CH 6
________ refer to members of the buying organization who help define specifications and provide information for evaluating alternatives.
Influencers
________ 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
________ refers to a business buying situation in which the buyer purchases a product or service for the first time.
New task
________ 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
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.
Which of the following is true about business purchases?
Business purchases involve more professional purchasing effort than consumer purchases.
________ have formal authority to select the supplier and arrange the terms of purchase.
Buyers
________ may help shape product specifications, but their major role is to select vendors and to negotiate.
Buyers
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
Business markets are similar to consumer markets in that ________.
both involve people who assume buying roles and make purchase decisions to satisfy needs
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
Dora has formal authority to select the suppliers and arrange terms of purchase for many of the items her firm uses. Her role in the buying center is that of a(n) ________.
buyer
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 ________ refer(s) 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
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
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 ________ demand.
derived
Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand.
derived
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
Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________.
faces a new task situation
The business marketer normally deals with ________ than the consumer marketer does.
far fewer but far larger buyers
A(n) ________ controls the flow of information to others in the buying center.
gatekeeper
Paul, a purchasing agent for Kiel Inc., has the authority to prevent salespersons from seeing the decision makers in his organization. Which of the following best describes Paul's position?
gatekeeper
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 need description
Sam Doharty, a purchasing manager in Willard Groups of Companies, is currently working with engineers and consultants to define the items to be purchased. Additionally, Sam and his team are ranking the importance of reliability, durability, and price desired in the items. In other words, they are preparing a(n) ________.
general need description
A manager in a garment manufacturing company decided to replace the plastic shopping bags currently used in his company with bags made of recyclable material. Consequently, he asked the operations officer to gather relevant information and send a list of alternatives to him. In the business buying process, the manager is preparing a(n) ________.
general needs description
Who among the following does NOT participate in the purchase decision process of a buying organization?
individuals who supply raw materials
A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only slightly affected following a 12-percent hike in tuition the following fall. This illustrates ________ demand.
inelastic
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
Eric Mason, an employee of Huntington Steelworks, is responsible for defining product specifications and providing relevant information for evaluating alternatives in his organization's buying center. Eric, whose opinions affect the buying decisions of his organization to a great extent, is most likely a(n) ________.
influencer
Marissa Hopkins, a hospital nurse, notices that the gurneys used in the hospital are not durable enough. She informed the hospital authorities about Grace Care Inc., a new company selling lightweight and durable gurneys. In this instance, Marissa played the role of a(n) ________.
influencer
In new product buying, the users are often the ________.
influencers
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
A business purchase usually involves all of the following EXCEPT ________.
manufacturing representatives
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
Ralph works for a manufacturing company in Ohio. Recently, he called in a department manager to assist in the purchase of some heavy machinery. After consulting the department manager, Ralph is considering a change in product specifications and characteristics and expects suppliers to meet his requirements. Which of the following is evident here?
modified rebuy
Since business marketers have fewer buyers than consumer marketers, business buyers often face ________ than do consumer buyers.
more complex buying decisions
Buyers who face a ________ usually go through all stages of the buying process.
new task buying situation
After searching extensively for vendors, Shalina D'Souza, the owner of a manufacturing firm, selected Texcom Technologies Inc. as her firm's primary supplier of bearings and shafts of a specific dimension. Shalina is currently preparing an order form that specifies the number of shafts needed and the expected time of delivery. In other words, she is preparing the ________.
order routine specification
Factors such as a firm's objectives, procedures, and systems are examples of ________ influences on the business buyer behavior.
organizational
Differences between business markets and consumer markets include all of the following EXCEPT ________.
people who make purchase decisions to satisfy needs
In which stage of the business buying process does a buyer ask users to rate their satisfaction with the supplied materials?
performance review
Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling. Which of the following is evident here?
performance review
A company will likely identify qualified suppliers by doing all of the following EXCEPT ________.
placing classified advertisements
In the beginning of the buying process, Timothy Perry, a product development manager, noticed that the raw materials that were being procured from his company's regular supplier were of poor quality. Consequently, he decided to change the existing supplier as a remedial measure. The stage of the buying process in which Timothy identified the quality breach represents the ________ stage.
problem recognition
Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He sources most of the raw materials needed by his company from Kramer Corp. However, Ross is unhappy with Kramer's prices. Additionally, he thinks that the quality of the raw materials supplied by Kramer is substandard. Which of the following stages in the business buying process is Ross' company currently in?
problem recognition
The first step of the business buying process is ________.
problem recognition
________ occurs when someone in the company identifies a need that can be met by acquiring a specific product or service.
problem recognition
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
Johann Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments. In the business buying process, this approach to cost reduction most likely took place in the ________ stage.
product specification
In which stage of the business buying process does the buyer contact suppliers for bids?
proposal solicitation
Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.
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
Attributes that a buying center may look for in a supplier include all of the following EXCEPT ________.
off-shore manufacturing
The stage of the business buying process in which the chosen supplier(s) is given the final order is the ________ stage.
order-routine specification
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 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.
Which of the following is most likely true about a straight rebuy?
A straight rebuy is handled on a routine basis by the purchase department.
The buying center draws up a list of the desired supplier attributes and their relative importance.
conducting a supplier search
________ can strongly influence business buyer reactions to the marketer's behavior and strategies, especially in the international marketing environment.
Culture and customs
Business buyers are subject primarily to economic influences when they make their buying decisions. Emotional or personal factors rarely are involved.
F
All business buying decisions follow all steps of the business buying process.
False
During proposal solicitation, the buying center often will draw up a list of desired supplier attributes and their relative importance.
False
Gatekeepers have formal or informal power to select or approve the final suppliers.
False
In a straight rebuy, the buyer wants to alter product specifications, prices, terms, or suppliers.
False
In the business buying process, the buyer and seller are relatively less dependent on each other.
False
In the supplier selection stage, the buyer reviews supplier performance.
False
Most businesses that manufacture products for the consumer market also sell directly to consumers.
False
Product value analysis is an approach to enhancing productivity.
False
Rachel Stein works for the LeBray Beverage Company. She helps define product specifications and also provides information for evaluating alternatives. Rachel plays the role of gatekeeper.
False
The buying center is a fixed and formally identified unit within the buying organization.
False
The demand for many business goods tends to change more slowly than the demand for consumer goods.
False
The newer the buying task, and the more complex and costly the item, the lesser the amount of time the buyer will spend searching for suppliers.
False
In which of the following would the buyer reorder a product without any modifications? A. reverse auction B. new task C. solution selling D. straight rebuy Your answer is correct. E. modified rebuy
Straight rebuy
Which of the following is NOT part of the business market?
Sue shops for her family's groceries at the local Whole Foods store.
________ 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
________ 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
A company buying a product or service for the first time faces a new task situation.
True
Business demand ultimately derives from the demand for consumer goods.
True
Derived demand refers to the business demand that ultimately comes from the demand for consumer goods.
True
In the business buying process, business buyers determine which products and services their organizations need to purchase.
True
In the general needs description of the buying process, the buyer describes the characteristics and quantity of the needed item.
True
In the performance review stage, the seller or the buyer may modify, continue, or cancel the business arrangement.
True
In the proposal solicitation stage of the business buying process, the buyer invites qualified suppliers to submit proposals.
True
Influencers often help define specifications and also provide information for evaluating alternatives.
True
The business marketer normally deals with far fewer but far larger buyers than the consumer marketer does.
True
The main differences between business and consumer markets are in market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved.
True
The order-routine specification includes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected delivery time, return policies, and warranties.
True
Within the organization, buying activity consists of two major parts: the buying center and the buying decision process.
True
A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions?
What are the major influences on buyers?
Sheffield Cargo serves both consumer and business markets, but most of its revenue comes from its business customers. Of late, the business customers of Sheffield Cargo have demanded a change in the packaging of heavy cargo along with a more sophisticated and user-friendly extranet framework. Sheffield Cargo is under pressure to offer better products and services or risk losing a huge portion of its customers. This is an example of ________.
a modified rebuy situation
Rudolf Technologies Inc. decided to enter the automobile service market. Consequently, the company decided to procure the tools and machines needed from a reputable supplier. Rudolf Technologies is facing ________.
a new task situation
Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. This is an example of ________.
a straight rebuy situation
Sail Metalworks Inc. is currently looking for the best vendors of metal sheets. In other words, Sail Metalworks is ________.
conducting a supplier search
Which of the following is an organizational factor that influences business buyers?
company procedures
A nurse in a hospital told the chief dentist, Dr. Albrecht, that the hospital should purchase equipment that would sterilize the dentists' tools without using any water because water tends to affect the durability of the tools over time. Dr. Albrecht located some articles on chemical sterilizers and gathered more information on how they worked. After talking to salespeople, Dr. Albrecht finally placed his order for the machine. In this instance, Dr. Albrecht played the role of a(n) ________.
decider
Jason Perkins has the informal power to approve the final suppliers in his organization. In other words, Jason plays the role of a(n) ________ in his organization's buying center.
decider
Refer to the scenario below to answer the following question(s). Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. The warehouse foreman gave inputs regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. In this instance, Richard plays the role of a(n) ________.
decider
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 routine buying, buyers are often the ________, or at least the approvers.
deciders
Members of the buying center at Kid's World, a store for children's clothing, are drawing up a list of desired supplier attributes and their relative importance. Next, they intend to compare several suppliers' proposals to these attributes. In which step of the business buying process is the buying center at Kid's World involved in?
supplier selection
Which of the following is an environmental factor that influences business buyers?
supply of key materials
A new task situation presents ________.
the greatest opportunity and the greatest challenge to the marketer
In business markets with inelastic demand ________.
the total demand for products is not much affected by short-term price changes
In a straight rebuy, ________.
the "in" suppliers try to maintain product and service quality to keep the business
Many buyers prefer multiple sources of supplies ________.
to avoid being totally dependent on one supplier
By showing buyers a better way to make an object, outside sellers can ________ .
turn straight rebuy situations into new task situations
Phoi Nguyen, a manufacturing mechanic, determines that the molds for manufacturing plastic jar lids are wearing out sooner than expected. Phoi contacts her manager to request that the parts be reordered. In this instance, Phoi played the role of a(n) ________.
user