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Chapter 06 Understanding Customers: Business-To-Business Markets True/False Questions 1. Many people believe marketing is focused primarily on consumers—the ultimate users of the product. The fact that they experience marketing as a consumer contributes to this belief. Answer: True Rationale: Many people believe marketing is focused primarily on consumers—the ultimate users of the product. This is due, at least in part, to the fact that most people experience marketing as a consumer. 2. While many companies operate in the business-to-consumer markets, all companies operate in a business-to-business market. Answer: True Rationale: Even companies that sell finished goods to end users buy their components and supplies from other companies also. Thus, all companies operate in a business-to-business market. 3. B2B companies often have a few companies that represent a large portion of their sales. This means that losing one large customer has striking implications for the company. Answer: True Rationale: Compared to B2C markets, business markets are characterized by fewer but larger customers. The large size and small number of customers places a higher value on each customer. Losing even one large customer thus has striking implications for a company. 4. Customers in the B2B market place demand not only a personal relationship with their vendors but also an efficient one. Answer: True Rationale: The nature of business markets requires a more personal relationship between buyer and seller. A strong personal relationship is critical because business customers demand fast answers, good service, and, in general, want a close relationship with suppliers. This helps the customers in cost control. 5. The consumer buying process takes longer and is more complex than the B2B buying process. Answer: False Rationale: The B2B buying process takes longer and involves more people, making the seller's job more challenging. B2C buying, on the other hand, involves fewer people, often just one, and the purchase decision is often based on personal and psychological benefits. 6. Business markets tend to concentrate in certain locations in the United States as a result of suppliers wanting to be located close to one another. Answer: True Rationale: Business markets tend to concentrate in certain locations. For example, the automobile industry is concentrated in the Midwest, particularly Detroit, and technology firms dominate Silicon Valley in California. 7. Business products experience fairly elastic demand. Answer: False Rationale: In the case of business products, changes in demand are not significantly affected by changes in price. Thus, business products experience fairly inelastic (and not elastic) demand. 8. A buying center is a permanent group of people at a B2B company that decides on each new purchasing decision. Answer: False Rationale: Buying centers usually are not permanent groups but are convened to make the decision and then disband. 9. Users in the B2B buying process have enhanced responsibilities in new purchase and modified re-buy situations when product specifications are being set for the purchase decision. Answer: True Rationale: Users are the actual consumers of the product. They are the first to recognize the problem based on a need. They help define the product specifications and provide critical feedback after the product purchase. 10. Influencers are any individuals, both inside and outside the organization, with relevant expertise in a particular area that is used by the buying center in making the final decision. Answer: True Rationale: Influencers have relevant expertise in a particular area and they may or may not belong to the organization. They provide information that is used by the buying center in making the final decision. 11. One of the toughest challenges facing salespeople in a new or modified re-buy situation is getting access to the right people. Answer: True Rationale: Access to information and relevant individuals in the buying center is controlled by gatekeepers. It is difficult today to get inside an organization and cultivate relationships with the right people. 12. Access to information and relevant individuals in the buying center is controlled by goalkeepers. Answer: False Rationale: Access to information and relevant individuals in the buying center is controlled by gatekeepers (and not goalkeepers). 13. A person who acts as an influencer in the buying center cannot be a decider. Answer: False Rationale: Deciders need not include only the most senior members of the team. It can also include other individuals. Therefore, a person who acts as an influencer in the buying center can be a decider. 14. The NAICS codes list all of a particular companies business sectors. A company can be listed in several different categories. Answer: False Rationale: The North American Industrial Classification System (NAICS) uses a six-digit hierarchical code to define and segment business markets. Because a company receives ONLY one NAICS code, large companies with multiple businesses across different sectors are not accurately represented as they cannot be listed across several different categories. 15. There are two types of end user purchases-capital equipment and sundries. Answer: False Rationale: There are two major types of end user purchases: capital equipment and materials, repairs, and operational (MRO) supplies and services. 16. When a company wants to create or maintain a strategic relationship with a client company, it will be good for the company if its sales team gets involved with the creation of an RFP with the client. Answer: True Rationale: Putting product specifications into a document for distribution is known as a request for proposal (RFP) and it is the starting point from which vendors put together their product solution. Not knowing the product specifications puts the vendors at a disadvantage over other vendors. Hence, it is good to get involved with the creation of an RFP. 17. It is often the case that the purchase decision itself in the B2B market involves trade-offs between equally important evaluation criteria and equally qualified vendors. Answer: True Rationale: It is often true that there is more than one qualified vendor for any job. So often the final decision involves trade-offs between equally important evaluation criteria and equally qualified vendors. 18. It is realistically not possible to separate the individual agendas people bring to the buying center from the purchase decision. Answer: True Rationale: It is not possible to separate the individual agendas people bring to the buying center from the purchase decision. In addition, individuals in the buying center come to the group with their own perspective of the decision. 19. Risk tolerance is an organizational factor that differs among companies trying to decide on a particular vendor. Answer: True Rationale: Risk is always involved in a purchase decision from a particular vendor. Individuals and companies all have a certain tolerance for risk. The risk tolerance will vary from company to company. 20. Dealing with complaints, resolving customer problems, and making sure the company is meeting customer expectations are critical to ensuring customer satisfaction in the B2B market. Answer: True Rationale: In B2B market, the sale is not over after the product is delivered. There is a lot of follow-up work that is required. The buyers in the B2B market consider the level of support provided by the seller and expect follow-up after the sale to be sure there are no problems. Multiple Choice Questions 21. Compared to B2B markets, B2C markets are characterized by: A. A larger volume of individual purchases. B. A larger number of customers. C. The strategic location of buyers. D. Complex supply chains. E. None of the above Answer: B. A larger number of customers. Rationale: B2C markets have more customers who buy in smaller, less frequent quantities. 22. Per capita the largest B2B market in the world is: A. Japan B. All countries are about the same C. United States D. Australia E. None of the above Answer: C. United States Rationale: The United States is by far the largest B2B market per capita. The US B2B market is double the size of any other market. 23. Which of the following is NOT a characteristic of a B2B market? A. Fewer but larger customers B. Demand for products is derived from consumer demand C. Supply chain is direct from suppliers to manufacturers D. Impersonal relationship with the customers E. Complex buying process Answer: D. Impersonal relationship with the customers Rationale: In B2B markets, it is important to maintain personal relationships with the customers. 24. In straight rebuy situations, companies that are not on the approved list are called _______________. A. Preferred suppliers B. Out suppliers C. Standard suppliers D. Variable suppliers E. Alternate suppliers Answer: B. Out suppliers Rationale: The goal of business sellers in straight rebuy situations is to become the preferred supplier. A company given approved status must be diligent and mindful of competitors seeking to displace it. Companies not on the approved list are called out suppliers. Their primary task is to obtain a small order, an opening, then leverage that opportunity to gain additional business. 25. Business-to-business markets are: A. Identical to business-to-consumer markets B. Similar in most ways to business-to-consumer markets C. Different in several ways to business-to-consumer markets D. Different in every way from business-to-consumer markets E. None of the above Answer: C. Different in several ways to business-to-consumer markets Rationale: B2B markets differ in many ways from B2C markets. For example, B2B markets need personal relationships with the customers whereas B2C markets have impersonal relationships with the customers. The B2C supply chain is more complex. 26. Compared to B2B markets, which of the following is a characteristic of a B2C market? A. Fewer but larger customers. B. More complex supply chain. C. Complex buying process. D. Inelastic product demand. E. Geographic concentration of suppliers. Answer: B. More complex supply chain. Rationale: B2C markets have a complex supply chain structure because the products move through various channels to reach the customers. 27. Compared to B2C markets, B2B markets are characterized by _______________. A. Buying decisions made by individuals B. Simple buying processes C. Elastic product demand D. Higher value placed on each customer E. Impersonal relationships Answer: D. Higher value placed on each customer Rationale: Business markets are characterized by fewer but larger customers. The large size and small number of customers places a higher value on each customer. 28. The buying process for B2B markets _______________ than B2C markets. A. Is more complex B. Is quicker C. Has fewer people involved D. Is more psychological in nature E. All of the above Answer: A. Is more complex Rationale: The B2B buying process has a longer time horizon and involves more people, making the seller's job more challenging. 29. B2C markets can be characterized as being more _______________ than B2B markets. A. Conservative B. Liberal C. Impersonal D. Personable E. Likeable Answer: C. Impersonal Rationale: In B2C markets, even when a relationship is cultivated with the customer, it is impersonal and exists primarily through electronic communication or direct mail. B2B markets have a small number of large size customers which places a higher value on each customer. So B2B markets need personal relationships with the customers. 30. It is said that B2B demand is more _______________ in general than B2C demand for products or services. A. Elastic B. Bimodal C. Inelastic D. Systemic E. Price-sensitive Answer: C. Inelastic Rationale: Business products experience fairly inelastic demand, meaning changes in demand are not significantly affected by changes in price. 31. A supply chain is _______________. A. The synchronized movement of goods through the channel B. The network of retail chains that stock a company's products C. The financial chain that leads from consumer to the producer D. The sequence of movements coordinated through air space E. The collegial relationship between two groups of suppliers Answer: A. The synchronized movement of goods through the channel Rationale: A supply chain is the synchronized movement of goods through the channel. It is far more integrated than ever before as companies seek to keep production costs low, provide maximum customer input and flexibility in the design of products, and create competitive advantage. 32. The relationship between consumer demand for products and demand for B2B products is said to be _______________. A. Upward sloping demand B. Downward sloping demand C. Derived demand D. Equal demand E. Elastic demand Answer: C. Derived demand Rationale: Demand for B2B products originates from the demand for consumer products, or, put another way, demand for B2B products is derived demand. For example, if consumers are not buying Toyota cars and trucks, then there is no need for Toyota to purchase Goodyear tires. 33. Small changes in consumer demand can lead to considerable shifts in business product demand and it is referred to as the _______________. A. Deceleration effect B. Transverse effect C. Modified effect D. Acceleration effect E. Trickle effect Answer: D. Acceleration effect Rationale: Small changes in consumer demand can lead to considerable shifts in business product demand. This is called as the acceleration effect. This makes forecasting the sale of consumer products important because making even a small mistake in estimating consumer demand can lead to significant errors in product production. 34. Business-to-business demand is said to be relatively inelastic. This means that _______________. A. As the price increases demand goes up B. Changes in demand are not significantly affected by the price C. As demand goes down price goes down with it D. Demand and supply are independent of each other E. As the price decreases demand goes down Answer: B. Changes in demand are not significantly affected by the price Rationale: Business products experience fairly inelastic demand, meaning changes in demand are not significantly affected by changes in price. B2B companies make their contracts for materials well ahead of the need to use them and thus demand is more inelastic. 35. Wooden Lifestyles is a manufacturer of household furniture. If consumers are not buying its furniture, then there is no need for the company to purchase lumber. This indicates that the demand for lumber is _______________. A. Unitary demand B. Downward sloping demand C. Derived demand D. Equal demand E. Elastic demand Answer: C. Derived demand Rationale: Demand for B2B products originates from the demand for consumer products, or, put another way, demand for B2B products is derived demand. 36. Apple will not buy more processors from Intel if Intel lowers the price nor will it buy fewer chips if Intel raises the price. This is an example of _______________. A. Inelastic demand B. Elastic demand C. Codependent demand D. Derived demand E. Fluctuating demand Answer: A. Inelastic demand Rationale: When a company will not buy more or less with price changes it is said that the demand is inelastic. 37. When you re-order products that are used on a consistent basis, it is called a _______________. A. Purchase B. Order on demand C. Two-bin inventory system D. Modified order on demand E. Straight rebuy Answer: E. Straight rebuy Rationale: Many products are purchased so often (like office supplies, raw materials) that it is not necessary to evaluate every purchase decision. So companies simply reorder them when needed. This type of purchase is called a straight rebuy. 38. Which of the following describes a straight rebuy? A. Reorder products that are rarely used B. Put reorders into a buying center to reconsider the supplier C. Reorder products that are used on a consistent basis D. Develop a list of suppliers to rank them by price E. Reorder products after an extensive information search Answer: C. Reorder products that are used on a consistent basis Rationale: Many products are purchased so often (like office supplies, raw materials) that it is not necessary to evaluate every purchase decision. So companies simply reorder them when needed. This type of purchase is called a straight rebuy. 39. The three main types of buying situations can be characterized as _______________. A. Straight rebuy, mid-level rebuy, and new purchase B. Straight rebuy, modified rebuy, and new purchase C. Slight rebuy, non-evaluative rebuy, and new purchase D. Buy, rebuy, and non-buy E. None of the above Answer: B. Straight rebuy, modified rebuy, and new purchase Rationale: The three main types of buying situations are: straight rebuy, modified rebuy and new purchase. 40. When General Motors is familiar with a product and supplier, but still seeks additional information in the market place, it is called a _______________. A. Straight rebuy B. Modified rebuy C. New purchase D. Filtered buy E. None of the above Answer: B. Modified rebuy Rationale: A modified rebuy occurs when a customer is familiar with the product and supplier but is looking for additional information. Firms periodically review their buying and go to the market place to be sure that they are getting exactly what they want. 41. Moore Diversified Services decides to create a group that is made up of people from the purchasing department, senior management with financial knowledge, and engineers with design expertise. It is common for this group to be called a(n) _______________. A. Ad hoc group B. Party planner C. Selling partner D. Buying center E. Post hoc group Answer: D. Buying center Rationale: Business purchases are seldom made by just one person, particularly in modified rebuy and new purchase situations. A number of individuals, from diverse backgrounds, with a stake in the purchase decision come together to form a buying center. 42. Jose is the machine press operator in a small manufacturing facility. He has been on the job for 7 years and has taken extensive training courses with respect to his machine. Jose will most probably play the role of a(n) _______________ in the buying process. A. Influencer B. User C. Decider D. Operator E. Key holder Answer: B. User Rationale: Users (like Jose) are the actual consumers of the product. While typically not the decision makers, they do have a lot of input at various stages of the process. They recognize the problem, help define the product specifications, and provide critical feedback after the product purchase. 43. In the buying process the "user" is characterized as _______________. A. The actual consumer of the product B. The actual leader of the buying group C. The actual evaluator of the product D. The consultant to the buying group E. None of the above Answer: A. The actual consumer of the product Rationale: Users are the actual consumers of the product. While typically not the decision makers, they do have a lot of input at various stages of the process. They recognize the problem, help define the product specifications, and provide critical feedback after the product purchase. 44. An initiator is _______________. A. Any person who starts the purchase process B. A senior executive that makes a decision that requires new resources C. A "user" who re-orders when supplies run low D. All of the above E. None of the above Answer: D. All of the above Rationale: The initiator starts the buying decision process. An initiator can be the user of the product or a senior executive who makes decisions that require new resources. 45. Gatekeepers are important in the B2B buying process because _______________. A. They limit the number of vendors in a given buying process B. They can create product specifications that block vendors C. They control access to key people D. All of the above E. None of the above Answer: D. All of the above Rationale: Access to information and relevant individuals in the buying center is controlled by gatekeepers. Similarly, engineering, quality control, and service department personnel create product specifications that, in essence, limit the number of vendors. 46. Deciders are an important group because _______________. A. They make the ultimate purchase decision B. They decide what characteristics the product should possess C. They decide what price the company should pay D. They have sole control over who is allowed to be a vendor E. None of the above Answer: A. They make the ultimate purchase decision Rationale: Deciders are people who make the purchase decision and thus are very important to the entire sales process. 47. In the buying process there is one group that can play a critical role. This group is often the first to recognize the problem based on a need and they help define the product specifications. This group is called _______________. A. Deciders B. Gatekeepers C. Users D. Influencers E. Buyers Answer: C. Users Rationale: Users are the actual consumers of the product. While typically not the decision makers, they do have a lot of input at various stages of the process. They recognize the problem, help define the product specifications, and provide critical feedback after the product purchase. 48. While making a purchase decision, engineers are frequently called on to detail product requirements and specifications. In this case, the engineers are playing the role of _______________. A. Influencers B. Users C. Deciders D. Initiators E. Product engineers Answer: A. Influencers Rationale: Individuals, both inside and outside the organization, with relevant expertise in a particular area act as influencers, providing information that is used by the buying center in making the final decision. Engineers are frequently called on to detail product requirements and specifications. 49. Gatekeepers are important to the buying process because they _______________. A. Initiate the buying process B. Have position power in the organization C. Control access to key participants in the buying center D. Control access to the building site of the buying center E. Make the final purchase decision Answer: C. Control access to key participants in the buying center Rationale: Access to information and relevant individuals in the buying center is controlled by gatekeepers. For example, purchasing departments act as gatekeepers by limiting possible vendors to those approved by the company. 50. Jefferson Wainright is happy over the growth of the company. As manager of the production floor, he wants to expand by adding another workstation to increase the capacity of the floor. Jefferson creates a buying center to evaluate various combinations of machines for the new station. The buying center gives him a list of the machine preferences ordered from 1 to 3. After reviewing the list, he orders machine 2 due to the past experience with the manufacturer. Jefferson is playing the role of a _______________. A. Gatekeeper B. Manager of purchasing C. Influencer D. Manager of the floor E. Decider Answer: E. Decider Rationale: Ultimately, the purchase decision rests with deciders (Jefferson in this case) in the buying center. 51. Hoffman Dirkbond is a senior executive in manufacturing. He has been concerned about the age of the equipment and decides to do a study to evaluate the time and money lost due to equipment failure. He decides to bring his research to the monthly board meeting. In this way Dirkbond is playing the role of _______________ in the buying process. A. Gatekeeper B. Initiator C. User D. Decider E. None of the above Answer: B. Initiator Rationale: The initiator starts the buying decision process. Hoffman has initiated the evaluation. 52. Maryanne has noticed that one of the manufacturing teams has lost productivity over a six month period of time. She puts together a document that describes the productivity loss and does a study to determine the cause. She finds that one of the key machines in the process breaks down often. Maryanne asks several machine manufacturers to submit their proposals. Maryanne is playing the role of a(n) _______________. A. Influencer B. Gatekeeper C. Initiator D. User E. Decider Answer: C. Initiator Rationale: The initiator starts the buying decision process. Maryanne has started the process by conducting the study and asking machine manufacturers to submit proposals. 53. Sam Celeski is a salesman with an industrial supply house. He discovers that Ingersoll Rand is going to make a large purchase of equipment and has created a buying center to get the purchase done. Sam's first job is to _______________. A. Discover the budget for the purchase B. Develop criteria for the purchase C. Discover the most important influencer D. Discover who is part of the buying center E. Develop a presentation for the buying center Answer: D. Discover who is part of the buying center Rationale: A number of individuals with a stake in the purchase decision come together to form a buying center. When a buying center is discovered, a salesman should first identify who is in the center. 54. NAICS codes now include _______________. A. USA B. USA and Canada C. USA, Canada, and Mexico D. All of the Americas, North and South E. All NATO nations Answer: C. USA, Canada, and Mexico Rationale: The North American Industrial Classification System (NAICS) codes were expanded to cover Mexico and Canada. NAICS codes now include USA, Canada, and Mexico. 55. With respect to buying centers, _______________. A. It is difficult to identify the members B. The only important people are users and influencers C. Gatekeepers initiate the buying process D. Influencers can not be deciders E. Influencers are the people who control access to key people Answer: A. It is difficult to identify the members Rationale: Identifying the members of a buying center can be difficult and is made more challenging by gatekeepers. The job of identifying membership in the buying center is made even more complex as participants come and go over time. 56. NAICS codes are a classification of businesses that _______________. A. List the primary output of the business B. Each company gets only one code C. Are used across the US, Mexico, and Canada D. Defines 20 major business sectors E. All of the above Answer: E. All of the above Rationale: The North American Industrial Classification System (NAICS) codes include businesses in US, Mexico, and Canada. It defines 20 major business sectors and classifies companies on the basis of their primary output. Each company gets only one code. 57. Materials, repairs and operational supplies and services, are generally purchased through a _______________. A. Buying center B. Buying committee C. Bid at time of need D. Straight rebuy E. Contractual liturgy Answer: D. Straight rebuy Rationale: MRO supplies are products used in everyday business operations and are typically not considered a significant expense. Many of these purchases are straight rebuys; the individuals involved do not want to spend a lot of time making the purchase. 58. Home Depot buys home products and then resells them to consumers, building contractors, and other professionals in the construction industry. This puts them in the category of businesses called _______________. A. Mixed use enterprise B. Resellers C. Value added enterprise D. Retail merchandiser E. End sellers Answer: B. Resellers Rationale: Companies that buy products and then resell them to other businesses or consumers are called resellers. Home Depot is an example. 59. Which of the following observations is true about resellers? A. Resellers sell products to other businesses or consumers B. Resellers do not sell products to businesses C. Resellers serve as an early warning system to OEMs D. Resellers manufacture products for end users E. Resellers do not directly sell products to end users Answer: A. Resellers sell products to other businesses or consumers Rationale: Companies that buy products and then resell them to other businesses or consumers are called resellers. 60. The single largest buyer of goods and services in the world is _______________. A. General Electric B. Wal-Mart C. The United States Government D. The Russian Government E. None of the above Answer: C. The United States Government Rationale: The single largest buyer of goods and services in the world is the U.S. government. Combined with state and local governments, the value of purchases is over $2 trillion. 61. A unique characteristic of a nonprofit organization is: A. Nonprofits use a buying triad instead of a buying center B. The profit sector pools their money for purchases C. The vendor list is shorter in the nonprofit sector D. Nonprofits have a limited number of resources compared to their profit counterparts E. All of the above Answer: D. Nonprofits have a limited number of resources compared to their profit counterparts Rationale: In a nonprofit organization, profit is important but is not the fundamental driver in decision making. Also nonprofit organizations have fewer resources than for-profit firms in general. 62. The business market purchase decision process is triggered by someone inside the company who _______________. A. Is a department head B. Is a member of the procurement department C. Identifies a need D. Attends a meeting to brainstorm E. Has a lot of information about the product to be purchased Answer: C. Identifies a need Rationale: The business market purchase decision process is triggered when someone inside or outside the company identifies a need. 63. In a business market purchase decision process, the ‘_______________’ stage comes immediately before ‘search for suppliers' stage. A. Problem recognition B. Response to RFP C. Define the need and product specifications D. Make the purchase decision E. Post purchase evaluation Answer: C. Define the need and product specifications Rationale: Once a problem has been identified, the next step is to clearly define the need. Once the need and product specifications are defined, the ‘search for suppliers' stage begins. 64. There are at least two methods to build a list of potential suppliers once product specifications have been outlined. One of the methods is to use the cumulative experience of the company over time. The second method is _______________. A. Buying a list from a list broker B. Using supplier search websites like Thomas Global Register C. Asking all sales people to respond to the RFP D. Creating a list from the Yellow Pages E. Going to several trade shows and finding suitable suppliers Answer: B. Using supplier search websites like Thomas Global Register Rationale: The Internet has become a valuable tool for companies in identifying potential suppliers. General search engines and even dedicated supplier search Web sites, such as Thomas Global Register, are easy to use and enable customers to identify specific potential vendors. 65. In a business market purchase decision process, which stage follows the ‘search for suppliers' stage? A. Problem recognition B. Seek sales proposals in response to RFP C. Define the need and product specifications D. Make the purchase decision E. Post purchase evaluation Answer: B. Seek sales proposals in response to RFP Rationale: Once the company's needs have been identified and production specifications have been outlined, business customers can identify potential suppliers. Then they seek sales proposals in response to RFP. 66. Request for proposal (RFP) is the process of _______________. A. Getting people to lower the price B. Achieving strategic advantage over competition C. Exciting suppliers to join our supply chain D. Putting product specifications into a document for distribution E. Finding out the most valuable customers Answer: D. Putting product specifications into a document for distribution Rationale: Putting product specifications into a document for distribution is known as a request for proposal (RFP). Product specifications as contained in the RFP become the starting point from which vendors put together their product solution. 67. A request for proposal (RFP) _______________. A. Is the end point for vendors in the B2B market B. Is the starting point from which vendors put together their product solution C. Seeks information from the customers regarding the product performance D. Is not a very time consuming part of the sales process E. Evaluates the performance of sales personnel Answer: B. Is the starting point from which vendors put together their product solution Rationale: Putting product specifications into a document for distribution is known as a request for proposal (RFP). The second purpose of outlining product specifications is to guide potential suppliers. Product specifications as contained in the RFP become the starting point from which vendors put together their product solution. 68. When a company solicits RFPs from suppliers with an open vendor search, the goal is to _______________. A. Get several proposals which would help in negotiating with the preferred vendor B. Get one good response from the preferred vendor C. Get a lot of responses so the firm can focus only on price D. Get proposals in order to get competitive intelligence E. All of the above Answer: A. Get several proposals which would help in negotiating with the preferred vendor Rationale: Companies frequently solicit proposals from a number of vendors for two reasons. First, even if there is a preferred vendor, getting more information about available options from other suppliers is a good idea. Also, getting additional proposals helps in negotiating with the preferred vendor. 69. When responding to an RFP, the B2B marketer may _______________. A. Use CRM or custom software to make all proposals look uniform B. Assign it to only one person in the organization C. Give the same proposal to all prospective clients D. Let only the sales team read the proposal E. None of the above Answer: A. Use CRM or custom software to make all proposals look uniform Rationale: Sales proposals, particularly those submitted in response to an RFP, are written so they can be studied and sent to various individuals inside the company. Using a CRM or custom software helps unify the content and look of a sales proposal so that various individuals in the organization can easily understand the proposal. 70. When a marketing company responds to an RFP, _______________. A. It presents clearly how the marketing company's products will meet the product specifications detailed in the RFP B. It makes a case for selecting the marketing company by presenting any additional information such as unique product features it possesses C. It succinctly presents the superior service of the marketing company D. All of the above E. None of the above Answer: D. All of the above Rationale: Generally, a sales proposal is the first and best chance to impress the customer. A sales proposal clearly specifies how the company's products will meet the product specifications detailed in the RFP and it makes the case for selecting the company by presenting additional information such as unique product features or superior service to help persuade the customer. 71. Product choice in the B2B market depends upon _______________. A. Price, product, and distribution criteria B. Financial, subjective, and objective criteria C. Objective, subliminal, and price criteria D. Financial, value, and service criteria E. None of the above Answer: D. Financial, value, and service criteria Rationale: The three primary criteria used to evaluate the product choice are financial, value, and service criteria. 72. Industrial sellers often include with the RFP a _______________. A. Strong financial analysis of the purchase B. Strong request to be the sole source for the contract C. Grease payment to smoothen the process D. Financial incentives to make the purchase in the form of free service E. None of the above Answer: A. Strong financial analysis of the purchase Rationale: The actual purchase price is just one consideration in determining the real cost of a purchase. Maintenance and operating costs, repair charges, and supplies are all costs associated with ownership. Industrial sellers often include with the RFP a strong financial analysis of the purchase which would identify real cost of purchase and the break even point. 73. A big industrial firm is interested in evaluating the potential purchase of a machine. In order to do this, managers should look at _______________. A. Maintenance cost for the first year of ownership alone B. One-time purchase price C. Total costs over the life of the machine D. Cost plus insurance on the machine E. Cost plus the service contract on the machine Answer: C. Total costs over the life of the machine Rationale: The actual purchase price is just one consideration in determining the real cost of a purchase. Maintenance and operating costs, repair charges, and supplies are all costs associated with ownership. 74. Financial criteria in the purchase of a complex product for the business market include _______________. A. All costs evaluated against the stated life of the product B. All costs evaluated for one year C. Value, which is the relationship between price and quality D. The service requirements of a product E. None of the above Answer: A. All costs evaluated against the stated life of the product Rationale: The actual purchase price is just one consideration in determining the real cost of a purchase. Maintenance and operating costs, repair charges, and supplies are all costs associated with ownership. These costs are then evaluated against the stated life of the product. 75. Sellers are well aware that industrial buyers of products _______________. A. Need only the highest quality products B. Need products certified by an international organization C. Need a range of products with different qualities and price levels D. Need only the lowest priced products E. None of the above Answer: C. Need a range of products with different qualities and price levels Rationale: Industrial buyers do not always need the highest-quality product, so most businesses carry multiple lines with different quality and price levels. Offering customers a choice increases the likelihood of success and minimizes the opportunity for competitors to target gaps in a company's overall product line. 76. _______________ provide critical feedback after the product purchase and, as a result, their responsibility is enhanced in new purchase and modified rebuy situations when product specifications are being set for the purchase decision. A. Gatekeepers B. Influencers C. Initiators D. Users E. Deciders Answer: D. Users Rationale: Users are the actual consumer of the product and play a critical role. They are the first to recognize the problem based on a need, help define the product specifications, and provide critical feedback after the product purchase. As a result, their responsibility is enhanced in new purchase and modified rebuy situations when product specifications are being set for the purchase decision. 77. The most fundamental criterion in vendor selection is _______________. A. Serviceability B. Price C. Reliability D. Location E. Intangibility Answer: C. Reliability Rationale: The most fundamental criterion in vendor selection is reliability, which is the vendor's ability to meet contractual obligations including delivery times and service schedules. 78. A fundamental criterion in vendor selection is the vendor's ability to meet contractual obligations including delivery times and service schedules. This concept is called _______________. A. Supplier choice B. Dependability C. Reliability D. Sustainability E. None of the above Answer: C. Reliability Rationale: The most fundamental criterion in vendor selection is reliability, which is the vendor's ability to meet contractual obligations including delivery times and service schedules. 79. Accountants, purchasing agents, engineers, and other players in a buying center perceive the evaluation of products in different ways which makes a buying center: A. Less effective than a center handled only by purchasing. B. More effective since individuals with different perspectives gives a well-rounded view of the purchase decision. C. Chaotic since there are so many different view points for a product evaluation. D. All of the above. E. None of the above. Answer: B. More effective since individuals with different perspectives gives a well-rounded view of the purchase decision. Rationale: Getting different perspectives on a purchase ensures that the company buys a well rounded solution to a given problem. 80. Once a purchase decision is made, the purchase decision process continues and is called _______________. A. Cognitive dissonance B. Purchase evaluation process C. Post mortem analysis D. Post-purchase evaluation E. None of the above Answer: D. Post-purchase evaluation Rationale: The purchase decision process does not end with the purchase of the product. Once the buyers start using the product, they assess product performance and the seller's response to any problems or issues. This is called as post-purchase evaluation. 81. The primary organizational factor influencing the product and supplier choice is _______________. A. Needs and desires of those involved B. Opportunity for promotion of the buying center manager C. Product specifications D. Financial considerations E. Risk tolerance Answer: E. Risk tolerance Rationale: The primary organizational factor is risk tolerance. Individuals and companies all have a certain tolerance for risk. Their product decisions will be influenced by their aversion to or acceptance of risk. 82. Once a sale is made and the product delivered in the B2B market, the buyer _______________. A. Evaluates the product and supplier in a post purchase process B. Considers the sale complete C. Looks for rapid installation of the product D. Uses pert charts to evaluate time efficiencies E. None of the above Answer: A. Evaluates the product and supplier in a post purchase process Rationale: Once the buyers start using the product, they assess product performance and the seller's response to any problems or issues. The post-purchase evaluation helps customers make better purchase decisions in the future. 83. Losing a customer is disappointing; however, it also represents an opportunity. By using _______________ strategies, companies can reacquire customers. A. Price skimming B. Switching C. Service recovery D. Diversification E. Cold calling Answer: C. Service recovery Rationale: Losing a customer is disappointing; however, it also represents an opportunity. By using well-developed service recovery strategies, companies can reacquire customers. 84. EDI (electronic data interchange) allows _______________. A. Companies to talk to each other daily B. Customer computers to communicate directly with supplier computers C. Computers to fulfill the buying center function D. Computers to do complex product evaluation with limited human involvement E. All of the above Answer: B. Customer computers to communicate directly with supplier computers Rationale: Technology has transformed the business purchase decision process. Sophisticated programs manage inventories and automatically replenish supplies. By linking directly with electronic data interchange (EDI), customer computers communicate directly with supplier computers to reorder as needed. 85. B2B transactions have been growing at a phenomenal rate. Online B2B sales worldwide is now in excess of _______________. A. 10 trillion dollars B. 5 trillion dollars C. 3 trillion dollars D. 1 trillion dollars E. None of the above Answer: D. 1 trillion dollars Rationale: B2B transactions have been growing at a phenomenal rate with online B2B commerce worldwide in excess of $1 trillion, a much larger amount than that generated by B2C online sales. 86. One of the benefits of electronic data interchange (EDI) is _______________. A. Customer computers communicate directly with supplier computers B. Suppliers can listen in on buyers C. Buyers get better prices than ever before D. Late deliveries are less common E. Technology linkages are more plentiful Answer: A. Customer computers communicate directly with supplier computers Rationale: By linking directly with electronic data interchange (EDI), customer computers communicate directly with supplier computers to reorder as needed. 87. The process of business purchasing online is called _______________. A. Fast procurement B. Channel management C. E-procurement D. Team procurement E. Effective procurement Answer: C. E-procurement Rationale: The process of business purchasing online is referred to as e-procurement. 88. Many companies have set up direct links to approved suppliers to make the purchase easier and move it closer to the front line decision makers. These direct links are called _______________. A. Industry purchasing sites B. Google B2B C. Intranets D. Extranets E. T-lines of connection Answer: D. Extranets Rationale: Many companies have set up direct links (extranets) to approved suppliers to make the purchase easier and move it closer to frontline decision makers. 89. Office Depot has a number of direct relationships using EDI with thousands of companies. This relationship is done through a concept called _______________. A. Extranet B. Intranet C. Electronic impact analysis D. Utility functionality E. Quick response program Answer: A. Extranet Rationale: Many companies have set up direct links to approved suppliers to make the purchase easier and move it closer to frontline decision makers. It is done through extranet. Office Depot, for example, has a number of direct relationships using EDI with thousands of companies. 90. Steel, chemicals, paper, and automobile manufacturers have created integrated Web sites to assist their own purchasing departments in online purchasing and supplier selection. These are examples of _______________. A. Industry purchasing sites B. Google AdWords C. Intranets D. Extranets E. T-lines of connection Answer: A. Industry purchasing sites Rationale: Industry purchasing sites are Web sites formed by industries to streamline and standardize the e-procurement process. Steel, chemicals, paper, and automobile manufacturers have created integrated Web sites to assist their own purchasing departments in online purchasing and supplier selection. Short Answer Questions 91. In B2B marketing, companies rely on a more personal relationship between the buyer and seller, how does this differ from consumer marketing? Answer: • Relationship development with consumers is impersonal and exists primarily through electronic communication or direct mail. The opposite is true in business markets. The nature of business markets requires a more personal relationship between buyer and seller. 92. Within the organization, who is the person most responsible for maintaining B2B relationships? Why? Answer: • The individual most responsible for maintaining a relationship is the salesperson. This is because customers want direct communication with company representatives and prefer someone they know and trust. 93. Why does technology play a critical role in connecting the buyer and the seller in the B2B market? Answer: • Customers demand not only a personal relationship with their vendors but also an efficient one. Most companies now require vendor Internet connectivity to increase efficiency. Integrating IT systems that enhance sales response times, provide better customer service, and increase information flow is now an accepted element in a successful B2B customer relationship. 94. Business markets are characterized by fewer, but larger customers, how does this affect customer retention? Answer: • The large size and small number of customers places a higher value on each customer. In a business market setting, losing even one large customer has striking implications for a company. 95. Why is geographic concentration an important part of some B2B relationships? Answer: • Business markets tend to concentrate in certain locations. While the Internet allows people to live anywhere, the nature of business relationships means a company wants to have a strong presence near its best customers. 96. Define supply chain. Answer: • A supply chain is the synchronized movement of goods through the channel. In B2B markets the supply chain is generally more direct with suppliers and manufacturers working closely together to ensure efficient movement of products and services. 97. How has the demand for biofuels affected the demand for corn? Answer: • Due to the rise in popularity for biofuels (ethanol), demand for corn has skyrocketed. Due to the increased demand and price of corn other industries, such as the cattle industry which uses corn in feed, have experienced set backs. 98. Why is the demand for products and services different in a business market? Answer: • Product demand in business markets is different from consumer demand on three critical dimensions: derived demand, fluctuating demand, and inelastic demand. 99. Las-X makes medical lasers used in hair removal and cosmetic surgery. The company recognizes that consumers have less disposable income now than they did just a few years ago. Who are customers for Las-X and how does consumer demand impact Las-X? What demand concept is illustrated here? Answer: • Customers for Las-X are hair removal clinics, dermatologists, and cosmetic surgeons. When consumers have less discretionary income, they are less likely to purchase cosmetic services. Clinics are less likely to expand and derived demand decreases. 100. Kiran runs Power3, a specialized battery manufacturer. His biggest account is an international digital camera manufacturing company. Kiran would like to increase sales and believes that if he lowers the price of his lithium batteries he will receive larger orders from the digital camera manufacturer. What would you tell Kiran about the demand for his product? Answer: • The demand for Kiran's batteries is inelastic, meaning changes in demand are not significantly affected by changes in price. 101. Why is a new purchase the most difficult buying situation? Answer: • A new purchase is the purchase of a product or service by a customer for the first time. The more expensive, higher risk, and greater the resource commitment, the more likely the company will engage in a full purchase decision process. 102. Why is the buying center an important part of the purchasing decision? Answer: • The buying center is a group that manages the purchase decisions processes and ultimately makes the final decision. Certain members of the group perform particular roles. 103. Lucy is executive assistant to Doug Belden, the C.E.O, at Belden & Belden Office Supply. Since Mr. Belden makes most final decisions in regards to purchasing decision, Lucy is a key member of the buying center process. Recently Lucy has received information from a new salesperson for one of their key suppliers, she is now deciding whom to send the information to within the organization. What member of the buying center process is Lucy? What member of the buying center process is the Mr. Belden? Answer: • Lucy is the gatekeeper and Mr. Belden is the decider. Lucy is acting as the gatekeeper, as she controls the flow of information to others within the organization. Mr. Belden is the decider, as he makes the final purchasing decisions for Belden & Belden Office Supply. 104. How does the North American Industrial Classification System (NAICS) help in B2B marketing? Answer: • The North American Industrial Classification System (NAICS) helps B2B marketing by breaking down the industries and providing detailed information. The detailed information includes: data on companies listed in each code, number of employees, sales revenue, their location, and contact information. 105. Making Waves Boating has just returned from a trade show where managers purchased ten new boats and multiple boating accessories. Making Waves already has promised five of the boats to a local resort, and by Monday the remaining new items will be on the showroom floor ready for purchase. In a B2B market what would Marking Waves be labeled as a seller? Why? Answer: • Making Waves is considered a reseller because they buy products and then resell them to other businesses or consumers. 106. How do government purchase practices differ from other B2B purchase practices? Answer: • Local, state, and particularly federal government entities have unique and frequently challenging purchase practices. Detailed product specifications must be followed precisely, and the purchase process is often long. 107. Tyrone owns Orchid Odyssey a plant nursery that specializes in orchids. Tyrone has had significant success with his Orchid of the Month mail order program, and as a result needs larger nursery space. What part of the business market purchase decision process has Tyrone just illustrated? What will he need to do next? Answer: • Tyrone has illustrated the problem recognition aspect of the business market purchase decision process. Next Tyrone will need to define his need for a larger nursery space, including specifications. 108. When making a product selection as part of the business market purchase decision process, what three primary criteria are used to make a decision? Answer: • Financial criteria, value criteria and service criteria. The three primary criteria used in the business market purchase decision process are: 1. Quality: Assessing the product's reliability, performance, and suitability for meeting business needs. 2. Price: Evaluating the cost-effectiveness and overall value, including any potential savings or return on investment. 3. Supplier Reliability: Considering the supplier's reputation, reliability, and ability to deliver products consistently and on time. 109. Businesses understand that supplier qualifications are a main part of the purchase decision. What are the main criteria the supplier choice decision and what to they represent? Answer: • Reliability- the vendor's ability to meet contractual obligations. Personal factors- the needs, desires, and objectives of those involved in the purchase decision. Organizational factors, or risk tolerance. 110. Why is it so important for the buyer and seller to participate in the post-purchase evaluation of a product and supplier? Answer: • The process helps customers to make better purchase decisions in the future. If you are the current supplier then you have an obvious advantage as long as the customer evaluates the purchase decision positively. However, if you are the current supplier and the customer evaluates the purchase decision negatively, then you could lose a customer to a competitor. 111. Maureen runs a hospital in a metropolitan area, she believes that the hospital should implement an electronic data interchange (EDI) system, but she is meeting some resistance. What would you tell some of the people that are resisting the EDI system? Answer: • By linking directly with electronic data interchange (EDI), customer computers communicate directly with supplier computers to reorder as needed. Late deliveries, defective products, and other issues related to supplier performance can be identified and dealt with before they become a major problem. Essay Questions 112. In B2B markets, relationships and technology are increasingly important. Describe the role of each. Answer: A more personal relationship most often connotes a greater emphasis on personal selling and, increasingly, technology. Customers want direct communication with company representatives and prefer someone they know and trust. The individual most responsible for maintaining a relationship is the salesperson. Personal selling also offers companies the most effective method for direct communication with the customer. Technology has greatly improved the quality and quantity of communications between buyer and seller. However, one-on-one personal communication is still the most important tool in developing and maintaining a strong customer relationship in business markets. At the same time, technology plays a critical role in connecting buyer and seller. Integrating IT systems that enhance sales response times, provide better customer service, and increase information flow is now an accepted element in a successful B2B customer relationship. Customers demand not only a personal relationship with their vendors but also an efficient one. Most companies now require vendor Internet connectivity to increase efficiency. 113. Katherine is the marketing VP for a cleaning supply manufacturer. The firm's products are proven to kill 99% of bacteria. The current target markets are hospitals and skilled nursing facilities. Katherine is considering branching into the consumers products market and wants your advice on the five major differences in business and consumer markets. What do you say to her? Answer: See Exhibit 6.2 I would advise Katherine that the five major differences between business and consumer markets are: 1. Purchase Volume: Businesses buy in larger quantities compared to individual consumers. 2. Decision-Making Process: Business purchases involve multiple decision-makers and a more complex decision-making process. 3. Buyer-Seller Relationships: Business markets emphasize long-term relationships and partnerships, while consumer markets focus on individual transactions. 4. Product Customization: Businesses often require tailored solutions, whereas consumer products are more standardized. 5. Buying Motivation: Businesses focus on efficiency and ROI, while consumers are influenced by personal preferences and emotional factors. 114. Victor has just transitioned from working in a primarily consumer driven market to working in a B2B market. His company manufactures headlights for various vehicles. Victor's business partner believes they need to move their production plant closer to their major customers, Victor believes they can continue to operate as they always have. Who is right? Why? Answer: Victor's business partner is right. In the B2B market relationships are more important, it is because of this that they should move to a more geographically logical area in which to conduct their business. By being closer to their customer they are able to react more quickly to their needs and to establish a stronger relationship over time. Additionally, being closer to their customer will allow Victor and his partner to cut back on transportation costs, which is also a good idea in the B2B market. 115. Rosa, a marketing consultant, is preparing a report for a client that produces lumber for use in the housing market. She is writing a section on market demand and needs to explain the three types of demand. How should she explain this to her client? Answer: Product demand in business markets is different from consumer demand on three critical dimensions: derived demand, fluctuating demand, and inelastic demand. All three offer unique challenges and opportunities for marketers. For example, two of the three differences (derived and fluctuating demand) deal with the relationship between B2B and B2C demand and suggest B2B marketing managers must first understand their customers markets before they can sell to them. Derived Demand Demand for B2B products originates from the demand for consumer products, or, put another way, demand for B2B products is derived demand. Environmental factors have long-term and short-term effects on consumer product choices. This is a challenge for business marketers because, despite having a great product and providing great service at a competitive price, they may still not get the business because consumer demand for their business customers product is weak. Fluctuating Demand The relationship between consumer demand and demand for business products presents a real challenge for business-to-business marketers. Small changes in consumer demand can lead to considerable shifts in business product demand and is referred to as the acceleration effect. This makes forecasting the sale of consumer products important because making even a small mistake in estimating consumer demand can lead to significant errors in product production. Inelastic Demand Business products experience fairly inelastic demand, meaning changes in demand are not significantly affected by changes in price. Price increases, particularly incremental changes, are often accepted because manufacturers are hesitant to disrupt manufacturing processes, which, in turn, create inelastic demand in the short run. 116. Scampi Seafood processes fresh shrimp and fish caught off the coast of Louisiana. The company wants to build another processing plant in Texas. Utilizing your knowledge of the B2B purchasing process, explain how straight rebuy, modified rebuy and new purchase will affect the purchasing of materials to build and open the new processing plant. Answer: Since Scampi Seafood already has a processing plant, this will affect some of its purchasing decisions. Major items involved in the actually processing function of the plant will be purchased on modified rebuy. Since Scampi already uses products in its other facility, they do not need to go through the added research and decision-making processes associated with new purchases. However, the actual physical facility and all purchasing decisions related to it, will be new purchases. Scampi is operating in a new state and will therefore need to make new purchasing decisions based on builders, and suppliers in the area that it wishes to establish their facility. The normal day-to-day purchases that Scampi makes, such as office supplies and containers for the shrimp and fish, will be straight rebuy since Scampi already uses these items in its other facility. 117. Antonio just graduated from the MBA program at this university and went to work at his family's business, which is building custom wood furniture. He has finally convinced his father that they need to upgrade the machinery they use to make the furniture and has started to put together a buying center to make the purchase. His father doesn't think a buying center is necessary and told Antonio to make the decision, what should Antonio say to his father about the buying center? Whom should Antonio contact to be a member of the buying center? Answer: Antonio needs to explain to his father the importance of the buying center. There are many people at the factory that will be impacted by this decision, and those people have pertinent information in regards to new machinery purchase. He also needs to communicate that by selecting a group of people to assist in the decision-making process, he will be making the best decision for the organization in the long run. In regards to whom should be invited to participate in the buying center, Antonio will first want to include people that are using the current machines because they have first hand knowledge of the limitations of the current system and the needs in a new system. Additionally, Antonio will want to invite a member of the company supplying the machinery so that technical questions can be answered during the meetings. Finally, it would be beneficial for him to invite his father, his secretary (or another member of the organization to be the gatekeeper) and any other people that will be directly impacted by the purchase decision. 118. Kenny is the leading salesperson for Polymer Sci., a supplier specializing in polymers used in manufacturing processes. He wants to find new customers so he has started to research how to approach a buying center. What are some challenges that he will face? Answer: First, who is part of the buying center? Simply identifying the members of a buying center can be difficult and is made more challenging by gatekeepers whose role, in part, is to act as a buffer between buying center members and outside vendor representatives. The job of identifying membership in the buying center is made even more complex as participants come and go over time. Second, who are the most significant influencers in the buying center? This is critical in both preparing a sales presentation and following up. Targeting influencers is important in persuading the buying center to purchase the salesperson's product. Finally, what are the decision criteria for evaluating the various product options? A very real concern for salespeople is making sure their products perform well on critical evaluation criteria; however, without a good understanding of evaluation criteria it is not possible to assess the probability of the product's success. 119. Kari is the CEO of an up-and-coming new fashion label. She has just received a big order and needs to obtain the necessary equipment and materials to be able to fulfill the order. She has hired you, a business consultant, to assist her in making her decision. How would you walk her through the business market consumer decision process? Answer: Since we already know her problem (that she needs to obtain materials and equipment to meet higher production), I would then help Kari specify the amount of materials and the kind of machinery necessary to complete the order. If we decided it was necessary, I would help Kari create an RFP (request for proposal) to send out to prospective suppliers. Next I would help Kari search for appropriate suppliers. I would start with suppliers that she currently uses, but also include others when necessary. Once I have circulated the RFP to the selected suppliers, I would then ask for a sales proposal in return. With the sales proposal in hand I would sit down with Kari and help her make the purchase decision. As part of the product selection I would help her with creating financial criteria, value criteria, and service criteria. 120. You decided to open a sports bar with your best friend and are now trying to decide between two suppliers. What do you consider when making your final decision? Answer: The most fundamental criterion in vendor selection is reliability, which is the vendor's ability to meet contractual obligations including delivery times and service schedules. Strategic business-to-business relationships are based, in part, on a high level of trust between organizations. In those situations, the supplier's reliability becomes an essential factor in the final selection. Furthermore, a judgment is often made about the seller's willingness to go above and beyond what is specified in the contract. All things being equal, the seller with the best reliability and intangibles, like a willingness to do a little more than required, usually gets the order. Several additional factors affect product and supplier choices. Suppliers often find it difficult to understand the role these factors play in the final decision, but their influence can be profound. The first personal factors, refers to the needs, desires, and objectives of those involved in the purchase decision. Everyone in the buying center comes with their own needs and goals. Someone might see this as an opportunity for promotion, another believes he will receive a raise if he can be successful, a third may want to impress management. It is not possible to separate the individual agendas people bring to the buying center from the purchase decision. Another influence on the product and supplier choice is organizational factors. The primary organizational factor is risk tolerance. Individuals and companies all have a certain tolerance for risk. Their product decisions will be influenced by their aversion to or acceptance of risk. 121. Why does e-procurement play a larger role in B2B markets than in consumer markets? What are some of the methods that have been put in place to make e-procurement ideal for the B2B market? Answer: B2B transactions have been growing at a phenomenal rate with online B2B commerce worldwide in excess of $1 trillion, a much larger amount than that generated by B2C online sales. The process of business purchasing online is referred to as e-procurement. The methods are: Industry purchasing sites: Industries have formed Web sites to streamline and standardize the e-procurement process. Steel, chemicals, paper, and automobile manufacturers have created integrated Web sites to assist their own purchasing departments in online purchasing and supplier selection. Business function sites: Certain business functions have Web sites to standardize purchasing. Extranet to major suppliers: Many companies have set up direct links to approved suppliers to make the purchase easier and move it closer to frontline decision makers. Company buying sites: Many large companies have created their own Websites to assist vendors. RFPs and other relevant supplier information as well as some contact information are accessible for review. Test Bank for Essentials of Marketing Management Greg W. Marshall, Mark W. Johnston 9780078028786, 9780071082020, 9780077400187

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