Quiz 6: Business and Organizational Customers and Their Buying Behavior

There are more final consumers than business and organizational customers, so more is purchased by final consumers.

Organizational buyers are often referred to as the B2B market.

Organizational buyers are also referred to as industrial or intermediate buyers.

The process of organizational buying is entirely different from consumer buying.

Like final consumers, organizations make purchases to satisfy specific needs, but their basic need is for goods and services that will help them satisfy their own customers or clients.

Business and organizational customers are selective buyers who buy for the sole purpose of resale.

Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.

Dependability of supply is usually much less important than price for most business customers.

The approaches used to serve business customers in international markets are even more varied than those required to reach individual consumers.

Purchasing managers seldom use purchasing specifications to buy on the Internet.

Purchasing managers are buying specialists for organizations and may have a lot of power.

"Multiple buying influence" means that several people in an organization share in making a purchase decision, but top management is never involved.

Multiple-buying influence means that the buyer shares the purchasing decision with several people.

Multiple buying influence means that several people except top management share in making a purchase decision.

A buying center is generally thought of as all the people who participate in or influence a purchase.

In a large company, the "buying center" refers to all of the purchasing managers who work for the firm.

A seller's marketing mix should satisfy BOTH the needs of the customer company and the needs of individuals in the buying center.

A requisition is a request to buy something.

A person who needs to purchase something usually completes a requisition.

Organizational buyers often buy on the basis of a set of purchasing specifications.

A description of what a firm wants to buy is called its purchasing specifications, whether that description is written or electronic.

Purchasing specifications should be used only with products where quality is highly standardized.

Purchase specifications for services are usually very simple because services tend to be very standardized.

Purchasing specifications may be very simple (with only a brand name or part number) or very detailed (as with services).

ISO 9000 is a way for a supplier to document that its quality procedures meet internationally recognized standards.

ISO 9000 is only relevant to domestic suppliers.

ISO 9000 is only relevant to international suppliers.

ISO 9000 is relevant to both domestic and international suppliers.

With ISO 9000 someone is responsible for quality at every step.

ISO 9000 reduces the need for a customer to conduct its own audit of a supplier's quality procedures.

A straight rebuy is a routine repurchase that may have been made many times before.

New-task buying is an in-between process where some review of the buying situation is done.

Straight-rebuy buying takes longer than modified-rebuy or new-task buying and offers more chance for promotion impact by the seller.

Few purchasing managers have been able to turn over any of their order placing to computers because so few organizational purchases are routine.

The Internet is making even straight rebuys more competitive.

When a variety of information sources are readily available in new-task buying, a buyer is much less likely to use a trusted source.

Most purchasing managers use search engines as their FIRST step to satisfy new or unfamiliar questions.

Specialized search engines can help a business buyer search for products by description.

Specialized search engines can help a business buyer search for products using purchase specifications.

Specialized search engines can help a business buyer search for products by inspection.

A business buyer who uses general purpose and/or specialized search engines may reduce the need to arrange for custom-produced items.

White papers, case studies, blogs, and videos are all ways for a seller's website to provide a buyer with useful content.

Online communities are one way for buyers to connect with others who have already dealt with a similar need.

As B2B buyers rely more on social networks, it's more likely that communications from sellers will have even more influence.

A competitive bid is the terms of sale offered by a supplier in response to the purchase specifications posted by a buyer.

The Internet is making it faster and easier for organizational buyers to use competitive bidding procedures.

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.

At a procurement site, competition among sellers is likely to increase.

So far, B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.

The goal of vendor analysis is to maximize the total costs associated with purchases in order to ensure maximum product quality.

The best vendor is one that helps the customer reduce costs of excess inventory, retooling of equipment, or defective parts.

Internet tools used in the B2B market that focus primarily on lowering price do not always lower TOTAL purchasing costs.

In business markets, suppliers usually want close relationships with customers; however, there's little benefit to the customer of having closer relationships with suppliers.

A close buyer-seller relationship in a business market may reduce a firm's flexibility.

A long-term commitment by an organization to a partner may reduce flexibility.

In business markets, a seller would always prefer to have a closer relationship with a customer.

In business markets, buyer-seller relationships tend to be an "all-or-nothing" arrangement-either very close or not at all close.

Although we talk about close "relationships" between firms in business markets, in practice it is just the relationship between the salesperson and purchasing manager that becomes close.

In cooperative relationships in a business market, the buyer and seller work together to jointly achieve both mutual and individual objectives.

Just-in-time delivery reliably helps to get products and store them long before the customer needs them.

Just-in-time relationships between buyers and sellers usually require operational linkages and information sharing.

Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.

Negotiated contract buying would be used when the buyer knows precisely what he wants and the requirements of the job aren't likely to change as the job is done.

Relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

Specific adaptations are usually made when the buying organization chooses to outsource.

Relationship-specific adaptations are usually not required when the buying organization uses outsourcing.

To protect themselves from unpredictable events, most purchasing managers seek several dependable sources of supply.

Most manufacturers are quite small, with 250 or fewer employees.

Compared to final consumers, manufacturers tend to be more spread out geographically.

In the U.S., many factories are concentrated in rural areas.

It is very common for manufacturers to concentrate in certain geographic areas and by type of industry.

The U.S. government collects and publishes data by the NAICS codes.

The term "NAICS" stands for New Auto Industry Classification Survey.

The U.S. government reports data on the number of firms, sales volume, and number of employees by NAICS code.

Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31.

In a market composed of service producers, most firms are small and geographically dispersed.

There are about 17 times as many service firms as manufacturing firms.

Purchasing managers are even more likely to be involved in buying by small service firms than in buying by large producers.

Purchases by small service firms are often handled by whoever is in charge or their administrative assistant.

Most retail and wholesale buyers see themselves as purchasing agents for their target customers.

Sales reps calling on large food retailers often must make their sales presentations to a buyer who doesn't have the final decision responsibility.

Most wholesalers and retailers pay very close attention to each item they handle, treating most products as new-task purchases.

The government is the largest customer group in all countries.

Government is one of the smallest groups (in sales volume) of customers in the United States.

When selling to government customers, competitive bids are common.

To share in the government market, it is advantageous to be on the list of approved suppliers.

To compete in the government market, it is very important that marketing mixes are well matched with different bid procedures.

The Internet is not very useful for firms that want to target government markets.

Although outright influence peddling is common in some international markets, it is not allowed under the Foreign Corrupt Practices Act.

Regarding U.S. business and organizational customers, A) more goods and services are purchased by business and organizational customers than by final consumers. B) there are more business and organizational customers than final consumers. C) there are more manufacturers than all other types of business and organizational customers combined. D) more goods and services are purchased by government buyers than by all other business and organizational customers. E) None of these alternatives is correct.

In marketing, business and organizational customers are distinct from: A) intermediaries B) government units C) final consumers D) manufacturing and service firms E) non-profit organizations

The "business-to-business" market (B2B market) is comprised of: A) nonprofit organizations only. B) wholesalers and retailers only. C) manufacturers only. D) all businesses, governments, and nonprofits. E) government units only.

Which of the following statements accurately compares marketing to final consumers with marketing to organizational customers? A) Marketing to organizations is just like marketing to final consumers. B) Business-to-business marketing includes marketing to final consumers. C) Purchasing decisions by organizational buyers are usually more economic and less emotional as compared to consumers. D) Firms may choose to serve either organizational buyers or final consumers, but not both. E) Consumers are more likely to utilize purchasing specifications as compared to B2B buyers.

Which of the following is not a concern of organizational buyers? A) Original cost and ongoing costs of purchase B) Impact of purchase on productivity C) Product quality D) Seller's ability to provide speedy maintenance and repair E) All of these are concerns for organizational buyers.

Which of the following are NOT "business and organizational customers?" A) Wholesalers B) Manufacturers C) Financial institutions D) Government units E) All of these ARE business and organizational customers.

Which of the following is NOT an organizational buyer? A) The Red Cross buying office supplies. B) A sporting goods retailer buying skis. C) A law office buying a background music service. D) A country club buying tennis balls for a tournament. E) All of these are organizational buyers.

Which of the following is NOT an example of an organizational buyer? A) A government buyer purchasing a new desk for the mayor's office B) A woman buying cookware to sell to her friends and neighbors C) A sales rep buying a new necktie to make a good impression D) A wholesaler buying a delivery truck E) None of these is a good example of an organizational buyer.

Which of the following is a business or organizational customer, as opposed to an individual final consumer? A) A wholesaler purchasing merchandise for resale B) A business executive who purchases a new suit C) A teacher who fills her car with gasoline D) A homeowner who buys flowers at a garden center E) None of these is a business or organizational customer

The college or university that you attend is considered which type of organizational customer? A) Producer. B) Intermediary. C) Government. D) Nonprofit.

John Deere is considered which type of organizational customer? A) Producer B) Intermediary C) Government D) Nonprofit

Bank of Omaha is an example of what type of organizational customer? A) Government B) Nonprofit C) Producer D) Intermediary E) Resident buyer

Macy's is considered which type of organizational customer? A) Producer B) Intermediary C) Government D) Nonprofit

Radio Shack is an example of what type of organizational customer? A) Retailer B) Producer C) Government D) Nonprofit E) Wholesaler

The St. Louis Symphony is an example of what type of organizational customer? A) Government B) Wholesaler C) Intermediary D) Resident buyer E) Nonprofit

Concerning consumer and business markets: A) promotion to consumer markets usually relies more heavily on the use of personal selling. B) it is often easier to define customer needs in business markets. C) a marketing mix directed at an organizational customer is usually less precisely adjusted to the needs of the specific customer. D) None of these alternatives is correct.

Which of the following is true of the buying behavior of organizational customers? A) Organizational buyers are solely influenced by economic factors. B) Purchasing managers and others involved in organizational buying decisions do not expect friendly relationships with suppliers. C) In organizational buying, the needs of individuals who influence the purchase are not important. D) Product reliability is a more important concern for final consumers than for organizational customers. E) Behavioral dimensions like security, status, and a sense of accomplishment affect organizational buying.

Which of the following is NOT true regarding organizational buyers? A) Buyers for all kinds of organizations (governments, nonprofit groups, intermediaries) tend to buy in much the same way as do manufacturers. B) The basic aspects of business customer buying behavior tend to be quite similar in the U.S. and in international markets. C) Marketing strategies aimed at them are often tailored to each individual customer. D) Their purchases are made to help their organizations meet the demands for their products. E) Their needs are usually harder to define than for final consumers.

Organizational customers: A) Purchase goods in order to satisfy their customers, but the services they purchase are for themselves. B) Are more emotional in their buying than final consumers. C) Try to consider the total cost of selecting a supplier, not just the initial cost of the product. D) Typically focus on behavioral needs instead of economic factors in making purchases. E) None of these alternatives is correct.

If a firm targets business and organizational markets, A) the geographic location of the customer is likely to be less important than in segmenting consumer markets. B) NAICS codes may help in segmenting manufacturers but not producers of services. C) each customer may need to be treated as a different segment. D) All of these alternatives are correct.

Buying specialists for organizations are commonly called: A) supply agents. B) vendor agents. C) value analysts. D) purchasing managers. E) consumer buyers.

For marketers who seek to sell to organizational customers, initial contact with the customer is likely to be with a customer's: A) most senior salesperson. B) clerk who process paperwork. C) purchasing manager. D) accounting department. E) Chief Executive Officer (CEO).

Of the many people involved in making an organizational purchase, the one with the most power is usually the: A) user. B) influencer. C) gatekeeper. D) decider. E) salesperson.

Smart tips for selling to business customers include all the following except: A) Emphasize various benefits that meet the differing needs and interests of each member of the buying center. B) Offer fresh insight and ideas in e-mails and other correspondence. C) Develop a marketing mix to satisfy the needs of the organization as well as the needs of individual purchasing managers. D) Show appreciation by offering desirable gifts to purchasing managers. E) Explain how products and services will reduce the firm's risk.

A specialist within a company who is responsible for all of the company's major purchases is called all of the following EXCEPT: A) supply manager. B) procurement officer. C) buyer. D) salesperson. E) purchasing agent.

A purchasing manager: A) Is basically a clerk who fills out paperwork to place orders. B) Is the only person a business-to-business salesperson ever needs to see in order to make a sale to a buying organization. C) May specialize by product area if he/she works for a large organization. D) Is only interested in finding the lowest possible price for a product. E) All of these alternatives are correct.

Purchasing managers in business markets (compared to buyers in consumer markets) are generally: A) fewer in number. B) more technically qualified. C) less emotional in their buying motives. D) more insistent on dependability and quality. E) all of these alternatives are correct.

_____ are responsible for working with suppliers and arranging the terms of sale. A) Gatekeepers B) Deciders C) Influencers D) Users E) Buyers

As part of its promotional efforts, Blue Ink Projectors Inc. offered pens and other merchandise to teachers in private schools-their primary target market. However, teachers in most private schools were hesitant to accept the promotional material as their organizational policy was against accepting gifts from suppliers. As a result, the company's promotional efforts failed. What lesson did the marketers of Blue Ink Projectors learn? A) Their marketing efforts must avoid conflicts of interest between the customer company and its employees who influence the purchase. B) The buying centers in private schools are ineffective. C) Their promotional efforts have been targeted toward the wrong organizational customer. D) The needs of the customer company and the needs of its employees are complementary to each other. E) The company should secretly deliver pens to its customers' homes.

Which of the following is an individual need that can conflict with company's needs? A) Product innovation B) Financial turnover C) Customer satisfaction D) Share value maintenance E) Career advancement

During the purchase of janitorial services for a new building, Teresa has responsibility for working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as A) a gatekeeper. B) a decider. C) a buyer. D) a user. E) an influencer.

In a buying center, which of the following are likely to be influencers? A) Purchasing managers who arrange the terms of the sale B) People who supply information for evaluating alternatives C) People who have the power to select or approve suppliers D) People who control the flow of information E) Purchasing managers who shield users or other deciders

In the purchase of a new computer monitor, which of the following is an example of a user? A) A purchasing manager who arranges the terms of the sale B) An IT manager who supplies information for evaluating alternatives C) A secretary whose computer monitor is being replaced D) A receptionist who controls the flow of information E) A supply manager who helps write specifications

During the purchase of new tooling at Acme Tool and Die, which of the following is an example of a gatekeeper? A) Sara, a purchasing manager, arranges the terms of the sale. B) Ross, from research and development, supplies information for evaluating alternatives. C) Charlotte, in manufacturing, has the power to select or approve suppliers. D) Andre, a research assistant, gathers and distributes information about alternatives. E) Rita, from the manufacturing floor, will use the new tooling.

Regarding organizational buying, the people who have the power to select or approve the supplier-especially for larger purchases-are called: A) influencers. B) deciders. C) buyers. D) gatekeepers. E) users.

ABC Technologies manufactures computer accessories, such as modems and network cards. Even though the company has several purchasing managers, the company president has final authority on all purchases over $500, including the selection of the supplier. In the typical buying center in this company, the company president would have the primary role of: A) user. B) buyer. C) influencer. D) decider. E) gatekeeper.

Natalie Simopoulos, director of procurement at Grecian Glass Company must approve every purchase order, and Anthony Markatos, purchasing manager, must authorize any sales rep who wants to talk to a Grecian Glass employee. Natalie and Anthony are acting as _____ and _____, respectively. A) decider and gatekeeper B) influencer and user C) gatekeeper and influencer D) buyer and decider E) user and gatekeeper

A furniture producer has decided to buy its upholstery cloth from new suppliers. The president has given the purchasing manager responsibility to make the final selections and negotiate the terms. The purchasing manager looks through books with samples and specifications, and then calls salespeople to make presentations to the production manager, who is concerned about how easy the cloth will be to cut and sew. In this case, the purchasing manager is A) an influencer. B) a buyer. C) a decider. D) a gatekeeper. E) all of these are correct.

If many individuals are involved in a buying decision, this is: A) a multiple input situation. B) a selective rebuy. C) a modified rebuy. D) a multiple buying influence situation. E) a straight rebuy.

Multiple buying influence is MOST likely to occur in which of the following purchases? A) Note pads B) A voice-mail phone system C) A replacement for a broken chair D) Gasoline E) Paper clips

A _____ refers to all of the people who participate in or influence a purchase. A) procurement department B) bidding group C) set of gatekeepers D) sales analysis group E) buying center

A "buying center" A) may vary from purchase to purchase. B) refers to all the purchasing agents in a large firm. C) is usually identified on a firm's organization chart. D) is usually controlled by the purchasing manager. E) is usually located in major wholesale markets.

When a salesperson calls on a new business prospect, A) he may have trouble identifying all of the buying center members. B) he usually must see the purchasing manager first. C) the probability of encountering a gatekeeper is high. D) All of these alternatives are correct.

Regarding organizational buying, A) a "national accounts" sales force often makes sense when firms with many facilities buy from a central location. B) purchasing managers are more likely to be found in large organizations. C) a geographically bound salesperson can be at a real disadvantage. D) All of these alternatives regarding organizational buying are true.

A typical purchasing manager: A) buys strictly on economic needs. B) tries to satisfy both individual needs and company needs. C) seeks the lowest possible cost. D) has the final decision on all purchases. E) All of these alternatives are correct.

Purchasing managers A) are, in general, not very well educated. B) always buy from the lowest price supplier. C) may be willing to pay more to reduce personal risk. D) are usually the last ones a salesperson sees, after the order has been approved by the gatekeepers. E) None of these alternatives for purchasing managers is correct.

Organizational buyers: A) are producers' agents. B) are problem solvers. C) base purchasing decisions entirely on company needs. D) are not affected by emotional needs. E) All of these alternatives are correct.

A requisition A) is only used for nonroutine purchases. B) is the same as a purchase order. C) sets the terms under a negotiated contract. D) is a formal contract between a buyer and a seller. E) none of these choices is correct.

An office manager needs office supplies, so he fills out a form indicating what he needs and sends it to the purchasing department to be ordered. This form is usually called A) a purchase order. B) a requisition. C) a vendor analysis. D) a buying center request. E) the start of the adoption process.

A person who needs to purchase something usually completes a A) requisition. B) supply form. C) contract. D) certificate of purchase. E) vendor analysis.

All of the following are true of requisitions except A) it is a request to buy something. B) it is frequently handled online to cut time and paper shuffling. C) its processing usually takes a few hours for both simple and complex purchases. D) it is a form of centralized control.

Organizational buying based on a written (or electronic) description of a product is called buying by ______________. A) purchasing specifications B) inspection C) negotiated contract

_____ is a written or electronic description of what the firm wants to buy. A) An estimate B) A negotiated contract C) A new market order D) A purchase order E) A set of purchasing specifications

A set of ________________ contains a written or electronic description of what a firm wants to buy. A) requirements B) purchasing specifications C) blueprints D) quality certifications E) request forms

Purchasing specifications may include: A) the product grade B) the brand name C) the part number D) all of these may be included in purchasing specifications

Purchasing specifications A) may simply include a brand name or part number when purchasing requirements are complicated. B) for services, as compared to goods, tend to be detailed because services are usually performed before they're purchased. C) for services, as compared to goods, tend to be detailed because services are more standardized than goods. D) are often simple for manufactured items with highly standardized quality. E) None of these alternatives is correct.

Which of the following buying methods would a supermarket buyer be MOST LIKELY to use in the purchase of grade A large eggs? A) Purchasing specifications B) Competitive bidding C) Negotiated contract D) Complex buying

Which of the following products would be bought using purchasing specifications? A) 100 gallons of Du Pont brand muriatic acid. B) 1,000 700 MB CD-Rs. C) 50 pounds of number 10 USX nails. D) all of these products would be bought using purchasing specifications.

Which of the following buying methods would a purchasing manager be most likely to use on the Internet? A) Inspection B) Negotiated contract C) Purchasing specifications D) Complex buying behavior

____ is a way for a supplier to document its quality procedures according to internationally recognized standards. A) ISO 2000 B) ISO 9000 C) QSO 3000 D) ISO 8000 E) QSO 3001

Which of the following statements about ISO 9000 is NOT TRUE? A) ISO 9000 is a way for a supplier to document its quality procedures according to internationally recognized standards. B) ISO 9000 reassures a customer that the supplier has effective quality checks in place after it conducts a personal quality audit. C) Some customers will not buy from a supplier who does not have ISO 9000 certification. D) One requirement for ISO 9000 certification is that a company must show outside auditors who is responsible for quality every step of the way. E) ISO 9000 helps organizational customers who are considering a new supplier.

Which of the following statements about ISO 9000 is FALSE? A) ISO 9000 is a way for government suppliers to document their quality procedures, but it does not apply to other organizational suppliers. B) A supplier that has met the ISO 9000 standard is always better than one that has not. C) ISO 9000 applies to international suppliers only. D) All of these statements are FALSE.

Regarding selling to organizational buyers, A) the buyer's individual needs can be ignored when there is multiple buying influence. B) purchasing managers are usually more emotional than final consumers. C) a purchasing manager's emotional needs should be emphasized as well as his economic needs. D) sellers should try to avoid purchasing managers, since they usually can't make the final buying decision. E) All of these alternatives are correct.

For new-task buying, a good salesperson will try to contact the potential customer's: A) deciders. B) gatekeepers. C) influencers. D) buyers (purchasing managers). E) All of these would be contacted for new-task buying.

Most purchasing managers: A) reject "vendor analysis" as too subjective. B) want to be "sold" by persuasive salespeople. C) spend most of their time on new-task buying. D) stress dependability as well as lower cost and higher quality. E) dislike the higher risk that is involved in buying from a supplier that meets the ISO 9000 standard.

Organizational buyers: A) rely on many sources of information in addition to salespeople when making purchase decisions. B) may use vendor analysis to make certain that all relevant areas of a purchase decision have been considered. C) are likely to do little search for additional information if the purchase is unimportant. D) tend to be more rational-and less emotional-in their buying decisions than final consumers. E) All of these alternatives about organizational buyers are true.

Which of the following is NOT one of the organizational buying processes discussed in the text? A) Multiple task buying. B) Modified rebuy buying. C) New-task buying. D) Straight rebuy buying. E) None of these, i.e., all are buying processes.

Once a suppler relationship has been established, purchases of the "straight rebuy" variety will most likely be transacted by: A) a meeting with all buying center members. B) a meeting with top executives only. C) personal e-mails to the purchasing manager. D) e-commerce computer systems. E) phone.

Sometimes suppliers take straight rebuy relationships for granted, which can: A) lead to poor customer service. B) create opportunities for competitors. C) are reserved for short-term marketing relationships. D) lead to new-task buying. E) cause buyers to request routine information updates from suppliers.

Which of the following impersonal sources enable purchasing mangers to easily search for potential new suppliers? A) Trade shows B) Supplier Web sites C) Consultants and outside experts D) Salespeople E) Special publicity features by local news reporters

The situation that provides the greatest opportunity for suppliers that don't currently serve a customer to develop inroads with a customer is the: A) straight rebuy. B) modified rebuy. C) new-task buying. D) virtual trade show. E) competitive bid process.

In the three-step approach to organizational buying, the second step-the buying process-involves: A) identifying the problem. B) specifying the product. C) describing the need. D) soliciting proposals bids from suppliers. E) monitoring supplier performance.

A potential supplier sending a brochure or product catalog, or a salesperson contacting the buyer over the phone are means of submitting a(n) _____ in organizational buying. A) proposal B) portfolio C) equity sheet D) treaty E) voucher

Which of the following is NOT one of the organizational buying processes discussed in the text? A) Straight rebuy buying B) Modified rebuy buying C) Important task buying D) New-task buying E) None of these, i.e., all are buying processes.

Multiple buying influence should be expected in: A) vendor buying. B) straight rebuy buying. C) modified rebuy buying. D) new-task buying. E) none of these alternatives is correct.

Regarding new-task organizational buying, which of the following are likely to be involved? A) Top managers B) Purchasing manager C) Production process engineers D) Production line supervisors E) All of these are likely to be involved in new-task organizational buying

Regarding new-task organizational buying, which of the following persons is LEAST likely to be involved? A) A competitor's purchasing manager B) A purchasing manager C) A production line supervisor D) The company president E) A research assistant

New-task buying A) is a routine repurchase that may have been made many times before. B) occurs when an organization has a new need and the customer wants a great deal of information. C) is an in-between process where some review of the buying situation is done. D) occurs when an organization has a routine need and the customer wants only minimal information. E) involves no review of suppliers.

A buyer who has not purchased from a vendor in the past is MOST LIKELY to buy from that vendor when there is: A) straight rebuy buying. B) selective buying. C) new-task buying. D) selective task buying. E) modified rebuy buying.

Which of the following buying situations gives a seller the most chance for promotion impact? A) Selective task buying B) Modified rebuy buying C) New-task buying D) Straight rebuy buying E) All of these buying situations are equal.

For which of the following would an organization most likely engage in new task buying? A) A small portable welding machine for use in making repairs. B) A new desktop copying machine. C) Dishwashing detergent for use in a restaurant. D) A new desk chair to replace one that had broken. E) A 10,000 square foot prefabricated steel building for use as a warehouse.

When a company is trying to decide which type of smartphone to purchase for its sales staff and has never had to make that specific type of purchase before, this buying situation is called a(n): A) straight rebuy. B) new-task buy. C) JIT buy. D) modified rebuy. E) ISO 9000 buy.

Sweets Galore, the manufacturer of Rainbow brand lollipops, decided to expand into manufacturing liqueur-filled chocolate truffles. Its buying process for the chocolates, liqueurs, and molds was extensive, and included setting product specifications and evaluating sources of supply. This is an example of a A) straight buy. B) modified rebuy. C) straight rebuy. D) new-task buy. E) simplified rebuy.

Definitely Scrumptious Co., a cookie manufacturer, decides to expand into cake manufacturing. It begins the buying process for cake molds, toppings, and icing equipment by setting product specifications and evaluating sources of supply. This is an example of a A) simplified buy. B) straight rebuy. C) modified rebuy. D) straight buy. E) new-task buy.

Straight rebuy A) decisions, as contrasted with modified rebuys, are more likely to involve multiple buying influence. B) vendor selections are likely to be made by a purchasing manager-without consulting anyone else. C) decisions are infrequent, but they typically take longer to make than new-task buying decisions. D) decisions usually involve getting negotiated bids from suppliers. E) decisions cannot be influenced by advertising.

A straight rebuy is MOST likely to occur for: A) a new computer network. B) a pension plan which meets the new government regulations. C) paper supplies for the copy equipment. D) electronic components for a new product. E) executive chairs for a new office building.

A vendor is MOST likely to make a sale if the buyer has bought from the vendor before and is doing: A) straight rebuy buying. B) selective buying. C) multiple task buying. D) modified rebuy buying. E) new-task buying.

A formal rating of suppliers in all relevant areas of performance is best referred to as _____. A) vendor analysis B) portfolio analysis C) intermediary survey D) value chain analysis E) situational survey

Which of the following statements is true of vendor analysis? A) Its goals include increasing the total costs associated with purchases. B) It is also known as portfolio analysis. C) Its sole purpose is to get the lowest price from a supplier on a given product or service. D) It is an informal rating of the retailers and wholesalers in an industry. E) It helps in selecting suppliers by evaluating them in all relevant areas of performance.

A vendor is LEAST LIKELY to make a sale if the buyer has not bought from the vendor before and is doing: A) straight rebuy buying. B) selective buying. C) new-task buying. D) selective task buying. E) modified rebuy buying.

A straight rebuy A) involves setting product specifications and evaluating sources of supply. B) occurs when an organization has a new need and the customer wants a great deal of information. C) is an in-between process where some review of the buying situation is done. D) occurs when an organization has a new need but the customer wants only minimal information. E) is a routine repurchase that may have been made many times before.

Organizational buyers: A) tend to rely almost totally on salespeople as their source of information. B) prefer formal procedures for rating vendors over informal approaches like vendor analysis. C) are likely to do little search for additional information if the purchase is unimportant. D) tend to be more emotional than final consumers-because their jobs are at risk if a problem arises. E) None of these alternatives is correct.

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 A) a modified rebuy. B) a necessity. C) Somewhat Insignificant Commodity (SIC) items. D) a selective rebuy. E) a straight rebuy.

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. A) straight rebuy B) modified rebuy C) new-task D) extensive problem-solving E) limited problem-solving

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 A) straight buy. B) modified rebuy. C) new-task buy. D) straight rebuy. E) simplified buy.

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 A) new-task buy. B) modified rebuy. C) straight rebuy. D) modified buy. E) simplified buy.

Rosalinda's Steak House purchases 70 T-bone steaks every Friday-including last Friday. Last Friday's order was an example of a A) straight buy. B) modified rebuy. C) new-task buy. D) straight rebuy. E) simplified buy.

A purchase having some multiple influence and requiring some information would fit the description of a A) new-task buy. B) modified buy. C) straight rebuy. D) modified rebuy. E) simplified buying.

A modified rebuy would be most likely when: A) A railroad plans to change from steel to aluminum rail cars to cut weight. B) A car producer is developing a sportier car which will require wider tires. C) A bread producer is placing its weekly order for flour. D) A computer producer is buying new assembly line equipment. E) A shoe factory needs more glue to attach heels to its shoes.

A modified rebuy is MOST likely to occur for: A) file folders. B) brooms. C) paper clips. D) a desk. E) copier paper.

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? A) Selective buying B) Modified rebuy buying C) Intensive buying D) New-task buying E) Straight rebuy buying

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 A) modified rebuy. B) straight buy. C) straight rebuy. D) new-task buy. E) simplified buy.

Purchasing managers rely on Internet ______________ ______________ to quickly identify new supplies. A) Procurement engines B) Online communities C) Purchasing sites D) Search engines

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): A) mission statement. B) white paper. C) executive summary. D) online community. E) outsource.

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): A) white paper. B) outsource. C) executive summary. D) case study. E) mission statement.

_______ are the terms of sale offered by different suppliers in response to the purchase specifications posted by the buyer. A) Competitive bids B) Purchasing rebuys C) Legal bonds D) Requisitions E) Auctions

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. A) operational linkages B) an auction C) negotiated contracts D) competitive bids E) defined sales procedures

After conducting a vendor analysis on potential suppliers, purchasing managers are likely to choose the vendor that: A) enables the firm to operate more efficiently with the least risk. B) offers the lowest priced goods and services. C) offers the widest assortment of business products. D) received the best rating from gatekeepers. E) was the friendliest.

Vendor analysis is a(n) A) analytic processing of requests to buy something from a vendor. B) formal rating of suppliers on all relevant areas of performance. C) analytic processing of requests to sell something to a vendor. D) request to buy something. E) written description of what the firm wants to buy.

Vendor analysis A) ensures objectivity by disregarding whether a supplier has been used in the past. B) emphasizes the emotional factors in a purchase decision. C) is used less now that multiple buying influence is more common. D) None of these alternatives is true.

Vendor analysis: A) has the sole objective of getting the lowest possible price on a particular product or service from the supplier. B) does not take into account the behavioral needs of purchasing managers and others involved in the buying decision. C) is a formal rating of suppliers on all relevant areas of performance. D) None of these alternatives about vendor analysis is correct.

When a company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth, in order to determine which suppliers to put on an approved list of suppliers for specific products, this process is called a(n): A) JIT rating. B) resident buyer analysis. C) vendor analysis. D) ISO 9000 certification. E) buying center analysis.

Vendor analysis A) emphasizes the emotional factors in a purchase decision. B) is a formal procedure used by a vendor's salespeople to be certain that all members of a buying center have been contacted. C) is used less now that multiple buying influence is more common. D) is likely to favor a vendor that offers the customer the lowest total cost associated with the purchase. E) None of these alternatives about vendor analysis is true.

The goal of vendor analysis is A) just getting a low price from the supplier on a given part or service. B) just satisfying the needs of the customer company. C) lowering the total costs associated with purchases. D) satisfying the needs of the individuals who influence the purchase. E) focusing buyers and sellers on just the economic factors needed to reduce costs.

Which of the following statements about close buyer-seller relationships in business markets is False? A) In close relationships, buyers and suppliers can share tasks at a lower total cost of doing business. B) The buyer can gain a more dependable source of supply. C) Buyers and suppliers can engage in joint problem solving. D) Long-term commitments on larger order quantities often cause the supplier to raise its selling price. E) None of these statements is False.

Which dimension of buyer-seller relationships most significantly increases the risk that proprietary knowledge or trade secrets may leak to competitors or the public? A) Cooperation B) Information sharing C) Operational linkages D) Legal bonds E) Relationship-specific adaptations

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: A) cooperation. B) information sharing. C) operational linkages. D) legal bonds. E) relationship-specific adaptations.

In business markets, close buyer-seller relationships A) may improve the profits of both the buyer and the seller. B) are almost always desirable from the seller's point of view, but not from the buyer's point of view. C) may have benefits, but they usually increase a firm's uncertainty and risk. D) None of these alternatives is correct.

Close buyer-seller relationships may not make sense because: A) Flexibility may be reduced for the firms involved. B) Not all purchases are important enough to the buyer to justify a close relationship with a supplier. C) Some suppliers do not want to deal with buyers who place small orders. D) There are situations when the buyer could get reduced prices by letting suppliers compete for the buyer's business. E) All of these are correct.

With respect to buyer-seller relationships in business markets, A) relationships benefit sellers, but not customers. B) some customers simply are not interested in a close relationship with a supplier. C) customer firms are better off selecting suppliers with competitive bids rather than establishing a relationship with a single vendor. D) None of these alternatives is true.

All of the following are key dimensions of relationships in business markets EXCEPT: A) cooperation. B) information sharing. C) operational linkages. D) non-specific adaptations. E) legal bonds.

Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) new-task sharing C) cooperation D) operational linkages E) information sharing

Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) information sharing B) legal bonds C) cooperation D) operational linkages E) all of these are key dimensions

Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) relationship-specific adaptations C) joint inspection D) operational linkages E) information sharing

Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) relationship-specific adaptations C) cooperation D) operational linkages E) bid rigging

Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) relationship-specific recycling C) cooperation D) operational linkages E) information sharing

Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) Competition B) Information sharing C) Relationship-specific adaptations D) Operational linkages E) Legal bonds

Suppliers to business markets often A) provide information about industry trends. B) must manage inventory and delivery carefully-to provide customers with just-in-time delivery. C) serve as technical consultants to their customers. D) may have to agree to contracts that allow for changes in the purchase arrangements. E) All of these choices are correct.

A close buyer-seller relationship in a business market: A) may require relationship-specific adaptations by the seller, the customer, or both. B) may result in the seller accepting a lower price. C) may increase the buyer's "switching costs." D) may not involve a contract that spells out each party's responsibilities. E) All of these may be part of a close buyer-seller relationship.

Operational linkages are A) direct ties between the internal operations of buyer and seller firms. B) changes in a firm's product or procedures that are unique to its relationship partner. C) connections that outline contractual obligations. D) services that link a buyer's production and purchasing departments.

Which of the following statements about operational linkages is FALSE? A) Just-in-time is an example of an operational linkage. B) Operational linkages are direct ties between the internal operations of the buyer and seller firms. C) Operational linkages involve only occasional coordination of activities between buying and selling firms. D) None of these statements about operational linkages is FALSE.

_____ refers to reliably getting products there exactly before the customer needs them. A) Total quality shipping B) Effective gatekeeping C) Just-in-time delivery D) On-time vendor management E) Assured outsourcing

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by: A) negotiated contract. B) description. C) inspection.

Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve: A) an auction. B) a procurement hub. C) negotiated contracts. D) competitive bids. E) all of these are likely to be involved.

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying. A) description B) negotiated contract C) inspection

When a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner, this transaction is most likely a(n): A) Negotiated contract buy B) Straight rebuy C) Modified rebuy D) ISO 9000 buy E) JIT buy

Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves A) an indefinite delivery contract. B) negotiated contract buying. C) a good faith purchase. D) cost reimbursement contracting. E) price allocation purchasing.

A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant's customers. This situation is an example of: A) information sharing. B) negotiated contract buying. C) legal bonds. D) competition. E) relationship-specific adaptations.

Chu's Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of A) competitive bidding. B) just-in-time delivery. C) insourcing. D) operational linkages. E) a relationship-specific adaptation.

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally. A) gatekeeping B) resident buying C) competitive bidding D) outsourcing E) auctioning

Organizational buyers purchase the same product from more than one source A) if no supplier has a superior marketing mix. B) to help ensure continuing supplies. C) because a single vendor usually doesn't want all of the business. D) if vendor analysis results in a "tie score" for the different suppliers. E) None of these is true.

Regarding the size of manufacturing concerns, large firms (with more than 250 employees) A) outnumber small firms more than two to one. B) account for nearly half of all the manufacturing establishments. C) are few in number but their employees account for about 44 percent of production workers. D) provide no more "value added" than the many small firms. E) None of these alternatives is true.

All of the following statements about manufacturers are accurate except: A) large manufacturers are few in number yet produce the highest percentage of value added within the manufacturing industry. B) most U.S. factories operate in large metropolitan areas. C) the greatest growth in manufacturing has occurred in countries where labor is cheap. D) NAICS codes help marketers classify different types of manufacturing businesses. E) manufacturing output in the United States is shrinking.

Which of the following is not a key variable that marketers need to consider when developing marketing mixes for manufacturers? A) Size of manufacturers B) CEOs of manufacturers C) Geographic location of manufacturers D) Buying procedures of manufacturers E) Classifications of manufacturers

When referencing NAICS codes, marketers should know that: A) two-digit industries are subindustries of the three-digit industries. B) two-digit codes offer the broadest categorization of industries. C) categories become less detailed as you move to codes with more digits. D) the international version of the NAICS system is the most accurate and reliable. E) NAICS codes provide detailed information about the apparel industry only.

Which of the following tips would help marketers find new B2B clients that are similar to clients they already serve? A) Ask a current customer to help identify new leads. B) Look up firms that use automated systems for straight rebuying. C) Conduct a vendor analysis. D) Identify current customers' NAICS codes and then look at NAICS-coded lists for related firms. E) Research ISO 9000 certified companies.

Regarding the manufacturers' market, large firms (with more than 250 employees) A) account for the majority of the total "value added" by all manufacturers. B) are very few compared to the many small firms. C) employ about 44 percent of all people employed in manufacturing. D) All of these alternatives are true.

Regarding the business (manufacturing) market, small firms (with fewer than 10 employees) A) are not very numerous compared to the very large firms. B) account for the vast majority of the total employment provided by all manufacturers. C) are the majority of all firms, but account for less than 3 percent of "value added" by manufacturing. D) amount to nearly two million establishments. E) None of these alternatives is true.

Regarding the market composed of manufacturers in the United States: A) Most manufacturers are quite large. B) Manufacturers tend to be concentrated in specific areas. C) There are a large number of manufacturers compared to the number of final consumers. D) Small manufacturers account for most of the "value added" by manufacturing. E) All of these alternatives are correct.

Which of the following statements about manufacturers is true? A) Most manufacturers have more than 50 employees. B) Small manufacturer with less than 50 employees account for half of the total dollar value added. C) Small manufacturers now have purchasing procedures just as formal as large manufacturers. D) Manufacturers with less than 50 employees have more employees overall than manufacturers with 50 or more employees. E) Marketers often segment industrial markets on the basis of customer size.

Which of the following statements about manufacturers is true? A) Industrial customers are concentrated in countries that are at the more advanced stages of economic development. B) Manufacturing output in the U.S. is shrinking. C) Countries with cheap labor have a slow rate of growth. D) Many factories are concentrated in rural areas of the U.S. E) Currently, U.S. manufacturing output is at its lowest point since 1980.

In the U.S., what percentage of total dollar value added by manufacturing comes from large manufacturers employing 250 or more employees? A) Just under 40 percent B) Almost 60 percent C) About 30 percent D) Less than 5 percent E) More than 80 percent

U.S. business manufacturing markets tend to be concentrated: A) by industry. B) with a relatively few large manufacturing plants. C) by geographical location. D) All of these are correct.

U.S. manufacturers: A) all employ many workers. B) are evenly spread throughout the country. C) tend to concentrate by industry. D) do not locate close to competitors. E) None of these alternatives is correct.

If a firm targets business and organizational markets, A) NAICS codes may be helpful for segmenting potential customers. B) each customer may need to be treated as a different segment. C) competing manufacturers are often clustered in geographic locations. D) All of these alternatives are true.

The U.S. government collects and publishes data by _____ codes-groups of firms in similar lines of business. A) JIT B) MFG LIST C) PRIZM USA D) NAPCS E) NAICS

"NAICS" means: A) North American Initiative for Competitive Structure. B) North American Industry Classification System. C) New Auto Industry Classification System. D) National Automakers Industry Classification System. E) National Apparel Industry Classification System.

When looking at NAICS codes: A) The fewer numbers in the code, the more general the industry classification is. B) The more numbers in the code, the more general the industry classification is. C) The fewer numbers in the code, the more specific the industry classification is. D) The United States is the only country to collect data that groups firms in similar lines of business. E) None of these alternatives is correct.

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know A) that there are no 4-digit NAICS codes. B) that there is only one firm to find, since each firm has its own 4-digit NAICS code. C) that it is possible that no data will be available, even if there is one large firm in California in that 4-digit industry. D) that she is talking about the New Auto Industry Classification Survey. E) that none of these alternatives is correct.

The U.S. government would NOT publish NAICS data that gives: A) the total sales volume of the four steel manufacturers in a geographic area. B) the number of employees for similar two-digit industry groups. C) the total sales volume of the only textile equipment manufacturer in a state. D) the sales volumes of similar two-digit industry groups. E) the number of establishments for various industry groups.

Which of the following NAICS codes would be used by a marketing manager who wanted data on the MOST GENERAL breakdown of a particular industry? A) 31 B) 31522 C) 315 D) 3152 E) There is no way to tell from the information provided.

Which of the following NAICS codes would be used by a marketing manager who wanted data that was the MOST SPECIFIC to a particular type of firm within an industry? A) 31 B) 31522 C) 315 D) 3152 E) There is no way to tell from the information provided.

After identifying its key customers in terms of profitability, a firm can look to see what similar characteristics those current customers have. Then, it can try to find prospective new customers who characteristics similar to its current customers. What type of research analysis is most likely to prove fruitful in identifying these new prospects? A) ISO 9000 B) Resident buyer codes C) NAICS codes D) Intermediary codes E) JIT codes

Which of the following statements about purchasing by small service firms is NOT TRUE? A) Purchases by small service firms are often handled by whoever is in charge or their administrative assistant. B) Purchases by small service firms can add up and these smaller firms are now an important target market. C) Purchases by small service firms are usually handled by a person with full-time responsibility for purchasing. D) Small service firms may need much more help in buying than large corporations. E) Small service companies often rely on e-commerce for purchases.

Which of these statements regarding manufacturing and service firms is true? A) Manufacturers are more spread out around the country than service firms. B) The U.S. has many more manufacturing firms than service firms. C) B2B e-commerce purchasing is common for both manufacturing and service firms. D) Unlike manufacturing firms, service firms rely on engineering and R&D people to help make purchase decisions. E) Unlike service firms, manufacturers tend to locate where they can be closest to their customers.

Tango with Nature Inc., a company that manufactures and sells body oils, aroma oils, essential oils, and organic personal care products to spas around the globe, has decided to launch a website with an online store for its organizational customers. How will this decision most likely affect the company? A) The decision will not affect the company in any manner as service customers avoid Internet buying. B) The company's customer service efforts will reduce. C) The company will lose its value in the market. D) The company will limit its interactions with its organizational customers. E) The purchases by small service customers can add up, creating a new market for Tango.

Buyers at _______ sees their role as being "purchasing agents for their target customers"? A) manufacturers B) government agencies C) service firms D) non-profits E) retailers and wholesalers

With regard to retail buying: A) most retail buyers see themselves as purchasing agents for their suppliers. B) buying committees, instead of individual retail buyers, may make the decisions. C) retail buyers make most purchases as modified rebuys. D) persuasive salespeople, not buying committees, are the key influencers in the buying process. E) None of these alternatives is correct.

Regarding buying by intermediaries, A) computer-controlled inventory systems make buyers more dependent on sales reps. B) buying committees are a way for supermarkets to handle the flood of new products. C) buyers are seldom influenced by their salespeople. D) wholesalers and retailers typically only carry products which they have judged "socially desirable." E) none of these alternatives is correct.

When a large wholesaler or retailer uses a buying committee, A) the buyer still makes the final purchase decision. B) the sales rep may not be able to make a sales presentation to the committee. C) the impact of persuasive salespeople is increased. D) the intermediary is more likely to take a chance on a really new product that hasn't yet proved itself. E) none of these alternatives is correct.

Committee buying in large retail chains A) makes the buyers work as a group and thus lower costs. B) allows a sales rep to avoid a difficult buyer. C) makes it difficult for the seller to see a buyer personally. D) reduces the impact of a persuasive sales rep. E) All of these alternatives are correct.

Because more intermediaries are using computer systems to control inventory levels, A) they can assess the profitability of each product. B) new-task buying is increasing. C) they are carrying larger inventories. D) negotiated contract buying is increasing. E) All of these alternatives are occurring.

Large wholesale and retail buyers typically: A) pay close attention to each of the products they buy. B) don't trust automatic inventory control methods. C) see themselves as selling agents for manufacturers. D) buy most of their products as straight rebuys. E) None of these alternatives is correct.

In large retail firms A) committee buying favors sellers with persuasive salespeople. B) buying committees are the way all buying decisions are now made. C) buyers have computers systems that let them know the profitability of different competing products. D) purchasing agents make decisions based on what products they would buy themselves. E) None of these alternatives is true.

With regard to government buying: A) One of the primary concerns of government buyers is finding the lowest price. B) A government buyer may be forced to accept the lowest bid whether he wants the goods or not. C) A government buyer can accept a higher bid when lower bids don't meet the required specifications. D) Purchases by government buyers in the United States are usually subject to much public review. E) All of these alternatives are correct.

All of the following are true of government markets except A) the government is the largest customer group in all countries. B) most government customers buy by specification using a mandatory bidding procedure. C) the government buyer must often accept the lowest bid that meets the specifications. D) by law, a government unit might have to accept the lowest bid even for an unwanted product. E) government purchases are usually subject to much public review.

The government market: A) Is one of the smallest customer groups in the United States. B) Often has a buying process that includes purchase specifications and competitive bidding procedures. C) Purchases a fairly narrow range of products dealing with public safety. D) None of these alternatives is correct.

The government market A) often relies on an "approved supplier list" for routine items that are bought frequently. B) is the largest customer group in the United States, accounting for about 30 percent of the gross domestic product. C) usually buys from the lowest price supplier that can meet the written specifications. D) normally uses a mandatory bidding procedure. E) All of these alternatives are true.

Government buyers in the U.S. usually buy by: A) specification-using a mandatory bidding procedure. B) inspection. C) haggling. D) influence peddling. E) None of these are good choices.

Regarding the government market, A) sales reps generally do not (and should not) write the specifications for government business. B) government is the largest customer group in the United States-spending about 30 percent of GDP. C) governments buy a lot, but only of certain products and can be safely ignored by most producers. D) competitive bids are uncommon because of mandatory bidding procedures. E) All of these alternatives are true.

Regarding U.S. government market buying, A) a buyer may order from a supplier on the "approved list" at a previously set price-without asking for new bids. B) most buyers write specs so that only one brand or supplier qualifies. C) it is illegal for a salesperson to try to influence the writing of product specifications. D) most buyers buy by inspection since they are expected to spend money wisely. E) None of these alternatives is true.

USA.gov is a: A) central source that provides marketers key information related to business of government agencies. B) platform exclusively designed to compare the revenue system of the United States with other countries. C) portal providing information on the prices of luxury goods in the U.S. market. D) website maintained exclusively to provide organizational buyers a forum to voice their concerns about suppliers. E) platform that provides information on the prices of essential goods in the U.S. market.

FedBizOpps.gov is a forum that: A) provides resources to find business opportunities with the government to fit a firm's strategy. B) allows organizational buyers to voice their concerns about suppliers. C) allows organizational buyers to conduct an online vendor analysis approved by the government. D) provides information on the prices of essential goods in the U.S. market. E) provides information on the prices of luxury goods in the U.S. market.

In selling to government units, a supplier should do each of the following EXCEPT: A) learn the bidding methods of government units it is targeting. B) match marketing mixes to bid procedures. C) read about potential government target markets from various government publications. D) get permission from the government in a particular country to sell to that country. E) All of these should be done by suppliers.

In the context of business opportunities in the government market, the General Services Administration handles: A) vendor analysis for the core industries. B) vendor contracts for off-the-shelf goods and services. C) administrative tasks for small service customers. D) complaints filed against suppliers by organizational buyers.

This act, passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials. A) Corporate Responsibility for the New Millennium Act B) Racketeer Influenced and Corrupt Organization Act C) Ethics in Business Act D) Anti-Bribery Act E) Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act: A) allows small grease money payments if they are customary in the foreign country in which a firm is operating. B) applies to foreign firms or individuals who accept payments while in the U.S. C) prohibits U.S. firms from paying bribes to foreign officials. D) all of these alternatives about the Foreign Corrupt Practices Act are correct.

The _____ makes individual executives responsible for their company's financial disclosures. A) Sarbanes-Oxley Act B) Walsh Healey Act C) States Commemorative Coin Program Act D) Bank Secrecy Act E) National Capital Act