Professional Documents
Culture Documents
Test Item Table by Major Section of the Chapter and Bloom’s Level of Learning
Online Buying in 240, 241, 242, 243, 238, 239, 244, 245, 246, 247, 250
Organizational 251, 253, 254, 259, 260 248, 249, 252, 255, 256, 257,
Markets 283 258, 261, 262, 263, 264, 265, 266
(pp. 153-155) 282
Video Case 6: Trek 267, 268, 269, 270
(pp. 157-159)
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
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Chapter 06 - Master Test Bank
LO 6-4 Recognize the 240, 241, 242, 243, 238, 239, 244, 245, 246, 250
importance and 251, 253, 254, 259, 247, 248, 249, 252, 253,
nature of online 260 255, 256, 257, 258, 261,
buying in 283 262, 263, 264, 265, 266
industrial, reseller, 282
and government
organizational
markets.
(pp. 116-118)
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
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Chapter 06 - Master Test Bank
According to the textbook, JCPenney buys paper for which of the following medium(a)?
a. in-store signage
b. special advertising inserts in magazines such as Cosmopolitan
c. newspaper inserts and direct mail pieces
d. annual and 10K reports
e. point-of-purchase displays
The size and number of JCPenney direct mail pieces like catalogs that are designed and mailed to
consumers would determine how much paper JCPenney needs to buy. This is an example of
__________.
a. derived demand
b. reciprocity
c. a tying agreement
d. derived supply
e. elastic supply
When JCPenney buys paper, it considers suppliers’ forest management and other sustainability
practices. For JCPenney, these are important
a. profit responsibilities.
b. organizational buying criteria.
c. ecological mandates.
d. legal authorities.
e. buying center roles.
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Rationale: Organizational buying criteria are the objective attributes of the supplier’s products
and services and the capabilities of the supplier itself. These criteria serve the same purpose as
the evaluative criteria used by consumers and described in Chapter 5.
Kim Nagele, the senior sourcing manager at JCPenney, purchases tons of publication paper
annually at a cost of hundreds of millions of dollars. As described and inferred in the textbook,
Mr. Nagele performs all of the following roles in the JCPenney buying center EXCEPT:
a. user
b. gatekeeper
c. influencer
d. buyer
e. decider
JCPenney looks at several capabilities when selecting a paper supplier. These organizational
buying criteria include on-time delivery, the availability, quality and quantity of selected grades
of paper, the firm’s forestry management and sustainable practices, and price. This examination
would be done during the __________ stage of the organizational buying decision process.
a. procurement analysis
b. break-even analysis
c. purchase decision
d. information search
e. alternative evaluation
Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for
their own use or for resale are referred to as
a. multinational buyers.
b. resellers.
c. organizational buyers.
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Chapter 06 - Master Test Bank
d. ultimate consumers.
e. institutional buyers.
Which of the following organizational buyers purchases raw materials and parts to reprocess into
the finished goods they sell?
a. retailers
b. wholesalers
c. agents
d. manufacturers
e. ultimate consumers
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Rationale: Manufacturers buy raw materials and parts that they reprocess into the finished
products they sell. Wholesalers and retailers resell finished products without reprocessing them.
Manufacturers’ agents sell the finished products for manufacturers without taking title to the
goods. Ultimate consumers are the final users of the goods and services.
Organizational buyers can be divided into three different markets, which are
a. industrial, wholesaler, and retailer.
b. industrial, retailer, and government.
c. retailer, manufacturer, and government.
d. industrial, government, and ultimate consumer.
e. industrial, reseller, and government.
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Rationale: Organizational buyers are divided into three different markets: (1) industrial, (2)
reseller, and (3) government.
An industrial firm
a. is one that is independently owned and takes title to the merchandise it sells.
b. buys physical goods and resells them again without any reprocessing.
c. deals exclusively with federal, state, and local governments.
d. in some way reprocesses a product or service it buys before selling it again to the next buyer.
e. only produces a product, not a service.
A firm that reprocesses a product or service it buys before selling the product again to the next
buyer is referred to as a(n)
a. industrial firm.
b. reseller firm.
c. government agency.
d. wholesaler.
e. retailer.
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Mining companies, farms, financial services, and fisheries are all examples of
a. consumer markets.
b. cooperative markets.
c. reseller markets.
d. industrial markets.
e. government markets.
The services market sells diverse services such as legal advice, auto repair, and dry cleaning.
Along with __________, insurance, and real estate businesses, and transportation, communication
and public utility firms, and not for profit, these firms represent about 75 percent of all industrial
firms.
a. finance
b. wholesalers
c. retailers
d. government units
e. educational institutions
The services market sells diverse services such as legal advice, auto repair, and dry cleaning.
Along with finance, insurance, real estate businesses, and __________, communication and
public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent
of all industrial firms.
a. wholesalers
b. transportation
c. retailers
d. government units
e. educational institutions
The services market sells diverse services such as legal advice, auto repair, and dry cleaning;
along with finance, insurance, and real estate businesses, and transportation, __________ and
public utility firms, and not-for-profit organizations, these firms represent about 75 percent of all
industrial firms.
a. wholesaling
b. retailing
c. government units
d. communication
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e. manufacturing
Archer Daniels Midland Co. (ADM) is the world’s largest cocoa-bean processor. It buys cocoa
beans and converts them into cocoa powder and cocoa butter, which it then sells to companies
like Hershey’s that manufacture consumer products containing chocolate. ADM is operating in
a(n) __________ market.
a. consumer
b. government
c. service
d. reseller
e. industrial
Mile High Frozen Foods is a distributor for McDonalds. It also bakes the buns used by
McDonalds in several states. It purchases flour, yeast, and sesame seeds, manufactures the buns,
and then ships them to McDonalds’ stores. Mile High Frozen Foods is operating in a(n)
__________ market.
a. consumer
b. government
c. industrial
d. service
e. reseller
Keystone Foods, which invented the individual quick freeze process for beef, provides
McDonald’s with millions of pounds of chicken, beef, and fish annually for use in its restaurants.
The firm sources the animal proteins from farms and processes them in a variety of ways, such as
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Chapter 06 - Master Test Bank
breading or freezing, before selling them to McDonald’s. Keystone is operating in a(n)
__________ market.
a. consumer
b. government
c. service
d. industrial
e. reseller
Graham-Field Health Products makes hospital beds and wheelchairs from the component parts
and materials it buys. It sells these manufactured products to hospitals, nursing homes, and
retailers of health care products. Graham-Field Health Products operates in a(n) __________
market.
a. consumer
b. government
c. service
d. industrial
e. reseller
Wholesalers and retailers that buy physical products and resell them without any reprocessing are
referred to as
a. industrial firms.
b. reseller firms.
c. government agencies.
d. consumer product firms.
e. nonprofit firms.
European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several
high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to
furniture stores throughout the U.S. In this context, ESF is MOST LIKELY classified as a
a. producer.
b. reseller.
c. service provider.
d. government agency.
e. industrial firm.
Itex Corporation, a marketer of Photostat products used in the graphic arts field, buys photo
sensitized paper from Eastman Kodak Company, packages it with the Photostat brand name, and
sells it directly to amateur photographers. In this context, Itex Corporation is MOST LIKELY
classified as a
a. manufacturer.
b. reseller.
c. service provider.
d. government agency.
e. industrial firm.
Apex Therapeutic buys medical supplies and services from a variety of suppliers for people with
hemophilia and other related blood diseases. When Apex sells directly to a person who is a
hemophiliac, it would MOST LIKELY be classified as a(n) __________.
a. industrial service provider
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Chapter 06 - Master Test Bank
b. healthcare manufacturer.
c. reseller
d. industrial firm
e. government agency
Liberty Medical Supply is a home delivery service that sells diabetes testing supplies, prescription
drugs, and other supplies directly to consumers to assist them in the management of their health-
related conditions. Since Liberty Medical does not make any changes to the supplies that it
obtains from manufacturers, it would MOST LIKELY be classified as a(n) __________.
a. industrial service provider
b. health care manufacturer
c. industrial firm
d. reseller
e. government agency
In terms of organizational buyers, Amazon.com, Lands’ End, and JCPenney would MOST
LIKELY classified as __________.
a. government units
b. resellers
c. manufacturers
d. wholesalers
e. industrial firms
Federal, state, and local agencies that buy products and services for the constituents they serve are
referred to as
a. industrial markets.
b. reseller markets.
c. consumer markets.
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Chapter 06 - Master Test Bank
d. government units.
e. global markets.
When Louisiana State University buys new laptops for its faculty, it is operating as a(n)
a. industrial market.
b. business market.
c. government unit.
d. consumer market.
e. service provider.
When the Federal Aviation Administration (FAA) purchases radars for 22 major air traffic
control centers in the U.S., it is operating as a(n)
a. government unit.
b. industrial market.
c. business market.
d. consumer market.
e. service provider.
When the General Services Administration (GSA), an agency of the federal government,
purchased 116 Chevy Volts from General Motors for its vehicle fleet, it was operating as a(n)
a. industrial market.
b. business market.
c. consumer market.
d. government unit.
e. service provider.
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Chapter 06 - Master Test Bank
6-41 GOVERNMENT MARKETS APPLICATION
The City of Denver contracts with Solid Waste Management to provide trash collection services
for its citizens. The city is operating as a(n)
a. government unit.
b. industrial market.
c. business market.
d. consumer market.
e. service provider.
International trade statistics indicate the largest exporting industries in the United States focus on
__________.
a. ultimate consumers
b. organizational buyers
c. governmental agencies
d. domestic consumers
e. foreign consumers
U.S.-based Pratt & Whitney sells aircraft engines to Europe’s Airbus S.A.S., which in turn sells
passenger airplanes to Japan Airlines that flies businesspeople around the world. This is an
example of
a. the product life cycle.
b. reseller dynamics.
c. a global organizational market.
d. ISO 9000.
e. the business cycle.
Amtrak, the U.S. passenger train service, purchases train cars from Siemens, a German
manufacturing company. This purchase is an example of
a. the product life cycle.
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Chapter 06 - Master Test Bank
b. global organizational markets.
c. market dynamics.
d. reciprocity.
e. supplier development.
The system that provides common industry definitions for Canada, Mexico, and the United
States, which makes it easier to measure economic activity in the three member countries of the
North American Free Trade Agreement (NAFTA), is referred to as the
a. Standard Industrial Code System (SICS).
b. United Nations Central Product Classification System (UNCPCS).
c. National Codes of Industry System (NCIS).
d. North American Industry Classification System (NAICS).
e. Federal System of International Organizations (FSIO).
The North American Industry Classification System (NAICS) provides common industry
definitions to facilitate the measurement of economic activity for the member countries of the
a. European Union (EU).
b. United Nations (UN).
c. North American Free Trade Agreement (NAFTA).
d. North Atlantic Treaty Organization (NATO).
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e. World Trade Organization (WTO).
NAICS Logo
The NAICS, whose logo is shown above, provides common industry definitions for
a. Canada, England, and the United States.
b. North America, Asia, and Europe.
c. North America, Central America, and South America.
d. Canada, England, Australia.
e. Canada, Mexico, and the United States.
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The NAICS is consistent with the International Standard Industrial Classification of All
Economic Activities, which is published by the __________ to facilitate measurement of global
economic activity.
a. United Nations (UN)
b. European Union (EU)
c. International Standards Organization (ISO)
d. North American Free Trade Agreement (NAFTA)
e. North American Product Classification System (NAPCS)
Which of the following statements about the North American Industry Classification System
(NAICS) is MOST ACCURATE?
a. After being used for more than 50 years, the NAICS was replaced by the Standard Industrial
Classification (SIC) system.
b. The NAICS permits comparability across countries but does not accurately measure new or
emerging industries.
c. One drawback to the NAICS is that its industry classifications are inconsistent with the
International Standards Organization (ISO).
d. The NAICS groups economic activity to permit studies of market share, demand for goods
and services, import competition in domestic markets, and similar studies.
e. The NAICS is a five-digit code that allows comparison of industries even when information
is limited.
The North American Industry Classification System (NAICS) system designates industries with a
numerical code in a defined structure. A six-digit coding system is used. The first two digits
designate a(n)
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Chapter 06 - Master Test Bank
a. subsector of the economy.
b. industry group.
c. specific industry.
d. individual country-level national industry.
e. sector of the economy.
The North American Industry Classification System (NAICS) system designates industries with a
numerical code in a defined structure. A six-digit coding system is used. The third digit
designates a(n)
a. industry subsector.
b. industry group.
c. specific industry.
d. individual country-level national industry.
e. sector of the economy.
The North American Industry Classification System (NAICS) system designates industries with a
numerical code in a defined structure. A six-digit coding system is used. The fourth digit
designates a(n)
a. industry subsector.
b. industry group.
c. specific industry.
d. individual country-level national industry.
e. sector of the economy.
6-20
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Chapter 06 - Master Test Bank
The North American Industry Classification System (NAICS) system designates industries with a
numerical code in a defined structure. A six-digit coding system is used. The fifth digit
designates a(n)
a. industry subsector.
b. industry group.
c. specific industry.
d. individual country-level national industry.
e. sector of the economy.
The North American Industry Classification System (NAICS) system designates industries with a
numerical code in a defined structure. A six-digit coding system is used. The sixth digit
designates a(n)
a. industry subsector.
b. industry group.
c. specific industry.
d. individual country-level national industry.
e. sector of the economy.
Figure 6-1
Based on Figure 6-1 above, what is the MOST LIKELY industry sector represented by NAICS
code 51?
a. manufacturing
b. fisheries
c. information
d. publishing
e. retailing
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Chapter 06 - Master Test Bank
Based on Figure 6-1 above, what is the NAICS code for cable and other subscription
programming?
a. 511
b. 5152
c. 51512
d. 51520
e. 511515
In the breakdown for the NAICS code based on Figure 6-1 above, “A” represents the
a. two-digit industry sector code.
b. three-digit industry subsector code.
c. four-digit industry group code.
d. five-digit industry code.
e. six-digit U.S. national industry code.
In the breakdown for the NAICS code based on Figure 6-1 above, “B” represents the
a. two-digit industry sector code.
b. three-digit industry subsector code.
c. four-digit industry group code.
d. five-digit industry code.
e. six-digit U.S. national industry code.
In the breakdown for the NAICS code based on Figure 6-1 above, “C” represents the
a. two-digit industry sector code.
b. three-digit industry subsector code.
c. four-digit industry group code.
d. five-digit industry code.
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e. six-digit U.S. national industry code.
In the breakdown for the NAICS code based on Figure 6-1 above, “D” represents the
a. two-digit industry sector code.
b. three-digit industry subsector code.
c. four-digit industry group code.
d. five-digit industry code.
e. six-digit U.S. national industry code.
Unfortunately, the NAICS system will not allow marketing managers to gather information about
a. import competition in domestic markets.
b. geographic distribution of industries.
c. market share in a pure competition environment.
d. demand for products and services.
e. data on industries that are oligopolies.
You are the research director of a major marketing research consulting firm. You need to select
an NAICS code that gives you the most detail about the competitors in a client’s industry, which
operate in Canada, Mexico, and the U.S. Which of the following levels of classification would
provide the greatest detail about the firms within this industry?
a. Code 51
b. Code 517
c. Code 5172
d. Code 51721
e. Code 517212
How might a marketing manager for a manufacturer of turboprop engines, used in private jet
planes, use the NAICS to help her with marketing planning?
a. Record the NAICS numbers for each of her firm’s best customers and then obtain lists of
companies with the same NAICS numbers.
b. Go to a library and find the NAICS numbers for all government units—federal, state, and
local.
c. Identify all NAICS numbers that reflect the classifications of her firm’s customers and
compare them to previous SIC codes.
d. Poll her field sales organization to see if her company’s sales representatives know what
NAICS numbers mean.
e. Forgo using the NAICS system because it has recently been replaced by the SIC system,
which is more useful in this scenario.
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Chapter 06 - Master Test Bank
d. Purchase orders much more frequent but they are usually small.
e. Forecasting is not as important in organizational buying as in consumer buying.
Important buying process characteristics in organizational buying behavior include which of the
following?
a. Few large transactions are made over the Internet due to concerns of industrial espionage.
b. Negotiations, purchases, and delivery occur in real time at an accelerated rate.
c. There are often reciprocal arrangements and negotiations between buyers and sellers.
d. Most purchases are made through government-licensed negotiators.
e. Direct selling to organizational buyers is rare because it is cost-prohibitive.
Which of the following statements about marketing mix characteristics in organizational buying
behavior is MOST ACCURATE?
a. Few large transactions are made over the Internet.
b. The actual buyer retains all of the influence in the buying decision.
c. Advertising is very simplistic in nature.
d. Direct selling to organizational buyers is the rule.
e. Only finished goods are sold in this way.
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The demand for industrial products and services that is driven by demand for consumer products
and services is referred to as
a. derivative marketing.
b. derived demand.
c. derived supply.
d. demand elasticity.
e. sequential demand.
Derived demand means the demand for industrial products and services is driven by, or derived
from, the
a. NAICS statistical models.
b. gross national product.
c. demand for consumer products and services.
d. demand for other industrial products and services.
e. demand for government products and services.
During late summer and early fall, there is a large demand for containers located in Asia that are
used to ship consumer products from Asia to the United States in time for the holiday selling
season. The demand for these containers is referred to as __________ demand.
a. unitized
b. derived
c. reseller
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Chapter 06 - Master Test Bank
d. applied
e. implied
Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still,
demand for its products often depends on rates of air travel among consumers. Demand for
Airbus products is referred to as __________ demand.
a. unitized
b. reseller
c. applied
d. implied
e. derived
Spruceland Millworks in Canada makes wooden pallets for transporting and storing new
appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would
be classified as
a. reactive demand, which is tied to the sales of appliances, not the sale of the pallets.
b. unitary demand, which is tied to the sales of appliances.
c. derived demand, which is tied to the sales of appliances.
d. inelastic demand, which is tied to the cost of the components of the pallets.
e. elastic demand, which is tied to the cost of the components of the pallets.
Concert Staging Company provides the stage, the roof system, and the lighting and sound for
outdoor concerts and theatrical events. The firm is typically hired by the organization sponsoring
the event. When the economy slows down, consumers are more likely to save their money for a
rainy day rather than buy a concert or theater ticket. The number of concert and theater events
determines how many times the company is hired to provide its services. Demand for the
services provided by Concert Staging Company is a result of __________ demand.
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Chapter 06 - Master Test Bank
a. derived
b. unitized
c. industrial
d. applied
e. reseller
Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste
would be an example of __________ demand.
a. applied
b. unitized
c. industrial
d. derived
e. consumer
South Cape Ostrich Tanning (SCOT) is a producer of fine ostrich leathers, which are sold to
manufacturers that make a variety of products from shoes to car interiors. Demand for SCOT’s
leather is a result of consumer interest in products like Via La Moda handbags made from this
exotic and expensive leather. SCOT has __________ demand for its product.
a. derived
b. unitized
c. industrial
d. applied
e. reseller
Swiss specialty chemical company Ciba is the primary producer of the chemical triclosan, the
antibacterial agent in many household products like liquid soap. Consumers may have heard
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Chapter 06 - Master Test Bank
about research suggesting environmental and health risks associated with the cumulative effects
of antibacterial agents. Changing consumer purchases provide an example of __________
demand for Ciba’s triclosan product.
a. applied
b. unitized
c. industrial
d. derived
e. consumer
If there is a prolonged downturn in U.S. passenger air travel, a number of U.S. airlines would
very likely cancel some of their orders for new planes from Boeing and Airbus, among other
manufacturers. The relationship between passenger air travel and the demand for new planes is
referred to as
a. ultimate consumer demand.
b. derived demand.
c. manufacturer demand.
d. reseller demand.
e. the price-inelasticity of demand.
Because orders in organizational buying are typically much larger than in consumer buying,
buyers must often __________ when the order is above a specific amount, such as $5,000.
a. pay estimated sales taxes in advance
b. move up the time required to execute a purchase agreement
c. get competitive bids from at least three prospective suppliers
d. forgo the purchase because senior management is unlikely to approve it
e. forgo identifying the members of the supplying center and their roles in the selling process
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All of the following statements about the size of the purchase involved in organizational buying
are true EXCEPT:
a. the length of time required to arrive at a purchase agreement can vary.
b. the dollar value of a single purchase made by an organization often runs into thousands or
millions of dollars.
c. it impacts who participates in the purchase decision.
d. it impacts who makes the final decision.
e. the size of the purchase involved in organizational buying is occasionally much larger than
that in consumer buying.
Firms selling consumer products or services often try to reach thousands or millions of
individuals or households. Firms selling to organizations
a. try to reach tens of millions of wholesalers, retailers, and government units.
b. are restricted to far fewer buyers.
c. hope to obtain similar numbers of business customers, or even more.
d. do not have customers, per se.
e. simultaneously purchase from organizational buyers and ultimate consumers.
An organization buys products and services for one main reason, which is to
a. achieve its own objectives.
b. beat its competitors.
c. satisfy the needs of its suppliers.
d. employ people.
e. maintain inventory.
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The primary organizational buying objective for business firms is to
a. create an atmosphere of inclusiveness.
b. help smaller companies stay in business.
c. increase the proficiency of its buyers.
d. help the firm achieve its objectives.
e. balance inventory.
The primary objective for nonprofit firms and government agencies is usually to
a. meet the needs of the groups they serve.
b. increase profits through reducing costs.
c. increase profits through increasing revenues.
d. maintain profits through reducing costs and increasing revenues.
e. reduce profits through reducing costs and reducing revenues.
The American Red Cross provides disaster relief, among many other services. As a nonprofit
organization, its primary objective is to __________.
a. increase profits through reducing costs
b. increase profits through increasing donations.
c. diversify its services mix to survive the continued economic downturn.
d. meet the needs of the groups they serve.
e. maintain profits through reducing costs and increasing donations.
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Chapter 06 - Master Test Bank
Answer: d Page(s): 144 LO: 6-2 AACSB: Diversity QD: Hard
Rationale: The objectives of nonprofit firms are usually to meet the needs of the groups they
serve.
The primary reason companies have placed an emphasis on buying from minority- and women-
owned suppliers and vendors is because
a. new federal government regulations require it.
b. they can help a firm meet or exceed its objectives in sales, profits, or customer satisfaction.
c. it is the socially responsible thing to do.
d. it can attract new target markets.
e. these companies will work harder for less money.
The objective attributes of the supplier’s products and services and the capabilities of the supplier
itself are collectively referred to as
a. the supplier consideration set.
b. derived demand factors.
c. evaluative criteria.
d. performance metrics.
e. organizational buying criteria.
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Chapter 06 - Master Test Bank
6-97 ORGANIZATIONAL BUYING CRITERIA KNOWLEDGE
Organizational buying criteria serve the same purpose as __________ criteria used by consumers.
a. consideration
b. evaluative
c. decision
d. alternative
e. prepurchase
There are seven commonly used organizational buying criteria. One of them is __________.
a. price
b. loyalty
c. flexibility
d. adaptability
e. consumer demand
There are seven commonly used organizational buying criteria. One of them is __________.
a. flexibility
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Education.
Chapter 06 - Master Test Bank
b. ability to meet the quality specifications required for the item
c. adherence to government regulation
d. senior management directives
e. consumer demand
There are seven commonly used organizational buying criteria. One of them is __________.
a. adaptability
b. consumer demand
c. ability to meet required delivery schedules
d. senior management directives
e. adherence to corporate social responsibility policies
There are seven commonly used organizational buying criteria. One of them is __________.
a. consumer demand
b. longevity
c. promotional incentives
d. technical capability
e. senior management directives
There are seven commonly used organizational buying criteria. One of them is __________.
a. consumer demand
b. promotional incentives
c. longevity
d. senior management directives
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Chapter 06 - Master Test Bank
e. warranties and claim policies
There are seven commonly used organizational buying criteria. One of them is __________.
a. adherence to governmental policies
b. regulatory support
c. past performance on previous contracts
d. consumer demand
e. senior management directives
To be a Walmart supplier, a firm must be able to deliver its products to its distribution centers
within a 16-minute window. If the driver arrives before or after the scheduled window, the
supplier will be turned away and fined. Walmart’s insistence on choosing a supplier based upon
its ability to provide on-time delivery is an example of a(n)
a. supplier value dimension.
b. derived demand factor.
c. evaluative criterion.
d. external performance measure.
e. organizational buying criterion.
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Chapter 06 - Master Test Bank
The standards for the registration and certification of a manufacturer’s quality management and
assurance system based on an on-site audit of practices and procedures developed by the
International Standards Organization are referred to as
a. ISO 14000.
b. ICC 9000.
c. IS0 9000.
d. UN Order 9000
e. NAICS Rule 2013
3M has over 80 percent of its worldwide manufacturing and service facilities that are ISO 9000
certified. This certification gives 3M confidence that
a. its suppliers’ manufacturing systems and products are of consistent quality as well.
b. suppliers will always fill 3M orders before those of other buyers.
c. suppliers will not engage in reciprocity agreements.
d. suppliers must also meet ISO 14000 requirements.
e. 3M will be financially compensated for any orders that fail to meet assigned criteria.
An international company that wants indisputable proof that its suppliers maintain a high level of
quality management would ask the company to
a. apply for an ISO 9000 certification.
b. meet ISO 14000 requirements.
c. enter into a supplier alliance.
d. show how it is listed in the NAICS to prove its quality focus.
e. engage in reciprocity agreements.
The deliberate effort by organizational buyers to build relationships that shape suppliers’
products, services, and capabilities to fit a buyer’s needs and those of its customers is referred to
as
a. buyer development.
b. a supply partnership.
c. a make-buy decision.
d. supplier development.
e. buyer-seller reciprocity.
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Chapter 06 - Master Test Bank
Answer: d Page(s): 145 LO: 6-2 AACSB: Analytic QD: Easy
Rationale: Key term definition—supplier development.
When the John Deere Company employs engineers who work full-time with the company’s
suppliers to improve their efficiency and quality and reduce their costs, it is practicing
a. buyer development.
b. make-buy decisions.
c. supply partnerships.
d. supplier development.
e. directive purchasing.
The existence of reciprocal arrangements, long-term contracts, and in some cases, buyer-seller
relationships that evolve into supply partnerships, are all examples of
a. illegal activities that are a common weakness of organizational buying.
b. illegal activities that result from collusion between buyers and sellers.
c. activities that are strictly governed by the NAICS.
d. activities that can result from relationships between buyers and sellers in organizational
buying.
e. activities that result from extreme competition between manufacturers when there are too few
suppliers.
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Chapter 06 - Master Test Bank
Merrill Lynch and Thompson Financial had a three-year, $1 billion project that put workstations
on the desks of 25,000 of Merrill Lynch’s brokers. These machines put the world of investing
information at brokers’ fingertips. Thompson, the supplier, was obligated to not only deliver
technology and services on time and on budget, but also constantly improve customer-satisfaction
levels among Merrill’s brokers and customers. This is an example of
a. a reciprocity agreement.
b. exclusive dealing.
c. supplier alliance.
d. a buyer-seller relationship.
e. a tying arrangement.
An industrial buying practice in which two organizations agree to purchase each other’s products
and services is referred to as __________.
a. a tying arrangement
b. exclusive dealing
c. reciprocity
d. a supply partnership
e. noncompetitive bidding
The practice of __________, which can affect the normal operation of the free market and limit
the flexibility of buyers, is occasionally addressed in the ethics codes of companies or their
purchasing policies.
a. tying agreements
b. just-in-time procurement
c. quid pro quo
d. supply partnerships
e. reciprocity
Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because the
practice
a. gives an unfair advantage to smaller companies.
b. gives an unfair advantage to larger corporations.
c. reduces the amount of taxes paid by the parties involved.
d. restricts the normal operation of the free market.
e. encourages free trade.
6-43
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Chapter 06 - Master Test Bank
Although the U.S. Justice Department frowns on __________ because it restricts the normal
operation of a free market, it is still legal for two companies to buy one another’s products as long
as there is no coercion involved.
a. reciprocity
b. tying agreements
c. just-in-time procurement
d. quid pro quo
e. supply partnerships
A study on ethical practices in purchasing found that smaller firms frequently make agreements
with other organizations to purchase each other’s products and services. This practice is referred
to as
a. exclusive dealing.
b. supply partnerships.
c. reciprocity.
d. strategic alliances.
e. tying arrangements.
If General Motors (GM) purchases Borg-Warner transmissions, and Borg-Warner buys trucks and
cars from GM, they would be demonstrating which type of buyer-seller interaction?
a. exclusive dealing
b. supply partnerships
c. tying arrangements
d. noncompetitive bidding
e. reciprocity
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Education.
Chapter 06 - Master Test Bank
A __________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies,
and procedures for the purpose of lowering the cost or increasing the value of products and
services delivered to the ultimate consumer.
a. supplier development agreement
b. reciprocal arrangement
c. shareholder relationship
d. supply partnership
e. strategic alliance
A relationship that exists when a buyer and its supplier adopt mutually beneficial objectives,
policies, and procedures for the purpose of lowering the cost or increasing the value of products
and services delivered to the ultimate consumer is referred to as a __________.
a. supply partnership
b. supplier development agreement
c. reciprocal arrangement
d. shareholder relationship
e. strategic alliance
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Another random document with
no related content on Scribd:
If you are living in the town and your baby suffers much from
teething, take him into the country. It is wonderful what change of
air to the country will often do, in relieving a child, who is painfully
cutting his teeth. The number of deaths in London from teething is
frightful; it is in the country comparatively trifling.
71. Should an infant be purged during teething, or indeed, during
any other time, do you approve of either absorbent or astringent
medicines to restrain it?
Certainly not. I should look upon the relaxation as an effort of
nature to relieve itself. A child is never purged without a cause; that
cause, in the generality of instances, is the presence of either some
undigested food, or acidity, or depraved motions that want a vent.
The better plan is, in such a case, to give a dose of aperient
medicine, such as either castor oil or magnesia and rhubarb, and
thus work it off. If we lock up the bowels, we confine the enemy,
and thus produce mischief.[165] If he be purged more than usual,
attention should be paid to the diet—if it be absolutely necessary to
give him artificial food while suckling—and care must be taken not to
overload the stomach.
72. A child is subject to a slight cough during dentition—called by
nurses “tooth-cough”—which a parent would not consider of
sufficient importance to consult a doctor about; pray tell me if there
is any objection to a mother giving her child a small quantity either
of syrup of white poppies or of paregoric to ease it?
A cough is an effort of nature to bring up any secretion from the
lining membrane of the lungs, or from the bronchial tubes, hence it
ought not to be interfered with. I have known the administration of
syrup of white poppies, or of paregoric, to stop the cough, and
thereby to prevent the expulsion of the phlegm, and thus to produce
either inflammation of the lungs or bronchitis. Moreover, both
paregoric and syrup of white poppies are, for a young child,
dangerous medicines (unless administered by a judicious medical
man), and ought never to be given by a mother.
In the month of April, 1844, I was sent for in great haste to an
infant, aged seventeen months, who was laboring under convulsions
and extreme drowsiness, from the injudicious administration of
paregoric, which had been given to him to ease a cough. By the
prompt administration of an emetic he was saved.
73. A child who is teething is subject to a “breaking-out,” more
especially behind the ears—which is most disfiguring, and
frequently very annoying; what would you recommend?
I would apply no external application to cure it, as I should look
upon it as an effort of the constitution to relieve itself; and should
expect, if the “breaking-out” were repelled, that either convulsions,
or bronchitis, or inflammation of the lungs, or water on the brain
would be the consequence.
The only plan I should adopt would be, to be more careful in his
diet: to give him less meat (if he be old enough to eat animal food),
and to give him, once or twice a week, a few doses of mild aperient
medicine; and, if the irritation from the “breaking-out” be great, to
bathe it occasionally either with a little warm milk and water, or with
rose water.
EXERCISE.
74. Do you recommend exercise in the open air for a baby? and if
so, how soon after birth?
I am a great advocate for having exercise in the open air. “The
infant in arms makes known its desire for fresh air by restlessness—it
cries, for it cannot speak its wants; is taken abroad, and is quiet.”
The age at which he ought to commence taking exercise will, of
course, depend upon the season and upon the weather. If it be
summer, and the weather be fine, he should be carried in the open
air a week or a fortnight after birth; but if it be winter, he ought not,
on any account, to be taken out under the month, and not even then,
unless the weather be mild for the season, and it be the middle of the
day. At the end of two months he should breathe the open air more
frequently. And after the expiration of three months he ought to be
carried out every day, even if it be wet under foot, provided it be fine
above, and the wind be neither in an easterly nor in a northeasterly
direction; by doing so we shall make him strong and hearty, and give
the skin that mottled appearance which is so characteristic of health.
He must, of course, be well clothed.
I cannot help expressing my disapprobation of the practice of
smothering up an infant’s face with a handkerchief, with a veil, or
with any other covering, when he is taken out into the air. If his face
be so muffled up, he may as well remain at home; as, under such
circumstances, it is impossible for him to receive any benefit from
the invigorating effects of the fresh air.
75. Can you devise any method to induce a baby himself to take
exercise?
He must be encouraged to use muscular exertion; and, for this
purpose, he ought to be frequently laid either upon a rug, or carpet,
or the floor: he will then stretch his limbs and kick about with perfect
glee. It is a pretty sight, to see a little fellow kicking and sprawling on
the floor. He crows with delight, and thoroughly enjoys himself: it
strengthens his back; it enables him to stretch his limbs, and to use
his muscles; and is one of the best kinds of exercise a very young
child can take. While going through his performances, his diaper, if
he wear one, should be unfastened, in order that he might go through
his exercises untrammeled. By adopting the above plan, the babe
quietly enjoys himself—his brain is not over-excited by it; this is an
important consideration, for both mothers and nurses are apt to
rouse and excite very young children, to their manifest detriment. A
babe requires rest, and not excitement. How wrong it is, then, for
either a mother or a nurse to be exciting and rousing a new-born
babe. It is most injurious and weakening to his brain. In the early
period of his existence his time ought to be almost entirely spent in
sleeping and in sucking!
76. Do you approve of tossing an infant much about?
I have seen a child tossed up nearly to the ceiling! Can anything be
more cruel or absurd? Violent tossing of a young babe ought never to
be allowed: it only frightens him, and has been known to bring on
convulsions. He should be gently moved up and down (not tossed):
such exercise causes a proper circulation of the blood, promotes
digestion, and soothes to sleep. He must always be kept quiet
immediately after taking the breast: if he be tossed directly
afterward, it interferes with his digestion, and is likely to produce
sickness.
SLEEP.