Loo is responsible for obtaining price quotations from various vendors.After reviewing them,he then determines whether or not to include the vendor on the approved vendor list.Brad apparently plays two roles,that of ________ and ________.

Accepted Answer

The answer of Brad Loo is responsible for obtaining price...

Question 7

Which of the following is most likely being used when Amazon.com receives orders for 1000 units of its Kindle Fire tablets by a MNC?

Accepted Answer

E-procurement is the process of purchasing goods and services electronically, typically through an online platform. In the given scenario, Amazon is receiving orders for Kindle Fire tablets through its website, which is an example of e-procurement. The other options, such as intranet, single sourcing, blanket contracting, or reverse auction sites, do not accurately reflect the process being used in this scenario.

Question 8

Refer to the scenario below to answer the following questions.
A-1 Stampings Ltd. produces 14 metal stampings for the automotive industry. Due to industry design changes, for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.
In the meantime, the purchasing agent Richard Koh has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.
-At what stage in the buying process was Richard when he sought input from others in the firm?

Accepted Answer

Richard is in the process of reducing the number of steel suppliers and is seeking input from various employees in the firm to help him make a decision on which suppliers have the capabilities of producing specific types of steel. This indicates that he is at the supplier selection stage of the buying process where he is evaluating potential suppliers and choosing which ones to do business with.

Question 9

Which of the following is most likely true about a straight rebuy?

Accepted Answer

A straight rebuy is a routine repetitive purchase of a commodity or service that is identical to what has been purchased previously. This implies that the buyer has already established a relationship with the supplier and does not require significant customer relationship management. Additionally, since the purchase is an exact repeat of a previous purchase, it is unlikely to involve any modifications. Therefore, option C is the most likely true statement about a straight rebuy.

Question 10

One of Dr.Singh's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.In terms of the buying center,the dental assistant had the role of ________.

Accepted Answer

The dental assistant in this scenario is providing input on what type of machine the dentist should buy based on their knowledge and expertise in dealing with dental tools. As such, the assistant is an influencer within the buying center. The other options do not fit the scenario as well; the initiator would be the person who first suggests the need for the tool, the buyer is the person who actually makes the purchase, the gatekeeper controls access to information and resources within the organization, and the liaison is the person who facilitates communication between different parties.

Question 11

Refer to the scenario below to answer the following questions.
A-1 Stampings Ltd. produces 14 metal stampings for the automotive industry. Due to industry design changes, for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.
In the meantime, the purchasing agent Richard Koh has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.
-The management directive to reduce the number of steel suppliers is most accurately classified as which type of influence affecting business buying behavior?

Accepted Answer

The management directive to reduce the number of steel suppliers is an internal organizational influence affecting business buying behavior.

Question 12

Seng Choo Farm raises chickens.When Mr Choo went to reuse some of his coops,he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced.Mr Choo was at which stage of the business buying process when he decided to replace his old coops?

Accepted Answer

Mr Choo's observation that many of his coops could not be sufficiently cleaned implies that he identified a problem that needed to be addressed, therefore he was in the stage of problem recognition.

Question 13

In what type of buying situation would a seller most likely send only a catalog to the buyer during the proposal solicitation stage of the business buying process?

Accepted Answer

In a straight rebuy situation, the buyer has an established relationship with the seller and knows their product offerings. Therefore, the seller is likely to send only a catalog to the buyer during the proposal solicitation stage, as the buyer is already familiar with the products and does not require extensive information or proposals. In contrast, in a new task or modified rebuy situation, the buyer is likely to require more information and proposals from the seller, and in a solution selling situation, the seller would work closely with the buyer to develop a custom solution rather than simply sending a catalog.

Question 14

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise.It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice.It also allows Pace retailers to ask their suppliers about product usage,deliveries,and warranties,and it allows suppliers to send new-product information directly to Pace retailers.In this scenario,Pace Hardware is using a(n)________.

Accepted Answer

Pace Hardware is using an extranet, which is a private network that allows for communication and collaboration between a company and its partners or customers. This allows for easier sharing of information and resources between Pace retailers and their suppliers, as well as between different Pace retailers themselves.

Question 15

You regularly purchase cleaning supplies for your cleaning staff,using the same vendor and ordering relatively consistent amounts of the same products with each purchase.This is an example of a ________ situation.

Accepted Answer

The scenario mentioned in the question where the buyer purchases cleaning supplies regularly from the same vendor and orders similar products in consistent amounts is an example of a straight rebuy situation. In a straight rebuy, the buyer is already familiar with the product and supplier, and the purchase decision is made based on routine procurement procedures. There is no need for any significant information search, evaluation of alternatives, or decision-making effort.

Question 16

Seng Choo Farm raises chickens.The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use.This purchase of coops is an example of a ________.

Accepted Answer

This is an example of a modified rebuy because the owner is considering a different type of coop (plastic instead of wooden) and needs to evaluate the pros and cons of each option before making a decision. A straight rebuy would involve purchasing the same type of coop without considering any alternatives, and a new task would involve purchasing a completely new product for the first time. Solution selling situation and value analysis are not applicable in this situation.

Question 17

Refer to the scenario below to answer the following questions.
A-1 Stampings Ltd. produces 14 metal stampings for the automotive industry. Due to industry design changes, for the next model year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.
In the meantime, the purchasing agent Richard Koh has been asked to reduce the number of A-1's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of A-1's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A-1 who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.
-In this scenario,which of the following had the greatest influence on the business buying behavior at A-1 Stampings?

Accepted Answer

The technological changes, specifically the industry design changes that require slight modifications to the stampings, had the greatest influence on A-1 Stampings' buying behavior. The company needed to ensure that their suppliers were capable of producing the specific types of steel required for these modifications. The decision to reduce the number of suppliers was motivated by the need to cut costs, but selecting the appropriate suppliers was still dependent on their ability to produce the required types of steel. Other factors like regulatory developments, organizational structure, shifting authority, and individuals' risk attitudes were not as significant in this scenario.

Question 18

All of the following organizations are likely considered to be a part of the institutional market EXCEPT ________.

Accepted Answer

Institutional markets are B2B markets that cater to organizations and entities such as hospitals, prisons, universities, or rescue missions. Sinfully Chocolate Pte Ltd is a private company and is therefore unlikely to be a part of the institutional market.

Question 19

One of Dr.Singh's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.Dr.Singh,who runs a solo practice in a small rural town,located some articles on the chemical sterilizer and read about how the machine works.After gathering more information and talking to salespeople,Dr.Singh placed his order for the machine.In terms of the buying center,Dr.Singh had the role of ________.

Accepted Answer

Dr. Singh placed the order for the machine, indicating that he had the final say in the purchase decision, making him the decider in the buying center. The dental assistant played the role of influencer by suggesting the idea and providing information, but ultimately it was Dr. Singh's decision to make. The agent and liaison roles typically involve external parties, such as suppliers or intermediaries, and do not apply in this scenario.

Question 20

Most newspapers use ________ so they do not need to rely on only one supplier to provide the tons of paper that they use annually.

Accepted Answer

Multiple sourcing allows newspapers to diversify their suppliers and spread out the risk of relying on only one supplier. This can lead to better negotiating power and ensures a consistent supply of paper even if one supplier experiences issues or shortages.

Quiz 6: Business Markets and Business Buyer Behavior