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1、Chapter 7: Analyzing Business MarketsGENERAL CONCEPT QUESTIONSMultiple Choice To create and capture value, sellers need to understand business organizations needs, resources, policies, and _.demandsprotocolsstrategiesbuying procedurespersonnel policiesAnswer: d Page: 209Level of difficulty: EasyWebs
2、ter and Wind define _ as the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.marketing channelsorganizational buyingdemand-oriented buyingpurchasinginventory control
3、Answer: bPage: 210Level of difficulty: MediumThe _ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.business marketconsumer markete-commerce marketglobal marketsupplier marketAnswer: aP
4、age: 210Level of difficulty: MediumBusiness markets have several characteristics that contrast sharply with those of consumer markets. All of the following would be among those characteristics EXCEPT _. fewer, larger buyersclose supplier-customer relationshipprofessional purchasinginverted demandmul
5、tiple sales callsAnswer: dPages: 210211Level of difficulty: HardAll of the following would be among the major industries that make up the business market EXCEPT _. agriculture, forestry, and fisheriesmanufacturingconstructionbanking, finance, and insurancethe InternetAnswer: ePage: 210Level of diffi
6、culty: hardTrained purchasing agents, who must follow their organizations _, often purchase business goods.culturepast purchasing historypurchasing policies, constraints, and requirementsneedsfinancial budgetsAnswer: cPage: 211Level of difficulty: MediumUltimately, the amount of steel sold to Genera
7、l Motors depends on the consumers demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent? Derived demandInelastic demandGeographic demandRelational demandStatic demandAnswer: aPage: 211Level of difficulty: HardThe demand fo
8、r business goods is ultimately derived from the demand for _.raw materialsconsumer goodselectronicsbusiness solutionse-commerceAnswer: bPage: 211Level of difficulty: EasyThe business buyer faces many decisions in making a purchase. The number of decisions depends on the buying situation. All of the
9、following examples are appropriate to the preceding EXCEPT _. complexity of the problem being solvednewness of the buying requirementnumber of people involvedapplicability of situation to mission statementtime requiredAnswer: dPage: 212Level of difficulty: HardThe purchasing department buys office s
10、upplies on a routine basis. This type of purchase is classified as a _. straight rebuymodified rebuynew tasksecondary purchasepreordained purchaseAnswer: aPage: 212Level of difficulty: EasyThere are a series of guidelines for selling to small businesses. Which of the following should not be among th
11、ose guidelines? Dont waste their time.Do keep it simple.Do use the Internet.Dont forget about direct contact.Do lump small and midsize businesses together for efficiency sake.Answer: ePage: 212Level of difficulty: MediumThe business buyer makes the fewest decisions in the _. modified rebuyregular bu
12、ystraight rebuynew rebuynew task buyAnswer: cPage: 213Level of difficulty: MediumMany business buyers prefer to buy a total solution to a problem from one seller. _ is the correct term for this process. Channel consolidationSystems buyingVertical buyingHorizontal buyingSupply buyingAnswer: bPage: 21
13、3Level of difficulty: MediumXerox offers a _ approach to prospective clients when it offers a complete turnkey procedure, operation, and management of the clients information and communication need. supply buyingprimary buyingsystems buyingco-op buying systemdirect buying Answer: cPage: 213Level of
14、difficulty: MediumIf Ampex Support Systems is the single supplier for a local manufacturing companys MRO (maintenance, repair, operating) supplies and needs, Ampex Support Systems would then be considered as providing _ for the manufacturer. systems buying purchasing supportturnkey logisticsdecision
15、 supportsystems contractingAnswer: ePage: 214Level of difficulty: Hard_ is a key industrial marketing strategy in bidding to build large-scale industrial products (e.g., dams, pipelines, et cetera). Systems contractingSystems buyingSystems sellingSolutions buyingTurnkey logisticsAnswer: cPage: 214Le
16、vel of difficulty: Hard_ 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 their decisions.The buying centerThe marketing sales teamStrategic managementEngineering supportThe logistics cen
17、terAnswer: aPage: 214Level of difficulty: MediumIn the purchasing decision process, the _ are those who request that something be purchased. They may be users or others in the organization.usersinitiatorsinfluencers decidersapproversAnswer: bPage: 214Level of difficulty: EasyIn the purchasing decisi
18、on process, the _ are those who have the power to prevent sellers or information from reaching members of the buying center. gatekeepersbuyersinitiatorsapproversdecidersAnswer: aPage: 215Level of difficulty: MediumThe typical buying center has a minimum of _ members. 2334455610Answer: dPage: 215Leve
19、l of difficulty: HardWebster cautions that ultimately, _ make purchasing decisions. only senior managers individuals, not organizationsorganizations, not individualsthird partiessystems contractorsAnswer: bPage: 215Level of difficulty: MediumSmall sellers concentrate their marketing efforts on reach
20、ing _. approversinitiatorskey buying influencersusersthe purchasing staffAnswer: cPage: 216Level of difficulty: MediumTo the _ price is everything and transactional selling is used. solution-oriented customersincome-oriented customersgold-standard customersstrategic-value customersprice-oriented cus
21、tomersAnswer: ePage: 216Level of difficulty: EasyThe strategic-value customers want a fairly permanent sole-supplier relationship with your company. Which of the following would be the best selling format to use with the strategic-value customer? Transactional sellingConsultative sellingQuality sell
22、ingEnterprise sellingIndirect demand sellingAnswer: dPage: 216Level of difficulty: HardSome customers are willing to handle price-oriented buyers by setting a lower price, but establishing restrictive conditions. All of the following would be among those conditions EXCEPT _. limiting the quantity th
23、at can be purchasedno refundsno adjustmentsno servicesno customer advertisingAnswer: ePage: 216Level of difficulty: MediumIf a supplier signs an agreement with a customer that states $350,000 in savings will be earned by the customer over the next 18 months in an exchange for a ten-fold increase in
24、the customers share of supplies ordered by the customer, the two parties will have participated in what is called _. solution selling consultative selling risk and gain sharingstrategic alignment demand shifting Answer: cPage: 217Level of difficulty: MediumW.W. Grainger employees work at large custo
25、mer facilities to reduce materials-management costs. Which of the following forms of solution selling is W.W. Grainger using? Solutions to partnerships. Solutions to alter corporate culture. Solutions to enhance customer revenues.Solutions to decrease customer risks.Solutions to reduce customer cost
26、s.Answer: ePage: 217Level of difficulty: MediumIn principle, business buyers seek to _ in relation a market offerings costs. spread risks obtain the highest benefit package maintain everyday-low-pricesoutsource as much as is possible eliminate partners shares in profits as much as possible Answer: b
27、Page: 217Level of difficulty: HardIn the past, what position did purchasing departments hold in the management hierarchy of most organizations? A high level because of their role in managing the companys costs.A moderate level because of their spotty record on controlling costs.A low level despite t
28、he fact that they manage more than half of the companys costs.A secretive position. There has been no determination of this position.Answer: cPage: 218Level of difficulty: HardThe new, more strategically-oriented purchasing departments have a mission. Which of the following most accurately describes
29、 that mission? Make the most profit possible and remain independent of entanglements. Approach every purchasing opportunity as means to create interdependency.Seek the best value from fewer and better suppliers.Outsource the supply function.Abandon all strategies except for systems selling and buyin
30、g.Answer: cPage: 218Level of difficulty: HardWhen the purchasers focus is short term and tactical and they are rewarded on their ability to obtain the lowest price from suppliers for the given level of quality and availability, this is referred to as _.procurement orientationsupply chain management
31、orientationbuying orientationsellers orientationmarket orientationAnswer: cPage: 218Level of difficulty: MediumWhen buyers simultaneously seek quality improvements and cost reductions and they develop collaborative relationships with major suppliers and seek savings through better management of acqu
32、isition, conversion, and disposal costs, this is referred to as _.sellers orientationsupply chain management orientationmarket orientationprocurement orientationbuying orientationAnswer: dPage: 218Level of difficulty: HardWhen the purchasing role is further broadened to become a more strategic, valu
33、e-adding operation, this is referred to as _.supply chain management orientationbuying orientationsellers orientationprocurement orientationroutine orientationAnswer: aPage: 218Level of difficulty: MediumPeter Kraljic distinguished four product-related purchasing processes. Which of the following ma
34、tches to products that have high value and cost to the customer but involve little risk of supply because many companies make them? Strategic productsBottleneck productsLeverage productsRoutine productsCommodity productsAnswer: cPage: 219Level of difficulty: HardThe products that have high value and
35、 cost to the customer and also involve high risk (e.g., mainframe computers) are called _.strategic productsbottleneck productsleverage productsroutine productscommodity productsAnswer: aPage: 219Level of difficulty: MediumMost purchasing professionals describe their jobs as more _, technical, team-
36、oriented, and involving more responsibility than ever before. riskystrategicethically difficultWeb-basedhuman-basedAnswer: bPage: 219Level of difficulty: HardRobinson and Associates have identified eight stages and called them buyphases. This model is called the _ framework. buygridbuying/selling se
37、ller-centeredcommercialbuy-analysisAnswer: aPage: 219Level of difficulty: MediumThe first step (buyphase) in the straight rebuy buyclass is _. problem recognitiongeneral need descriptionproduct specificationsupplier searchproposal solicitationAnswer: cPage: 220Level of difficulty: HardA new task buy
38、class decision begins with which of the following buyphases? Problem recognitionGeneral need descriptionProduct specificationSupplier searchProposal solicitationAnswer: aPage: 220Level of difficulty: MediumBusiness marketers can stimulate problem recognition by _. trade directoriesdirect mail, telem
39、arketing, and calling on prospectsencouraging the Better Business Bureau to release statisticsconsumer advertisingrequesting testimonials from existing customersAnswer: bPage: 221Level of difficulty: MediumWhen Hewlett-Packard sells such complex products as a network computer system, it is engaging
40、in what it calls the _ concept because it offers information and specific solutions to unique problems. “product specification”“price de-escalation” “systems selling”“trusted advisor” “strategic alliance” Answer: dPage: 221Level of difficulty: MediumU.S. businesses spent about _ on online transactio
41、ns with other businesses in 2002 as compared to consumer online purchases of $71 billion during the same time period. $650 billion$500 billion$482 billion$225 billion$53 billionAnswer: cPage: 222Level of difficulty: HardWith respect to e-procurement, Web sites are organized around two types of e-hub
42、s: _. vertical and horizontal hubsvertical and functional hubsfunctional hubs and organizational hubssupplier and user hubsmanufacturer and supplier hubsAnswer: bPage: 222Level of difficulty: Hard With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, Gillette, P&G, and several other co
43、mpanies joined forces to form a _ called Transora to use their combined leverage to obtain lower prices for raw materials. manufacturers co-opsuppliers co-opmiddleman groupbuying alliancecabalAnswer: dPage: 222Level of difficulty: MediumBusiness-to-business cyberbuying is flourishing on the Internet
44、. So far, most of the products that businesses are buying electronically are _, and travel and entertainment services. promotion services such as advertisingHR services (e.g., employee recruitment)MRO materials (maintenance, repair, and operations)food servicesmarketing research servicesAnswer: cPag
45、e: 223Level of difficulty: MediumMoving into e-procurement has many benefits. Which of the following would not be among those benefits? Aggregating purchasing across multiple departments gains larger volume discounts.Aggregating purchasing across multiple departments gains centrally negotiated volum
46、e discounts.There is less buying of substandard goods from outside the approved list of suppliers.A smaller purchasing staff is required.Purchasing gains a significant leverage with top management because of its management team.Answer: ePage: 224Level of difficulty: HardWith respect to e-procurement
47、 commitment, in 2003 _ was named number one in BtoB magazines annual ranking of the top B-to-B Web sites because of its ability to generate sales (about 55 percent of the companys total sales) and commitment to the process. Coca-ColaDell ComputersHewlett-PackardCadillacBoeingAnswer: cPage: 224Level
48、of difficulty: HardIn the proposal solicitation process, _ should be marketing documents that describe value and benefits in customer terms. written proposalsoral proposalse-proposalsalliance proposalsglobal proposalsAnswer: aPage: 225Level of difficulty: MediumXerox qualifies only suppliers who mee
49、t the ISO 9000 quality standards, but to win the companys top awardcertification statusa supplier must first complete _. government certificationan extensive ethics statement evaluationthe Xerox Multinational Supplier Quality Surveya company training and indoctrination perioda Malcolm Baldridge Nati
50、onal Quality Award entry form and then enterAnswer: cPage: 225Level of difficulty: MediumAll of the following are considered to be methods of assessing customer value EXCEPT _. direct survey questionsexit interviewing focus-group value assessmentconjoint analysisbenchmarksAnswer: bPage: 226Level of
51、difficulty: MediumAccording to purchasing professionals, which of the following is considered to be the major responsibility of the purchasing agent in supplier negotiations? Forming networks for future business.Assuring quality conformance.Being fair with all parties.To use a team approach in negot
52、iations.Negotiating price.Answer: ePage: 226Level of difficulty: HardIf an industrial buyer leases heavy equipment like machinery and trucks rather than purchasing them, the lessee gains several advantages. Which of the following would NOT be among those advantages? Higher quality products.Conservin
53、g capital.Getting the latest products.Receiving better service.Some tax advantages.Answer: aPage: 227Level of difficulty: Hard“OTIFNE” is a term that summarizes three desirable outcomes of a B-to-B transaction: OTdeliver on time; IFin full; and, NE_. no errorno emergenciesnon-experimentalnew entrepr
54、eneursneed equipmentAnswer: aPage: 227Level of difficulty: EasyCorporate credibility depends on three factors: corporate expertise, corporate trustworthiness, and _. corporate manpowercorporate mission statementcorporate likeabilitycorporate governancecorporate management structureAnswer: cPage: 228
55、Level of difficulty: HardCannon and Perreault found that buyer-suppler relationships differed according to four factors. Which of the following would NOT be among those factors? Importance of supply.Complexity of supply.Availability of alternatives.Supply market dynamism.Demand market conservatism.A
56、nswer: ePage: 229Level of difficulty: MediumAccording to Cannon and Perreault, buyer-supplier relationships fall into eight different categories. Which of the following relationships is characterized as being one that has much trust and commitment leading to a true partnership? Mutually adaptiveColl
57、aborativeBasic buying and sellingCustomer supplyCooperative systemsAnswer: bPage: 229Level of difficulty: MediumIn the _ category of Cannon and Perreaults buyer-supplier relationship categorization, although bonded by a close, cooperative relationship, the seller adapts to meet the customers needs w
58、ithout expecting much adaptation or change on the part of the customer in exchange. contractual transactioncooperative systemcollaborativemutually adaptivecustomer is king Answer: ePage: 229Level of difficulty: MediumVertical coordination can facilitate stronger customer-seller ties but at the same
59、time may increase the risk to consumers and suppliers _ (e.g., those expenditures tailored to a particular company and value chain partner). logistics channelindependent operationsspecific investmentsleverage abilityliquidity situation Answer: cPage: 230Level of difficulty: HardThe _ market consists
60、 of schools, hospitals, nursing homes, prisons, and other institutions that must provide goods and services to people in their care. verticalnonprofitspotsecondary businessinstitutional Answer: ePage: 230Level of difficulty: MediumWith purchases of $200 billion annually in goods and services, _ is t
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