Reference no: EM131140658

1. A new supplier is least likely to make a preliminary sale to a prospect involved in which of the following buying situations?
a. new task
b. modified rebuy
c. functional rebuy
d. straight rebuy
e. direct purchase

2. Ping Leung is a produce buyer for Hongxing, a large food supplier. He is buying apples, banana, pears and so on for producing soft drinks. He orders the same number and quality of these fruits as before but notices that his supplier's prices have increased slightly. Ping is conducting a .
a. straight rebuy
b. direct purchase
c. modified rebuy
d. new task buy
e. reciprocal buy

3. The is a situation in which the buyer wants to modify product specifications, prices, delivery requirements, or other terms.
a. straight rebuy
b. direct purchase
c. modified rebuy
d. new task buy
e. reciprocal buy

4. Ping Leung is a produce buyer for Hongxing, a large food supplier. He is buying apples, banana, pears and so on for producing soft drinks. He orders the same number and quality of these fruits as before but notices that his supplier's prices have increased slightly. If prices from his usual produce supplier continue to rise, you can expect Ping to engage in a .
a. straight rebuy
b. direct purchase
c. modified rebuy
d. new task buy
e. functional rebuy

5. Purchasing department personnel for a corporate farm would have the most influence when the organization is .
a. buying marketing materials for its booth at a national agricultural trade show
b. purchasing farm equipment for the firm's agricultural business unit
c. negotiating the performance specifications for new grain storage facilities
d. renewing its subscriptions to several trade journals
e. switching to a new vendor for satellite moisture reporting

6. Which of the following has the most influence in straight rebuy and modified rebuy situations in a multinational corporation?
a. finance department
b. purchasing agents
c. administrative personnel
d. engineering department
e. production managers

7. The is a buying situation in which a purchaser buys a product or service for the first time.
a. straight rebuy
b. direct purchase
c. modified rebuy
d. new task buy
e. functional rebuy

8. The Chens Corp. is a ground beef processing plant. Owners Dawei and Dashan Chen attended a trade show and saw a meat grinding machine that operates at a capacity of 9,000 pounds per hour and requires only one employee. Until the show, the brothers had no idea such a product existed. As far as they have learned only one company is manufacturing such a machine. They have calculated that such a machine could save
them up to ¥250 a day in labor costs. They have contacted the company to learn more about the ¥100,000 grinder. The Chen brothers are engaged in a .
a. straight rebuy
b. direct purchase
c. modified rebuy
d. new task buy
e. functional rebuy

9. Advertising usually has its greatest impact at the stage of new-task buying.
a. awareness
b. interest
c. trial
d. evaluation
e. adoption

10. Salespeople usually have their greatest impact at the stage of new-task buying.
a. awareness
b. interest
c. trial
d. evaluation
e. adoption

11. is(are) where a single supplier provides the buyer with all required maintenance, repair, and operating supplies, resulting in lower costs to the buyer.
a. Missionary sales
b. A turnkey solution
c. Project engineering
d. Systems contracting
e. Prime contracting

12. The is composed of "all those individuals and groups who participate in the purchasing decision-making process, who share some common goals and the risks arising from the decisions."
a. buying center
b. initiating team
c. purchasing division
d. engineering division
e. influencing center

13. In the buying center, are people who request that something be purchased, including users or others.
a. initiators
b. influencers
c. deciders
d. approvers
e. gatekeepers

14. Office manager Billie has signatory authority for organizational purchases under

$2,500. She delegates the task of finding five new acceptable fax machines to a trusted subordinate, Jules. If Billie does not involve herself further in the buying process, other than to sign off on what Jules presents to her, her role is limited to that of .
a. gatekeeper
b. decider
c. influencer
d. approver
e. user

15. Erin's secretary developed a file of visiting salespeople, but only allowed a few to actually have time on Erin's calendar. Erin is frequently charged with buying expensive office equipment as part of her job. Erin's secretary is playing what role in the business buying process?
a. Initiator.
b. User.
c. Decider.
d. Approver.
e. Gatekeeper.

16. Which of the following best describes the buying center role in which people have the power to prevent sellers or information from reaching members of the buying center?
a. Initiators.
b. Influencers.
c. Deciders.
d. Approvers.
e. Gatekeepers.

17. The owner of a mulch plant is planning to purchase a $41,000 trailer for hauling bulk product to a distribution company where the mulch will be packaged into 2 cubic feet bags, and sold at gardening supply stores. The operator of the distribution company would probably assume the roles of in the buying center.
a. user and gatekeeper
b. approver and influencer
c. initiator, gatekeeper, and decider
d. decider, user, and influencer
e. influencer and gatekeeper

18. With the help of the yard operations manager, the owner of Yuanfan Logistics is planning on buying a sophisticated loader to move merchandise from trucks onto rail cars. It will be replacing an obsolete piece of equipment which the yard operations manager describes as hard to operate and potentially dangerous. In terms of the buying center, the yard operations manager who will be responsible for the overseeing the employees who operate and maintain the dumper has the roles of .
a. gatekeeper and decider
b. influencer, user, and approver
c. buyer, influencer, initiator, and gatekeeper
d. decider, user, and buyer
e. initiator, influencer, and decider

19. Which of the following is LEAST likely to be a useful question to ask when considering selling to industrial customers who are of a culture other than one's own?
a. What is their preferred mode of business communication?
b. How do they perceive time?
c. In what time zone is their headquarters?
d. How do they make decisions?
e. Do they value consensus?

20. Because Dante is new at her job as company buyer, she is very cautious in her buying decisions even when engaged in straight rebuys. influences have the greatest effect on Dante as she performs her job.
a. Environmental
b. Interpersonal
c. Organizational
d. Individual
e. Cultural

21. Which of the following is NOT an example of an organizational influence that might affect the purchasing agent for a multinational conglomerate?
a. Many of the tasks formerly done by the purchasing agent are now being performed by a centralized purchasing department.
b. The conglomerate has adopted just-in-time production in two of its divisions.
c. The purchasing agent has a "want-the-best" attitude when it comes to buying component parts.
d. The organization is negotiating more long-term contracts than in previous years.
e. The company is doing much of its purchasing through the Internet.

22. For the type of business customer, low prices are desired, but they will respond to arguments about lower cost or more dependable supply and/or service.
a. price-oriented
b. solution-oriented
c. silver-standard
d. gold standard
e. strategic-value

23. The gardener in charge of maintaining the beautiful grounds at an amusement park was strolling through the park looking at the flowers and bushes from a guest's perspective when he noticed some Japanese beetles flying around. He made a mental note to himself that he had to order some Japanese beetle traps when he got back to the office. This is an example of which of the steps in the purchase/procurement process?
a. problem recognition
b. general need description
c. product specification

d. supplier selection
e. supplier search

24. Which of the following is NOT a major part of the product specification process?
a. Determining the item's general characteristics.
b. Setting desired quantities.
c. Mandating terms for delivery.
d. Defining quality levels.
e. Defining pricing.

25. Which of the following buy phases would definitely be included in a modified rebuy situation?
a. Problem recognition.
b. General need description.
c. Supplier selection.
d. Supplier search.
e. Product specification.

26. The routine placing of the twice-weekly order to restock a commercial kitchen's freezer with meats, poultry, frozen juices, and fresh-frozen "pre-mades" like dumplings, definitely includes which of the following stages in the business buying process?
a. Problem recognition.
b. General need description.
c. Order-routine specification.
d. Supplier search.
e. Product specification.

27. is an approach to cost reduction in which components are carefully studied to determine if they can be redesigned or standardized or made by cheaper methods of production.
a. Product value analysis
b. Customer cost analysis
c. Total quality management
d. Product reengineering
e. Marketing research

28. A product value analysis is conducted at the step of the procurement process.
a. problem recognition
b. general need description
c. product specification
d. supplier search
e. proposal solicitation

29. An online retailer of outdoor equipment was looking for some help with its Web site maintenance so as to be more user-friendly and convenient. The owner consulted to a

name list of computer service providers and asked several of her colleagues for recommendations. She is in the phase of business buying.
a. problem recognition
b. general need description
c. product specification
d. supplier search
e. order-routine specification

30. The Guangming Textile Manufacturing Company is evaluating potential suppliers of zippers to be used in production of a line of children's outerwear. The company is concerned about the delivery reliability, price, and supplier reputation. Guangming is in the phase of the business buying process.
a. supplier selection
b. proposal solicitation
c. product specification
d. performance review
e. order-routine specification

31. Happy Gifts store sells birthday cards and gifts year-round. The primary source for its domestic and foreign gifts is Festival Supply, but Happy Gifts also buys some ornaments from Aobao Global and from Xinghui Distributors. Both of the distributors continue to try to price their merchandise at prices lower than those of Festival Supply because Aobao and Xinghui Distributors are both:
a. outsuppliers.
b. outsourcing agents.
c. second-tier suppliers.
d. value-added suppliers.
e. subordinate suppliers.

32. As Rikka and the salesperson talked, they agreed Rikka would buy six pallets of world flags, four 12-foot sections of display shelving, and two gross of super-hero, bobble-head dolls for Rikka's arts and crafts supply store. In addition, the salesperson agreed to have the items delivered in ten working days and give Rikka an 8-percent discount. Rikka and the salesperson are engaged in which phase of the procurement process?
a. Supplier selection.
b. Proposal solicitation.
c. Product specification.
d. Performance review.
e. Order-routine specification.

33. A blanket purchase contract leads to .
a. buyers being less dependent upon any given supplier
b. the rebuy process being upgraded to a new task buy each time there's a reorder
c. the supplier maintaining the inventory
d. systems selling
e. multiple sourcing

34. A(n) establishes a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed-upon prices over a specified period.
a. blanket contract
b. specialized contract
c. over-run contract
d. purchase order contract
e. superior order contract

35. A company can review the performance of a supplier by .
a. using a buyflow map
b. developing a supplier-attribute positioning map
c. using financial data from Dun and Bradstreet
d. aggregating the cost of poor performance to come up with an adjusted cost of purchase, including price using any of the above methods