Marketing chap6

________ 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.

system selling

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

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

individuals who supply raw materials

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

supplier selection

A straight rebuy is handled on a routine basis by the purchase department.

true

Rudolf Technologies Inc. decided to enter the automobile service market. Consequently, it decided to procure the tools and machines required for servicing cars from a reputed supplier. Rudolf Technologies is facing ________.

New task

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

E-procurement

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

________ 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

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

________ 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

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

business buying process

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 ________.

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?

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.

New task

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

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

The buyer conducts a _______ to find the best vendors.

a supplier search

individual factor that influence business buyers

age/education, job position, motives, personality, preferences, buying style

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

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

buyers

________ may help shape product specifications, but their major role is in selecting vendors and negotiating.

buyers

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

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

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

derived （Green Bees, a popular American heavy-metal band,）

environmental factor that influence business buyers

economy, supply conditions, technology, politics, competition, culture and customs

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

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

In the business buying process, the buyer and seller are relatively less dependent on each other.

false

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

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 needs description

the demand for many business products is not much affected by price changes, especially in the short run.

inelastic demand

interpersonal factor that influence business buyers

influence, expertise, authority, dynamics

________ 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

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

institutional

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

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

modified rebuy

Worthington's Farm is an old poultry farm in Mount Prospect, Illinois. For years, it has used wooden coops to haul its poultry to the market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. Consequently, the owner of Worthington's Farm ordered 100 customized coops from its regular supplier. This exemplifies ________.

modified rebuy

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

new-task buying situation

organizational factors that influence business buyers

objectives, strategies, structure, systems, procedures

After searching extensively for vendors, Mike Miller, the owner of a manufacturing firm, selected Texcom Technologies Inc. as his firm's primary supplier of bearings and shafts of a specific dimension. Mike is currently preparing an order form that specifies the number of shafts needed and the expected time of delivery. In other words, he is preparing the ________.

order routine specification

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

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

problem recognition

steps in business buying process

problem recognition general needs description product specification supplier search proposal solicitation supplier selection order-routine specification performance review

John 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 the ___________ stage of the business buying process, the buyer invites qualified suppliers to submit proposals.

proposal solicitation

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

reverse auctions

Business purchases involve more professional purchasing effort than consumer purchases.

true

E-procurement hastens order processing and delivery.

true

Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder

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

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

users

a straight rebuy

without any modifications