Chapter 6

Question 1

Business and organizational consumers

Answer 1

Any buyers who buy for resale or to produce other goods and services

Question 2

Types of organizational customers:

Answer 2

Producers of goods and services

Intermediaries

Government units

Nonprofit organizations

Question 3

purchasing specifications

Answer 3

A written (or electronic) description of what the firm wants to buy

Question 4

ISO 9000

Answer 4

A way for a supplier to document its quality procedures according to internationally recognized standards

Question 5

Purchasing managers

Answer 5

Buying specialists for their employers

Usually specialize by product area and are real experts

Question 6

Multiple buying influence

Answer 6

Means that several people - perhaps even top management - play a part in making a purchase decision

Question 7

Possible buying influences

Answer 7

Users

Influencers

Buyers

Deciders

Gatekeepers

Question 8

Buying center

Answer 8

All the people who participate in or influence a purchase

Question 9

Vendor analysis

Answer 9

A formal rating of suppliers on all relevant areas of performance

Goal is to lower total costs associated with purchases

Tries to focus on economic factors

Question 10

Requisition

Answer 10

A request to buy something

A person who needs to purchase something usually completed a requisition

Question 11

New-task buying

Answer 11

Occurs when a customer organization has a new need and wants a great deal of information

Involves: setting product specifications, evaluating sources of supply, and establishing an order routine that can be followed in the future if results are satsifactory

Multiple buying influence is common

Question 12

Straight rebuy

Answer 12

Routine repurchase that may have been made many times before

Dont bother looking for new information or new sources of supply

Take only a small part of an organized buyer’s time

Question 13

Modified rebuy

Answer 13

The in-between process where some review of the buying situation is done

Question 14

Competitive bid

Answer 14

The terms of sale offered by the supplier in response to the purchase specifications posted by a buyer

Question 15

just-in-time delivery

Answer 15

Reliably getting products there just before the customer needs them

Question 16

negotiated contract buying

Answer 16

Agreeing to contracts that allow for changes in the purchase agreements

Question 17

outsource

Answer 17

Contract with an outside firm to produce goods or services rather than to produce them internally

Question 18

North American Industry Classification System (NAICS) codes

Answer 18

Groups of firms in similar lines of business

collects and publishes data

Question 19

Open to buy

Answer 19

Buyers have budgeted funds that can be spent during the current period

Question 20

Resident buyers

Answer 20

Independent buying agents who work in central markets for severa retailer or wholesaler customers based in outlying areas of other countries

Question 21

Foreign Corrupt Practices Act

Answer 21

Prohibits U.S. firms from paying bribes to foreign officials