Industrial buying behavior in pharma MCQs With Answer

B.Pharm students must understand industrial buying behavior in pharma, which examines how organizations make procurement decisions for drugs, APIs, excipients, and equipment. This topic covers buying centers, purchase situations (new task, modified or straight rebuy), supplier evaluation, regulatory compliance, tendering, total cost of ownership, quality assurance, supply chain risk, and vendor qualification. Knowledge of procurement strategies, e-procurement, contract management, and inventory policies helps pharmacists interact with industrial buyers and ensure compliant, cost-effective sourcing. Study these concepts carefully to excel in procurement roles and B.Pharm examinations. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. What best defines industrial buying behavior in the pharmaceutical context?

• The process by which individual consumers choose OTC medicines
• The process by which organizations purchase goods and services for production or operations
• The marketing strategy used by pharma companies for prescriptions
• The advertising response of hospitals to pharma promotions

Correct Answer: The process by which organizations purchase goods and services for production or operations

Q2. Which roles are typically part of a pharmaceutical buying center?

• Only procurement officers and accountants
• Users, influencers, deciders, buyers, and gatekeepers
• Marketing managers and sales representatives only
• Patients and retail pharmacists

Correct Answer: Users, influencers, deciders, buyers, and gatekeepers

Q3. Which of the following is NOT one of the classic industrial buying situations?

• New task
• Straight rebuy
• Modified rebuy
• Impulse purchase

Correct Answer: Impulse purchase

Q4. In pharmaceutical procurement, which factor is most critical when selecting a supplier for active pharmaceutical ingredients (APIs)?

• Packaging color
• Regulatory compliance and quality systems
• Celebrity endorsements
• Local advertising presence

Correct Answer: Regulatory compliance and quality systems

Q5. Which procurement method is commonly used by hospitals and government pharma buyers to ensure transparency?

• Open tender (competitive bidding)
• Walk-in purchasing
• Handshake agreements
• Product sampling only

Correct Answer: Open tender (competitive bidding)

Q6. What document asks suppliers to submit proposals for supplying pharmaceutical goods or services?

• Certificate of Analysis (CoA)
• Request for Proposal (RFP)
• Manufacturing Batch Record
• Patient consent form

Correct Answer: Request for Proposal (RFP)

Q7. Which combination best represents key supplier evaluation criteria in pharma procurement?

• Celebrity endorsements and marketing spend
• Quality, regulatory compliance, financial stability, and delivery performance
• Color of packaging and logo design
• Number of sales representatives only

Correct Answer: Quality, regulatory compliance, financial stability, and delivery performance

Q8. What does Total Cost of Ownership (TCO) include when evaluating a pharmaceutical supplier?

• Only the invoice price
• Purchase price plus all related acquisition, holding, and disposal costs
• Only transportation costs
• Only supplier marketing expenses

Correct Answer: Purchase price plus all related acquisition, holding, and disposal costs

Q9. The Kraljic portfolio matrix classifies purchases based on which two dimensions?

• Price and brand awareness
• Profit impact and supply risk
• Marketing budget and sales volume
• Shelf life and color coding

Correct Answer: Profit impact and supply risk

Q10. What is a primary advantage of centralized procurement in a pharmaceutical company?

• Reduced regulatory oversight
• Economies of scale and standardized quality control
• Higher variability in supplier selection
• Faster localized purchasing decisions

Correct Answer: Economies of scale and standardized quality control

Q11. Why is Good Manufacturing Practice (GMP) compliance critical in supplier selection?

• It guarantees the lowest price
• It ensures products are consistently produced and controlled to quality standards
• It ensures fast marketing approvals
• It is only relevant for packaging design

Correct Answer: It ensures products are consistently produced and controlled to quality standards

Q12. What is the role of a gatekeeper in the pharmaceutical buying process?

• To manufacture APIs
• To control and filter information reaching decision-makers
• To set retail prices
• To perform clinical trials

Correct Answer: To control and filter information reaching decision-makers

Q13. Which technology trend speeds up procurement transactions and improves traceability in pharma purchasing?

• Print advertising
• E-procurement and electronic tendering systems
• Door-to-door sales
• Fax-based ordering only

Correct Answer: E-procurement and electronic tendering systems

Q14. When sourcing critical excipients for sterile formulations, which criterion usually takes priority?

• Lowest unit price regardless of quality
• Supplier proximity only
• Consistent quality and regulatory documentation
• Colorful packaging options

Correct Answer: Consistent quality and regulatory documentation

Q15. What does a vendor audit typically involve in pharmaceutical procurement?

• Review of supplier social media pages
• On-site evaluation of manufacturing facilities, quality systems, and records
• Sales call without documentation review
• Only checking the price list

Correct Answer: On-site evaluation of manufacturing facilities, quality systems, and records

Q16. Which elements are typically included in a pharmaceutical supply contract?

• Delivery schedule, price, quality specifications, and penalties for non-compliance
• Only product photos and marketing slogans
• Employee hiring clauses
• Patent assignment clauses unrelated to supply

Correct Answer: Delivery schedule, price, quality specifications, and penalties for non-compliance

Q17. A straight rebuy situation in pharma purchasing means:

• Purchasing a completely new product with new specifications
• Routine reorder of an existing product with unchanged terms
• Switching suppliers every month
• Buying products for free samples only

Correct Answer: Routine reorder of an existing product with unchanged terms

Q18. Compared to consumer buying, B2B pharmaceutical purchase decisions are usually:

• Less formal and more impulsive
• More emotional and brand-driven
• More rational, complex, and involve multiple stakeholders
• Based solely on advertising

Correct Answer: More rational, complex, and involve multiple stakeholders

Q19. Which departments commonly influence industrial buying decisions in pharma organizations?

• Quality assurance, regulatory affairs, R&D, production, and procurement
• Only the sales team
• Only external advertising agencies
• Only retail store managers

Correct Answer: Quality assurance, regulatory affairs, R&D, production, and procurement

Q20. Best practice for tender evaluation in pharma is to:

• Select the lowest-priced bid without further checks
• Evaluate both technical compliance and financial proposals
• Choose based on supplier logo attractiveness
• Accept the first supplier that responds

Correct Answer: Evaluate both technical compliance and financial proposals

Q21. Why is lead time a critical metric in pharmaceutical industrial buying?

• It determines the number of sales reps needed
• It affects inventory planning, production continuity, and risk of stockouts
• It is only relevant for marketing campaigns
• It sets the retail price directly

Correct Answer: It affects inventory planning, production continuity, and risk of stockouts

Q22. What is the purpose of safety stock in pharmaceutical supply management?

• To increase advertising budget
• To provide a buffer against demand variability and supply delays
• To reduce product quality
• To avoid regulatory inspections

Correct Answer: To provide a buffer against demand variability and supply delays

Q23. Which shipping document serves as proof of receipt and can be used to claim ownership of shipped pharmaceutical goods?

• Clinical study protocol
• Bill of lading
• Prescription slip
• Marketing brochure

Correct Answer: Bill of lading

Q24. Who is primarily responsible for negotiating terms and prices with suppliers in the buying center?

• Clinical trial investigator
• Buyer or procurement officer
• Retail pharmacist
• Patient representative

Correct Answer: Buyer or procurement officer

Q25. A modified rebuy in pharma purchasing typically involves:

• Completely new product development
• Reordering the same product without changes
• Reordering with changes in specifications, quantity, or supplier terms
• Donating products to charity only

Correct Answer: Reordering with changes in specifications, quantity, or supplier terms

Q26. Which tool is commonly used to monitor and compare supplier performance over time?

• Supplier scorecard with KPIs
• Random social media checks
• Annual picnic attendance
• Only price comparisons without metrics

Correct Answer: Supplier scorecard with KPIs

Q27. What describes Vendor Managed Inventory (VMI) in pharmaceutical supply chains?

• The buyer manages supplier inventory at the supplier site
• The supplier owns and manages inventory at the buyer’s location within agreed parameters
• Inventory is managed only by third-party logistics unrelated to suppliers
• Inventory is not tracked

Correct Answer: The supplier owns and manages inventory at the buyer’s location within agreed parameters

Q28. Which sourcing strategy helps reduce the risk of supply disruption for critical pharma materials?

• Single sourcing from an unverified supplier
• Dual sourcing or qualified multi-sourcing
• Relying solely on local informal suppliers
• Purchasing only from the cheapest bidder

Correct Answer: Dual sourcing or qualified multi-sourcing

Q29. Which document is essential to verify the chemical and microbiological specifications of an incoming batch of pharmaceutical raw material?

• Supplier brochure
• Certificate of Analysis (CoA)
• Marketing pamphlet
• Employee resume

Correct Answer: Certificate of Analysis (CoA)

Q30. Which ethical issue is a major concern in pharmaceutical procurement and must be avoided?

• Transparent competitive bidding
• Kickbacks, bribery, and conflicts of interest
• Documented supplier audits
• Quality assurance testing

Correct Answer: Kickbacks, bribery, and conflicts of interest

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