Analyzing Business Markets – Organizational Buying - Quiz

1. The ‘value-in-use’ concept means:

The product’s resale value

The supplier’s brand equity

The emotional appeal of the product

The product’s worth based on its ability to reduce costs or improve efficiency

2. Which factor most affects supplier relationship strength?

Advertising frequency

Sales promotions

Trust and commitment

Price alone

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

Problem recognition

Proposal evaluation

Performance review

Supplier selection

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. Relationship marketing in B2B emphasizes:

Avoiding supplier feedback

Long-term collaboration and mutual value creation

One-time sales transactions

Aggressive discounting

6. Buyers seek suppliers that provide:

Local offices only

High advertising visibility

Superior value across product quality, delivery, and service dimensions

Lowest cost alone

7. A ‘modified rebuy’ involves:

Routine reordering without changes

A change in product specifications, price, or supplier

Termination of supplier relationships

Buying a product or service for the first time

8. Vendor-managed inventory (VMI) means:

Inventory is jointly managed by buyer and seller

The supplier manages the buyer’s inventory levels

Inventory is managed by third-party logistics

The buyer manages supplier stock

9. A buying alliance involves:

Independent firms joining together to purchase collectively

Retailers forming chains

Suppliers merging with customers

Competitors sharing patents

10. Supplier selection criteria typically include:

Only lowest price offered

Price, reliability, service, and technical capability

Salesperson’s personality

Supplier’s advertising budget

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