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Question 1

Sunday, September 22, 2013, 4:39 PM

Finished
Sunday, September 22, 2013, 5:06 PM
27 mins 35 secs
24.00 out of a maximum of 25.00 (96%)

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Question text
Zardo, Inc. divides its customers into the following categories: manufacturers, retailers, government
agencies, and not-for-profit institutions. Which of the following types of segmentations is being used by
Zardo?
Select one:
a. Segmentation by end-use application
b. Segmentation by customer type
c. Segmentation by demographic characteristics
d. Segmentation by purchase categories

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The correct answer is: Segmentation by customer type
Question 2
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_____ is a combination of strategies and tools that drives relationship programs, reorienting the entire
organization to a concentrated focus on satisfying buyers.
Select one:
a. Data warehousing
b. Business process reengineering
c. Value engineering
d. Customer relationship management

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The correct answer is: Customer relationship management
Question 3
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Abel building solutions, a steel manufacturing company that supplies steel to various construction
companies, segments its customers based on the number of employees in the company and the sales
revenue generated by it. This strategy is used by Abel to develop specific marketing plans for their
customers. Abel is segmenting its customers on the basis of:
Select one:
a. demographic characteristics.
b. service provided.
c. buyer specifications.
d. end-use application.

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The correct answer is: demographic characteristics.
Question 4

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Efforts to restore worn-out products to like-new condition is called _____.
Select one:
a. reverse engineering
b. merchandising
c. remanufacturing
d. over-engineering

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The correct answer is: remanufacturing
Question 5
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Which is the largest single source of statistical information on the sizes and characteristics of business
markets?
Select one:
a. The North American Industry Classification System
b. Business publications
c. Auditing firms such as PricewaterhouseCoopers

d. Federal government

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The correct answer is: Federal government
Question 6
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Adam, a purchasing agent for an automobile manufacturer, is making a list of payroll services suppliers
available in the market. In which stage of the organizational buying process is Adam?
Select one:
a. Recognizing a problem or opportunity
b. Determining the characteristics and quantity of the needed service
c. Describing the characteristics of the needed service
d. Searching for and qualifying potential sources

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The correct answer is: Searching for and qualifying potential sources
Question 7
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Which of the following is one of the industry categories created by the Standard Industrial Classification
system?
Select one:
a. Health care and social assistance
b. Professional, scientific, and technical services
c. Information services
d. Public administration

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The correct answer is: Public administration
Question 8
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Which of the following factors is considered by marketers while segmenting business markets by
purchase categories?
Select one:
a. The precise way a business purchaser will use a product
b. The complexity and precision of the requirements for goods and services
c. The customer's transaction history
d. The sales revenues of the customer's firm

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The correct answer is: The customer's transaction history
Question 9
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The organizational buying process has more steps than the consumer buying process, which can be
attributed to:
Select one:
a. shorter durations of customer relationships formed in business markets.
b. less standardized products sold in consumer markets.
c. lack of interpersonal and environmental influences on consumer buying decisions.
d. relatively complex buying process with greater number of decision makers in business
markets.

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The correct answer is: relatively complex buying process with greater number of decision makers in
business markets.
Question 10
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Which of the following is most likely to help marketers to segment organizational buyers by purchase
categories?
Select one:
a. Business process reengineering

b. Value engineering
c. Management by objectives
d. Customer relationship management

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The correct answer is: Customer relationship management
Question 11
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The first stage in the eight-stage model of an organizational buying process involves:
Select one:
a. determining the characteristics and quantity of a needed good or service.
b. searching for and qualifying potential sources.
c. anticipating a problem, need, or opportunity and a general solution.
d. establishing specifications for a needed good or service.

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The correct answer is: anticipating a problem, need, or opportunity and a general solution.
Question 12
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_____ is an accounting term that refers to charging a portion of a capital item's cost as a deduction
against the company's annual revenue for purposes of determining its net income.
Select one:
a. Valuation
b. Depreciation
c. Accretion
d. Depletion

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The correct answer is: Depreciation
Question 13
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The practice of using outside vendors to provide goods and services that were formerly produced inhouse is known as _____.
Select one:
a. outsourcing
b. sole sourcing
c. supply chain inversion
d. leasing

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The correct answer is: outsourcing
Question 14

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Business markets differ from consumer markets in that, in business markets:
Select one:
a. the products sold are mostly standardized and fit broader market segments compared to consumer
products.
b. the distribution channels are longer as the product passes through a number of intermediate links.
c. the buying process is less complex and involves fewer decision makers.
d. advertising plays a much smaller role when compared to the consumer market.

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The correct answer is: advertising plays a much smaller role when compared to the consumer market.
Question 15
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In order to receive quantity discounts on needed purchases, many institutions:
Select one:
a. tend to hoard products which are resold at lower prices.
b. insist on equal treatment under the Robinson-Patman Act.

c. join cooperative associations to pool purchases.

d. implement customer relationship management.

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The correct answer is: join cooperative associations to pool purchases.
Question 16
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Employee unions generally view outsourcing as a:
Select one:
a. way to stay competitive and preserve jobs.
b. bargaining tool for higher wages.
c. threat to their jobs and means of livelihood.
d. means of reducing the overhead costs on production processes.

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The correct answer is: threat to their jobs and means of livelihood.
Question 17
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Evaluating a supplier's performance in categories such as price, EDI capability, delivery times, and
attention to special requests is known as:
Select one:
a. value analysis.
b. customer relationship management.
c. vendor analysis.
d. task-based evaluation.

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The correct answer is: vendor analysis.
Question 18
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_____ are trade sector buyers employed by organizations to secure needed products at the best possible
prices.
Select one:
a. Resellers
b. Merchandisers
c. Category advisors
d. Influencers

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The correct answer is: Merchandisers
Question 19
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A manufacturer who produces glass for microwave oven doors, shower enclosures, and patio tabletops is
likely to segment his business customers on the basis of:
Select one:
a. geographic locations.
b. end-use application.
c. demographic characteristics.
d. psychographic characteristics.

Feedback
The correct answer is: end-use application.
Question 20
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Which of the following service sectors was newly created by the NAICS to better reflect the economy of
the 21st century?
Select one:
a. Healthcare and social assistance
b. Finance, insurance, and real-estate services
c. Public administration

d. Wholesale and retail trade

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The correct answer is: Healthcare and social assistance
Question 21
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Praga is an automobile manufacturing company that makes cars. Praga buys steel, aluminum, paints, car
engines and other necessary components from various suppliers around the world and assembles them
together to make a final product. Praga belongs to the _____ component of the business-to-business
market.
Select one:
a. commercial market
b. trade industries
c. institutions
d. governmental organizations

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The correct answer is: commercial market
Question 22
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Which of the following stages of the organizational buying process involves comparing vendors'
proposals?
Select one:
a. Searching for potential sources
b. Acquiring and analyzing proposals
c. Recognizing and determining the characteristics of a need
d. Evaluating proposals and selecting suppliers

Feedback
The correct answer is: Evaluating proposals and selecting suppliers
Question 23
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Which of the following is one of the four major categories that define the business market?
Select one:
a. Stock exchanges
b. Governmental organizations
c. Labor unions
d. Lobbying groups

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The correct answer is: Governmental organizations
Question 24
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The organizational buying process differs from the consumer purchase process as the organizational
buying process:
Select one:
a. involves few decision makers in making purchase decisions.
b. is informal and less professional.
c. requires a longer time frame because of complexity of the decisions.
d. generally involves purchase of highly standardized products.

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The correct answer is: requires a longer time frame because of complexity of the decisions.
Question 25
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Which of the following inventory practices seeks to boost efficiency by cutting inventories to absolute
minimum levels?
Select one:
a. Inventory bounce
b. Just-in-time policy
c. Stock obsolescence

d. Perpetual inventory management

Feedback
The correct answer is: Just-in-time policy
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Sunday, September 22, 2013, 5:09 PM

Finished
Sunday, September 22, 2013, 5:36 PM
27 mins 34 secs
22.00 out of a maximum of 25.00 (88%)

Question 1
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The function performed by the gatekeeper in the company buying center is to:
Select one:
a. inform potential suppliers about the required specifications of the product.
b. select a supplier and implement the procedures for securing the goods and services.
c. choose which goods and services will actually be bought.
d. control the information that all buying center members will review.

Feedback
The correct answer is: control the information that all buying center members will review.
Question 2
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The government category of the B2B market primarily buys products:
Select one:
a. to sell it to the final consumers.
b. to provide some form of public benefit.
c. to export them to other countries.
d. to improve its resale value.

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The correct answer is: to provide some form of public benefit.
Question 3
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Once a search for suppliers is completed and the company makes the suppliers aware of its needs, the
company will begin:
Select one:
a. obtaining feedback from its customers.
b. notifying the distribution channels of the new product introduction.
c. acquiring and analyzing proposals.

d. selecting an order routine.

Feedback
The correct answer is: acquiring and analyzing proposals.
Question 4
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Delhaise, a leading service provider in hospitality industry, segments its business clients based on the
services required by them, in order to meet their specific requirements. They modify their services based
on the needs of the clients. Which of the following segmentation approaches is being employed by
Delhaise?
Select one:
a. End-use application segmentation
b. Customer-based segmentation
c. Geographic segmentation
d. Demographic segmentation

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The correct answer is: Customer-based segmentation
Question 5
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The first stage in the eight-stage model of an organizational buying process involves:
Select one:
a. determining the characteristics and quantity of a needed good or service.
b. searching for and qualifying potential sources.
c. anticipating a problem, need, or opportunity and a general solution.
d. establishing specifications for a needed good or service.

Feedback
The correct answer is: anticipating a problem, need, or opportunity and a general solution.
Question 6
Correct
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Which of the following is most likely to help marketers to segment organizational buyers by purchase
categories?
Select one:
a. Business process reengineering
b. Value engineering
c. Management by objectives
d. Customer relationship management

Feedback
The correct answer is: Customer relationship management
Question 7
Correct
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Question text
Which of the following stages of the organizational buying process involves comparing vendors'
proposals?
Select one:
a. Searching for potential sources
b. Acquiring and analyzing proposals
c. Recognizing and determining the characteristics of a need
d. Evaluating proposals and selecting suppliers

Feedback
The correct answer is: Evaluating proposals and selecting suppliers
Question 8
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A firm has decided to purchase hybrid delivery vehicles in response to rising gasoline prices. Which step
in the business buying process does this illustrate?
Select one:
a. Determining the characteristics of the needed product
b. Recognizing a problem or opportunity
c. Searching for qualified sources

d. Evaluating proposals and selecting suppliers

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The correct answer is: Recognizing a problem or opportunity
Question 9
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Trade industries are a component of business markets that include:
Select one:
a. manufacturers.
b. resellers.
c. end users.
d. services providers.

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The correct answer is: resellers.
Question 10
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Businesses choose outsourcing as an alternative to making goods in-house or providing in-house
services when:

Select one:
a. they want to reduce the amount of depreciation indicated on their books of account.
b. proprietary technology has the potential to raise security concerns.
c. conflicts arise between nonunion outside workers and in-house union employees.
d. the company needs to reduce costs to remain competitive.

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The correct answer is: the company needs to reduce costs to remain competitive.
Question 11
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A buying situation in which business purchasers are willing to reevaluate their available options is known
as:
Select one:
a. a straight rebuy.
b. a modified rebuy.
c. new-task buying.
d. value engineering.

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The correct answer is: a modified rebuy.
Question 12
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Which of the following will be considered as an institutional buyer?
Select one:
a. The Federal Government
b. Wholesalers
c. Hospitals
d. Department of Defense

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The correct answer is: Hospitals
Question 13
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Adam, a purchasing agent for an automobile manufacturer, is making a list of payroll services suppliers
available in the market. In which stage of the organizational buying process is Adam?
Select one:
a. Recognizing a problem or opportunity
b. Determining the characteristics and quantity of the needed service
c. Describing the characteristics of the needed service

d. Searching for and qualifying potential sources

Feedback
The correct answer is: Searching for and qualifying potential sources
Question 14
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A negotiation process wherein each marketer develops its offer, including a price that will satisfy the
criteria determined by the customer's problem, need, or opportunity, is known as:
Select one:
a. competitive bidding.
b. decentralized buying.
c. collective underwriting.
d. systems integration.

Feedback
The correct answer is: competitive bidding.
Question 15
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A manufacturer who produces glass for microwave oven doors, shower enclosures, and patio tabletops is
likely to segment his business customers on the basis of:
Select one:
a. geographic locations.
b. end-use application.
c. demographic characteristics.
d. psychographic characteristics.

Feedback
The correct answer is: end-use application.
Question 16
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If the demand for a product stays almost constant throughout an industry regardless of the change in the
price of the product, it can be said that the product is experiencing a(n) _____ demand.
Select one:
a. derived
b. joint
c. volatile
d. inelastic

Feedback
The correct answer is: inelastic
Question 17
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_____ is an accounting term that refers to charging a portion of a capital item's cost as a deduction
against the company's annual revenue for purposes of determining its net income.
Select one:
a. Valuation
b. Depreciation
c. Accretion
d. Depletion

Feedback
The correct answer is: Depreciation
Question 18
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Which of the following can be categorized as a capital item purchased by organizational buyers?
Select one:
a. Office supplies
b. Copy papers
c. Production plant

d. Machine lubricants

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The correct answer is: Production plant
Question 19
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The segmentation of B2B marketplace based on how business purchasers will use the product is called:
Select one:
a. segmentation by purchasing category.
b. segmentation by customer type.
c. segmentation by end-use application.
d. segmentation by demographic characteristics.

Feedback
The correct answer is: segmentation by end-use application.
Question 20
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Organizational buyers engage in multiple sourcing to:

Select one:
a. counter the possibility of increased buying power.
b. reduce the time taken to process purchasing decisions.
c. ensure that a single vendor's failure to deliver does not cause a shortage.
d. bring down costs related to transportation and warehousing.

Feedback
The correct answer is: ensure that a single vendor's failure to deliver does not cause a shortage.
Question 21
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Dell Computer purchases parts and resources for its computers from multiple suppliers that are spread
across the world. This practice is known as:
Select one:
a. offshoring.
b. global sourcing.
c. outsourcing.
d. reciprocity.

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The correct answer is: global sourcing.
Question 22
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Horch is the biggest manufacturer of consumer goods in Germany. The company segments its business
customers into new and existing customer groups based on the stage of relationship between the
company and the customer. This helps the company to develop different strategies for newly acquired
customers and the existing customers, who are interested in making repeat purchases. Which of the
following segmentation approaches is being used by Horch in the above scenario?
Select one:
a. Segmentation by customer type
b. Segmentation by purchase categories
c. Segmentation by end-use application
d. Segmentation by demographic characteristics

Feedback
The correct answer is: Segmentation by purchase categories
Question 23
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Purchasing a firm's entire stock of an item from just one vendor is termed as:
Select one:
a. multiple sourcing.
b. sole sourcing.

c. outsourcing.
d. inverted sourcing.

Feedback
The correct answer is: sole sourcing.
Question 24
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Which of the following is true of expense items purchased by organizational buyers?
Select one:
a. The cost of these products are charged against the income of the company in the year of
purchase.
b. The net income of these products is determined by charging a portion of their cost against the
company's annual revenue.
c. These items are long lived business assets that must be depreciated over time.
d. All major expenses such as setting up new plants, equipments and machinery are included in this
category.
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The correct answer is: The cost of these products are charged against the income of the company in the
year of purchase.
Question 25
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Which of the following is the final step in the business buying process?
Select one:
a. Selecting an order routine
b. Evaluating proposals and selecting suppliers
c. Obtaining feedback and evaluating performance
d. Acquiring and analyzing proposals

Feedback
The correct answer is: Obtaining feedback and evaluating performance
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