Question 1

________ 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 2

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 means that 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. This can be a factor in supplier selection, although it may not always result in the most advantageous terms for the buyer.

Question 3

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

Accepted Answer

During the alternative evaluation stage of the business buying decision process, the total spending for the product is considered along with other factors such as performance, quality, and supplier reliability. This is the stage where the different options are weighed against each other and a decision is made on which product or supplier to choose.

Question 4

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

Accepted Answer

Outsourcing is the process of obtaining goods or services from an external source, rather than producing them in-house. This can include tasks such as manufacturing, customer service, or IT. By outsourcing, a firm can reduce costs, improve efficiency, and access expertise that may not be available in-house. The other options, reverse marketing, crowdsourcing, multiple sourcing, and insourcing, all refer to different business strategies but do not specifically relate to obtaining goods or services from external vendors.

Question 5

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

Accepted Answer

During the alternative evaluation stage, the buying center assesses the proposals and evaluates alternative options before making the final decision. The other options listed are part of the business buying decision process but do not specifically refer to this stage.

Question 6

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

The answer of A rifle manufacturer needs muzzles, trigger mechanisms,...

Question 7

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

Accepted Answer

Many businesses consider factors such as quality, reliability, durability, and after-the-sale service in addition to price when making a purchase decision. While price is an important consideration, it is not the only factor that businesses consider. After-the-sale service is also important and can be a negotiation point during the product and supplier selection stage.

Question 8

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 means they are sourcing from multiple suppliers who are capable of making the same item. This provides the manufacturer with options and allows for more competition among the suppliers, potentially leading to lower prices and higher quality products.

Question 9

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 would be to obtain written or verbal bids from potential vendors or suppliers. This allows the buyer to compare and evaluate the different options available to them before making a decision.

Question 10

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

Accepted Answer

The decider has the most power in the buying center as they are the one who makes the final decision on which product or service to purchase. They may consult with other members of the buying center, but ultimately, the decision rests with them.

Question 11

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 ties is derived from the demand for business attire, which has decreased due to the trend towards business casual dress codes. Therefore, the demand for silk is also derived and has decreased as a result.

Question 12

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

If the demand for vinyl sheets by companies that create billboard ads is inelastic, it means that even if the price of vinyl sheets increases by 20 percent, these companies would still purchase the same amount because they have no substitutes for vinyl sheets.

Question 13

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 that business buyers often develop. Requests for quotations are requests for pricing information from potential suppliers, requests for proposals are requests for solutions to a problem, vendor analyses are evaluations of potential suppliers, and evaluative metrics are measures used to evaluate the performance of suppliers.

Question 14

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 need or problem that the organization must address, which can then lead to the next step of searching for information on potential solutions. Current vendor analysis, supplier selection, and evaluating alternatives are later steps in the process.

Question 15

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

Accepted Answer

The product and supplier selection stage is where the buying centre will typically decide on their sourcing strategy. This stage involves evaluating potential suppliers and selecting the one that best fits the needs of the organization.

Question 16

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 is likely important to its customers, and this atmosphere requires the use of electricity. Therefore, the demand for electricity is likely inelastic, meaning that even if prices increase, the restaurant will continue its present operation and absorb the increased cost rather than reducing its use of electricity.

Question 17

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

Accepted Answer

Business-to-business marketing involves the selling of products or services from one business to another. Choice C involves an individual purchasing a gift for personal reasons, which is a consumer-to-business transaction. The other choices involve businesses purchasing products or services for their own use or to resell to other businesses.

Question 18

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

Accepted Answer

Single sourcing allows for consistency of quality as the buyer is using one supplier for all their needs. This means that they can work closely with the supplier to ensure the materials meet their specifications and that quality is consistent.

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

The buyer is the member of the buying center who has the primary responsibility for handling the transaction, such as negotiating price and terms, placing orders, and ensuring delivery. Other members of the buying center, such as initiators, influencers, gatekeepers, and deciders, may also play a role in the transaction, but the buyer is typically the key player in this process.

Quiz 5: Business-To-Business Markets: How and Why Organizations Buy?