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Self-test Questions
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1

There are three types of organisational markets, 1) Industrial, 2) Reseller and 3):
A)Consumer markets
B)Wholesale markets
C)Military markets
D)Government markets
E)Attractive markets
2

Typically the number of customers in organisational markets will be:
A)Large
B)Unknown
C)Small
D)Decreasing
E)Increasing
3

The buying criteria used by organisations is often based on:
A)Extras included as part of the product offer.
B)Hospitality and gifts received.
C)Relationships with the supplier’s sales force.
D)Economic and technical issues.
4

In business markets Derived demand often reflects consumer demand.
A)TRUE
B)FALSE
5

In organisational buying another name for a buying centre is:
A)Direct marketing unit
B)Decision maintenance unit
C)Decision making unit
D)Decision marketing unit
6

In a complex DMU why would communications with only the purchasing officer be insufficient to secure an order?
A)He may have a short memory.
B)He may be very busy.
C)He may argue with others in the DMU.
D)He may only have a minor influence in the DMU.
E)He may be late for the decision-making meeting.
7

Organisational buying is influenced by technical, economic, organisational, social and personal criteria.
A)TRUE
B)FALSE
8

If an organisation regards quality as a very important aspect in its evaluation of a supplier’s products and services it could be said that they are involved in practicing:
A)Total quality maintenance
B)Total quality management
C)Total quantity management
D)Technical quality management
9

In organisational buying perceived risk can come in two forms: functional risk and physiological risk. An example of physiological risk is when the buyer is:
A)Fearful of upsetting the boss and being ridiculed by colleagues.
B)Afraid the products might not work.
C)Scared the products might not be delivered on time.
D)Frightened that the quality of the components might not be good enough.
10

When an organisation is buying a product to fulfil a new task the DMU will require:
A)Proof that they are buying from a large organisation.
B)A large discount on price.
C)Good after sales service.
D)Very little information
E)A great deal of information.
11

To operate a successful Just In Time (J.I.T.) delivery system which of the following operations must be fully integrated:
A)Sales and invoicing
B)Delivery and returns
C)Production and marketing
D)Purchasing and production
E)Marketing and product delivery
12

Reverse marketing is where the buying organisation:
A)Takes over the supply company.
B)Develops a marketing strategy for the supply company.
C)Persuades the supply company to provide exactly what they require.
D)Sells its own products to the supply company in return.
E)Shares some of the supply company’s production tasks.
13

Relationship marketing is concerned with:
A)Finding and winning new customers.
B)Societal marketing.
C)Building relationships between staff in suppliers’ and buyers’ marketing departments.
D)Ethical marketing.
E)Retaining existing customers.
14

The development of ____________________ is facilitating the improvement of buyer/seller relationships.
A)Customer Databases
B)Technology
C)Communications Networks
D)Email
15

A business-to-business marketing communications strategy could include the use of the Internet and email. Email marketing campaigns should respect customers’ privacy. As a result best practice for email campaigns is to employ _________________ campaigns.
A)Web-based
B)Personalised sales promotion
C)Permission-based
D)Intranet-based
16

If a supplier or buyer analyses components in order to see if they can be produced more cheaply the process would be called:
A)Value chain analysis
B)Value analysis
C)Trade-off analysis
17

The organisational buying process is a straightforward process.
A)TRUE
B)FALSE
18

Buying office stationery from an established supplier is an example of a:
A)A new task
B)Straight re-buy
C)Modified re-buy
D)MRO purchase
19

A buyer might be in a situation where his personal preference might affect a purchasing decision. What process is taking place if only certain information sources are consulted:
A)Selective distortion
B)Selective retention
C)Assortment selection
D)Selective attention
20

A just-in-time approach to purchasing and production requires a company to adopt an _____________________ approach.
A)Integrated
B)Internal
C)Interactive
D)Innovative
21

The benefits of a leasing agreement are that the owner of an asset (e.g. a computer system) receives full payment at the start of the lease agreement.
A)TRUE
B)FALSE
22

At which stage in the development of a buyer/seller relationship would contracts be signed?
A)Pre-relationship stage
B)Early stage
C)Development stage
D)Long-term stage
E)Final stage
23

As relationships become closer and trading cycles shorter, buyers are increasingly treating suppliers as .





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