general business data bank

| August 14, 2017

GENERAL CONCEPT QUESTIONS

Multiple Choice

1.
To create and
capture value, sellers need to understand business organizations’ needs,
resources, policies, and ________.
a.
demands
b.
protocols
c.
strategies
d.
buying procedures
e.
personnel policies

2.
Webster and Wind define ________
as the decision-making process by which formal organizations establish the need
for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
a.
marketing channels
b.
organizational buying
c.
demand-oriented buying
d.
purchasing
e.
inventory control

3.
The ________ consists of
all the organizations that acquire goods and services used in the production of
other products or services that are sold, rented, or supplied to others.
a.
business market
b.
consumer market
c.
e-commerce market
d.
global market
e.
supplier market

4.
Business markets have several characteristics that
contrast sharply with those of consumer markets. All of the following would be
among those characteristics EXCEPT ________.

a.
fewer, larger buyers
b.
close supplier-customer relationship
c.
professional purchasing
d.
inverted demand
e.
multiple sales calls

5.
All of the following would
be among the major industries that
make up the business market EXCEPT ________.
a.
agriculture, forestry, and fisheries
b.
manufacturing
c.
construction
d.
banking, finance, and insurance
e.
the Internet

6.
Trained purchasing agents,
who must follow their organization’s ________, often purchase business goods.
a.
culture
b.
past purchasing history
c.
purchasing policies, constraints, and requirements
d.
needs
e.
financial budgets

7.
Ultimately, the amount of steel sold to General Motors depends on the
consumer’s demand for GM cars and trucks.
From the standpoint of the steel manufacturer, which of the following demand
forms is most pertinent?
a.
Derived demand
b.
Inelastic demand
c.
Geographic demand
d.
Relational demand
e.
Static demand

8.
The demand for business
goods is ultimately derived from the demand for ________.
a.
raw materials
b.
consumer goods
c.
electronics
d.
business solutions
e.
e-commerce

9.
The business buyer faces
many decisions in making a purchase. The number of decisions depends on the
buying situation. All of the following examples
are appropriate to the preceding EXCEPT ________.
a.
complexity
of the problem being solved
b.
newness of the buying requirement
c.
number of people involved
d.
applicability of situation to mission statement
e.
time required

10. The purchasing department buys office supplies on a routine basis. This
type of purchase is classified as a ________.
a.
straight rebuy
b.
modified rebuy
c.
new task
d.
secondary purchase
e.
preordained purchase

11. There are a series of guidelines for selling to small businesses. Which
of the following should not be among
those guidelines?
a.
Don’t waste their time.
b.
Do keep it simple.
c.
Do use the Internet.
d.
Don’t forget about direct contact.
e.
Do lump
small and midsize businesses together for efficiency sake.

12. The
business buyer makes the fewest decisions in the ________.
a.
modified rebuy
b.
regular buy
c.
straight rebuy
d.
new rebuy
e.
new task buy

13. Many business buyers prefer to buy a total solution to a problem from one
seller. ________ is the correct term for this process.
a.
Channel consolidation
b.
Systems buying
c.
Vertical buying
d.
Horizontal buying
e.
Supply buying

14. Xerox offers a ________ approach to prospective clients when it offers a
complete turnkey procedure,
operation, and management of the client’s information and communication
need.
a.
supply buying
b.
primary buying
c.
systems buying
d.
co-op buying system
e.
direct buying

15. If Ampex
Support Systems is the single supplier for a local manufacturing company’s MRO (maintenance, repair, operating)
supplies and needs, Ampex Support
Systems would then be considered as providing ________ for the manufacturer.
a.
systems buying
b.
purchasing
support
c.
turnkey logistics
d.
decision support
e.
systems contracting

16. ________ is a key
industrial marketing strategy in bidding to build large-scale industrial
products (e.g., dams, pipelines, et cetera).
a.
Systems contracting
b.
Systems buying
c.
Systems selling
d.
Solutions buying
e.
Turnkey logistics

17. ________ is composed of all
those individuals and groups who
participate in the purchasing decision-making process, who share some common goals and the risks
arising from their decisions.
a.
The buying center
b.
The marketing sales team
c.
Strategic management
d.
Engineering support
e.
The logistics center

In the purchasing decision process, the ________ arethose
who request that something be purchased. They may be users or others in the
organization.
f.
users
g.
initiators
h.
influencers
i.
deciders
j.
approvers

18. In the purchasing
decision process, the ________ arethose who have the
power to prevent sellers or information from reaching members of the buying
center.
a.
gatekeepers
b.
buyers
c.
initiators
d.
approvers
e.
deciders

19. The typical
buying center has a minimum of ________ members.
a.
2–3
b.
3–4
c.
4–5
d.
5–6
e.
10

20. Webster
cautions that ultimately, ________ make purchasing decisions.
a.
only senior managers
b.
individuals, not organizations
c.
organizations, not individuals
d.
third parties
e.
systems contractors

21. Small sellers
concentrate their marketing efforts on reaching ________.
a.
approvers
b.
initiators
c.
key buying influencers
d.
users
e.
the purchasing staff

22. To the ________
price is everything and transactional selling is used.
a.
solution-oriented customers
b.
income-oriented customers
c.
gold-standard customers
d.
strategic-value customers
e.
price-oriented customers

23. The strategic-value customers want a fairly
permanent sole-supplier relationship with your company.
Which of the following would be the best selling format to use with the
strategic-value customer?
a.
Transactional selling
b.
Consultative selling
c.
Quality selling
d.
Enterprise selling
e.
Indirect demand selling

24. Some customers
are willing to handle price-oriented buyers by setting a lower price, but
establishing restrictive conditions. All of the following would be among those conditions EXCEPT ________.
a.
limiting the quantity that can be purchased
b.
no refunds
c.
no adjustments
d.
no services
e.
no customer advertising

25. If a supplier
signs an agreement with a customer that states $350,000 in savings will be
earned by the customer over the next 18 months
in an exchange for a ten-fold increase in the customer’s share of supplies
ordered by the customer, the two parties will have participated in what is
called ________.
a.
solution selling
b.
consultative selling
c.
risk and gain sharing
d.
strategic alignment

e.
demand shifting

26. W.W. Grainger employees work at large customer facilities to reduce
materials-management costs. Which of the following forms of solution selling is
W.W. Grainger using?
a.
Solutions to partnerships.

b.
Solutions to alter corporate culture.
c.
Solutions to enhance customer revenues.
d.
Solutions to decrease customer risks.
e.
Solutions to reduce customer costs.

27. In principle,
business buyers seek to ________ in relation a market offering’s costs.
a.
spread risks

b.
obtain the highest benefit package
c.
maintain everyday-low-prices
d.
outsource as much as is possible
e.
eliminate partners’ shares in profits as much as
possible

28. In the past, what position did purchasing departments hold in the
management hierarchy of most
organizations?
a.
A high level because of their role in managing the
company’s costs.
b.
A moderate
level because of their spotty record on controlling costs.
c.
A low level despite the fact that they manage more than half of the company’s
costs.
d.
A secretive position.
e.
There has been no determination of this position.

29. The new, more
strategically-oriented purchasing departments have a mission. Which of the
following most accurately describes
that mission?
a.
Make the most
profit possible and remain independent of entanglements.
b.
Approach every purchasing opportunity as means to
create interdependency.
c.
Seek the best value from fewer and better suppliers.
d.
Outsource the supply function.
e.
Abandon all strategies except for systems selling
and buying.c

30. When thepurchaser’s focus is short term and tactical and they are rewarded on
their ability to obtain the lowest price from suppliers for the given level of
quality and availability, this is referred to as ________.
a.
procurement orientation
b.
supply chain management orientation
c.
buying orientation
d.
sellers orientation
e.
market orientation

31. Whenbuyers simultaneously seek quality improvements
and cost reductions and they develop collaborative relationships with major suppliers and seek savings through
better management of acquisition, conversion, and disposal costs, this is
referred to as ________.
a.
sellers orientation
b.
supply chain management orientation
c.
market orientation
d.
procurement orientation
e.
buying orientation

32. When thepurchasing role is further broadened to become a more
strategic, value-adding operation, this is referred to as ________.
a.
supply chain management orientation
b.
buying orientation
c.
sellers orientation
d.
procurement orientation
e.
routine orientation

33. Peter Kraljic distinguished four product-related purchasing processes.
Which of the following matches to products that have high value and cost to the
customer but involve little risk of supply because many companies make them?
a.
Strategic products
b.
Bottleneck products
c.
Leverage products
d.
Routine products
e.
Commodity
products

34. The products that
have high value and cost to the customer and also
involve high risk (e.g., mainframe computers)
are called ________.
a.
strategic products
b.
bottleneck products
c.
leverage products
d.
routine products
e.
commodity
products

35. Most purchasing
professionals describe their jobs as more
________, technical, team-oriented, and involving more
responsibility than ever before.
a.
risky
b.
strategic
c.
ethically difficult
d.
Web-based
e.
human-based

36. Robinson and
Associates have identified eight stages and called them buyphases. This model is called the ________ framework.
a.
buygrid
b.
buying/selling
c.
seller-centered
d.
commercial
e.
buy-analysis

37. The first step (buyphase) in the straight rebuy buyclass is ________.
a.
problem recognition
b.
general need description
c.
product specification
d.
supplier search
e.
proposal solicitation

38. A new task buyclass decision begins with which of the following
buyphases?
a.
Problem recognition
b.
General need description
c.
Product specification
d.
Supplier search
e.
Proposal solicitation

39. Business marketers can stimulate problem recognition by ________.
a.
trade directories
b.
direct mail, telemarketing, and calling on prospects
c.
encouraging the Better Business Bureau to release
statistics
d.
consumer advertising
e.
requesting testimonials
from existing customers

40. When Hewlett-Packard sells such complex
products as a network computer
system, it is engaging in what it calls the ________ concept because it offers
information and specific solutions to unique problems.
a.
“product specification”
b.
“price de-escalation”
c.
“systems selling”
d.
“trusted advisor”
e.
“strategic alliance”

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