Chapter 8 - Business Markets and Buying Behavior

Most business buying decisions are made by one person. a team of purchasing agents. a firm's buying center. inventory control personnel. the sales force.

a firm's buying center

What are the four major categories of factors that influence business buying decisions? a) Environmental, organizational, interpersonal, and individual b) Environmental, organizational, psychological, and individual c) Environmental, psychological, individual, and technological d) Technological, organizational, environmental, and interpersonal e) Environmental, organizational, technological, and individual

a) Environmental, organizational, interpersonal, and individual

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase. new-task repetitive straight rebuy repetitive order modified rebuy

modified rebuy

Which of the following would be considered an institutional buyer? The University of Illinois The Environmental Protection Agency Apple Computers The United Way City of Greenville

The United Way

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? Description Inspection Sampling Negotiation Selection

Sampling

In a buying center, purchasing agents or purchasing managers are also known as gatekeepers. deciders. buyers. users. influencers.

buyers.

Which of the following products is most likely to be purchased on the basis of contract negotiation? Eggs Office supplies Used cars A custom-made bulldozer Wheat

A custom-made bulldozer

Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive? Develop a code of service. Set service objectives. Formally survey customers. Specify service uniformity. Stress truthfulness with employees.

Formally survey customers.

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 2.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 2.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process? Searching Specification development Alternative evaluation Selection Performance evaluation

Specification development

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets. consumer institutional producer government reseller

reseller

An organization that decides to buy all of a certain part from the same company is using single-supplier purchasing. multiple sourcing. same vendor analysis. straight rebuy. sole sourcing.

sole sourcing.

Safeway Supermarkets recently placed an order with the Kahn Corporation. Safeway has ordered these same products before under the same terms of sale. What type of purchase does this situation represent? New-task Repetitive Institutional Straight rebuy Modified rebuy

Straight rebuy

Product specifications are a) physical characteristics and level of quality. b) types of services that are provided with the product. c) financing available for the product. d) types of competitors offering similar products. e) product return policies.

a) physical characteristics and level of quality.

The stages of the business buying decision process, in order, are a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. b) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. c) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. d) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. e) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a) that he's absolutely right, the government doesn't deal with small businesses. b) although the government will deal with small businesses, he will never make a profit off a government contract. c) that any government, federal, state, or local would laugh at the size of his business. d) the government rarely considers new suppliers when making purchasing decisions. e) the government buys products from all sizes of business, but there is some red tape.

e) the government buys products from all sizes of business, but there is some red tape.

A practice in which two businesses agree to buy from each other is a new task purchase. a straight rebuy. a modified rebuy. reciprocity. a straight purchase.

reciprocity.

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? Homogeneous selection Inspection Description Sampling Negotiation

Description

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. Which of the following groups should Samsung not include in its buying center for the new equipment? Purchasing agents at Samsung Eventual users within Samsung Potential future Samsung customers Gatekeepers within Samsung Senior managers at Samsung

Potential future Samsung customers

Retailers like Target and Kmart are considered to be members of which business market? Reseller Customer Producer Institutional Services

Reseller

___________ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. Value Vendor Buying center Strategic Cost

Vendor

Compared with consumer goods, marketers aiming at business customers a) do not need to select target markets. b) have an enormous amount of information available concerning potential customers. c) have more difficulty in determining where their customers are located. d) are restricted in the types of promotion they can use. e) have more difficulty in estimating customers' purchase potentials.

b) have an enormous amount of information available concerning potential customers.

Inelastic demand in business markets refers to a situation where a) demand for a given product fluctuates very little over time. b) price increases or decreases will not significantly change demand for a given product. c) demand for a given product fluctuates significantly over time. d) demand for one product depends heavily on the demand for another product. e) supply for a given product cannot keep pace with the demand for it.

b) price increases or decreases will not significantly change demand for a given product.

Compared with the SIC system, the North American Industry Classification System (NAICS) will a) look at many industries at one time. b) be used throughout the world. c) contain the most up-to-date information for the NAFTA partners. d) provide less information about service industries. e) generate statistics that will not be useful in comparing countries.

c) contain the most up-to-date information for the NAFTA partners.

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. When Precision Brake's sales team calls on tractor manufacturing companies, the first person they usually talk to is the receptionist. In this example, the receptionists would be considered to be ________, part of the buying center. gatekeepers influencers users buyers controllers

gatekeepers

Demand for business products is also known as ______ demand. derived corporate business buying manufacturing industrial

industrial

Demand for a business product is ___________ if a price increase or decrease will not significantly affect that demand. elastic inelastic derived joint separate

inelastic

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ___________ of the alternative machines. descriptions inspections a sampling specifications reputations

inspections

As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and balancing weights for the truck tires. Such business products are characterized as having ____________ demand. derived inelastic joint fluctuating higher

joint

Demand for a business product is _____ when two or more items are used in combination to produce a product. inelastic joint fluctuating derived partnered

joint

When the requirements associated with a new-task purchase are changed the second or third time, this is called a ___________ purchase. modified rebuy continued new-task contractual straight rebuy negotiated rebuy

modified rebuy

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ______ for a purchase decision. sampling negotiation inspection elimination description

negotiation

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase. modified rebuy straight rebuy new-task reevaluated repetitive

new-task

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a _________ purchase. straight rebuy reciprocal delayed new-task modified rebuy

new-task

Abbott's Office Supplies buys furniture and filing cabinets from Craine Furniture. Craine buys paper, pens, and folders from Abbott's. The two firms are engaged in cross-selling. tying agreements. producer marketing. reciprocity. competitive bidding.

reciprocity.

Bob Denton of Denton Pest Control buys equipment from a supplier because that supplier hires him to spray the warehouse for insects periodically. This practice is known as cost-benefit analysis. cooperative selling. reciprocity. supplier agreement. modified rebuy purchase.

reciprocity.

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ___________ market. consumer producer government reseller wholesaler

reseller

The third stage in the business buying decision process is to evaluate product specifications to solve the problem. evaluate products relative to specifications. select and order the most appropriate product. evaluate product and supplier performance. search for products and suppliers.

search for products and suppliers.

When a business routinely purchases the same product with similar terms of sale, the purchase is called a new-task. repetitive purchase. straight rebuy. modified rebuy. standard order.

straight rebuy.

Reseller markets consist mainly of consumers. retailers. wholesalers and retailers. manufacturers. industrial users.

wholesalers and retailers.

______ buy products from manufacturers and then resell the products to other firms in the distribution system. Retailers Producers Distributors Warehouses Wholesalers

Wholesalers

About what percentage of the annual U.S. gross domestic product is government spending? 2 percent 10 percent 20 percent 30 percent 50 percent

20 percent

When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire? Resale Wholesale Customer Consumer Business

Business

Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations? Conduct market research. Use management judgment. Trace existing service levels. Stress quality service with employees. Train employees better.

Conduct market research.

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to? Producers Governments Retailers Consumers Institutions

Consumers

Demand for business products is characterized as derived. From what is the demand derived? Industrial demand Modified demand Demand for consumer products Future product demand The business cycle

Demand for consumer products

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not? Environmental Organizational Interpersonal Demographic Individual

Demographic

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of Product scarcity Joint demand Derived demand Reciprocity demand Inelastic demand

Derived demand

If a business owner buys parts by specifying the quantity, grade, and other attributes, which buying method is he or she using? Description Sampling Negotiation Ordering Inspection

Description

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC? Mexico Canada United States Japan All but one NAFTA country

Japan

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. What type of business purchase is Samsung undertaking? Modified rebuy Straight rebuy New-task Straight purchase New rebuy

New-task

Which type of business market tends to have the most complex buying procedures? Reseller Institutional Retailer Government Producer

Producer

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? Problem recognition Product specification Product-supplier search and evaluation Product-supplier selection Product-supplier post-evaluation

Product-supplier search and evaluation

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods? Searching for products and suppliers Selecting and ordering the most appropriate product Recognizing the problem or need Establishing product specifications Evaluating the product relative to specifications

Recognizing the problem or need

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. When Precision Brake sells to the individual dealers, they would be considered which of the following business types? Producer Reseller Government Institutional Covert

Reseller

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? Reseller Producer Consumer Government Supply

Reseller

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible? Negotiation Sampling Description Inspection Homogeneous selection

Sampling

_________ is(are) a major threat to the sales success of jointly demanded products. Price changes Shortages Economic instability Inventory buildup Proliferation of brands

Shortages

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in Sales & Marketing Management. an SIC listing. the Census of Business. the Census of Manufacturers. Standard & Poor's Register.

Standard & Poor's Register.

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase? New-task Modified rebuy Straight rebuy Bid Negotiated

Straight rebuy

Input-output analysis is most likely to yield what type of information? a) Number of employees that a firm has b) Industries that purchase the major portion of an industry's output c) Kinds of returns a firm is getting on its equipment investments d) Type of inventory turnover that is characteristic of a firm e) Kinds of variables that would be used to segment the target market

b) Industries that purchase the major portion of an industry's output

Kroger Grocery Store is an example of a reseller. Which of the following factors concerning reseller purchase decisions is false? a) Resellers are concerned with the level of demand for the product. b) Resellers are not concerned with how much space the product takes up as long as it has a high price. c) Resellers want producers to be able to supply adequate quantities of the product. d) Resellers are concerned with the availability of technical and promotional assistance from the producer. e) Resellers are concerned with the markup percentage they can get on the product.

b) Resellers are not concerned with how much space the product takes up as long as it has a high price.

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of a) their markup. b) sales per square foot of selling area. c) how many of the product they can fit in a certain amount of space. d) profit per dollar of selling price. e) the reliability of the supplier.

b) sales per square foot of selling area.

Which of the following is true with respect to buyers in business markets? a) Business buyers always act rationally when making purchases for their company. b) Business customers tend to be less informed about the products they purchase than consumer buyers. c) Business customers demand detailed information about a product's quality, features, or technical specifications. d) Business customers are no different than buyers in consumer markets. e) Business customers tend to buy products from their friends and contacts with business suppliers.

c) Business customers demand detailed information about a product's quality, features, or technical specifications.

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a) Does the quality of the goods meet company specifications? b) Does the supplier consistently deliver on time? c) Does the supplier also sell to my competitors? d) Does the supplier offer the services required? e) Does the price meet company budget requirements?

c) Does the supplier also sell to my competitors?

Inelastic demand simply means that a) buyers will not make a modified rebuy purchase. b) demand depends on how many items are purchased. c) a price increase or decrease will not significantly change the demand for an item. d) when price goes up, demand goes down. e) when supply is reduced, the price will increase.

c) a price increase or decrease will not significantly change the demand for an item.

Most business purchases can be classified as belonging to one of three types: a) delinquent, repetitive, or delivered. b) repetitive, new-task, or modified rebuy. c) modified rebuy, new-task, or straight rebuy. d) delinquent, new-task, or reciprocal. e) rebuy, reciprocal, or delayed.

c) modified rebuy, new-task, or straight rebuy.

All of the following are important concerns of business customers except a) achieving a specific level of quality in the products offered to target markets. b) obtaining a level of quality that meets specifications. c) obtaining products that exceed specifications to ensure the best possible product performance. d) obtaining products for which the quality level is consistent. e) supporting customers with services they expect.

c) obtaining products that exceed specifications to ensure the best possible product performance.

Business markets are typically divided into four categories. These categories are a) retailers, wholesalers, services, and nonprofit firms. b) producer, manufacturer, reseller, and government. c) producer, reseller, government, and institutional. d) manufacturer, wholesaler, retailer, and services. e) reseller, retailer, government, and institutional.

c) producer, reseller, government, and institutional.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are a) use in daily operations, end consumption, and resale. b) direct use in producing other products, company travel, and end consumption. c) resale, use in daily operations, and direct use in producing other products. d) governmental, institutional, and reseller purposes. e) making other products, selling to other businesses, making component parts.

c) resale, use in daily operations, and direct use in producing other products.

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use? a) The government will request bids from all companies on its qualified bidder list. b) It will contact whatever company made the last jets and have them develop the new ones. c) Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. d) The government will select a few firms and enter into negotiations with them until the contract is awarded. e) The contract will go to the first company that submits a reasonable bid for the desired jets.

d) The government will select a few firms and enter into negotiations with them until the contract is awarded.

A disadvantage of reciprocity is that it can lead to a) a price war. b) higher promotional costs. c) more competitive firms entering the industry. d) less-than-optimal purchases for the buyer. e) longer periods of negotiation.

d) less-than-optimal purchases for the buyer.

Individual influencing factors refer to a) relationships among those in the firm's buying center. b) uncontrollable environmental forces. c) the power an individual controls in the buying center. d) personal characteristics of individuals in the buying center. e) activities of suppliers.

d) personal characteristics of individuals in the buying center.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are a) resale, wholesale, and direct use. b) wholesale, direct use, and use in producing other products. c) resale, wholesale, and use in producing other products. d) resale, direct use in producing other products, and use in general daily operations. e) use in general daily operations, wholesale, and resale.

d) resale, direct use in producing other products, and use in general daily operations.

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals. a) how many different suppliers they use b) how many parts can fail c) controlling when shipments will arrive d) the percentage of defects allowed e) how long the parts should last

d) the percentage of defects allowed

Analysis of business input-output data by the federal government allows the government to have a better understanding of the a) cash flows that exist among industries. b) raw materials and labor required to produce a given product. c) amount of reinvestment that different industries use. d) types of industries that purchase particular products. e) growth projections for a given industry.

d) types of industries that purchase particular products.

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______since it depends on the demand for new cars. inelastic fluctuating derived elastic nonderived

derived

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is joint. economically stable. derived. inelastic. more fluctuating

derived.

The second stage in the business buying decision process is to search for products and suppliers. select the most appropriate product. develop product specifications. evaluate product and supplier performance. recognize the problem.

develop product specifications.

What is a primary difference between business and consumer buyers? a) Consumer buyers require more product information than business buyers. b) Business purchases are made by one individual whereas families make consumer purchases together. c) Repeat sales are more common with consumer buyers than business buyers. d) Consumers primarily buy inexpensive items; businesses only buy expensive items. e) Business buyers generally make larger orders than consumer buyers.

e) Business buyers generally make larger orders than consumer buyers.

Which of the following statements about business buying is false? a) Business marketers prefer not to sell to customers who place small orders. b) Business marketers must often sell their products in large quantities to make profits. c) Most business purchases are made by committee. d) Business purchases are usually made on the basis of contracts. e) Orders in business markets tend to be smaller than those placed in consumer markets.

e) Orders in business markets tend to be smaller than those placed in consumer markets.

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to a) make a presentation appointment with the state. b) quote prices to the purchasing department. c) advertise in the capital city. d) negotiate with the state. e) secure a slot on the list of qualified bidders.

e) secure a slot on the list of qualified bidders.

All of the following describe the demand for business products except elastic. derived. joint. inelastic. fluctuating.

elastic.

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand. joint inelastic consumer fluctuating derived

fluctuating

Administrative assistants that control the flow of information to other people in the organization often play the _____ role in the buying center. gatekeeper user influencer buyer controller

gatekeeper

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision. gatekeeper buyer decider buying center captain order giver

gatekeeper

The recently created Department of Homeland Defense is a member of the _____ market. regulatory reseller government producer institutional

government

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand. derived inelastic joint fluctuating higher

inelastic

Churches, charitable organizations, and private colleges are considered _____ buyers. corporate government institutional producer nonprofit

institutional

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) ___________ market. producer consumer reseller institutional government

institutional

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process. environmental organizational interpersonal individual demographic

organizational

Institutional markets are a) intermediaries who resell goods to make a profit. b) federal and state government units. c) state or local government units. d) consumers who buy products for their own use. e) organizations that seek nonbusiness goals.

organizations that seek nonbusiness goals.

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) reciprocity agreement. partnership. intra-organizational group. alliance. tying arrangement.

partnership.

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called partnerships. co-ops. monopolies. reciprocity. alliances.

partnerships.

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ___________ market. consumer producer reseller government institutional

producer

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets. consumer institutional producer government reseller

producer

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called descriptions. product features. criterion. purchase requests. specifications.

specifications.

The group of people within a business who are involved in making business buying decisions is referred to as the new-task team. negotiators. purchasing agents. deciders. the buying center.

the buying center.

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ___________ analysis. vendor downsizing strategic value profit

value

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use _________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. cost value profit strategic SWOT

value