Chapter 7

Question 1

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

Answer 1

Business and organizational customers

Question 2

Four types of Organizational customers

Answer 2

Producers of goods and services
Intermediaries
Government Units
Nonprofit Organizations

Question 3

includes manufacturers, farmers, real estate developers, hotels, banks, even doctors and buyers

Answer 3

Producers of goods and services

Question 4

wholesalers and retailers

Answer 4

Intermediaries

Question 5

federal agencies in the US and other countries as well as state and local governments

Answer 5

Government units

Question 6

national organizations like the Red Cross and Girl Scouts as well as local organizations like museums and churches

Answer 6

Nonprofit organizations

Question 7

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

Answer 7

purchasing specifications

Question 8

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

Answer 8

ISO 9000

Question 9

buying specialist for their employers

Answer 9

purchasing managers

Question 10

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

Answer 10

Multiple buying influence

Question 11

Buying Center

Answer 11

Users- production workers and their supervisors

Influencers- engineering R&D people who help write specifications or supply info for evaluating alternatives

Buyers- purchasing managers

Deciders- ppl in the organization who have power to select or approve the supplier

Gatekeepers- ppl who control the flow of info within the organization

Question 12

all the people who participate in or influence a purchase

Answer 12

buying center

Question 13

a formal rating of suppliers on all relevant areas of performance

Answer 13

vendor analysis

Question 14

a request to buy something

Answer 14

requisition

Question 15

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

Answer 15

New-task buying

Question 16

is a routine repurchase that may been made many times before

Answer 16

straight rebuy

Question 17

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

Answer 17

modified rebuy

Question 18

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

Answer 18

competitive bid

Question 19

Buyer seller relationships (Five key dimensions)

Answer 19

Cooperation
Information sharing
Operational linkages
legal bongs
relation-specific adaptions

Question 20

the buyer and seller work together to achieve both mutual and individual objectives

Answer 20

Cooperation relationships

Question 21

exchange of proprietary cost data, discussion of demand forecasts, and joint work on new product designs

Answer 21

Information sharing

Question 22

direct ties between the international operations of the buyer and seller firms

Answer 22

Operational linkages

Question 23

reliably getting products there just before the customer needs them

Answer 23

just-in-time delivery

Question 24

agreeing to contracs that allow for changes in the purchase arrangements

Answer 24

negotiated contract buying

Question 25

inlvolve changes in a firm’s product or procedures that are unique to the needs or capabilities of a relationship partner

Answer 25

relation-specific adaptions

Question 26

contract with an outside firm to produce goods and services rather than to produce them internally

Answer 26

outsource

Question 27

codes use to identify groups of firms in similar line of business

Answer 27

North American Industry Classification System (NAICS) codes

Question 28

are independent buying agents who work in central markets for several retailer or wholesaler customers based in outlying areas or other countries

Answer 28

resident buyers

Question 29

prohibits US firms from paying bribes to foreign officials

Answer 29

Foreign Corrupt Practices Act

Question 30

the use of the Internet to facilitate the exchange of goods, services, and information between organizations

Answer 30

Business-to-business electronic commerce

Question 31

A measure of a Web site’seffectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit

= Frequency x Duration x Site Reach

Answer 31

Stickiness