Question 1

Eva is considering adding new products to her store and is concerned about her profit margin.She is concerned about:

Accepted Answer

Eva's concern about her profit margin ultimately boils down to how much she will make on each sale. Therefore, choice A is the best option. Choices B, C, D, and E are all related to business operations and management, but they do not directly address Eva's concern about profit margins.

Question 2

The primary objective of supplier relationship management (SRM)is the improvement of profits.

Accepted Answer

The primary objective of supplier relationship management (SRM) is to enhance collaboration and communication with suppliers to improve efficiency, reduce costs, and ensure quality, rather than directly focusing on profit improvement.

Question 3

Salespeople need to understand that purchases made by their customers' customers are based on:

Accepted Answer

The concept of derived demand means that the demand for a product or service is derived from the demand for the goods or services provided by the purchaser's own customers. Salespeople need to understand this concept in order to identify the needs and wants of their customers and provide solutions that meet those needs.

Question 4

During performance evaluations of various vendors,the importance weights of all characteristics are considered equal.

Accepted Answer

Importance weights of characteristics can vary depending on the specific needs and priorities of the organization or project.

Question 5

The chief executive of Norell,an agency that supplies businesses with temporary workers,realizes that the health care industry necessitated temporary workers as much,if not more,than goods-oriented businesses.Which of the following stages of the buying process does this illustrate?

Accepted Answer

The CEO's realization that the health care industry needs their temporary workers shows that they have recognized a need for their services.

Question 6

Before developing a sales strategy,salespeople must be aware of the suppliers or brands the customer is considering.

Accepted Answer

It is important for salespeople to know the suppliers or brands that the customer is considering in order to tailor their sales strategy and overcome any potential objections or concerns the customer may have.

Question 7

Effective selling to government agencies requires:

Accepted Answer

Thorough knowledge of the unique procurement procedures and rules of government agencies is essential for effective selling to them. It helps the seller to navigate the complex process and comply with all necessary regulations.

Question 8

The first step in supplier relationship management is to determine the end-user spending patterns.

Accepted Answer

The first step in supplier relationship management is typically to identify and segment suppliers, not to determine end-user spending patterns.

Question 9

The purchase of maintenance,repair,and overhaul (MRO)supplies:

Accepted Answer

The answer of The purchase of maintenance,repair,and overhaul (MRO)supplies:
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Question 10

In a performance evaluation,no single product will perform best on all characteristics.

Accepted Answer

This statement is true. Different products may excel in certain areas while underperforming in others, so it is important to evaluate them based on their specific strengths and weaknesses.

Question 11

Weston makes uniforms and overalls for employees in any industry where there is a potential for fire injury.It uses fabric from Indie Fabric Co.for all of the uniforms it manufactures.If there is a decrease in the demand for products in the chemical industry,then there will be a decrease in employment in that industry.This will lead to a decrease in the demand for such uniforms.Since fewer uniforms will be needed,the sales for Indie fabric will decrease.This is an example of:

Accepted Answer

This is an example of derived demand, which refers to the demand for a product or service that occurs as a result of demand for another product or service. In this case, the demand for the uniforms is derived from the demand for employees in industries where there is a potential for fire injury. The decrease in demand for products in the chemical industry leads to a decrease in employment, which ultimately leads to a decrease in the demand for such uniforms.

Question 12

Reginald is a reseller who is deciding which new products he will add to his gift and card store.Which of the following elements must he consider while making this decision?

Accepted Answer

As a reseller, Reginald would primarily be concerned with the profitability of the new products he plans to add to his store. The profit margin represents the difference between the cost and selling price, and he must ensure that he can generate sufficient profit to justify the investment. Turnover refers to how quickly the inventory is sold, and he needs to consider the demand for the new products and how fast they will sell. Finally, effort refers to the resources required to manage and market the new products, and he must decide if is worth the effort to add them to his store. Therefore, the factors that Reginald must consider while making his decision are profit margin, turnover, and effort.

Question 13

Using the multiattribute model,salespeople decide how to alter the content of their presentation based on customer beliefs and needs.

Accepted Answer

The multiattribute model is a framework used by salespeople to understand customer beliefs and needs and tailor their presentation accordingly.

Question 14

Salespeople should not focus on the areas of superior product performance that are not important to the customer.

Accepted Answer

Salespeople should focus on the areas of superior product performance that are important to the customer rather than wasting time and effort on features that do not matter to them. This helps in building a strong value proposition for the customer and ultimately results in higher sales.

Question 15

The multiattribute model is usually not used in complex decisions involving several vendors.

Accepted Answer

The multiattribute model is often used in complex decisions involving several vendors. It helps decision-makers evaluate and compare different options based on multiple criteria or attributes.

Question 16

By increasing the rating of a competitive product,salespeople can improve the customers' perception of their product.

Accepted Answer

By increasing the rating of a competitive product, it may increase the customers' perception of the competitor's product, but it does not necessarily improve the perception of their own product. Salespeople should focus on improving the features and benefits of their own product to improve customer perception.

Question 17

Almac Aluminum is a large manufacturer of can sheets that are used to manufacture drink cans.Its ability to sell to Pearl Brewing Company is directly related to how many people buy Pearl beer.This is an example of:

Accepted Answer

This scenario demonstrates derived demand, as the demand for Almac Aluminum's products is dependent on the demand for the final product that uses their can sheets, in this case, Pearl beer.

Question 18

When P.C.Logic,a fax machine manufacturer,purchases ceramic printing heads from Kyocera to install in its fax machines,it is acting as a(n):

Accepted Answer

P.C.Logic is purchasing components from Kyocera in order to install them in their own finished products, which makes them an original equipment manufacturer (OEM).

Question 19

Compared to consumer purchase decisions,organizational purchase decisions:

Accepted Answer

Organizational purchase decisions are typically made by a group of people and involve a greater number of criteria and factors to consider than consumer purchase decisions. These decisions often require approval from higher-ups, extensive research, and negotiations with suppliers, making them more complex than individual consumer purchases. Therefore, option A is the best choice.

Question 20

One outcome of supplier relationship management (SRM)is the ability to consolidate purchases and negotiate better terms.

Accepted Answer

SRM allows companies to build strong partnerships with suppliers, which can lead to purchasing consolidation and better negotiation power for pricing and terms.

Quiz 3: Buying Behavior and the Buying Process