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100 Cards in this Set

  • Front
  • Back

__________ is the marketing of goods and services that businesses and other organizaation buy for purposes other than personal comsumption.



A) B2B Marketing


B) Just in Time (JIT) Marketing


C) Single Sourcing


D) Retailing


E) Outsourcing

A) B2B Marketing

Another name for business- to- buiness markets is __________.



A) derived markets


B) functoinal markets


C) B2C markets


D) C2C markets


E) organizational markets

E) organizational markets

Business to Business markets do NOT include __________.



A) manufacturers


B) wholesalers


C) end consumers


D) retailers


E) government agencies

C) end consumers

B2B marketing differs from consumers marketing in that B2B marketing ___________.



A) is targeted at many individual and household customers.


B) relies upon frequent impulse purchases


C) emphasizes adveritising more than any other elements of the promotion mix


D) typically involves competitive bidding and price negotiations


E) ususally has one person involved in purchase decisions

D) typically involves competitive bidding and price negotiations

Organzational markets differ from consumer markets in that organzational markets _________.



A) have a high number of purchases that are low risk and low cost


B) have derived demand


C) are not geographicallay


D) have a single individual in the role of decision maker


E) involved more frequent purchases

B) have derived demand

Which of the following statements about organizational markets is NOT true?



A) Some consumers are included in the market.


B) The size of the purchases made in organizational markets is much larger than those made in consumer markets.


C) Organizational markets are geographically concentrated.


D) Organizational markets have a narrow customer base and a small number of buyers.


E) Most demand for organizational products is derived and inelastic.

A) Some consumers are included in the market.

Which of the following statements about organizational markets is true?



A) The average purchase size in organizational markets is much smaller than the average purchase size in the consumer market.


B) Demand for products in the organizational market is derived from demand for consumers products.


C) Most demand for organizational markets is fixed.


D) Organizational marketers have a broad customer base and a large number of buyers.


E) Joint demand is not a factor

B) Demand for products in the organizational market is derived from demand for consumers products.

_________ purchases are much greater than __________ purchases, both in the quantity of items ordered and how much they cost.



A) Business; consumer


B) Organizational; non-organizational


C) Online; offline


D) Not-for-profit; for-profit


E) Joint; Derived

A) Business; consumer

Many B2B marketers can take advantage of the _________ of business customers, focusing their sale efforts and perhaps even locating their distribution centers in a single region.



A) geographic concentration


B) mass media consumption


C) multiple requirements


D) fluctuating demand


E) organization changes

A) geographic concentration

Most demand for B2B products is _________.



A) derived, inelastic, fluctuating, and joint


B) derived, elastic, fixed and joint


C) derived, inelastic, static and dependent on the macro-environment


D) independent of all consumers market influences


E) competitive, derived, fluctuating and elastic

A) derived, inelastic, fluctuating, and joint

The success of one company in one industry may depend on another company in a different industry. This dependence creates _________.



A) inelastic demand


B) value-added demand


C) derived demand


D) micro-dependent demand


E) elasticity

C) derived demand

When a product has ________ demand, an increase or decrease in the price of the product has little or no effect on the demand for the product.



A) elastic


B) joint


C) derived


D) inelastic


E) fixed

D) inelastic

Demand in B2B markets is mostly ________ because what a firm sells is often just one of the many parts of materials that go into producing the consumer product.



A) elastic


B) static


C) fixed


D) inelastic


E) fluctuating

D) inelastic

One year many customers' machinery wears out and needs to be replaced. The following year no customers need new machinery. This is an example of ______ demand.



A) inelastic


B) fluctuating


C) elastic


D) consumer


E) static

B) fluctuating

_______ occurs when two or more goods are necessary to create a product.



A) Inelastic Demand


B) Fluctuating Demand


C) Joint Demand


D) Elastic Demand


E) Economic Demand

C) Joint Demand

The major classes of B2B customers are _________.



A) producers, retailers and consumers


B) resellers and government


C) organizations, producers and manufacturers


D) producers, resellers and organizations


E) consumers and retailers

D) producers, resellers and organizations

Computer maker Dell and Marriott hotels are both examples of which type of B2B customers?



A) resellers


B) resuppliers


C) organizations


D) producers


E) End Consumer

D) producers

_________ are B2B customers for raw materials.



A) Resellers


B) Resuppliers


C) Retailers


D) Producers


E) End Consumers

D) Producers

_______ do not actually produce goods, but they do provide their customers with the time, place, and possession utility by making goods available when and where consumers want them.



A) Resellers


B) End Users


C) Not-for-profits organizations


D) Producers


E) Buying Centers


A) Resellers

Walmarts buys toothpaste, peanuts and shows to sell in its stores. Walmart is a ___________.



A) Producers


B) not-for-profit organization


C) Consumer


D) facilitator


E) reseller


E) reseller

Governments are just about the only customers for certain products, such as jet fighters. The government is a(n) _________.



A) end user


B) organization


C) gatekeeper


D) facilitator


E) reseller

B) organization

Which of the following make up the largest single business and organizational market in the US?



A) raw material markets


B) producer markets


C) not-for-profit markets


D) e-commerce markets


E) government markets

E) government markets

Not-for-profit institutions such as the Salvation Army and the Red Cross belong to the ________ class of B2B consumers.



A) raw materials


B) producers


C) organization


D) commerce


E) reseller

C) organization

Which of the following is most likely to have an unprofessional or part-time buyer who needs more advice and assistance from marketers before and after a sale?



A) a reseller


B) a mass producers


C) a foreign government


D) a state government


E) a not-for-profit institution

E) a not-for-profit institution

Whichh of the following statements does NOT apply to the North American Industry Classification System (NAICS)?



A) NAICS is a numerical coding of industries developed by NAFTA countries


B) NAICS can be used by firms to assess potential markets


C) NAICS replaced the standard Industrial Classification (SIC) system


D) NAICS can be used to find new customers


E) NAICS is a consumer buying directory for North America.

E) NAICS is a consumer buying directory for North America.

The North American Industry Classification System (NAICS) ____________.



A) is a replacement for the BBB


B) was developed in Europe


C) includes information about industries in Mexico, Canada and the US


D) uses a two digit code that sorts industries into sub sectors


E) is a listing of consumer products

C) includes information about industries in Mexico, Canada and the US

B2B e-commerce _________.



A) links marketers directly to their business customers


B) has little effect on the way businesses operate


C) does not rely upon the internet


D) has only two simple forms


E) is conducted almost exclusively through private exchanges

A) links marketers directly to their business customers

B2B _______ refers to Internet exchanges between two or more businesses or organizations.



A) social media


B) outsourcing


C) e-commerce


D) reciprocity


E) buyclass

C) e-commerce

Which of the following is the simplest form of B2B e-commerce?



A) online catalogs


B) reciprocal sites


C) intranet


D) extranets


E) private exchanges

A) online catalogs

Many companies maintain _______, which are internal corporate computer networks that use Internet technology to link company departments, employees and databases.



A) websites


B) search engines


C) extranets


D) intranets


E) private exchanges

D) intranets

An intranet would NOT be used for which of the following?



A) videoconferencing


B) communicating with geographically dispersed branches of an organization


C) training employees


D) distributing internal document


E) communicating with the supplier network

E) communicating with the supplier network

A company uses a(n) _______ to allow certain suppliers, customers, and others outside the organization to access its internal system.



A) corporate websites


B) search engines


C) extranet


D) private exchanges


E) intranet

C) extranet

A(n) ______ can be especially useful for companies that need to have secure communications with their dealers, distributors, and/or franchisees.



A) intranet


B) social networking site


C) extranet


D) virtual trade show


E) buying center

C) extranet

A company could reasonably expect use of both an intranet and extranet to _________.



A) facilitate collaboration with external business partner


B) save the company money


C) increase traffic to the company's web site


D) replace the use of professional networking sites


E) improve internal communications among employees

B) save the company money

Prudential Health Care's _______ allows its corporate customers to enroll new employees and check eligibility and claim status themselves.



A) private exchange


B) extranet


C) intranet


D) professional network


E) reciprocity arrangement

A) private exchange

A(n) ______ is a system that links invited groups of suppliers and parents over the Web, allowing companies to collaborate with suppliers they trust without having to share sensitive information with others.



A) corporate web sites


B) search engines


C) intranet


D) private exchange


E) professional network

D) private exchange

Both B2C and B2B e-commerce companies are making sure that only authorized individuals are allowed to access a site and place an order. These companies are concerned with _______.



A) single sourcing


B) straight rebuys


C) security issues


D) private exchange


E) search engines

C) security issues

Nicknames, birthdates, and spouses' names are all examples of obvious ________.



A) firewalls


B) encryptions


C) sniffers


D) passwords


E) blogs

D) passwords

Firewalls and encryption are both ________.



A) common safeguards for internet transactions


B) commons authentication systems for intranets


C) types of sniffers used by hackers


D) types of passwords used by employees


E) tools for corporate espionage

A) common safeguards for internet transactions

A(n) _________ is a combination of hardware and software that ensures only authorized individuals gain entry into a computer system.



A) password


B) firewall


C) sniffer


D) encryption


E) virus

B) firewall

A(n) ________ monitors and controls all traffic between the internet and an intranet to restrict access.



A) private exchange


B) firewall


C) encryption


D) sniffer


E) password

B) firewall

To purchase an item from an Internet site, you will be asked to provide a credit card number.


Because of _________, a computer hacker who intercepted this number it is being sent to the seller would likely see *&^^(**(&(&(, or something equally as meaningless.



A) decoding


B) back-translation


C) encryption


D) the firewall


E) reverse encoding

C) encryption

______ means scrambling a message so that only another individual or computer with the right "key" for deciphering it can unscramble it.



A) back-translation


B) encryption


C) authentication


D) reverse encoding


E) sniffing

B) encryption

Which of the following are tools used by hackers and internet criminals to disrupt individual computers and entire company systems?



A) encryption and authentication


B) worms and viruses


C) sniffers and webinars


D) firewalls and decoders


E) passwords and private exchanges

B) worms and viruses

Which of the following would most likely be used by a hacker to intercept and read online communications?



A) back-translation


B) encryption


C) a sniffer


D) authentication


E) a firewall

C) a sniffer

LinkedIn, Twitter, and Facebook are all examples of ________.



A) viral techniques


B) professional network sites


C) social networks sites


D) private exchanges


E) webinar

C) social networks sites

According to research, social media channels are most effective to reach and engage business prospects at _______.



A) large government buying centers


B) large multinational companies


C) independent producers


D) small not-for-profit


E) mid-to-large size companies

E) mid-to-large size companies

According to resent research, which of the following are business buyers least likely to use for business purposes?



A) webinars


B) podcasts


C) linkedin


D) twitter


E) online ratings and reviews

D) twitters

Which of the following is geared primarily to corporate professionals?



A) Facebook


B) twitter


C) podcasts


D) linkedIn


E) blogs

D) linkedin

Which of the following describes an advantage of LinkedIn?



A) It was created by college students for college students


B) It facilitates quality introductions among business people


C) It provides comparative information on industries in NAFTA countries


D) It is a private exchange connecting buyers and suppliers


E) It allows approved partners to access a company's intranet

B) It facilitates quality introductions among business people

A(n) _______ identifies the degree of effort required of the firm's personnel to collect information and make a purchase decision.



A) needs hierarchy


B) purchase continuum


C) buy class framework


D) buying center continuum


E) need-response framework

C) buy class framework

Straight rebuys _______.



A) are the most complex of purchase types because they require customer relationship management


B) are more complex than new-task buys


C) often involves products with low risks


D) involves recruiting new vendors


E) are the B2B version of comparison shopping in the consumer market

C) often involves products with low risks

A modified rebuy _________.



A) required more time and effort than straight rebuys


B) is the B2B version an impulse purchase in the consumer market


C) requires more time and effort than new-task buys


D) occurs whenever a company reorders a product form an original suppliers


E) involves only one role in the buying center

A) required more time and effort than straight rebuys

A new-task buy ______.



A) requires less time and effort than a modified rebuy


B) can't be used if the buyer uses single sourcing


C) is characterized by uncertainty and high risk


D) is similar to routine decision making in the consumer market


E) begins with a SWOT analysis

C) is characterized by uncertainty and high risk

Which of the following is a job title for a professional buyers?



A) gatekeeper


B) procurement officer


C) initiator


D) influencer


E) sales manager

B) procurement officer

The group of people in the organization who participate in the purchase decision-making group process is referred to as the _________.



A) buyer institution


B) resource center


C) buying center


D) purchasing hierarchy


E) purchasing office

C) buying center

Which of the following statements about buying centers is true?



A) The buying center is like a standing committee.


B) The buying center roles are specified on the organizational chart


C) The most commonly found buying center has 6 employees, one to assume each of the buying center's roles.


D) An individual's role in the buying center does not change.


E) The members of a buying center typically participate in a cross-functional team.

E) The members of a buying center typically participate in a cross-functional team.

The _______ is the member of the buying center who actually needs the products.



A) initiator


B) gatekeeper


C) decider


D) user


E) influencer

D) user

The ______ is the member of the buying center who controls the flow of information to other members



A) initiator


B) gatekeeper


C) decider


D) user


E) influencer


B) gatekeeper

The _______ is the member of the buying center who makes the final decision.



A) initiator


B) gatekeeper


C) decider


D) user


E) influencer

C) decider

Which member of the buying center typically has the most power?



A) initiator


B) gatekeeper


C) decider


D) user


E) influencer

C) decider

The _______ is the member of the buying center whose primary function is handling the details of the transaction.



A) buyer


B) gatekeeper


C) decider


D) initiator


E) influencer


A) buyer

The first step in the business buying decision process is ________.



A) recognize the problem


B) current vendor analysis


C) search for information


D) select the supplier


E) evaluate the alternatives

A) recognize the problem

When a business needs to make a complex purchase, it is most likely to form a buying center during the ______ stage of the business buying decision process.



A) program recognition


B) vendor analysis


C) search for information


D) select the supplier


E) evaluate the alternatives

A) program recognition

Business buyers often develop _________, which are written descriptions of the quality, size, weight, warranty and delivery requirements for a purchase.



A) requests for quotations


B) requests for proposals


C) vendor analyses


D) product specifications


E) evaluate metrics

D) product specifications

What is the next step in the business buying decision process after the product specifications are written?



A) obtain written or verbal bids


B) evaluate alternatives


C) scan trade publications


D) evaluate vendors


E) set price ceiling

A) obtain written or verbal bids

During the _______ stage of the business buying decision process, the buying center assesses the proposals.



A) obtains written or verbal bids


B) alternative evaluation


C) product selection


D) information search


E) problem recognition

B) alternative evaluation

During the _______ stage of the business buying decision process, total spending for the product is considered.



A) request for proposal


B) information search


C) alternaive evaluation


D) supplier selection


E) product selection

C) alternaive evaluation

Which of the following statements about the product and supplier selection stage of the business buying decision process is true?



A) Price is the only factor businesses consider before making a purchase decision


B) Even companies that have adopted a total quality mgmt. approach consider price to be that most important determinant of who to buy from.


C) Before making a purchase decision, many businesses consider quality, reliability, durability, and after-the-sale service, as well as price.


D) Because after-the-sale service is a negotiation point, it is not considered at this stage of the business buying decision process.


E) Price and warranty are the only two factors businesses consider before making a purchase decision.

C) Before making a purchase decision, many businesses consider quality, reliability, durability, and after-the-sale service, as well as price.

For complex purchases, the buying center will typically decide what type of sourcing to use in the ______ stage of the business buying decision process.



A) problem recognition


B) information search


C) alternative evaluation


D) product and supplier selection


E) post purchase evaluation

D) product and supplier selection

Which of the following is an advantage of using single sourcing?



A) suppliers are more likely to remain cost-competitive


B) Buyers are less reliant on one firm to deliver the needed goods without interruption


C) The buyer and seller agree to be each other's customers


D) Consistency of quality of materials input into the product process is greater


E) Buyers have other suppliers to fall back on if one supplier fails

D) Consistency of quality of materials input into the product process is greater

A vehicle manufacturer often won't buy a new product from a supplier unless the supplier's competitors are also capable of making the same item. The manufacturer is using ___________.



A) single sourcing


B) crowdsourcing


C) multiple sourcing


D) customer reference programming


E) reciprocity

C) multiple sourcing

Sometimes supplier selection is based on ________, which means a buyer and a seller agree to purchase each other's goods and services even though the terms of the sales may not be the best available.



A) requisition


B) reciprocity


C) customer references


D) outsourcing


E) reverse marketing

B) reciprocity

______ occurs when firms obtain outside vendors to provide goods or services that might otherwise be supplied in-house.



A) Outsourcing


B) Reverse marketing


C) crowdsourcing


D) multiple sourcing


E) insourcing

A) Outsourcing

______ is a business practice in which a buyer shapes a supplier's products and operations to satisfy its needs.



A) reciprocity


B) functionalization


C) reverse marketing


D) bottom up marketing


E) crowdsourcing

C) reverse marketing

Which of the following is NOT an example of business to business marketing?



A) Scott sign systems sell interior signs to an alamaba resort


B) a municipal govt buys chemicals for its city swimming pools


C) sue buys a gift for her mother


D) A Canadian software company buys airline tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in japan


E) airmark sells a vinyl printing press to a manufacturers of plastic bags

C) sue buys a gift for her mother

Many businesses today are abandoning traditional business attire and allowing their employees to come to work in business casual that typically does not include ties, cufflinks, or business suits. There has been a decrease in the sale of silk ties as a result of this cultural trend. A decrease in consumers demand for silk ties has led to decrease in demand for silk because of the demand for silk is _________.



A) independent


B) micro-dependent


C) derived


D) inelastic


E) fixed

C) derived

A sign company creates and prints the full-sized vinyl sheets that make it quick and easy to change the promotion on a billboard. If a change in the price of petroleum (a necessary ingredient of the production of plastic) forced manufacturers of vinyl sheets to increase their price by 20%, the company would still need to buy the same amount to meet it's customers' needs. Therefore, demand for vinyl sheets by companies that use this product to create billboard ads is _________.



A) elastic


B) joint


C) independent


D) inelastic


E) fixed

A) elastic

A Miami restaurant has created atmosphere through its subtle use of blue and green lighting, ceiling fans over each table, and frozen drinks. If its electrical energy supplier raises its prices, the restaurant will most likely ________.



A) continue its present operation because its has an elastic demand for electricity


B) ask other miami restaurants to create derived demand for cheaper electricity


C) decide to find other ways to use electricity


D) continue to present operation because it has an inelastic demand for electricity


E) remove it's lighting, turn off it's fans and economize on its use of electricity

D) continue to present operation because it has an inelastic demand for electricity

A rifle manufacturer needs muzzles, trigger mechanisms, and wood gunstocks to produce rifles. Without these items the manufacturer can't product it's rifles. It will reduce its demand for triggers mechanisms and gunstocks if suppliers are unable to sell the muzzles it needs. This is an example of ________ demand.



A) reverse


B) synergistic


C) joint


D) reciprocal


E) inelastic

C) joint

PPG Industries buys silicon and uses it to manufacture glass for windows. PPG is a _______.



A) producer


B) not-for-profit


C) consumer


D) facilitator


E) reseller

A) producer

In terms of organizational markets, discount stores are example of _______.



A) reseller


B) resupplier


C) not-for-profit markets


D) producer


E) facilitating agents

A) reseller

The city of St. Louis buys a golf turf mower for maintaining the city's golf course in Forest Park. The city of St. Louis is in the ______ class of business customers.



A) reseller


B) producer


C) consumer


D) facilitator


E) government

E) government

The Metropolitan Museum of Modern Art buys office supplies. In dong so, they Museum is acting as member of the _______ business customer class.



A) producer
B) organization


C) consumer


D) facilitator


E) reseller

B) organization

Celarix.com is an Internet company that helps other businesses operating on the Internet handle distribution bottlenecks by offering software that manages tariffs and exchange rates for companies that ship internationally. Celarrix.com engages in ________.



A) B2C e-commerce
B) reciprocal activities


C) reverse marketing


D) C2B e-commerce


E) B2B e-commerce

E) B2B e-commerce

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise. It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and it allows suppliers to send new-product information directly to Pace retailers. Pace Hardware is using a(n) _________.



A) intranet


B) search engine


C) extranet


D) sniffer


E) crowdsourcing

C) extranet

Aeroxchange.com was founded by 13 airline companies as Website where the companies could purchase all the goods and services for their operations, excluding aircraft and fuel. Selected suppliers were invited to partner with these airlines at this site. Items that are traded through Aeroxchange include a wide range of airline-specific products and services, such as engine components and maintenance. Aeroxchange is an example of a(n) __________.



A)web link


B) search engine


C) intranet


D) private exchange


E) crowdsourcing

D) private exchange

The Green Awning is a flower and gift store. When its owner purchases the green foam used in the bottom of vases of cut flowers, floral tape used in flower arrangements, and gift cards, she is most likely making a _______.



A) straight rebuy


B) complex-task purchase


C) modified rebuy


D) new-task buy


E) gatekeeping buy


A) straight rebuy

When a dentist's office manager orders latex gloves, disposable masks, file folders, and complementary toothbrushes to give to patients, he is most likely making a(n) ________.



A) straight rebuy


B) complex-task purchase


C) modified rebuy


D) new-task purchase


E) intranet exchange

A) straight rebuy

Although much of the equipment used by dentists is thrown away after one use, many of the instruments used to clean teeth, fill cavities and deal with impactions and other dental problems are made of steel and must be sterilized. A dentist is considering replacing his conventional steam sterilizer with a chemical sterilizer that cleans without rusting or corroding instruments. Because the dentist is already familiar with sterilizers, he is looking to find the best price possible on a chemical sterilizer. He is engaged in a ________.



A) straight rebuy


B) customer-reference purchase


C) modified rebuy


D) reciprocal purchase


E) reverse marketing purchase

C) modified rebuy

Worthington Farm raises chickens For years, it has used wooden coops to haul its poultry to market. The owner of the farm needs to uy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. This purchase of coops is an example of a ________.



A) straight rebuy


B) customer-reference purchase


C) modified rebuy


D) reciprocal purchase


E) reverse marketing purchase

C) modified rebuy

A city decided to build a stadium to hold 19,000 people. It was a different decision because the city already had a 70,000 seat dome. City planners convinced the people of the city that the older dome was too large formats touring shows and better suited for sporting events. In terms of the buy class frameworks, the decision to build a new stadium was a __________.



A) simple-task purchase


B) new-task buy


C) simplified rebuy


D) rebuy


E) not-for-profit purchase

B) new-task buy

When a company's professional buyer considered a ________ of a plant to house a new distribution center, he spent a lot of time and effort researching information because this purchase decision was very-high risk, complex task.



A) new-task buy


B) modified rebuy


C) reciprocal purchase


D) straight rebuy


E) simplified rebuy

A) new-task buy

A truck company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel. In terms of the buying center, the truck drivers who must make sure that the trucks' fuel tanks do not run out of fuel are the __________.



A) initiator


B) liaisons


C) agents


D) users


E) gatekeepers

D) users

A patient of Dr. Albrecht told the dentist he needed to buy a machine that would sterilize his tools without using any water because water tends to cause the tools to ruse or corrode over time. In terms of the buying center, the patient had the role of ________.



A) decider


B) liaison


C) agent


D) user


E) influencer

E) influencer

A patient of Dr. Albrecht told the dentist he needed to buy a machine that would sterilize his dental tools without using any water because water tends to cause the tools to rust or corrode over time. Dr. Albrecht, who runs a solo practice in a small town, located some articles on the chemical sterilizer and read about how the suggested machine works. After gathering more information and talking to salespeople, Dr. Albrecht placed his order for the machine. IN terms of the buying center, Dr. Albrecht had the role of ________.



A) liaison


B) decider


C) agent


D) expert


E) researcher

B) decider

Don Brady is responsible for obtaining price quoatations form various vender. After reviewing them, Don then determines whether or not to include the vendor on the approved vendor list. Don apparently plays two roles in the buying center, that of ________ and ________.



A) user; buyer


B) buyer; influencer


C) buyer; user


D) decider; buyer


E) gatekeeper; influencer

E) gatekeeper; influencer

Worthington Farm raises chicken. For years, it has used wooden coops to haul its poultry to market. When Bob Worthington went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and ought to be replace. Worthing was at which stage of the business buying process?



A) problem recognition


B) vendor analysis


C) information search


D) information evaluation


E) product selection

A) problem recognition

John Herr's co. has standardized the size of its paper bags so that each bag can be used in 5 to 7 different store departments. This approach to cost reduction likely took place in the _______________ stage of the business busying process.



A) problem recognition


B) buying center formation


C) product specification


D) suppliers selection


E) request fro proposal

A) problem recognition

Johnson Controls, Inc. produces the seats for the Dodge Neon. Although Johnson initially was able to meet Dodge's cost target, it was not able to meet its safety, weight and comfort specifications. Engineers from Dodge visited the Johnson plant and worked with its design people to create a seat that met all of the technical requirements at a cost that both could agree on. Johnson Controls and Dodge engaged in _________.



A) reciprocity


B) functionalization


C) reverse marketing


D) crowdsourcing


E) multiple sourcing

C) reverse marketing