general business data bank

121. Consider yourself as an upper-level marketing executive a large seller of fleet trucks. Which of the following strategies would be most appropriate in reaching buying center targets?

a. Concentrate on key buying influencers.

b. Use multilevel in-depth selling.

c. Use trade-based promotions.

d. Begin all sales efforts with the secretarial support staff.

e. Move all operations to the Net.

122. Billijean Monk tells her supplier, “Price is everything! I mean if it’s not priced right, I am out of here fast.” To succeed in selling to Ms. Monk, which of the following strategies would be most appropriate?

a. Consultative selling

b. Quality selling

c. Enterprise selling

d. Transactional selling

e. High pressure, high risk selling

123. The Tuxax Company has decided that handling price-oriented buyers can be profitable under certain conditions. Conditions that would make good sense for Tuxax Company would be all of the following EXCEPT ________.

a. limiting the quantity that can be purchased

b. no services

c. no adjustments

d. no refunds

e. no packaging or crating

124. The new, more strategically oriented purchasing departments have a mission to ________.

a. always make a profit

b. always take the lowest bid

c. seek the best value from fewer and better suppliers

d. continue to seek outsourcing as their primary strategy

e. use consultants whenever possible

125. If a buyer is using the buying tactic of commoditization, he or she has a ________ as their purchasing orientation.

a. buying orientation

b. procurement orientation

c. supply chain management orientation

d. raw materials orientation

e. simultaneous orientation

126. Spare parts are considered to be an example of a ________ product in that they have a low value and cost to the customer but they involve some risk with respect to reliability.

a. routine

b. leverage

c. strategic

d. bottleneck

e. strangle-hold

127. Which of the following buyclasses uses the least number of buyphases (stages) in the industrial buying process?

a. Straight rebuy

b. Modified rebuy

c. New task

d. Global task

e. Relational rebuy

128. Japan has an extremely well organized organizational buying process; however, because of its strategic bottleneck position, the ________ is critical to the success of any venture.

a. marketing department

b. production department

c. delivery department

d. accounting department

e. inventory control department

129. Which of the following methods for assessing customer value would you consider to be appropriate if you asked your customers to attach a monetary value to each of three alternative levels of a given attribute? Those values would then be added together for any offer configuration.

a. Direct survey questions

b. Importance ratings

c. Compositional approach

d. Benchmarks

e. Conjoint analysis

130. With respect to buyer-seller relationships, which of the following categories would you believe to be the most appropriate description of a situation where there was a traditional custom supply situation where competition rather than cooperation was the dominant form of governance?

a. Bare bones

b. Contractual transaction

c. Collaborative

d. Customer supply

e. Customer is king

Short Answer

131. The business market 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. What are the major industries that make up the business market?

132. Define organizational buying.

133. Explain how fluctuating demand impacts business markets differently than consumer markets.

134. If you were a purchasing agent facing a modified rebuy situation, how would you describe that situation?

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135. In systems buying, the U.S. government often solicits bids from primary contractors. What do primary contractors do?

136. Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects. Competition for these projects is fierce. What are the main areas of competition for these project engineering firms?

137. Webster and Wind call the decision-making unit of a buying organization the buying center.What is the composition of the buying center?

138. Assume that you are buying center manager who has decided to pursue a market segment called the “gold-standard customers.” What would be the best strategy to reach these customers?

139. Assume that you are a purchasing manager that has adopted a “buying orientation” in making this year’s purchases. What two tactics are often used by purchasing managers with this orientation?

140. Peter Kraljic distinguished four product-related purchasing processes. Which of these processes would be most appropriate for a buyer of mainframe computers?

141. E-procurement Web sites are organized around two types of e-hubs. If you were in the advertising business and were seeking to take advantage of e-procurement, what type of e-hub should be constructed by your company?

142. Business-to-business (B2B) cyberbuying has become increasingly popular between purchasing agents and buying centers. How could “pure play” auction sites be used to conduct cyberbuying?

143. In 2003,Hewlett-Packard was named number one in BtoBmagazine’s annual ranking of the top B-to-B Web sites. What does this Web site allow companies to do that makes it worthy of the distinction mentioned?

144. Assume that you have been given the task of assessing customer value at your organization. Further, you have been instructed to use the “compositional approach” to make this assessment. Describe what you would do if you used the compositional approach in assessing customer value.

145. In the buygrid framework model where the major stages of the industrial buying process are listed and characterized, supplier selection is an important process. What follows supplier selection and what occurs in this phase?

146. A customer tells a supplier that he or she would like “OTIFNE” as a desired outcome of upcoming purchase transaction. What has the customer indicated that he or she wants by using this acronym?

147. As a seller in the business market, you have promised your customers that you have, as a corporate goal, corporate credibility. What three factors will have some bearing on whether you will be able to meet your goal and promise?

148. Cannon and Perreault found that buyer-supplier relationships could be classified into eight different categories. What category would be appropriate for a relationship where, 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?

149. Your organization is considering selling its products to the institutional market. What type of customers will you be making your appeals to? Give specific examples.

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150. As a purchasing manager, you have just completed a large contract with the U.S. government where your company sold the government several “tech-oriented” products and services. What three tips would be appropriate to pass along to those that would also like to tap into this large market?

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