Marketing Chapter 5

What is more likely to occur in organizational buying than in consumer buying? routine, straightforward purchases complex negotiations many more suppliers small purchase orders

complex negotiations

Online trading communities that bring together buyers and supplier organizations go by what three names? e-marketplaces e-hubs B2B exchanges online offerings virtual malls

e-marketplaces e-hubs B2B exchanges

Online trading communities that bring together buyers and supplier organizations are known as ______. e-marketplaces. e-trading posts. e-orgshops. e-business locales.

e-marketplaces.

Firms selling to organizational buyers have ________ potential customers compared to firms selling to consumers. far fewer many more about the same number of

far fewer

Compared to marketing to consumers, organizational buying is characterized by ______. the absence of a buyer-seller relationship smaller order sizes a simplistic buying process far fewer buyers

far fewer buyers

A salesperson has attempted to follow up with a client on multiple occasions to answer some questions about renewing a contract, but the receptionist will only put her through to voice mail. Here, the receptionist acts as a(n) _______ in the buying center. gatekeeper user influencer buyer

gatekeeper

In addition to industrial and reseller markets, organizational markets include ________ ones. government personal consumer ultimate

government

Which of the following is a task considered to be part of the buying function in a business? Pricing the product Awarding contracts to vendors Designing the marketing message Segmenting the market

Awarding contracts to vendors

True or false: Online buying is favored by organizational markets because of the cost savings associated with the timely information that comes from buying online. True False

True

How does the size of the order impact organizational buying? A.Because many organizational purchases involve a lot of money, a competitive bidding process is used. B.Because organizational buying occurs so frequently, most purchases are made from the same vendor. C.Most organizational buying is fairly routine so the size of the order does not impact the buying process.

C. Because many organizational purchases involve a lot of money, a competitive bidding process is used.

Business marketing fundamentally differs from consumer marketing in which way? A.Consumer marketing is done purely to create social change for the benefit of society. B.Consumer marketing involves industrial, reseller, and government buyers. C.With business marketing, the marketer is guaranteed a profit on each exchange with the buyer. D.Business marketing involves buyers who intend to resell the product or use it in the creation of other products.

D. Business marketing involves buyers who intend to resell the product or use it in the creation of other products.

Kellogg's purchases large quantities of whole grain in order to produce its cereal products. Consumers' desire for cereal affects the size and frequency of Kellogg's purchases, which is an example of what characteristic of organizational buying? Derived demand Virtual forecasting Domino distribution Consumer-driven purchasing

Derived demand

Which of the following is the responsibility of the buying function of a business? Formal solicitation of bids Selection and purchase of goods Testing alternate products Gathering and screening information about vendors

Formal solicitation of bids Selection and purchase of goods Gathering and screening information about vendors

Burt's Bees buys raw materials in order to reprocess them into its finished earth-friendly products such as perfumes, lip balms, and hair products. Which of the following organizational markets best describes Burt's Bees? Consumer Reseller Institution Industrial

Industrial

________ buyers include manufacturers, wholesalers, retailers, and government agencies. Corporate Organizational Production Consumer

Organizational

What is the main reason that business organizations buy products? To improve decision making To differentiate their products from those of competitors To satisfy employees To increase profitability

To increase profitability

A secretary who requests a new laser printer to speed up his work most likely has what role in the buying center? User Buyer Decider Gatekeeper

User

Identify the roles in a typical buying center. (Select all that apply) User Gatekeeper Decider Influencer Seller Specifier

User Gatekeeper Decider Influencer

Though its composition can vary depending on what is being purchased, the buying center almost always includes ______. a buyer or purchasing manager a profitable customer the president or CEO a close competitor's representative

a buyer or purchasing manager

When several people in an organization participate in purchase decisions, often for more important or expensive contracts, it is called _____. an acquisitions group a buying center a sales committee a purchase team

a buying center

Both consumers and organizational buyers purchase products online but ______. a much larger percentage of the total dollars sold online are organizational transactions organizations have been slower to embrace the technology since only finished goods can be purchased online, this limits the type of organizational buyers that can use the Internet only two of the three kinds of organizational markets participate; it is illegal for government institutions to make online purchases

a much larger percentage of the total dollars sold online are organizational transactions

How much of the global dollar value is attributed to organizational buyers conducting transactions online? less than 10 percent about 25 percent nearly half about 70 percent

about 70 percent

Select the people that are likely to participate in an organization's buying center. (Select all that apply) a seller an employee from another functional area consumers who frequently make large purchases the purchasing manager

an employee from another functional area the purchasing manager

When an organization buys raw materials that are reprocessed and sold as finished goods, or if it buys a good it will then sell, then it is considered to be ______. a reseller an end consumer a production buyer an organizational buyer

an organizational buyer

In organizational buying, complex negotiations that last over a lengthy period ______. are likely to occur are only typical of government contracts are avoided almost entirely because of the cost factors to both firms cannot occur because of legal requirements for fixed cost structures

are likely to occur

Which is not a stage in the organizational purchase decision process? commercialization postpurchase behavior alternative evaluation problem recognition

commercialization

Straight rebuys, modified rebuys, and new buys are the three types of ______. sales categories buy classes buying center roles purchase measures

buy classes

Straight rebuys, modified rebuys, and new buys are the three types of ______. sales categories buying center roles buy classes purchase measures

buy classes

You have been selected to be part of the buying center for a new golf club collection to be resold by your company. You both agree to the product specifications and negotiate the terms of the purchase agreements with the club manufacturer, so you are the ______. user gatekeeper influencer buyer

buyer

In a traditional auction, the winner is the ______. buyer with the highest bid supplier with the lowest bid supplier with the highest bid buyer with the lowest bid

buyer with the highest bid

In the buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of the contract. influencers gatekeepers users buyers

buyers

Large chain resellers may have a highly formalized ________ called a buying committee to make purchasing decisions, while most industrial firms and government units use informal groups. buying center reciprocal agreement bidder's list supply partnership

buying center

For important non-routine purchases, the person with formal authority to approve the supplier is the ________, often someone in a specific functional area. user gatekeeper decider influencer

decider

The ______ role is sometimes fulfilled by the buyer in the buying center, but sometimes is done by someone else for important technical purchases. decider influencer user gatekeeper

decider

Derived demand refers to the concept that demand for industrial products is driven by ______. strong economic conditions technological change government intervention demand for consumer products

demand for consumer products

In a buying center, the influencer affects the buying decision by ______. reviewing contracts and selecting the supplier disseminating information to the other members of the buying center helping to define the specifications of what is to be purchased negotiating the terms of the contract

helping to define the specifications of what is to be purchased

In a traditional auction, products are simply sold to the buyer with the___________ bid.

highest

The underlying reason that Nissan Motor Company, an organizational buyer, switched its advertising agency was to _____. allow employees to become more involved in promotional aspects of the company streamline decision making increase revenues reconnect with former customers

increase revenues

Some organizations, known as ___________ firms, reprocess a product or service they buy before selling it again to the next buyer.

industrial

Depending on the product, there may be a person who acts as a(n) ________ in the buyer center, often by providing specifications for the product being purchased or the vendor being considered. buyer decider gatekeeper influencer

influencer

Organizational buying behavior ________ the consumer purchase decision process. follows in time after is similar to establishes the basis for is completely identical to

is similar to

The typical purchase involved in an organizational buying exchange is ________ that in consumer buying. larger in size than the same size as smaller in size than

larger in size than

What are the three recognized buy classes in organizational buying? new buys straight rebuys multiple buys modified rebuys expanded rebuys

new buys straight rebuys modified rebuys

Industrial, reseller, and government markets are the three categories of _____ buyers. consumer production organizational professional

organizational

The decision-making process organizations use in establishing a need for products and choosing among different providers of them is called _____. value analysis organizational buying behavior supplier selection supplier development

organizational buying behavior

What are three primary reasons for the popularity of online buying in all three kinds of organizational markets? reduced marketing costs improved supplier relationships reduced buyer order processing costs timely supplier information

reduced marketing costs reduced buyer order processing costs timely supplier information

Business-to-business marketing involves the marketing of goods and services to organizations for use in the creation of goods and services that ______. they consume themselves only have a business purpose they return in trade they produce and market to others

they produce and market to others

Within the buying center, you are considered the _________when you are the one using the product within your organization.

user