Chapter 2 Multiple Choice

The formation of organizational preferences and ultimately the organization's buying choice is determined by the _____ of the members of the buying center. a. interaction structure b. operating resources c. relevant set d. primary set e. none of the above.

A.

The problem solving approach followed by an organizational buyer in a modified rebuy situation is: a. limited. b. selective. c. routinized. d. extended. e. cerebral.

A.

The simple modified rebuy: a. involves a narrow set of choice alternatives. b. centers on a product of minor importance to the firm. c. encompasses little or no information search or analysis. d. all of the above. e. (b) and (c) only.

A.

Those buying decisions that are of extreme importance to the firm strategically and financially are referred to as: a. strategic new task buying decisions b. strategic modified rebuy decisions c. judgmental new task decisions d. lost-for-good decisions e. complex modified rebuy decisions

A.

Those buying decisions that involve a narrow set of choice alternatives, encompass a moderate amount of both information search and analysis, and concentrate on the long-term relationship potential of suppliers are called: a. simple modified rebuy. b. complex modified rebuy. c. casual purchases. d. routine low priority purchases. e. specialty purchases.

A.

A common identifiable element in buying centers in all sectors of the industrial market is: a. the chief executive officer. b. the accounting function. c. the purchasing function. d. the production function. e. the engineering function.

C.

As a result of poor delivery performance by a supplier of high quality metal components, Jim Houser, purchasing agent at Milton Toy Company, plans to consider a possible change in suppliers. This provides an illustration of: a. the backlash effect. b. routinized problem solving. c. a modified rebuy. d. a straight rebuy. e. selective perception.

C.

Because of the technical complexity of the product, the difficulty of evaluating alternatives, or the unpredictable aspects of dealing with a new supplier, this type of buying decision involves the greatest level of uncertainty. a. complex modified rebuy decision b. strategic modified rebuy decision c. judgmental new task decision d. strategic new task decision e. lost-for-good decision

C.

In a modified rebuy situation, the "in" supplier should do which of the following? a. Make every effort to understand and satisfy the procurement need. b. Try to move decision makers into straight rebuy. c. Both (a) and (b). d. Neither (a) nor (b).

C.

In choosing a new piece of manufacturing equipment, the buying organization is uncertain of the model or brand to choose, the suitable level of quality, and the appropriate price to pay. This represents which type of buying situation? a. complex modified rebuy decision b. strategic modified rebuy decision c. judgmental new task decision d. strategic new task decision e. lost-for-good decision

C.

Individuals affecting the purchasing decision by supplying information for the evaluation of alternatives or by setting buying specifications is performing the role of: a. a gatekeeper. b. a user. c. an influencer. d. a decider. e. a buyer.

C.

The Total Cost of Ownership a. Includes all costs associated with the product and its delivery b. Is used by buyers to determine what they should spend on an item c. Considers the full range of costs associated with the purchase and use of a product or service over its complete life cycle d. Is an accounting concept that buyer's use to compare the value of competing offerings e. None of the above.

C.

Upon meeting with a General Electric buyer, a salesperson learned that the G.E. purchasing function is unhappy with the supplier's performance and is openly considering new options. This provides an illustration of: a. a new task buying situation. b. a straight rebuy. c. a modified rebuy. d. extended problem solving. e. value analysis.

C.

When organizational buyers modify a salesperson's message to make it more consistent with their predispositions toward the company, this provides an illustration of: a. selective exposure. b. selective attention. c. selective perception. d. selective retention. e. selective memory.

C.

Which of the following statements are true of reverse auctions? a. They are most appropriate for commodity-type items. b. They involve one buyer who invites bids from several pre-qualified suppliers. c. Both a and b are true. d. Neither a or b is true.

C.

As the risk associated with an organizational purchase decision increases: a. buying center participants will be motivated to invest greater effort throughout the purchase process. b. product quality becomes more important than price. c. after-sale service becomes more important than price. d. all of the above. e. (a) and (b) only.

D.

For a salesperson trying to determine the impact of group forces on the organizational buying process, which of the following questions are appropriate? a. Which organizational members take part in the buying process? b. What is each member's relative influence in the decision? c. What criteria are important to each member in evaluating prospective suppliers? d. All of the above questions are appropriate. e. Only (a) and (b) are appropriate.

D.

In the purchase of a new papermaking machine, what role would the firm's manufacturing superintendent assume in the buying center? a. influencer b. decider c. gatekeeper d. any or all of the above.

D.

Individuals actually making the buying decision, whether or not they have the formal authority to do so, are performing the role of: a. a user. b. a gatekeeper. c. an influencer. d. a decider. e. a buyer.

D.

Strategies that would be appropriate for an "out" supplier to follow in dealing with a well-satisfied customer in a straight rebuy situation include: a. attempting to gain a position on the organization's preferred list of suppliers. b. demonstrating to the organization that the potential benefits of reexamining requirements and suppliers exceed the costs of doing so. c. convincing organizational buyers that their purchasing requirements have changed or that the requirements should be interpreted differently. d. all of the above e. (b) and (c) only

D.

Strategies that would be appropriate for an "out" supplier to follow when confronting a modified rebuy situation include: a. offering performance guarantees. b. encouraging the organization to sample the firm's offering. c. defining and responding to the organization's problem with the existing supplier. d. all of the above e. (b) and (c) only

D.

The composition of the buying center: a. evolves during the purchasing process. b. varies from one purchasing situation to another. c. varies from firm to firm. d. All of the above are true. e. (a) and (b) only.

D.

The environmental forces that influence organizational buying behavior include: a. economic factors. b. political and legal factors. c. technological factors. d. all of the above. e. (a) and (b) only.

D.

The purchase of an expensive piece of material handling equipment would be classified as: a. a new task buying situation. b. a modified rebuy. c. a straight rebuy. d. any of the above. e. none of the above.

D.

When organizational buyers have well developed choice criteria to apply to the purchase decision, they are operating in a stage of problem solving known as: a. cerebral response behavior. b. limited response behavior. c. selective response behavior. d. routine response behavior.

D.

Which of the following are ambitious strategic priorities being pursued by many chief procurement officers? a. Becoming business partners, not just buyers. b. Developing fewer and deeper relationships with strategic suppliers. c. Emphasizing more than just price, including a focus on business outcomes, total cost of ownership, and the development of long-term value creation. d. All of the above. e. only (a) and (c)

D.

Which of the following represent clues or techniques for identifying powerful buying center members? a. Isolating the personal stakeholders. b. Following the information flows. c. Identifying the experts. d. All of the above. e. None of the above.

D.

Which of the following statements about buying centers is true? a. The composition can change from one buying situation to another. b. Different individuals are important to the process at different times. c. Buying centers vary from firm to firm. d. All of the above are true. e. Only (a) and (c) are true.

D.

Within the buying center, individuals who actually make the organizational buying decision, whether or not they have formal authority to do so, are performing the role of: a. a user. b. a gatekeeper. c. an influencer. d. a decider. e. a buyer.

D.

As the risk associated with an organizational purchase decision increases, which of the following occur? a. The buying center becomes smaller. b. The information search is a active and a wide variety of information sources are consulted. c. Buying center participants invest greater effort. d. All of the above occur. e. Only (b) and (c) occur.

E.

Concerning the eight-stage model of the organizational buying process, research suggests that: a. the process may be reoriented at any point by a redefinition of the basic problem. b. the process may be discontinued by a change in the external environment. c. certain stages may be completed concurrently. d. many small or incremental decisions are made during the procurement process that ultimately translate into the final selection of a supplier. e. all of the above

E.

The evaluative criteria that engineers apply to a purchasing decision may be quite different from those used by purchasing managers because engineers: a. are exposed to different journals or publications. b. possess different professional goals and values. c. have a different educational background. d. attend different conferences. e. all of the above

E.

The organizational buying process, which ultimately may lead to the purchase of a new computer, could be set into action by: a. the existing computer breaking down. b. a new cost accounting system. c. an IBM sales presentation. d. (a) and (b) only. e. any of the above.

E.

When buying influentials and decision makers lack well-defined criteria for comparing alternative products and suppliers and they also lack strong predispositions toward a particular solution, they are operating in a stage of _____ problem solving. a. cerebral b. limited c. selective d. routinized e. extensive

E.

Within the buying center, an individual who has formal authority for selecting a supplier and implementing all procedures connected with securing the product is performing the role of: a. a user. b. a gatekeeper. c. an implementer. d. a decider. e. a buyer.

E.

A significant increase in the price of gasoline that leads to a decrease in the purchases of new automobiles is an example of the impact of which environmental force? a. economic factors. b. political and legal factors. c. technological factors. d. all of the above. e. (a) and (c) only.

A.

Mary Bronson, purchasing manager for the Los Angeles Tool Company, placed her quarterly order for supplies from the Gibson Paper Company. Mary has been dealing with Gibson for many years. What type of problem solving would Mary employ in this purchase decision? a. routine problem solving b. casual problem solving c. limited problem solving d. extended problem solving e. specialized problem solving

A.

A _____ consists of individuals who participate in the purchasing decision and share the goals and risks arising from the decision. a. buying center b. target market c. sales force d. strategic task force

A.

Selective _____ is the tendency to accept communication messages consistent with existing attitudes and beliefs. a. exposure b. attention c. perception d. retention e. memory

A.

Buying decisions that are somewhat important to the firm and involve a moderate amount of analysis are: a. casual purchases. b. routine low priority purchases. c. straight rebuy purchases. d. extensive problem-solving purchases.

B.

In a modified rebuy situation, the "out" supplier should do which of the following? a. Try to move decisions makers into straight rebuy. b. Hold the buying organization in modified rebuy status long enough to consider new alternatives. c. Both (a) and (b). d. Neither (a) nor (b).

B.

Individuals who control the flow of information into the buying center are performing the role of: a. a user. b. a gatekeeper. c. an implementer. d. a decider. e. a buyer.

B.

Jim Parker, Purchasing Manager for the Boston Motor Works, is involved in many organizational buying decisions each year. The forces that influence Jim's organizational buying decisions might be broadly classified as: a. economic, organizational, group, and legal. b. group, environmental, individual, and organizational. c. organizational, cultural, environmental, and economic. d. legal, political, organizational, and group. e. organizational, domestic, legal, and international.

B.

The problem solving approach followed by an organizational buyer in a new task buying situation is: a. selective. b. extensive. c. cerebral. d. systematic. e. none of the above

B.

Those buying decisions that involve a large set of choice alternatives and pose little uncertainty, and involve buyers actively searching for information, applying sophisticated analysis techniques, and careful consideration of long-term needs are called: a. simple modified rebuy. b. complex modified rebuy. c. casual purchases. d. routine low priority purchases. e. specialty purchases.

B.

When organizational buyers have well-defined criteria to apply to the purchase decision, but are uncertain about which suppliers can best fit their needs, they are operating in a stage of _____ problem solving. a. cerebral b. limited c. selective d. routinized e. extended

B.