Analyzing Business Markets – Organizational Buying - Quiz

1. A ‘modified rebuy’ involves:

A change in product specifications, price, or supplier

Termination of supplier relationships

Routine reordering without changes

Buying a product or service for the first time

2. Vendor-managed inventory (VMI) means:

The buyer manages supplier stock

Inventory is jointly managed by buyer and seller

The supplier manages the buyer’s inventory levels

Inventory is managed by third-party logistics

3. Buyers seek suppliers that provide:

Superior value across product quality, delivery, and service dimensions

High advertising visibility

Local offices only

Lowest cost alone

4. Vendor-managed inventory (VMI) means:

Inventory is managed by third-party logistics

Inventory is jointly managed by buyer and seller

The buyer manages supplier stock

The supplier manages the buyer’s inventory levels

5. An example of an institutional market is:

Supermarkets buying from farmers

Hospitals and universities purchasing goods

Car manufacturers buying steel

Consumers buying from retailers

6. In organizational buying, ‘users’ are:

People who control the flow of information

External consultants

The top management approving budgets

Members who will use the product or service

7. The term ‘organizational buying behavior’ was first conceptualized by:

Drucker and Levitt

Porter and Kramer

Webster and Wind

Maslow and Herzberg

8. In the buygrid framework, the ‘purchase decision’ occurs after:

Supplier selection

Problem recognition

Performance review

Proposal evaluation

9. Relationship marketing in B2B emphasizes:

Aggressive discounting

One-time sales transactions

Long-term collaboration and mutual value creation

Avoiding supplier feedback

10. Which factor most affects supplier relationship strength?

Sales promotions

Price alone

Trust and commitment

Advertising frequency

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