10 Questions for learning

(Analyzing Business Markets: Chapter 7)

Leeyhan Frank B. DizonSeptember 3, 2010

1. ______ decision-making process by which formal organizations establish the need to purchase products and services

A. Organizational Buying B. Straight RebuyC. Market BuyingD. OutsourcingE. Direct Purchasing

1. ______ decision-making process by which formal organizations establish the need to purchase products and services

A. Organizational Buying B. Straight RebuyC. Market BuyingD. OutsourcingE. Direct Purchasing

Concept:

• Organizational buying is the decision-making process by which formal organizations establish the need to purchase products and services and identify, evaluate and choose among alternative brands and suppliers.

• http://ch7businessmarkets.blogspot.com/

2. All are characteristics of Business Markets except

A. Fewer, Larger BuyersB. Direct and Indirect Purchasing SystemC. Inelastic DemandD. Fluctuating DemandE. Close supplier-customer relationships

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2. All are characteristics of Business Markets except

A. Fewer, Larger BuyersB. Direct and Indirect Purchasing SystemC. Inelastic DemandD. Fluctuating DemandE. Close supplier-customer relationships

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Concept:

• Slide number 3 from the reading materials

• “Characteristics of Business Markets”

3. The three types of buying situations are: straight rebuy, modified rebuy and ________

A. Original TaskB. Common TaskC. New TaskD. Buying TaskE. Purpose Task

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3. The three types of buying situations are: straight rebuy, modified rebuy and ________

A. Original TaskB. Common TaskC. New TaskD. Buying TaskE. Purpose Task

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Concept:

• Three types of buying situations are the (1) straight rebuy, (2) modified rebuy and (3) new task.

• http://ch7businessmarkets.blogspot.com/

4. Which of the following is true?

A. Business Markets have less geographically concentrated buyers.B. Suppliers must be prepared to adapt their offers to the special needs

and procedures which are found in institutional and government markets.

C. To improve effectiveness and efficiency, business suppliers and customers are focusing on one way to manage their business relationships.

D. Inelastic demand is one of the characteristics of a service market. E. Purchasing departments were perceived to occupy a high position in

the management hierarchy, in spite of often managing more than half the company’s costs.

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4. Which of the following is true?

A. Business Markets have less geographically concentrated buyers.B. Suppliers must be prepared to adapt their offers to the special

needs and procedures which are found in institutional and government markets.

C. To improve effectiveness and efficiency, business suppliers and customers are focusing on one way to manage their business relationships.

D. Inelastic demand is one of the characteristics of a service market. E. Purchasing departments were perceived to occupy a high position in

the management hierarchy, in spite of often managing more than half the company’s costs.

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Concept:

• Institutional & Government Markets consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies. Suppliers must be prepared to adapt their offers to the special needs and procedures found in institutional and government markets.

• http://ch7businessmarkets.blogspot.com/

5. __________________consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care.

A. Organizational MarketsB. Public and Private InstituitionsC. Service MarketsD. Suppliers and ConsumersE. Instituitional and Government Markets

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5. __________________consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care.

A. Organizational MarketsB. Public and Private InstituitionsC. Service MarketsD. Suppliers and ConsumersE. Instituitional and Government

Markets

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Concept:

• Institutional & Government Markets consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies. Suppliers must be prepared to adapt their offers to the special needs and procedures found in institutional and government markets.

• http://ch7businessmarkets.blogspot.com/

6. When Whirlpool acquired the services of IBM to facilitate faster and more efficient inventory management, it is an

example of: A. Systems BuyingB. MergingC. Total Quality ManagementD. OutsourcingE. Straight Rebuy

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6. When Whirlpool acquired the services of IBM to facilitate faster and more efficient inventory management, it is an

example of: A. Systems BuyingB. MergingC. Total Quality ManagementD. OutsourcingE. Straight Rebuy

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Concept:

• Many business buyers prefer to buy a total solution to a problem from one seller. This is called systems buying.

• http://ch7businessmarkets.blogspot.com/

7. The first stage in the buying process

is usually called:

A. Observation of current marketB. General Description of the needC. Product and Supplier SpecificationD. Problem recognitionE. Probing and Identifying the need.

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7. The first stage in the buying process

is usually called:

A. Observation of current marketB. General Description of the needC. Product and Supplier SpecificationD. Problem recognitionE. Probing and Identifying the need.

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Concept:

• Stages in the buying process include: (1) problem recognition (2) general need description (3) product specification (4) supplier search (5) proposal solicitation (6) supplier selection (7) order-routine specification (8) performance review

• http://ch7businessmarkets.blogspot.com/

8. Systems buying is defined as:

A. Buyers improve the system by acquiring a new company with a better facility.

B. General merging of 2 partner companies for better system management.

C. Product and Supplier Relationship made better by new and advanced system

D. Outsourcing of new system from other parties. E. Buyers prefer to buy a total solution to a problem from

one seller

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8. Systems buying is defined as:

A. Buyers improve the system by acquiring a new company with a better facility.

B. General merging of 2 partner companies for better system management.

C. Product and Supplier Relationship made better by new and advanced system

D. Outsourcing of new system from other parties. E. Buyers prefer to buy a total solution to a

problem from one seller

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Concept:

• Many business buyers prefer to buy a total solution to a problem from one seller. This is called systems buying.

• http://ch7businessmarkets.blogspot.com/

9. Which of the following is false?

A. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies

B. Usually, performance review is an option when talking about the buying process.

C. Business Markets as compared with Consumer Markets have fewer, larger buyers.

D. Business marketers must form strong bonds and relationships with their customers and provide them added value.

E. Closer relationships are driven in part by supply chain management, early supplier involvement and purchasing alliances.

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9. Which of the following is false?

A. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies

B. Usually, performance review is an option when talking about the buying process.

C. Business Markets as compared with Consumer Markets have fewer, larger buyers.

D. Business marketers must form strong bonds and relationships with their customers and provide them added value.

E. Closer relationships are driven in part by supply chain management, early supplier involvement and purchasing alliances.

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Concept:

• Stages in the buying process include: (1) problem recognition (2) general need description (3) product specification (4) supplier search (5) proposal solicitation (6) supplier selection (7) order-routine specification (8) performance review

• http://ch7businessmarkets.blogspot.com/

10. Participants in the business buying process include: (1) initiators (2) users (3) influencers (4) deciders (5) approvers (6) buyers and (7)________ ?

A. StakeholdersB. Board of OfficersC. GatekeepersD. SuppliersE. Evaluators

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10. Participants in the business buying process include: (1) initiators (2) users (3) influencers (4) deciders (5) approvers (6) buyers and (7)________ ?

A. StakeholdersB. Board of OfficersC. GatekeepersD. SuppliersE. Evaluators

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Concept:

• Participants in the business buying process include: (1) initiators (2) users (3) influencers (4) deciders (5) approvers (6) buyers (7) gatekeepers

• http://ch7businessmarkets.blogspot.com/