In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder.

A) consumer packaged-goods companies
B) government organizations
C) health services vendors
D) educational institutions
E) households


Answer: B

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

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

A) vertical
B) nonprofit
C) spot
D) secondary business
E) institutional


Answer: E

The type of buyer-supplier relationship in which buyers and sellers make many relationship-specific adaptations, but without necessarily achieving strong trust or cooperation is termed as ________.

The type of buyer-supplier relationship in which buyers and sellers make many relationship-specific adaptations, but without necessarily achieving strong trust or cooperation is termed as ________.

A) customer is king
B) mutually adaptive
C) collaborative
D) contractual transaction
E) customer supply


Answer: B

In the ________ category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange.

In the ________ category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange.

A) contractual transaction
B) cooperative system
C) collaborative
D) mutually adaptive
E) customer is king


Answer: E

The relationship between a company and its office supplies vendor where competition rather than cooperation is the dominant form of governance is probably best described as ________.

The relationship between a company and its office supplies vendor where competition rather than cooperation is the dominant form of governance is probably best described as ________.

A) basic buying and selling
B) contractual transaction
C) collaborative
D) customer supply
E) customer is king


Answer: D

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________. 

A) basic buying and selling
B) contractual transaction
C) collaborative
D) customer supply
E) customer is king


Answer: C

The partners in ________ systems are united in operational ways, but neither demonstrates structural commitment through legal means or adaptation.

The partners in ________ systems are united in operational ways, but neither demonstrates structural commitment through legal means or adaptation. 

A) mutually adaptive
B) collaborative
C) basic buying and selling
D) customer supply
E) cooperative


Answer: B

Which of the following relationships is characterized by much trust and commitment leading to a true partnership?

Which of the following relationships is characterized by much trust and commitment leading to a true partnership?

A) mutually adaptive
B) collaborative
C) basic buying and selling
D) customer supply
E) cooperative systems


Answer: B

In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance.

In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance.

A) basic buying and selling
B) bare bones
C) contractual transaction
D) customer supply
E) collaborative


Answer: D

A ________ establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time.

A ________ establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time.

A) stockless purchase plan
B) direct stock purchase plan
C) defined contribution plan
D) stock purchase plan
E) share purchase plan


Answer: A

Praxair Limited is a supplier of synthetic graphite to a number of electrode manufacturers in the U.S. Its customers have shifted their ordering responsibilities to Praxair and the company regularly monitors its customer's inventory levels and has taken responsibility for replenishing the supplies automatically through continuous replenishment programs. Which of the following systems do Praxair and its customers follow with respect to order-routine specification?

Praxair Limited is a supplier of synthetic graphite to a number of electrode manufacturers in the U.S. Its customers have shifted their ordering responsibilities to Praxair and the company regularly monitors its customer's inventory levels and has taken responsibility for replenishing the supplies automatically through continuous replenishment programs. Which of the following systems do Praxair and its customers follow with respect to order-routine specification?

A) Supplier Added Value Effort ($AVE)
B) Vendor Managed Inventory (VMI)
C) Direct Concentrated Buying (DCB)
D) Supplier Performance Management (SPM)
E) Product Value Analysis (PVA)


Answer: B

In the ________ method for assessing customer value, customers are asked how costs of using a new product compare to those of using an incumbent.

In the ________ method for assessing customer value, customers are asked how costs of using a new product compare to those of using an incumbent.

A) direct survey
B) importance ratings
C) field value-in-use assessment
D) benchmarking
E) conjoint analysis


Answer: C

The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute. The value of a given configuration is determined by adding the average values of each of the given attributes.

The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute. The value of a given configuration is determined by adding the average values of each of the given attributes. 

A) benchmarking
B) compositional
C) importance rating
D) focus-group
E) conjoint analysis


Answer: B

On an online ________ , prices change by the minute.

On an online ________ , prices change by the minute.

A) buying alliance
B) barter market
C) systems seller
D) spot market
E) catalog site


Answer: D

Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers. Plastics.com is an example of a(n) ________.

Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers. Plastics.com is an example of a(n) ________.

A) buying alliance
B) barter market
C) systems seller
D) vertical market
E) auction site


Answer: D

With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, P&G, and several other companies joined forces to form a ________ called Transora to use their combined leverage to obtain lower prices for raw materials.

With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, P&G, and several other companies joined forces to form a ________ called Transora to use their combined leverage to obtain lower prices for raw materials.

A) manufacturer's co-op
B) supplier's co-op
C) middleman group
D) buying alliance
E) buying cabal


Answer: D

Business marketers can stimulate problem recognition by ________.

Business marketers can stimulate problem recognition by ________.

A) ensuring a presence in trade directories
B) direct mail, telemarketing, and calling on prospects
C) encouraging the Better Business Bureau to release statistics
D) using consumer advertising
E) conducting surveys of existing customers


Answer: B

Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier. These situations spur the ________ stage.

Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier. These situations spur the ________ stage.

A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review


Answer: A

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage.

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage.

A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review


Answer: E

A new-task buyclass decision begins with which of the following steps?

A new-task buyclass decision begins with which of the following steps?

A) supplier search
B) general need description
C) product specification
D) problem recognition
E) proposal solicitation


Answer: D