Question 1

In a buying center, people who authorize the proposed actions of deciders or buyers are initiators.

Accepted Answer

In a buying center, the people who authorize the proposed actions of deciders or buyers are known as approvers, not initiators. Initiators are the ones who first suggest or think of the idea of purchasing a particular product or service.

Question 2

List the seven roles of people in a buying center.

Accepted Answer

The answer of List the seven roles of people in...

Question 3

In the buying center, several people can occupy a given role such as user or influencer, and one person may play multiple roles.

Accepted Answer

This is true. In the buying center, there can be multiple people playing a given role and one person can play multiple roles. For example, an engineer may act as both a user and an influencer in the decision-making process.

Question 4

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.
A) channel consolidation
B) systems buying
C) vertical buying
D) horizontal buying
E) supply buying

Accepted Answer

Systems buying refers to the process of buying a total solution to a problem from one seller. This approach is favored by many business buyers as it simplifies their purchasing process and ensures that all components of the solution are designed to work together seamlessly. Channel consolidation refers to reducing the number of distribution channels used to reach customers, vertical buying refers to acquiring a company in the same industry but at a different level of the supply chain, horizontal buying refers to acquiring a company in the same industry at the same level of the supply chain, and supply buying refers to purchasing raw materials and goods from suppliers.

Question 5

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________.
A) maintenance, repair, and operating (MRO)
B) product value analysis (PVA)
C) vendor managed inventories (VMI)
D) supplier performance management (SPM)
E) supplier added value effort (SAVE)

Accepted Answer

This approach is known as product value analysis (PVA). It aims to identify opportunities to reduce costs without affecting the performance of the product. It involves analyzing the various components that go into the product and considering alternative designs or methods of production that can help reduce costs. The other options listed (A, C, D, and E) are all different strategies that may be used to optimize supply chain performance but are not specifically related to cost reduction through product redesign or standardization.

Question 6

The "customer is king" category of buyer-seller relationship is relatively simple, and one in which routine exchanges with moderately high levels of cooperation and information exchange occur.

Accepted Answer

The "customer is king" category of buyer-seller relationship is characterized by a high level of adaptation by the seller to meet the specific needs of the buyer, often involving complex, customized solutions and a high degree of cooperation and information exchange, rather than routine exchanges.

Question 7

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.
A) basic buying and selling
B) contractual transaction
C) collaborative
D) customer supply
E) customer is king

Accepted Answer

The relationship between Value Central and its suppliers is collaborative because both parties work together and benefit from sharing information and resources. The suppliers manage Value Central's inventory, which benefits both parties by ensuring that products are in stock and sales are maximized. The exchange of sales data also benefits both parties by providing valuable insights for strategic decision-making. This level of trust and commitment is not typically seen in a basic buying and selling or contractual transaction relationship. "Customer is king" and "customer supply" do not accurately describe this type of partnership.

Question 8

What are the methods available to the buyer to review the performance of the chosen supplier? What advantage does performance review offer to the buyer?

Accepted Answer

The answer of What are the methods available to the...

Question 9

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage.
A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review

Accepted Answer

The answer of In reordering office supplies, the only stages...

Question 10

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.
A) contractual transaction
B) cooperative system
C) collaborative
D) mutually adaptive
E) customer is king

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 reflects a one-sided adaptation where the seller prioritizes the customer's requirements and preferences above their own operational convenience or standard procedures.

Question 11

Explain the term "opportunism" with respect to business relationships.

Accepted Answer

The answer of Explain the term "opportunism" with respect to...

Question 12

In buying alliances, participants offer to trade goods or services.

Accepted Answer

In buying alliances, participants join together to gain more favorable terms and prices from suppliers by pooling their purchasing power, rather than trading goods or services among themselves.

Question 13

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance?
A) institutional sale
B) business buying
C) opportunism
D) vertical integration
E) contractual transactionism

Accepted Answer

Opportunism refers to behavior by one party in an exchange that involves cheating, undersupply, or other actions that violate the implicit or explicit contract between the parties. This often occurs when buyers cannot easily monitor supplier performance. Institutional sale, business buying, vertical integration, and contractual transactionism are not directly related to cheating or undersupply in this context.

Question 14

Which of the following is an example of a functional hub?
A) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers.
B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals.
C) SteelMart.com concentrates on steel buyers from the United States.
D) SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety.
E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality in the paper market.

Accepted Answer

The answer of Which of the following is an example...

Question 15

Researchers have found that buyer-supplier relationships differed according to four factors: availability of alternatives; importance of supply; complexity of supply; and supply market dynamism. Based on these four factors, they classified buyer-supplier relationships into eight different categories. What are those categories?

Accepted Answer

The answer of Researchers have found that buyer-supplier relationships differed...

Question 16

The business buying process begins when someone places an order with a sales representative.

Accepted Answer

The business buying process typically involves a series of steps including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Placing an order with a sales representative is typically one of the later stages in the process, after the buyer has already identified a need, researched potential solutions, and narrowed down their options.

Question 17

What is vendor-managed inventory (VMI)?

Accepted Answer

The answer of What is vendor-managed inventory (VMI)?...

Question 18

Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.

Accepted Answer

Small sellers should focus on reaching the key buying influencers instead of wasting time on multilevel in-depth selling. This would help them to make a more informed and quicker buying decision.

Question 19

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework.
A) buygrid
B) buying/selling
C) seller-centered
D) commercial
E) buy-analysis

Accepted Answer

The model identified by Patrick J. Robinson and associates is called the buygrid framework, which outlines eight stages in the business buying-decision process. The other options are incorrect or do not accurately describe the framework.

Question 20

Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.

Accepted Answer

While contracts can be helpful in governing supplier transactions and providing legal recourse in cases of dispute, they are not always sufficient to prevent supplier opportunism. Other factors such as relationship management and monitoring may also be necessary to ensure that suppliers are acting in good faith and fulfilling their obligations.

Quiz 5: Analyzing Consumer and Business Markets

In a buying center, people who authorize the proposed actions of deciders or buyers are initiators.

List the seven roles of people in a buying center.

In the buying center, several people can occupy a given role such as user or influencer, and one person may play multiple roles.

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________.

The "customer is king" category of buyer-seller relationship is relatively simple, and one in which routine exchanges with moderately high levels of cooperation and information exchange occur.

What are the methods available to the buyer to review the performance of the chosen supplier? What advantage does performance review offer to the buyer?

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage.

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.

Explain the term "opportunism" with respect to business relationships.

In buying alliances, participants offer to trade goods or services.

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance?

Which of the following is an example of a functional hub?

The business buying process begins when someone places an order with a sales representative.

What is vendor-managed inventory (VMI)?

Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework.

Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.