Principles of Marketing: Exam 2, Chapter 5-3 to 5-5

T/F: The business buying process tends to be shorter and less formal than the consumer buying process

False

T/F: a small increase in consumer demand can cause a large increase in business demand

True

T/F: business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery

True

Which of the following statements about buying centers is true?

the buying center is not a fixed and formally identified unit within a buying organization

in which of the following stages of the adoption process does a consumer seek information about a new product?

interest

which of the following is most likely the final stage of the business buying decision process?

supplier performance review

_____ is the degree to which the results of using an innovation can be observed or described to others.

Communicability

Identify and describe the stages in the adoption process of a new product.

Consumers go through five stages in the process of adopting a new product. In the awareness stage, consumers become aware of the new product but lack information about it. Then, consumers seek information about the new product in the interest stage. In the evaluation stage, consumers consider whether trying the new product makes sense. Consumers try the product on a limited basis in the trial stage. Finally, consumers decide to make full use of the product in the adoption stage.

_____ is the degree to which an innovation may be tried on a limited basis.

Divisibility

T/F: Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.

False

T/F: Early mainstream adopters are venturesome and typically try new ideas at some risk.

False

T/F: Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.

False

T/F: In a straight rebuy, a buyer reorders something without any modifications

True

T/F: Interpersonal factors are a major influence on business buyer behavior

True

T/F: a business marketer normally deals with far fewer buyers than a consumer marketer.

True

T/F: in reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.

True

GE operates a company trading site where it posts purchasing needs, invites bids, negotiates terms, and places orders. This is an example of _____

company buying site

______ is the degree to which an innovation fits the values and experiences of potential consumers.

compatibility

Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ______ of the innovation.

complexity

corning produces gorilla glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates...

derived demand

Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as an ______

early adopter

in which of the following stages of the adoption process does a consumer consider whether trying a new product makes sense?

evaluation

T/F: A business buyer typically makes the greatest number of decisions in a straight rebuy situation and the fewest in a new-task situation.

false

T/F: The buying center consists of key decision makers from both the buying organization and the supplier.

false

T/F: a company buying a product with modified specifications faces a new-task situation

false

_______ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

lagging adopters

When Goodyear sells replacement tires to final consumers, its potential market includes millions of car owners around the world. But its fate in business markets depends on getting orders from only a handful of large automakers. This represents the difference in between business and consumer markets.

market structure

A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n)_______

modified rebuy

Which of the following is considered a major influence on business buyer behavior?

organizational factors

Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?

problem recognition

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

product specification

GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the _____ stage of the business buying decision process.

proposal solicitation

______ is the degree to which an innovation appears superior to existing products.

relative advantage

In a straight rebuy, a buyer_____

reorders something without any modifications

Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?

reverse auctions

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. this is an example of a ______

straight rebuy

_____ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers

systems selling

T/F: in vendor-managed inventory, buyers share sales information directly with key suppliers.

true