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Chapter 7

Concept Check

Concept Check

This activity contains 22 questions.

	Derived demand refers to the fact that the demand for business goods is ultimately derived from the demand for _____.   industrial goods staple goods consumer goods institutional goods farm goods

	In the _____ situation the buyer has to determine product specifications, price limits, delivery terms and times, service terms, payment terms, order quantities, acceptable suppliers and the selected supplier.   straight rebuy modified rebuy direct rebuy indirect rebuy new task

	One variant of systems selling is _____ where a single supplier provides the buyer with his or her entire requirement of MRO (maintenance, repair, operating) supplies.   prime contracting second-tier contracting systems contracting purchase contracting supplies contracting

	_____ customers want low prices but will respond to arguments about lower total cost or more dependable supply or service.   Price oriented Solution-oriented Gold standard Strategic-value Enhanced-value

	The purchase orientation that focuses on the short term and tactical is called _____.   buyer orientation procurement orientation tactical orientation supply chain orientation strategic orientation

	The purchase orientation where buyers simultaneously seek quality improvements and cost reductions is called _____.   buyer orientation procurement orientation tactical orientation supply chain orientation strategic orientation

	The buyer-supplier relationship characterized by relatively simple, routine exchanges with moderately high levels of cooperation and information exchange is called _____.   basic buying and selling bare bones buying and selling contractual transaction mutually adaptive customer is king

	The buyer-supplier relationship characterized by a close cooperative relationship where the seller adapts to meet the customers needs without expecting much adaptation or change on the part of the customer in exchange is called _____.   basic buying and selling bare bones buying and selling contractual transaction mutually adaptive customer is king

	The _____ market consists of schools, hospitals, nursing homes and prisons.   organizational government institutional business consumer

	The last stage in the industrial buying process is _____.   problem recognition performance review proposal solicitation order-routine specification supplier selection

	The consumer market consists of all organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.    True  False

	More than half of United States business buyers are concentrated in seven states.    True  False

	The demand for business goods and services tends to be more volatile than the demand for consumer goods and services.    True  False

	Business buyers often buy from intermediaries rather than directly from the manufacturer.    True  False

	Solution-oriented customers look for a fairly permanent sole-supplier relationship with a company.    True  False

	The buying process begins when someone recognizes a problem or need.    True  False

	During the supplier search stage of the buying process the buyer invites qualified suppliers to submit proposals.    True  False

	After selecting suppliers the buyer negotiates the final order, listing the technical specifications, the quantity needed, the expected time of delivery and so on.    True  False

	The buying objective for institutional markets is not for profit.    True  False

	The last stage in the industrial buying process is supplier selection.    True  False

	Discuss three types of buying situations that influence the number of decisions a business buyer must face.   To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

	The buying center consists of all members of the organization who play any of seven roles in the purchase decision process. Name and define each of these roles.   To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

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