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Chapter 7

Concept Challenge

Concept Challenge

This activity contains 22 questions.

	The demand for business goods is ultimately derived from the demand for consumer goods. This is called _____.   fluctuating demand inelastic demand direct demand derived demand indirect demand

	The demand for a manufacturing product such as shoe leather does not change much in the short run because producers cannot make quick changes in production methods. This type of demand is called _____.   elastic demand inelastic demand stable demand unitary demand derived demand

	Mass media are the most important communication tool during the _____ stage of new task buying.   awareness Interest evaluation trial adoption

	Salespeople have their greatest impact during the _____ stage of new task buying.   awareness interest evaluation trial adoption

	In the buying center the people who authorize the proposed actions of deciders or buyers are called _____.   initiators buyers approvers gatekeepers influencers

	Buyers who simultaneously seek quality improvements and cost reductions are said to have a(n) _____ orientation to purchasing.   buying selling supply chain procurement economic

	To rate and identify the most attractive suppliers, buying centers often use a _____ model.   customer value assessment supplier evaluation rater evaluation supplier value assessment procurement assessment

	According to a survey in Purchase magazine, most buyers said _____ is the key criterion used to select a supplier.   price service reliability quality word-of-mouth

	_____ can facilitate stronger customer-seller ties but at the same time may increase the risk to customers' and suppliers' specific investments.   Partnership coordination Opportunism Vertical coordination Consumerism OEM

	In most countries _____ organizations are a major buyer of goods and services.   institutional government prison medical non profit

	Business marketers normally deal with many more and smaller buyers than the consumer marketer does.    True  False

	Over time new-buy situations become straight rebuys.    True  False

	The business buyer makes the most decisions in the straight rebuy situation.    True  False

	The typical buying center has a minimum of five or six members and often has dozens.    True  False

	Product value analysis 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.    True  False

	E-procurement involves more than acquiring software: it requires changing purchasing strategy and structure.    True  False

	Because the stock is held by the seller, routine contracts are sometimes called stockless purchase plans.    True  False

	When companies shift the ordering responsibility to their suppliers, this is called supplier-managed inventory.    True  False

	In a mutually adaptive buyer-seller relationship there is much relationship-specific adaptation for buyer and seller but without necessarily strong trust or cooperation.    True  False

	Because their spending decisions are subject to public review, government organizations require considerable paperwork from suppliers.    True  False

	In defining target segments, four types of business customers can often be identified. Describe each of these four segments.   To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

	Discuss the four product-related purchasing processes which vary depending on the types of products involved.   To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.

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