Mkt ch 6
Decision Point: Choosing Data to Analyze A few months after the grand opening of the Naperville store, Caffè Gustoso's owners want to determine whether the fish tanks were a good investment. In the final stage of the business buyer decision process, the owners review the supplier's performance, which includes the installation, maintenance, and warranty response of the fish tank vendor. Additionally, the owners want to determine the ROI for the fish tanks. What data do you recommend the owners collect for this analysis? Select an option from the choices below and click Submit o Time: The owners should determine the amount of time customers spend in the Naperville location as compared to average time spent in a coffee shop. Customer service: The owners should evaluate the performance of their wait staff. Spending: The owners should determine the average transaction per customer in the Naperville location as compared to average coffee shop transactions.
Spending; the goal is to turn a profit and a key factor for driving profit is revenue.
A business buying situation in which the buyer reorders something without any modifications is known as
Straight rebuy
______is a business buying situation in which the buyer routinely reorders something without any modifications.
Straight rebuy
_____is the systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials used in making products or reselling to others.
Supplier development
______is the stage of the business buying process in which the buyer tries to find the best vendors
Supplier search
____refers to buying a packaged solution to a problem from a single seller, the is avoiding all the separate decisions involved in a complex buying situation.
Systems selling
Supplier selection is the stage of e business buying process in which
The buyer reviews proposals and selects a supplier or suppliers
Is the federal, state, and local units that purchase or rent goods and services for carrying out the main functions of government.
The government market
______Is the stage of the business buying process in which the buyer assessed the performance of the supplier and decides to continue, modify, or drop the arrangement.
Performance review
Which of the following statements is not a difference between business markets and consumer markets?
The market is very small and limited.
Users are members of the buying organization who __________.
will actually use the purchased product or service
The institutional market is best defined as the
Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and service to people in their care.
Which of the following describes the business buying process?
Business buyers determine which products and services their organizations need to purchase and then they find, evaluate, and choose among alternative suppliers and brands
The___consists of all the people who are involved in an organizational buying decision.
Buying center
Unlike marketers in the consumer market, business-to-business marketers
Deal with far fewer but far larger buyers
______are people in an organization's buyer center who have formal or informal power to select or approve the final suppliers
Deciders
Decision Point: Choosing a Fish Tank Supplier Large tropical fish tanks are a significant investment for Caffè Gustoso's owners. The proposals ranged from $10,000 to $25,000 for the installation of the two large tanks. The budget for the fish tank installation was initially set at $20,000, but one of the partners feels that additional money could be found in the budget. The owners are quite concerned about the tanks leaking and thus are looking for a long warranty. The Naperville location is scheduled to open in 5 weeks. The primary evaluative criteria for this purchase are price, installation time, and warranty period. Given the three suppliers, which supplier do you recommend that Caffè Gustoso choose? Price $10,000 $15,000 $30,000 Installation 5 weeks 3 weeks 2 weeks Warranty 1 year 2 year 3 year Tropical Tanks Exotic Fish Supplies Tanks for the Memories Select an option from the choices below and click Submit.
Exotic. It a presented proposal that was under budget, installed two weeks prior to the grand opening, with a reasonably long warranty.
Are members of the buying center who help define specifications and provide information for evaluating alternatives
Influencers
Business markets have demand that
Is inelastic
The rapidly expanding use of e-procurement in business to business deals provides several advantages; however, one of the disadvantages is
It puts suppliers against one another
Decison Point: Purchasing Fish Tanks In your next meeting with the owners, you discuss the differences between the Downtown Loop and Naperville stores. The Naperville stores will have twice the square footage as the Chicago Loop stores. To take advantage of the additional square footage, Caffe Gustoso plans on creating relaxation lounges in the new Naperville locations. Unlike the small Chicago Loop stores, the Naperville relaxation lounges will be equipped with plush seating a water wall, and large tropical fish tanks. The focal point of the relaxation room will be the fish tanks; therefore, this will be the first purchase for the new space. How would you recommend handling the purchase of the tropical fish tanks? Select an option from the choices below and click Submit.
New buy. The purchase of the fish tanks is a new task for the owners because they have no previous experience purchasing tropical fish tanks.
General need description is the stage of the business buying process in which a buyer
describes the general characteristics and quantity of a needed item
Business buyer behavior is best defined as
the buying behavior for organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
In the business buying process, product specification is the stage in which
the buying organization decides on and specifies the best technical product characteristic for a needed item
What is a modified rebuy?
A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers.
In which type of buying situation will a buyer usually go through all eight stages of the business buying process?
A new task buying situation
Developing product specifications follows __________ in the business buyer decision process.
General need description
Decision Point: Demand for Business-to-Business Products Your first job is to settle the dispute between the owners. To settle the dispute, you need to ensure that both owners understand the primary differences between consumer transactions and business transactions. As you work on your explanation, you reflect on the characteristics that make business transactions different than consumer transactions. How would you describe the demand for business products? Select an option from the choices below and click Submit. Elastic: Demand for business goods tends to be more elastic than demand for consumer goods Inelastic: Demand for business goods tends to be me more inelastic than demand for consumer goods.
Inelastic: Demand for business goods tends to be me more inelastic than demand for consumer goods.
Are people in an organization's buying center who affect the buying decision; they often help define specifications and also provide informational for evaluating alternatives
Influencers
Mentoring Moment: Buying Centers Depending on the complexity of the purchase, firms may use a buying center to complete a transaction. Buying centers vary in size and composition but generally cover six roles: initiator, user, gatekeeper, influencer, decider, and buyer. Drag the description of the responsibility to the role to which it belongs. When you have moved all the descriptions, click Submit
Initiator One of the owner's spouses recently visited an upscale coffee shop in San Francisco whose internal walls were created out of fish tanks. She wants to replicate the relaxing feeling in the Naperville location. User Customers who come into Caffè Gustoso's Naperville location will benefit from the relaxing ambience the fish tanks will create. Gatekeeper Caffe Gustoso's secretary collects, sorts, and organizes all of the fish tank catalogs and bids submitted In response to the request for fish tank proposals. Influencer Before the fish tank specifications were finalized, the owners talked to a tropical fish retaller to gain some Information and Inspiration about what fish to acquire for the tanks. Decider The co-owners of Caffe Gustoso review the proposals submitted by the tropical fish companies and choose a finalist. Buyer With the winning proposal identified, cafe purchasing agent competes the transaction by placing the order and negotiating delivery and installation
Decision Point: Differences in Supplier Choice You explain that because business demand is more inelastic, demand for business goods is not strongly correlated with price. Therefore, business suppliers are often able to increase price without negatively affecting demand. Therefore, it is critically important that we address price during the contract negotiation. The owners are still not convinced. You decide to add to your argument by discussing the differences in supplier choice. Which of the following arguments would strengthen your case? Select an option from the choices below and click Submit. Less supplier choice: Business buyers tend to have far fewer choices in suppliers than the ultimate consumers do. More supplier choice: Business buyers tend to have more choice in suppliers than the ultimate consumers do.
Less supplier choice: Business buyers tend to have far fewer choices in suppliers than the ultimate consumers do.
Decision Point: Purchasing the Cups With the coffee bean purchase process finalized, you turn your attention to the coffee cups, both ceramic and paper. All Caffe Gustoso cups proudly display the Caffe Gustoso logo with "Chicago Loop" printed below the logo. The owners feel strongly that the Naperville location cups need to have a similar look, but with Naperville in place of Chicago Loop under the logo Given the change to the cup design, how would you recommend handling this purchase? Select an option from the choices below and click Submit Straight rebuy Modified rebuy New buy
Modified rebuy. They want to change the logo for the cups, which requires a modification of the existing purchase specifications.
Decision Point: Business Buying Process You decide to make one more argument to highlight the difference between consumer purchases and business purchases. How would you describe the business buying process as compared to the consumer buying process? Select two options from the choices below and click Submit. Less structured: Business buying tends to be less structured than consumer buying More flexible: Business buying tends to be more flexible than consumer buying. More formalized: Business buying tends to be more formalized than consumer buying. Longer and slower. Business buying tends to be longer and slower than consumer buying.
More formalized: Business buying tends to be more formalized than consumer buying. Longer and slower. Business buying tends to be longer and slower than consumer buying.
_____Includes the final order with the chosen supplier or suppliers and lists other required items.
Order-routine specification
__________ is the stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.
Order-routine specification
Which of the following correctly defines the institutional market?
Organizations that provide goods and services to people in their care
_____is the stage of the business buying process in which the buyer invites qualified suppliers to submit proposals
Proposal solicitation
E-procurement
Refers to purchasing through electronic connections between buyers and sellers - usually online
To do e-procurement, companies can conduct__in which they put their purchasing requests online and invite suppliers to bid for their business
Reverse auctions
Decision Point: Purchasing the Coffee Beans Caffè Gustoso's owners finally agree that there is a significant difference between consumer and business transactions, and they decide to enlist your help for the new store purchases. Since the Naperville store will be offering the same high quality coffee menu selections as offered in the downtown location, the owners plan on purchasing the beans from the same suppliers that they currently use. The owners feel strongly that they must offer a product that tastes the same regardless of the location where the consumer buys the coffee. Given the fact that the same coffee beans will be purchased from an existing supplier, how do you recommend treating this purchase? Select an option from the choices below and click Submit Straight rebuy Modified rebuy New buy
Straight rebuy; because the coffee beans will be purchased without modification
What is supplier development?
The systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials used in making products or reselling to others
One problem with business-to-business e-procurement is that it
can erode long-standing customer-supplier relationships
Institutional Markets are
characterized by low budget, captive patrons
Hospital purchasing agents should prefer __________.
food vendors with low prices and quality products
Buyers are
people in an organization's buying center who make an actual purchase