Question 1

Which of the following methods of assessing customer value asks consumers to rank their preference for alternative market offerings?
A) benchmarks
B) conjoint analysis
C) internal engineering assessment
D) focus-group value assessment
E) direct survey questions

Accepted Answer

Conjoint analysis is a method used to assess customer value by asking consumers to rank their preference for alternative market offerings. This helps in understanding what features or attributes of a product or service are valued the most by customers and how different combinations of these features affect their purchasing decisions. Benchmarks are used to compare a company's performance with that of its competitors, internal engineering assessment involves evaluating the technical aspects of a product, focus-group value assessment involves gathering insights from a group of consumers through discussions, and direct survey questions involve asking customers specific questions about their preferences, experiences, and satisfaction levels.

Question 2

Which of the following methods for assessing customer value would you consider to be appropriate if you asked your customers to attach a monetary value to each of three alternative levels of a given attribute? Those values would then be added together for any offer configuration.
A) conjoint analysis
B) importance ratings
C) direct survey questions
D) benchmarks
E) compositional approach

Accepted Answer

The compositional approach involves asking customers to assign monetary values to different levels of attributes, which are then summed to determine the overall value of an offer configuration.

Question 3

Corporate credibility depends on three factors: corporate expertise, corporate trustworthiness, and
A) corporate management structure.
B) corporate governance.
C) corporate manpower.
D) corporate mission statement.
E) corporate likability.

Accepted Answer

Corporate credibility is influenced by corporate expertise, trustworthiness, and likability, as likability affects how stakeholders perceive and engage with the company.

Question 4

On its ________ General Electric posts requests for proposals, negotiates terms, and places orders.
A) direct e-procurement page
B) company buying site
C) consumer web site
D) direct extranet links to major suppliers
E) buying alliances

Accepted Answer

General Electric uses its company buying site to manage procurement activities such as posting requests for proposals, negotiating terms, and placing orders.

Question 5

Buyer-supplier relationships fall into eight different categories. Which of the following relationships is characterized as being one that has much trust and commitment leading to a true partnership?
A) basic buying and selling
B) customer supply
C) mutually adaptive
D) collaborative
E) cooperative systems

Accepted Answer

Collaborative relationships are characterized by high levels of trust and commitment, with both parties working together to achieve mutual goals. This type of relationship involves sharing risks and rewards, and a focus on long-term success rather than short-term gains.

Question 6

Moving into e-procurement has many benefits. Which of the following is a benefit directly related to e-procurement?
A) Aggregating purchasing across multiple departments gains larger volume discounts.
B) changing the purchasing strategy and structure
C) A larger purchasing staff is required.
D) more buying of substandard goods from outside the approved list of suppliers
E) Purchasing gains a significant leverage with top management.

Accepted Answer

Aggregating purchasing across multiple departments gains larger volume discounts is a direct benefit of e-procurement, as automation and centralized systems allow for greater visibility into purchasing patterns and volume, enabling organizations to negotiate better pricing and discounts with suppliers. The other options do not directly relate to the benefits of e-procurement.

Question 7

If an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessor gains some advantages. Which of the following is one of them?
A) receiving better service
B) getting the latest products
C) a larger net income
D) conserving capital
E) some tax advantages

Accepted Answer

The answer of If an industrial buyer leases heavy equipment...

Question 8

The ________ market consists of schools, hospitals, nursing homes, prisons, and other institutions that must provide goods and services to people in their care.
A) secondary business
B) institutional
C) spot
D) vertical
E) nonprofit

Accepted Answer

The institutions mentioned require goods and services to provide care for the people under their responsibility. This market is commonly referred to as the institutional market.

Question 9

In the ________ category of buyer-supplier relationship categorization, 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) collaborative
C) cooperative system
D) mutually adaptive
E) customer is king

Accepted Answer

In the "customer is king" category, the relationship is characterized by the seller adapting to meet the customer's needs 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, aiming to provide exceptional service and satisfaction.

Question 10

In the case of ________, buyers are moving toward blanket contracts rather than periodic purchase orders.
A) product value analysis (PVA)
B) vendor managed inventories (VMI)
C) supplier performance management (SPM)
D) supplier added value effort (SAVE)
E) maintenance, repair, and operating (MRO)

Accepted Answer

The answer of In the case of ________, buyers are...

Question 11

Which of the following companies carried out e-procurement by becoming part of a buying alliance called Covisint that uses combined leverage to lower prices for raw materials?
A) GM
B) Hewlett-Packard
C) Dell Computers
D) Cadillac
E) Boeing

Accepted Answer

The question specifically mentions the use of e-procurement through the buying alliance called Covisint to lower prices for raw materials. Among the given choices, GM is the only company mentioned to have utilized Covisint for e-procurement purposes.

Question 12

In the proposal solicitation process, ________ should be marketing documents that describe value and benefits in customer terms.
A) global proposals
B) written proposals
C) oral proposals
D) e-proposals
E) alliance proposals

Accepted Answer

Written proposals are the documents that are submitted in the proposal solicitation process. These proposals should be marketing documents that effectively communicate the value and benefits of the proposal in terms that are easily understandable by the potential customer. This is important as it increases the chances of the proposal being accepted.

Question 13

With respect to buyer-seller relationships, which of the following categories would you believe to be the most appropriate description of a situation where there was a traditional custom supply situation where competition rather than cooperation was the dominant form of governance?
A) customer is king
B) contractual transaction
C) customer supply
D) collaborative
E) bare bones

Accepted Answer

The answer of With respect to buyer-seller relationships, which of...

Question 14

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.
A) inelastic demand
B) direct purchasing
C) fluctuating demand
D) derived demand
E) a straight rebuy

Accepted Answer

The answer of Sometimes a rise of only 10% in...

Question 15

With purchases of approximately $14 billion annually in goods and services from thousands of suppliers, ________ is the largest business customer in this country.
A) Dell Canada
B) Canadian Tire
C) the Canadian government
D) Walmart
E) E.B. Eddy

Accepted Answer

The statement mentions that the largest business customer in this country has purchases of approximately $14 billion annually from thousands of suppliers. Among the given options, the Canadian government is the entity that best fits this description as it has a significant procurement budget and deals with numerous suppliers for a wide range of goods and services.

Question 16

With respect to e-procurement, Web sites are organized around two types of e-hubs:
A) manufacturer and supplier hubs.
B) vertical and functional hubs.
C) supplier and user hubs.
D) functional hubs and organizational hubs.
E) vertical and horizontal hubs.

Accepted Answer

E-procurement websites are typically organized around vertical hubs, which focus on specific industries, and functional hubs, which focus on specific business processes.

Question 17

Cannon and Perreault found that buyer-suppler relationships differed according to four factors, then classified buyer-supplier relationships into eight categories. Which category is similar to basic buying and selling but involves more adaptation by the seller and less cooperation and information exchange?
A) bare bones
B) mutually adaptive
C) contractual transaction
D) customer supply
E) cooperative systems

Accepted Answer

Bare bones relationships are characterized by basic buying and selling with more adaptation by the seller and less cooperation and information exchange, distinguishing them from the other categories.

Question 18

With respect to e-procurement, Acosta, Ahold, Best Buy, Carrefour, Safeway, Sears, and several other companies joined forces to form a ________ called ISYNC to use their combined leverage to obtain lower prices from suppliers.
A) manufacturer's co-op
B) supplier's co-op
C) cabal
D) buying alliance
E) middleman group

Accepted Answer

The given scenario describes a group of companies collaborating together to use their combined leverage to obtain lower prices from suppliers. This is an example of a buying alliance, where companies come together to make collective purchasing decisions to achieve better pricing and other benefits from suppliers. The other options, such as manufacturer's co-op, supplier's co-op or middleman group do not fit with the given scenario. Cabal implies a secretive or conspiratorial group, which is not the case here.

Question 19

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to consumer's and supplier's ________ (e.g., those expenditures tailored to a particular company and value chain partner).
A) leverage ability
B) logistics channel
C) liquidity situation
D) specific investments
E) independent operations

Accepted Answer

Specific investments are expenditures tailored to a particular company and value chain partner, such as investments in specialized equipment or training programs. When there is vertical coordination, these specific investments may increase, which can increase the risk to both consumer and supplier if the relationship were to end.

Question 20

According to purchasing professionals, which of the following is considered to be the major responsibility of the purchasing agent in supplier negotiations?
A) using a team approach
B) assuring quality conformance
C) negotiating price
D) being fair with all parties
E) forming networks for future business

Accepted Answer

According to purchasing professionals, negotiating price is considered to be the major responsibility of the purchasing agent in supplier negotiations. While the other options may also be important, negotiating the best possible price for the organization is typically the top priority.

Quiz 7: Analyzing Business Markets

Which of the following methods of assessing customer value asks consumers to rank their preference for alternative market offerings?

Which of the following methods for assessing customer value would you consider to be appropriate if you asked your customers to attach a monetary value to each of three alternative levels of a given attribute? Those values would then be added together for any offer configuration.

Corporate credibility depends on three factors: corporate expertise, corporate trustworthiness, and

On its ________ General Electric posts requests for proposals, negotiates terms, and places orders.

Buyer-supplier relationships fall into eight different categories. Which of the following relationships is characterized as being one that has much trust and commitment leading to a true partnership?

Moving into e-procurement has many benefits. Which of the following is a benefit directly related to e-procurement?

If an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessor gains some advantages. Which of the following is one of them?

The ________ market consists of schools, hospitals, nursing homes, prisons, and other institutions that must provide goods and services to people in their care.

In the ________ category of buyer-supplier relationship categorization, 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.

In the case of ________, buyers are moving toward blanket contracts rather than periodic purchase orders.

Which of the following companies carried out e-procurement by becoming part of a buying alliance called Covisint that uses combined leverage to lower prices for raw materials?

In the proposal solicitation process, ________ should be marketing documents that describe value and benefits in customer terms.

With respect to buyer-seller relationships, which of the following categories would you believe to be the most appropriate description of a situation where there was a traditional custom supply situation where competition rather than cooperation was the dominant form of governance?

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________.

With purchases of approximately $14 billion annually in goods and services from thousands of suppliers, ________ is the largest business customer in this country.

With respect to e-procurement, Web sites are organized around two types of e-hubs:

With respect to e-procurement, Acosta, Ahold, Best Buy, Carrefour, Safeway, Sears, and several other companies joined forces to form a ________ called ISYNC to use their combined leverage to obtain lower prices from suppliers.

Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to consumer's and supplier's ________ (e.g., those expenditures tailored to a particular company and value chain partner) .

According to purchasing professionals, which of the following is considered to be the major responsibility of the purchasing agent in supplier negotiations?