81. Office supplies are good examples of what are called bottleneck products.

82. Strategic products have high value and cost to the customer and also involve high risk.

83. According to the buygrid framework described in the text, a performance review completes the buygrid as a last step.

84. The buying process begins when someone places
an order with a sales representative.

85. Product value analysis (PVA) is an approach to
cost reduction in which components
are studied to determine if they can be redesigned or standardized or made by
cheaper methods of production.

86. A buying
alliance attempts to use their combined
leverage to obtain lower prices for raw materials.
87. In the
business-to-business market on the Internet, the majority of purchases fall
under the category of services (e.g., advertising, financial needs, et cetera).

88. With respect to
proposal solicitation in B2B, sellers begin the process by requesting
permission to make a proposal rather than waiting for the buyer to request one.

89. In general,
buyers review the product and its price rather than any other considerations
about the seller as a buying decision is made.

90. With respect to assessing customer value, in conjoint analysis customers
are asked to rank their preference for alternative market offerings or
concepts.

91. The buying center has many responsibilities;
however, it does not negotiate with suppliers in order to avoid a conflict of
interest.

92.“OTIFNE” is the term that
summarizes three desirable outcomes of a B-to-B transaction, stands for: on
time, in full, no error.

93. Most
performance reviews are conducted by outside auditing agencies to avoid bias
and internal discrepancies.

94. Corporate credibility depends on: corporate expertise, corporate
trustworthiness, and corporate likeability.

95. One of the problems facing B2B on the Web is that many firms often impose more
stringent requirements on their online business partners than they do on
non-online partners.
96.
One of the eight
categories of buyer-seller relationships
is the contractual transaction that generally shows low levels of trust,
cooperation, and interaction; exchange is defined by formal contract.

97.
In the “customer is king”
category of buyer-seller relationship, the category is characterized as being
one that it relatively simple where
routine exchanges with moderately
high levels of cooperation and information exchange occurs.

98. A good
illustration of a member of the institutional market would Boeing because it is
a member of the aviation institution structure.

99. The United States
government is the largest customer
in the world.

100. Today, almost all companies
that sell to the U.S.
government use a marketing
orientation because of the special relationship required.

Essay

101. Business markets have
several characteristics that contrast sharply with those of consumer markets.
Name and briefly characterize five of those contrasts.

102. Illustrate the differences
between a straight rebuy, modified
rebuy, and a new task purchase.

103.
List and briefly describe the seven
roles played by members of a buying center.

104.
In defining target market segments,
four types of business customers can often be identified with corresponding
marketing implications. List and
briefly describe each of these business customers.

.

105. Explain the concept of solution
selling. Give one example of this
approach.

106. The upgrading of purchasing means that
business marketers must upgrade their sales personnel to match the higher
caliber of the business buyers. List and briefly describe the three company purchasing orientations that buyers select
from.

107. Peter Kraljic distinguished four product-related purchasing
processes. List and briefly describe each of these four product groups.

section.

108. List the stages
(buyphases) of the industrial buying process.

109. List
and briefly characterize five methods of assessing customer value.

110. Cannon and Perreault found that
buyer-supplier relationships
differed according to four factors: availability of alternatives; importance of supply; complexity
of supply; and supply market dynamism. Based on these four factors, they
classified buyer-supplier relationships
into eight different categories. What are those categories?

APPLICATION QUESTIONS

Multiple Choice

111. German software company SAP has become a leading seller to the
business market by specializing in software to automate business functions. SAP’s
________ strategy is to focus carefully on what customers want, and shows them
how SAP’s software applications can improve
profits, raise revenue, or reduce costs.
a.
product
b.
service
c.
leadership
d.
concentrated
e.
simplistic

112.
The
________ 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.
a.
non-profit
b.
business
c.
hardware
d.
software
e.
government

113. IBM
counts small to midsize businesses as 20 percent of its business and has
launched ________, a line of hardware, software services, and financing, for
this market.
a.
Impresario
b.
Express
c.
Datacount
d.
Smallbiz
e.
TaxMan

114. More than half of U.S. business
buyers are concentrated in seven states. Which of the following states WOULD
NOT be among those favored by
business buyers?
a.
Texas
b.
New York
c.
California
d.
Pennsylvania
e.
Ohio

115. Jason Riggs’ company is considered to be an in-supplier for a lawn mower manufacturer. However, recently the lawn mower company
has put out a memo to in- and
out-suppliers indicating that it would like to modify
product specifications and delivery schedules. Which of the following buying
situations is most likely to be in
operation given the data above?
a.
Straight rebuy
b.
Elastic rebuy
c.
Fluctuating rebuy
d.
Flatten rebuy
e.
Modified rebuy

116. All of the following
are considered to be guidelines for selling to small businesses EXCEPT ________.
a.
do not use the Internet
b.
do keep it simple
c.
don’t lump
small and midsize businesses together
d.
don’t forget about direct contact
e.
do provide after the sale support

117. Ford
Motor Co. has forged supplier and manufacturing relationships around the world.
Today, an accurate description of this automotive
giant is one where it is characterized as being mainly a car ________.
a.
designer
b.
manufacturer
c.
assembler
d.
distributor
e.
promoter

118. If
you decided to go into the systems
contractingbusiness, which of the following categories would constitute
your main area of expertise in that this area would be what service you provide
for customers.
a.
Computer
applications
b.
Database management
c.
Manufacturing
d.
Promotion
management
e.
MRO (maintenance, repair, operating) supplies

119. Think
about what you have learned about a buying center. If you performed the role of
the ________, you would be the person that has the power to prevent sellers or
information from them in reaching other members of the buying center.
a. initiator
b. influencer
c. decider
d. gatekeeper
e. approver

120. According
to Webster, with respect to buying center influences, senior managers should
remember that people are ________.
a.
not buying products—they are buying solutions to
problems
b.
buying products that they personally will not use
c.
buying surrogates that must appreciate that role
d.
are human shopping bots
e.
limited in their scope of overall business
operations

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