_____ involves a formal invitation to potential suppliers to submit written, sealed bids.
a. Closed bidding
b. Open bidding
c. On-line bidding
d....
_____ involves a formal invitation to potential suppliers to submit written, sealed bids.
Which of the following are questions that must be addressed when determining responses to a competitor's threat?
Which of the following are questions that must be addressed when determining responses to a competitor's threat?
a. If you respond, is the competitor...
Which of the following are reasons why followers into a market often find lower costs than the pioneer firm?
Which of the following are reasons why followers into a market often find lower costs than the pioneer firm?
a. The use of more current production...
Which of the following are useful to business marketers trying to gauge competitive responses to pricing?
Which of the following are useful to business marketers trying to gauge competitive responses to pricing?
a. Examining the cost structure and strategy...
Examples of typical add-on benefits include:
Examples of typical add-on benefits include:
a. joint working relationships.
b. commitment.
c. supplier flexibility.
d. All of the above.
e. Only...
_____ are those attributes that are not typically required but that can ultimately lead to a supplier being selected by a customer over other qualified suppliers.
_____ are those attributes that are not typically required but that can ultimately lead to a supplier being selected by a customer over other qualified...
____ represents a business customer's overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made.
____ represents a business customer's overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices...
____ features a design-to-cost philosophy that begins by examining market conditions.
____ features a design-to-cost philosophy that begins by examining market conditions.
a. Target costing
b. ABC costing
c. Value-based segmentation
d....
A skimming strategy is appropriate when:
A skimming strategy is appropriate when:
a. there is high price elasticity of demand.
b. strong threat of imminent competition.
c. the firm has...
____ refers to the rate of percentage change in quantity demanded attributable to change in price.
____ refers to the rate of percentage change in quantity demanded attributable to change in price.
a. Cost/benefit analysis
b. Customer demand
c....
____ costs include financing, storage, and inspection costs.
____ costs include financing, storage, and inspection costs.
a. Acquisition
b. Possession
c. Usage
d. None of the above
Answer: ...
If competitors are likely to continue to pursue price cutting, the best strategy for the defender is to:
If competitors are likely to continue to pursue price cutting, the best strategy for the defender is to:
a. allow the competitor to win where it...
General plant overhead is an example of _____ costs.
General plant overhead is an example of _____ costs.
a. direct traceable
b. indirect traceable
c. general
d. attributable
Answer: ...
Which of the following statements regarding competitive threats is incorrect?
Which of the following statements regarding competitive threats is incorrect?
a. Matching a price cut will be an ineffective strategy if the competitor...
_____ are those that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship.
_____ are those that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship.
a....
The buyer's price sensitivity increases to the degree that:
The buyer's price sensitivity increases to the degree that:
a. buyers can switch from one supplier to another without incurring additional costs.
b....
Since higher costs are incurred in providing higher levels of performance on one or more of the attributes, the strategists should assess the:
Since higher costs are incurred in providing higher levels of performance on one or more of the attributes, the strategists should assess the:
a....
Examples of pricing objectives include:
Examples of pricing objectives include:
a. channel relationships.
b. achieving a market-share goal.
c. achieving a target return on investment.
d....
Pertinent considerations for pricing industrial products or services include:
Pertinent considerations for pricing industrial products or services include:
a. competition.
b. demand determinants.
c. cost determinants.
d....
The successful implementation of value-based strategies requires close coordination between the _____and _____ units in the firm.
The successful implementation of value-based strategies requires close coordination between the _____and _____ units in the firm.
a. product
b....
In hypercompetitive environments,
In hypercompetitive environments,
a. leading-edge firms are reluctant to lower prices because they enjoy attractive margins.
b. successful firms...
Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:
Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes...
Which of the following statements concerning target costing is(are) accurate?
Which of the following statements concerning target costing is(are) accurate?
a. Japanese managers who pioneered the approach view target costing...
Before preparing a bid for any potential contract, the industrial firm should first:
Before preparing a bid for any potential contract, the industrial firm should first:
a. estimate the profitability of the potential contract.
b....
The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as:
The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as:
a. closed bidding.
b....
During the innovative firm's monopoly period, a _____ is optimal if there is a relatively high repeat purchase rate for nondurable goods or if a durable good's demand is characterized by diffusion.
During the innovative firm's monopoly period, a _____ is optimal if there is a relatively high repeat purchase rate for nondurable goods or if a durable...
During the innovative firm's monopoly period, a _____ is optimal if the demand curve is stable over time (no diffusion) and production costs decline with accumulated volume.
During the innovative firm's monopoly period, a _____ is optimal if the demand curve is stable over time (no diffusion) and production costs decline...
A penetration policy is appropriate when there is:
A penetration policy is appropriate when there is:
a. a strong threat of imminent competition.
b. inelastic demand.
c. an opportunity for a substantial...
The policy of using a skimming pricing approach when a product is introduced, followed by penetration pricing as the product matures, is referred to by Joel Dean as:
The policy of using a skimming pricing approach when a product is introduced, followed by penetration pricing as the product matures, is referred to...
Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business user but the firm plans to reduce the price later and capture a share of the consumer market. This policy of beginning with a high price and then moving to a lower price is referred to as:
Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business...
The degree of latitude that an industrial firm has in setting prices above those offered by competitors is dependent upon:
The degree of latitude that an industrial firm has in setting prices above those offered by competitors is dependent upon:
a. the firm's objectives.
b....
Concerning pricing and the competitive environment, which of the following statements is(are) accurate?
Concerning pricing and the competitive environment, which of the following statements is(are) accurate?
a. Competition establishes an upper limit...
Those costs, fixed or variable, that can be traced to a product, customer, or sales territory (for example, general plant overhead may be indirectly assigned to a product) are called:
Those costs, fixed or variable, that can be traced to a product, customer, or sales territory (for example, general plant overhead may be indirectly...
Successful pricing strategies are:
Successful pricing strategies are:
a. value based.
b. proactive.
c. profit-driven.
d. all of the above.
e. only a and c.
Answer:...
If the business marketer's product input assumes an insignificant role in the final product's total cost, demand is likely:
If the business marketer's product input assumes an insignificant role in the final product's total cost, demand is likely:
a. elastic.
b. price...
The business marketer will find that total revenue will ____ if the price is decreased and demand is price inelastic.
The business marketer will find that total revenue will ____ if the price is decreased and demand is price inelastic.
a. rise a little
b. rise sharply
c....
The price elasticity of demand:
The price elasticity of demand:
a. is not the same at all prices.
b. varies by industrial market segment.
c. is relatively easy to measure in the...
____ is the variable cost of moving products from origin to destination, including any terminal and accessory charges.
____ is the variable cost of moving products from origin to destination, including any terminal and accessory charges.
a. Speed of service
b. Transportation...
____ is the variable cost of moving products from origin to destination, including any terminal and accessory charges.
____ is the variable cost of moving products from origin to destination, including any terminal and accessory charges.
a. Speed of service
b. Transportation...
Common elements of logistics service include:
Common elements of logistics service include:
a. delivery time.
b. order accuracy.
c. cost-per-unit.
d. All of the above.
e. Only (a) and (b).
Answer:...
When compared to logistics management, supply chain management is:
When compared to logistics management, supply chain management is:
a. broader.
b. less integrative.
c. is focused on moving and storing activities.
d....
For a supply chain partnership to succeed, which of the following are true?
For a supply chain partnership to succeed, which of the following are true?
a. Partners need to clearly define their strategic objectives.
b. Managers...
The key to maintaining a competitive advantage through supply chain strategies is to:
The key to maintaining a competitive advantage through supply chain strategies is to:
a. the ability to adapt to changes.
b. the ability to maintain...
The final stage in the adoption of supply chain management where companies have successfully aligned both their internal and external processes is called:
The final stage in the adoption of supply chain management where companies have successfully aligned both their internal and external processes is called:
a....
_____ is the integration of business processes from end user through original suppliers that provides products, services, and information that add value for customers.
_____ is the integration of business processes from end user through original suppliers that provides products, services, and information that add value...
As a controllable element in the logistics system, _____ ensures that information exchanged in the distribution process guides the activities of the logistics system.
As a controllable element in the logistics system, _____ ensures that information exchanged in the distribution process guides the activities of the...
As a controllable element in the logistics system, _____ relates to the effectiveness of creating time and place utility.
As a controllable element in the logistics system, _____ relates to the effectiveness of creating time and place utility.
a. customer service
b....
As a controllable element in the logistics system, _____ ensures that products are available for inventory in the correct assortment and quantity.
As a controllable element in the logistics system, _____ ensures that products are available for inventory in the correct assortment and quantity.
a....
A firm that is able to lower costs by minimizing duplication, harmonizing operations, and enhancing quality is addressing which of the following supply chain management goals?
A firm that is able to lower costs by minimizing duplication, harmonizing operations, and enhancing quality is addressing which of the following supply...
A firm that is able to accomplish production and logistics processes in less time is addressing which of the following supply chain management goals?
A firm that is able to accomplish production and logistics processes in less time is addressing which of the following supply chain management goals?
a....
Inventories are needed in business channels because:
Inventories are needed in business channels because:
a. production and demand are perfectly matched.
b. operating deficiencies in logistical system...
The mechanism to trace the cost of performing logistics services to the customer that use these services is called:
The mechanism to trace the cost of performing logistics services to the customer that use these services is called:
a. ABC
b. JIT
c. TCO
d. SCM
Answer:...
Which of the following is false regarding supply chain management?
Which of the following is false regarding supply chain management?
a. The focus of logistics is the flow of product through the supply chain.
b....
Which of the following statements is false regarding the relationship of the Internet and SCM?
Which of the following statements is false regarding the relationship of the Internet and SCM?
a. The Internet promotes efficiency across the supply...
The Internet has allowed business marketers to realize several supply chain related benefits, including more timely:
The Internet has allowed business marketers to realize several supply chain related benefits, including more timely:
a. product development.
b....
Waste reduction throughout the supply chain is accomplished by minimizing:
Waste reduction throughout the supply chain is accomplished by minimizing:
a. duplication.
b. harmonizing operations and systems.
c. quality defects.
d....
The underlying premise of SCM is that waste reduction and enhanced supply chain performance will exist when there is both intrafirm and interfirm:
The underlying premise of SCM is that waste reduction and enhanced supply chain performance will exist when there is both intrafirm and interfirm:
a....
Which of the following statements is false regarding supply chain management?
Which of the following statements is false regarding supply chain management?
a. SCM seeks to create an overlap among participants in the supply chain.
b....
Supply chains should manage _____ in an integrated manner across organizational borders.
Supply chains should manage _____ in an integrated manner across organizational borders.
a. relationships
b. information
c. material flow
d. all...
Which of the following statements are false regarding Supply Chain Management?
Which of the following statements are false regarding Supply Chain Management?
a. SCM is one of the predominant management approaches driving many...
Despite the advantages, some firms are reluctant to use third party logistics firms because:
Despite the advantages, some firms are reluctant to use third party logistics firms because:
a. of the diminished direct contact with customers.
b....
The advantages of third-party warehouses are that they allow the business marketing firm to:
The advantages of third-party warehouses are that they allow the business marketing firm to:
a. increase or decrease warehouse space in a given...
An emerging development in performing the logistics process is the utilization of third-party logistics firms. Third-party logistics firms can:
An emerging development in performing the logistics process is the utilization of third-party logistics firms. Third-party logistics firms can:
a....
The use of slower modes of transportation within the logistical network results in:
The use of slower modes of transportation within the logistical network results in:
a. lower variable costs for product movement.
b. higher customer...
The "best" mode of transportation to use in moving industrial products to customers is:
The "best" mode of transportation to use in moving industrial products to customers is:
a. rail.
b. air.
c. truck.
d. barge.
e. dependent upon...
A business marketer who shifts from rail to air in the logistical system would likely generate:
A business marketer who shifts from rail to air in the logistical system would likely generate:
a. higher variable costs associated with product...
Concerning speed of service in the logistical system, which of the following is(are) accurate?
Concerning speed of service in the logistical system, which of the following is(are) accurate?
a. The longer the delivery time, the more inventory...
_____ is typically the largest logistics expense.
_____ is typically the largest logistics expense.
a. Warehousing
b. Inventory control
c. Transportation
d. Order processing
e. Materials handling
Answer:...
The use of faster modes of transportation within the logistical network results in:
The use of faster modes of transportation within the logistical network results in:
a. lower variable costs for product movement.
b. higher customer...
The warehouse circumvents the need for premium transportation (for example, air freight) and costly order processing by keeping products readily available in local markets. Which type of warehousing involves no capital investment and offers the advantage of flexibility--the firm can increase or decrease its use of space in a given market?
The warehouse circumvents the need for premium transportation (for example, air freight) and costly order processing by keeping products readily available...
A business marketer that provides erratic delivery service to industrial distributors:
A business marketer that provides erratic delivery service to industrial distributors:
a. increases the distributor's inventory carrying costs.
b....
In regard to logistical service, the business marketer should:
In regard to logistical service, the business marketer should:
a. provide the same level of logistical service to all customers.
b. adjust the level...
In the management of logistical activities, the performance variable(s) of prime interest (is) are:
In the management of logistical activities, the performance variable(s) of prime interest (is) are:
a. number of products handled.
b. total distribution...
In applying the total cost approach to logistical management, management:
In applying the total cost approach to logistical management, management:
a. seeks to minimize the cost associated with each logistical activity...
As a controllable element in the logistics system, ____ triggers the logistics process and directs the activities necessary to deliver products to customers.
As a controllable element in the logistics system, ____ triggers the logistics process and directs the activities necessary to deliver products to customers.
a....
In serving JIT customers, business marketers find that:
In serving JIT customers, business marketers find that:
a. the typical order size shrinks.
b. more frequent deliveries are required.
c. relationships...
Many U.S. manufacturers have adopted the just-in-time (JIT) purchasing principle. Concerning this trend, all of the following statements are accurate except:
Many U.S. manufacturers have adopted the just-in-time (JIT) purchasing principle. Concerning this trend, all of the following statements are accurate...
In contrast to "innovative" products, the supply chain for functional products is designed to:
In contrast to "innovative" products, the supply chain for functional products is designed to:
a. minimize logistics and inventory costs.
b. assure...
The supply chains for products that could be categorized as "innovative" (e.g., high-tech products) differ from the supply chains for functional products because:
The supply chains for products that could be categorized as "innovative" (e.g., high-tech products) differ from the supply chains for functional products...
The most commonly reported benefits for firms that adopt supply chain management are:
The most commonly reported benefits for firms that adopt supply chain management are:
a. higher profit margins.
b. enhanced cash flow.
c. higher...
A firm that can respond to a customer's unique requirements for packaging and order size in a cost-effective manner is addressing which of the following supply chain goals?
A firm that can respond to a customer's unique requirements for packaging and order size in a cost-effective manner is addressing which of the following...
Supply chain management seeks to achieve which of the following goals?
Supply chain management seeks to achieve which of the following goals?
a. waste reduction
b. unit cost reduction
c. flexible response
d. all of...
To integrate activities across the supply chain, supply chain management often:
To integrate activities across the supply chain, supply chain management often:
a. requires that firms in the supply chain share sensitive and proprietary...
The supply chain includes a variety of firms, ranging from those that process raw materials to make component parts to those engaged in wholesaling. Included also are organizations engaged in:
The supply chain includes a variety of firms, ranging from those that process raw materials to make component parts to those engaged in wholesaling....
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