Marketing Chapter 6

Which of the following most likely occurs in the supplier selection stage of the business buying decision process?

The buying center draws up a list of the desired supplier attributes and their relative importance.

________ have formal authority to select the supplier and arrange the terms of purchase.

buyers

) In routine buying situations, which of the following members of the buying center has formal or informal power to select or approve the final suppliers?

deciders

In a ________ situation, the "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account and the "out" suppliers may see the present situation as an opportunity to make a better offer and gain new business.

modified rebuy

In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms, or suppliers.

modified rebuy

________ refers to a business buying situation in which the buyer purchases a product or service for the first time.

new task

Buyers who face a ________ usually go through all stages of the buying process.

new-task buying situation

If a buying center is most influenced by authority in the business buying process, it can be safely concluded that ________ factors have a major influence on its buying behavior.

interpersonal

Which of the following factors influencing the business buying process do marketers typically find most difficult to assess?

interpersonal

Solutions selling ________.

is often a key business marketing strategy for winning and holding accounts

Business buyers are heavily influenced by factors in the current and expected economic environment, such as ________.

level of primary demand

users

members of the buying organization who will actually use the purchased product or service

In ________, companies put their purchasing requests online and invite suppliers to bid for the business.

reverse auctions

institutional market

schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care

All of the following organizations are likely part of the institutional market EXCEPT ________.

Lancaster Real Estate Company

Green Bees, a popular American heavy-metal band, will perform in Berlin during Christmas. There is a high demand for concert tickets among fans worldwide who are looking forward to the much-awaited performance. In this instance, the high demand for tickets for the Green Bees concert is representative of ________.

derived demand

________ refers to purchasing through electronic connections between buyers and sellers—usually online.

e-procurement

In which stage of the business buying process does a buyer ask users to rate their satisfaction with the supplied materials?

performance review

Which of the following plays the most important role in government buying?

price

The first step of the business buying process is ________.

problem recognition

Which of the following is an example of an internal stimulus that would most likely lead to problem recognition?

A buyer is unhappy with a current supplier's product quality.

The ________ Web site provides a single point of entry through which commercial vendors and government buyers can post, search, monitor, and retrieve opportunities solicited by the entire federal contracting community.

Federal Business Opportunities

modified rebuy

business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers

Which of the following is an organizational factor that influences business buyers?

company procedures

Which of the following is true about business purchases?

Business purchases involve more professional purchasing effort than consumer purchases.

In several major cities in the U.S, the ________ operates business service centers with staffs to provide a complete education on the way government agencies buy, the steps that suppliers should follow, and the procurement opportunities available.

General Services Administration

Which of the following statements about e-procurement security issues is true?

Providing e-procurement security can involve a substantial financial investment from a company.

Business markets are similar to consumer markets in that ________.

both involve people who assume buying roles and make purchase decisions to satisfy needs

buying center

all the individuals and units that play a role in the purchase decision making process

Which of the following is LEAST likely a characteristic of business-to-business e-procurement?

an increase in the derived demand

A(n) ________ controls the flow of information to others in the buying center.

gatekeeper

________ occurs when someone in the company identifies a need that can be met by acquiring a specific product or service.

problem recognition

e-procurement

purchasing through electronic connections between buyers and sellers - usually online

general need description

stage in business buying process in which a buyer describes the general characteristics and quantity of a needed item

________ refer to members of the buying organization who will actually use the purchased product or service.

users

Under ________, buyers share sales and inventory information directly with key suppliers who monitor and replenish the buyer's stock automatically as needed.

vendor-managed inventory

Which of the following is true about business-to-business e-procurement?

Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis.

Business demand that ultimately comes from the demand for consumer goods is known as ________ demand.

derived

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

derived

Which of the following is true with regard to e-procurement?

e-procurement hastens order processing and delivery

Total government spending is determined by ________.

elected officials

The major influences on the buying process at General Aeronautics Limited include supply conditions and technological changes, which would both be categorized as ________ factors.

environmental

In a straight rebuy, ________.

the "in" suppliers try to maintain product and service quality to keep the business

In business markets with inelastic demand ________.

the total demand for products is not much affected by short-term price changes

A ________ creates a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed prices for a set time period.

blanket contract

The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands is known as ________.

business buying process

new task

business buying situation in which the buyer purchases a product or service for the first time

straight rebuy

business buying situation in which the buyer routinely reorders something without any modifications

derived demand

business demand that ultimately comes from the demand for consumer goods

systems selling

buying a packaged solution to a problem form a single seller, thus avoiding all the separate decisions involved in a complex buying situation

business buying behavior

buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented or supplied to others

Business buyer behavior refers to the ________.

buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

The ________ refers to all the individuals and units that play a role in the purchase decision-making process.

buying center

The decision-making unit of a purchasing organization is called its ________.

buying center

The ________ market consists of schools, hospitals, nursing homes, prisons, and the like that provide goods and services to people in their care.

institutional

In routine buying, the buyers are often the ________, or at least the approvers

deciders

business buying process

decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate and choose among alternative suppliers and brands

Which of the following can help a company create direct procurement accounts with suppliers, through which company buyers can purchase equipment, materials, and supplies directly?

extranet

The business marketer normally deals with ________ than the consumer marketer does.

far fewer but far larger buyers

In the ________ stage of the buying process, the alert business marketer can help the buyers define their needs and provide information about the value of different product characteristics.

general needs description

government market

governmental units - federal, state and local - that purchase or rent goods and services for carrying out the main functions of government

All of the following are difficulties associated with selling to government buyers EXCEPT ________.

high advertising costs

Who among the following does NOT participate in the purchase decision process of a buying organization?

individuals who supply raw materials

The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand.

inelastic

________ refer to people in an organization's buying center who affect the buying decision; they often help define specifications and provide information for evaluating alternatives.

influencers

Factors such as a firm's objectives, procedures, and systems are examples of ________ influences on the business buyer behavior.

organizational

influencers

people in an organizations buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives

gatekeepers

people in an organizations buying center who control the flow of information to others

deciders

people in an organizations buying center who have formal or informal power to select or approve the final suppliers

buyers

people in an organizations buying center who make an actual purchase

During which of the following stages of the business buying process is a buyer most likely to conduct a value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?

product specification

________ refers to the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.

product specification

________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.

product value analysis

performance review

stage of business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify or drop the arrangement

proposal solicitation

stage of business buying process in which the buyer invites qualified suppliers to submit proposals

order-routine specification

stage of business buying process in which the buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, expected time of delivery, return policies and warranties

product specification

stage of the business buying process in which the buyer organization decides on and specifies the best technical product characteristics for a needed item

supplier search

stage of the business buying process in which the buyer tries to find the best vendors

problem recognition

state of the business buying process in which the company recognizes a problem or need that can be met by acquiring a good or service

In which of the following would the buyer reorder a product without any modifications?

straight rebuy

The owners of a manufacturing firm in Ohio have developed a core network of suppliers to ensure an uninterrupted supply of products. This is an example of ________.

supplier development

________ involves systematically developing networks of supplier-partners to ensure a dependable supply of products and materials for use in making products or reselling them to others.

supplier development

Which of the following is an environmental factor that influences business buyers?

supply of key materials

supplier development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

________ refers to buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

systems selling

By showing buyers a better way to make an object, outside sellers can ________ that give them a chance to obtain new business.

turn straight rebuy situations into new task situations