Question 1

Foster has decided to buy all his MRO supplies from Alexia's Supply House. For competitors, Foster's account is:

Accepted Answer

When Foster decides to buy all his MRO supplies from Alexia's Supply House, it means he is committing to a single supplier, making his account "lost-for-good" for competitors, as they will not have the opportunity to win his business.

Question 2

Because DLS Aquatics has proven to be a satisfactory supplier of aquarium filters for Fins Aloft, a tropical fish retailer, the store's owner has ____, which is illustrated by his continued buying from that company in spite of sales calls from salespeople from other distributors.

Accepted Answer

The scenario describes the store owner's loyalty to the supplier, DLS Aquatics, which is illustrated by the continued buying despite attempts to solicit from other distributors. Therefore, vendor loyalty is the best choice. Brand equity refers to the value of a brand, buyer allegiance is not a commonly used term, top-of-mind awareness refers to the first brand that comes to mind when thinking of a product, and creeping commitment refers to a gradual increase in the level of commitment to a decision.

Question 3

The organizational buyer for Van Bloom Gardens frequently uses _____ to make sure that all important factors are considered, such as bulb size, delivery speed, bulb sprouting time, and level of sales support, before selecting a supplier.

Accepted Answer

The answer of The organizational buyer for Van Bloom Gardens...

Question 4

Sparkling clean floors are both eye-pleasing and difficult to maintain in high-traffic areas. Most stores use floor mats, especially at doors, to keep floors clean, but these mats get dirty easily and are troublesome to clean. A salesperson from a mat rental service can show a retailer how much money can be saved by comparing costs of owning mats to the costs of renting mats. In this way, the salesperson for the mat rental service can:

Accepted Answer

The salesperson is addressing both the service and economic criteria of the buyer by showing how renting mats can save money while also keeping floors clean.

Question 5

Hallmark supplies its retailers with handheld Crownlink electronic data interchange terminals. All of its retailers use these terminals to transmit merchandise orders to Hallmark in Kansas City. Inventory is stocked as needed. Stockouts cannot occur. Shipments will be placed daily if that is what the individual retailer needs. This is an example of a _____ system.

Accepted Answer

This is an example of an efficient consumer response system, which focuses on improving the supply chain by ensuring that inventory is stocked as needed and shipments are made based on retailer demand, preventing stockouts.

Question 6

Which of the following members of the buying center would typically NOT be involved in a value analysis?

Accepted Answer

A representative from the advertising department would typically not be involved in a value analysis, as they are not directly involved in the technical and production aspects of the product or service being purchased. Value analysis involves assessing the costs and benefits of various options, and technical experts from engineering, production, and quality control, as well as members of the purchasing department, are more likely to have expertise in this area.

Question 7

The need for risk reduction is one of the factors affecting the individual making the organizational buying decision. What can a salesperson do to help reduce the risk?

Accepted Answer

Providing the buyer with product information from independent sources not connected with the salesperson's company can help reduce the perception of risk. This demonstrates that the salesperson is not biased towards their own product and can increase the buyer's confidence in their decision-making process. Turning a straight rebuy situation into a modified rebuy situation or persuading the buyer to not perform vendor analyses may not necessarily reduce the perception of risk. Sending the complete portfolio of sales materials could be overwhelming and may not address the specific concerns of the buyer, resulting in a limited impact on risk reduction. Making the buyer understand that every buy should be a new-task buy situation may not be feasible or necessary in all cases.

Question 8

In which stage of the buying process are personal, noncommercial sources of information most important?

Accepted Answer

The answer of In which stage of the buying process...

Question 9

Which of the following statements about a material requirements planning (MRP) system is true?

Accepted Answer

The MRP system can be used to forecast sales as it analyzes sales data and inventory levels to predict future demand for materials and goods.

Question 10

To make its world famous barbecue, the Old Smoke House restaurant needs a steady supply of hickory wood. Because the Old Smoke House's owner believes in ____, she has used the same wood supplier for almost fifteen years.

Accepted Answer

The answer of To make its world famous barbecue, the...

Question 11

Jackson likes his major parts supplier for his automobile repair business but always buys some of his parts from another competitor. Jackson is using a __________________ strategy.

Accepted Answer

Jackson is using an always-a-share strategy by consistently buying from both his preferred supplier and a competitor. This allows for diversification of supply and potentially better pricing.

Question 12

Ryan wants a vendor who will provide ingredients for her restaurant each day, adjusted for the number of reservations he has for that evening. Ryan is looking for a vendor who will provide:

Accepted Answer

Just-in-time inventory control is a system in which materials are ordered and received just in time for production or use. In this case, Ryan is looking for a vendor who will provide ingredients each day, adjusted for the number of reservations he has for that evening. This is a clear example of the just-in-time inventory control system. The other options do not fit Ryan's needs as well. Risk reduction can be achieved through different means, but it is not the primary concern expressed in the scenario. Material requirements planning is more focused on the planning and organization of production processes. Supply chain management refers to the coordination and management of all activities involved in the production and delivery of goods or services. Outsourcing involves contracting work out to an external company, which is not the case here.

Question 13

Daimler-Chrysler uses a supply chain management system called ______ to schedule delivery of auto parts to arrive at its plants thirty minutes before the parts are to be used in the assembly process.

Accepted Answer

The supply chain management system used by Daimler-Chrysler to schedule the delivery of auto parts is called just-in-time (JIT) inventory control. This system ensures that the necessary parts arrive at the plant just in time for their use in the assembly process, minimizing inventory holding costs and reducing waste. JIT is a popular approach in lean manufacturing and is used by many successful companies worldwide.

Question 14

The objective of a(n) _____ system is to minimize inventory by having frequent deliveries, sometimes daily, as needed for assembly into a final product.

Accepted Answer

Just-in-time (JIT) inventory control system aims to minimize inventory by having frequent deliveries as needed for assembly into a final product. JIT emphasizes on the elimination of waste in production processes and focuses on meeting customer demand with minimal delay. Efficient Consumer Response (ECR) is a supply chain management system that involves collaboration between suppliers, manufacturers, and retailers to deliver products to customers in the most effective way. Total Quality Management (TQM) is a management approach that focuses on continuous improvement of the quality of products and services. Zero-defect management is a quality management approach that aims for zero defects in products or processes. Material Requirements Planning (MRP) is a computer-based inventory management system that helps manufacturers ensure that they have the right materials available for production.

Question 15

To develop the close coordination needed for just-in-time (JIT) inventory control systems, manufacturers tend to rely on one supplier. How is this supplier selected?

Accepted Answer

The supplier selected for JIT inventory control systems should be able to be flexible in order to adapt to the changing needs of the manufacturer's production schedule. Other factors such as product quality and overall cost are also important, but flexibility is crucial in order to ensure smooth and efficient production processes.

Question 16

When using life-cycle costing as one of the criteria for evaluating and selecting a supplier for a new oil well drilling platform, a purchasing agent should look at:

Accepted Answer

Life-cycle costing considers all costs associated with a product over its entire life, so the purchasing agent should look at the initial cost, maintenance cost over a ten-year period, the lifespan of the platform, and the cost of installation. Therefore, all of the above options are relevant for evaluating and selecting a supplier for a new oil well drilling platform.

Question 17

_____ systems are used to forecast sales, develop production schedules, and select inventory dates that minimize costs.

Accepted Answer

Material requirement planning systems are specifically designed to forecast sales, develop production schedules, and select inventory dates that minimize costs. This system takes into account current inventory levels, lead times, and production schedules to ensure that the right amount of materials are ordered at the right time to meet production demands.

Question 18

The business environment is changing dramatically, and organizational buying is also changing. As organizations are pressured to improve product quality, control costs, and minimize inventory, they are:

Accepted Answer

The first sentence suggests that organizational buying is changing, and one way to reflect this change is by elevating the purchasing directors to reflect the increasing importance of this function. This aligns with the trend of organizations focusing more on cost control and improving product quality. Option B, C, D are either incorrect or not supported by the passage.

Question 19

In "Developing a Diverse Supplier Base" vendor diversity is defined as:

Accepted Answer

Vendor diversity in this context refers specifically to buying from vendors that are owned by women, minorities, and disabled veterans.

Question 20

LifeStream Industries has used GE light bulbs for years. When it needs new light bulbs, it uses a straight rebuy. The distributor of Tungstram LED light bulbs would like an opportunity to get his product considered by LifeStream. A _____ would be particularly useful for Tungstram, the out supplier.

Accepted Answer

A value analysis would be the best choice for Tungstram as it helps in comparing the cost and benefits of different products and selecting the most cost-effective option. This would allow LifeStream to evaluate Tungstram's LED light bulbs against GE's light bulbs and determine if the benefits of switching to Tungstram outweigh the costs.

Quiz 3: Buying Behavior and the Buying Process