Question 1

A purchase having some multiple influence and requiring some information would fit the description of a

Accepted Answer

A modified rebuy is a situation where the purchase involves some changes or adjustments from previous buying situations, requiring additional information and possibly influencing multiple aspects of the buying decision. This contrasts with a new-task buy (entirely new purchase), straight rebuy (repeat purchase without changes), and does not fit the description of a simplified buying process.

Question 2

A sales representative calls on a prospective business customer only to find that the customer has an established relationship with another supplier that seems to be working well. The customer is not interested in considering other suppliers. The customer is currently in a ____________________ situation.

Accepted Answer

The customer's established relationship with another supplier and lack of interest in considering other suppliers indicate that the customer is only making a routine purchase and is in a straight rebuy situation.

Question 3

In business markets, close buyer-seller relationships

Accepted Answer

Close buyer-seller relationships can often lead to a better understanding of each other's needs and preferences, which can result in more efficient and effective transactions. This often leads to increased profitability for both the buyer and the seller.

Question 4

Circle Z Tires is a retailer of car tires. Unless the store manager requests something different, every month there is an automatic order of 10 XZ Performance Tires and 12 J-1 wheels from Box Tire Supply. This is an example of a

Accepted Answer

This is a straight rebuy because the store manager is ordering the same products from the same supplier without any modifications or new considerations.

Question 5

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

Accepted Answer

The situation described is a modified rebuy buying process since the company is only looking for a new vendor for one specific product category due to issues with the existing vendor. The purchasing agent has experience with the product and knows what they need, but wants to improve the vendor's performance in terms of delivery.

Question 6

Which dimension of buyer-seller relationships most significantly increases the risk that proprietary knowledge or trade secrets may leak to competitors or the public?

Accepted Answer

Information sharing is the most significant dimension of buyer-seller relationships that increases the risk of proprietary knowledge or trade secrets leaking to competitors or the public. This is because information sharing is necessary for the two parties to collaborate effectively, but it also increases the potential for sensitive information to be disseminated beyond those intended to receive it.

Question 7

In his last order, the bakery manager at Bread of the Earth Bakery purchased a different brand of whole wheat flour from his regular supplier, Best Bakery Supplies. This is an example of a

Accepted Answer

The purchase of a different brand of whole wheat flour indicates that the bakery manager is modifying his previous purchasing decision and is engaging in a modified rebuy.

Question 8

Home Sweet Home Co. manufactures and sells handmade wooden furniture. Its manager routinely orders 50 cartons of Supreme Furniture Polish and 10 bottles of Ultra Sheen Varnish from the same vendor. This is an example of a

Accepted Answer

The fact that the manager routinely orders the same products from the same vendor suggests that they are engaged in a straight rebuy, where they are simply repurchasing products they have previously bought without considering other options or vendors.

Question 9

A modified rebuy would be most likely when:

Accepted Answer

A modified rebuy occurs when the purchaser wants to modify the product specifications, such as quality, performance, or feature. In this case, the car producer is developing a sportier car which will require wider tires, so they want to modify the specifications of their tires.

Question 10

A modified rebuy is MOST likely to occur for:

Accepted Answer

A modified rebuy occurs when a company decides to purchase a product they have purchased before, but with some modifications or changes to the specifications. A desk is a more significant purchase, and a company may need to modify the specifications to fit their changing needs, making it more likely to be a modified rebuy. File folders, brooms, paper clips, and copier paper are more routine purchases that do not typically require modification or significant changes, making them more likely to be a straight rebuy.

Question 11

A report on a seller's website that describes how an organizational buyer can make a better decision on a particular topic is called a(n):

Accepted Answer

A white paper is a report that provides information and advice on a specific topic. It is often used by sellers to educate potential buyers on the value of their product or service, and to help them make better business decisions. White papers can cover a wide range of topics, from industry trends to best practices, and are typically written in a more academic or technical style than other types of marketing content.

Question 12

Purchasing managers rely on Internet ______________ ______________ to quickly identify new supplies.

Accepted Answer

Purchasing managers rely on Internet search engines to quickly identify new supplies.

Question 13

A report on a seller's website that describes how one of its customers solved a specific problem by using the seller's products is called a(n):

Accepted Answer

A case study is a detailed report of a particular customer's experience using a seller's product or service to solve a specific problem. It provides insights into how the product or service helped the customer and can be used as a marketing tool by the seller to attract new customers. White papers, executive summaries, and mission statements are different types of documents that serve different purposes. Outsource is not related to this context.

Question 14

Rosalinda's Steak House purchases 70 T-bone steaks every Friday-including last Friday. Last Friday's order was an example of a

Accepted Answer

Since Rosalinda's Steak House purchases T-bone steaks every Friday and last Friday's order was included in that routine, it is considered a straight rebuy. A straight rebuy is a purchasing situation where the buyer simply reorders previously purchased items without any modifications or changes to the order.

Question 15

Which of the following statements about close buyer-seller relationships in business markets is False?

Accepted Answer

Long-term commitments on larger order quantities often lead the supplier to offer lower prices rather than raising its selling price. This is because the supplier benefits from the certainty of business and can achieve economies of scale in production.

Question 16

Charles Wood, purchasing manager for a company that makes golf carts, posted the purchase specifications for the seats on a new golf cart model his firm is building. Four suppliers submitted _____ that included the terms of sale each had to offer.

Accepted Answer

The term "competitive bids" specifically refers to when multiple suppliers submit offers with their terms of sale in order to win a contract. This is the most appropriate option given the context of the scenario described.

Question 17

_______ are the terms of sale offered by different suppliers in response to the purchase specifications posted by the buyer.

Accepted Answer

Competitive bids refer to the terms of sale offered by different suppliers in response to the purchase specifications posted by the buyer. Purchasing rebuys, legal bonds, requisitions, and auctions do not necessarily involve multiple suppliers offering different terms of sale in response to a buyer's specifications.

Question 18

The method by which suppliers provide deliveries to organizations precisely when the buyer needs them ("just in time") involves this dimension of buyer-seller relationships:

Accepted Answer

Operational linkages are the method by which suppliers and organizations coordinate their processes and activities to ensure that deliveries are made precisely when needed, as in the "just in time" approach. This involves integrating operations and processes between the buyer and seller to streamline and optimize the supply chain.

Question 19

Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs purchase orders for office supplies without further consideration. At Black Mountain, purchases of office supplies are

Accepted Answer

The fact that Percy Malik routinely signs purchase orders for office supplies without further consideration suggests that these purchases are a straight rebuy, which is a situation in which a company buys the same goods or services repeatedly, often from the same suppliers, with little to no variation in the purchasing process.

Question 20

Close buyer-seller relationships may not make sense because:

Accepted Answer

All of the given options are valid reasons why close buyer-seller relationships may not always make sense. Lack of flexibility, varying importance of purchases, supplier preferences, and the potential for better prices through competition are all factors that can impact whether or not a close relationship is appropriate.

Quiz 6: Business and Organizational Customers and Their Buying Behavior