Business-to-Business Marketing
True or False: In most large organizations, buying decisions are made exclusively by members of the purchasing or procurement department, with limited or no input from other employees.
False
Which of the following buying center team members plays the role of the gatekeeper?
The secretary who schedules meetings between sales representatives and upper management
What is the purpose of a white paper?
To provide product information in an easy-to-read informational context
True or False: The government is usually one of the largest spenders in the B2B market.
True
In the B2B buying process, a firm will always recognize a need before engaging in the second phase of the process, ______.
product specification
When preparing a proposal to meet a potential client's needs, vendors often review the company's ______ to get a better sense of what the company is looking for.
product specifications
When calculating an overall performance score for vendors, firms should calculate the sum of the vendor's performance score on various issues multiplied by which metric?
An importance score for each issue
The ___ center participants range from employees with formal roles in the purchasing decision to design team members who are requesting or specifying a particular item.
buying
The three B2B buying situations are ___ buys, ___ rebuys, and straight rebuys.
new; modified
In an autocratic buying center, the decision is made by ______.
one person
All the following could be considered part of a firm's B2B marketing plan EXCEPT ______.
opening a company store to sell direct to consumers
In the fifth stage of the B2B buying process, ______ specification, the firm places its order with its preferred supplier(s).
order
The role of a(n) ___ within a typical buying center is to consume or use the product or service.
user
B2B marketing involves the process of buying and selling goods or services to be used in the production of other goods and services for ______ by the buying organization and/or ______ by wholesalers and retailers.
consumption; resale
Which of the following is an example of a B2B firm operating in the reseller market?
A company that buys buttons and zippers in bulk and sells them to clothing manufacturers
What is the term used to describe the informal division of a large organization that is responsible for the firm's purchasing decisions?
Buying center
All the following are involved in business-to-business (B2B) marketing EXCEPT ______.
consumers
Democratic, autocratic, consultative, and consensus are different types of ______.
organizational buying cultures
A ___ rebuy is when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, or options.
modified
During the B2B buying process, a firm will typically invite alternative suppliers to bid on supplying the firm's required components for a product. This stage is called the ___ for proposal process.
request
Which of the following is NOT a step in the formal business-to-business buying process?
Commercialization
Which of the following are roles within a buying center?
User Initiator Decider
In a large organization where there are many purchasing requirements, it is the ___ who has the authority to select a final supplier.
decider
When the office supplies arrive at your office and the order consists of the same units of products that have been purchased in the previous quarter, this is referred to as a ______.
straight rebuy
Your company's policy is to receive all office supplies without any changes made from the previous order. This order is referred to as a ______.
straight rebuy
Which of the following statements about the buying strategy for a modified rebuy is true?
Buying center members will spend less time on the process than they would for a new buy.
When a large corporation sends out an e-mail to all buying center members in which it requests suggestions on which suppliers to use and then bases its decision on the majority, the corporation likely has a(n) ______ buying center.
democratic
When Hertz decides to expand its fleet of rental cars, several companies, as well as consumers, will be involved. Financial services will be provided by banks, and the actual fleet of cars will come from auto manufacturers. Hertz will rent the cars to consumers. In this scenario, which of the following are involved in B2B transactions?
Auto manufacturers, selling cars to Hertz Banks, financing Hertz's car purchases
Burt's Bees buys raw materials in order to make its earth-friendly products, such as perfumes, lip balms, and hair products. Which of the following business markets best describes Burt's Bees?
Manufacturer or producer
Which type of buying situation is the most complex and difficult, with buying center members having an intense level of involvement?
New buy
The person who handles the paperwork of the actual purchase and is responsible for making the purchase is the ___
buyer
Within the buying process you are considered the ___ when you are the one who facilitates the purchase by completing the necessary negotiations and paperwork.
buyer
You work as the inventory manager at a golf pro shop. The club pro has reviewed and approved a new golf club collection, and you proceed to complete the purchase by negotiating a price and finalizing paperwork with the manufacturer. In this scenario, you are in the role of ______.
buyer
A buying center that purchases equipment based on a team's collective agreement is referred to as a ______ buying center.
consensus
A(n) ______ buying center relies on just one person to make a decision but seeks information from many others and integrates it into the decision-making.
consultative
A consumer goes to Walmart to get her son a birthday gift. This is an example of a business-to-______ transaction.
consumer
A firm's organizational ___ demonstrates the values, traditions, and customs that moderate its employees' behavior.
culture
The ______ has the power of selecting the final products or suppliers.
decider
___ demand is when a consumer's demand for a firm's product affects the firm's purchase of inputs needed to make that product.
derived
There may be a person who acts as a(n) ______ in the buying center, often by providing specifications and recommendations for the product being purchased or the vendor being considered and communicating that to others in the buying center.
influencer
When a firm gives an order to a supplier, it contains a detailed description of the goods requested along with other important details. This process is known as ______.
order specification
When a firm places its orders with its preferred supplier(s), it engages in ______.
order specification
A web ___ is an Internet site whose purpose is to be a starting point for users when they go online.
portal
In the fourth stage of the B2B buying process, ______, vendor negotiation, and selection all occur.
proposal analysis
A local clinic (institution) in need of more Purell antibacterial soap might purchase it from Target, which is a ______ of soap, whereas a local high school (institution) in need of more textbooks might buy some from McGraw-Hill, which is a ______.
retailer; manufacturer
After a company recognizes a need, it develops product ______ that potential suppliers can use to develop their proposals to supply the product.
specifications
A pharmaceutical sales representative who visits with health care professionals to demonstrate new products that they might wish to use plays which buying role?
Influencer
Siemens is a German-based firm producing everything from bullet trains to light bulbs. It engages in business-to-business transactions and works with other firms to help solve their problems, especially in the health care and energy industries. Siemens best fits into which of the following categories?
Manufacturers
Which of the following would NOT be considered a reseller?
Manufacturers
Approximately how much does the U.S. government spend annually on procuring goods and services?
$4 trillion
Each role within the buying center is different. Which role makes the final determination as to which product is purchased from which supplier, if a product is purchased at all?
Decider
Which of the following details typically appear along with a description of the goods in an order specification?
Delivery dates Prices Penalties for noncompliance
Kellogg's purchases large quantities of whole grain in order to produce its cereal products. The effect of consumers' desire for cereal on the company's purchasing patterns is an example of which of the following?
Derived demand
What is the first step a firm should take in evaluating vendor performance using metrics?
Developing a list of issues that the firm considers important
In a straight rebuy, buyers often skip to which step in the buying process?
Fifth
Which of the following is NOT one of the four main types of organizations that make up B2B markets?
Franchisers
After a car accident, you find an auto repair shop and submit the bill to your insurance company. The insurer reviews the bill and decides that it will only reimburse you for half of the cost of repairs because the mechanic used expensive brand-name parts instead of cheaper generic replacements. In this scenario, what buying role is the insurance company playing?
Gatekeeper
In B2B marketing, companies often communicate via specialized web portals. Which of the following are among the advantages of using these portals?
Reduced paperwork Simplified negotiations Streamlined procurement processes
Eagle Imports purchases food and beverage products from overseas producers and sells them to specialty shops in the United States. Which type of B2B organization is Eagle Imports?
Reseller
______ are the entire category of marketing intermediaries that move the product further downstream in the channel without significantly altering the form.
Resellers
Which of the following are typical in a new buy situation?
Several members of the buying center will be involved. The buying center will proceed through all six steps in the buying process.
Terence realizes that in order to fulfill customers' expectations for his florist business, he must purchase a customized delivery van. This illustrates the requirements for which stage in the B2B process?
Stage 1: Need recognition
When a doctor schedules you for a surgery and requests that the hospital have specific instruments and supplies for your procedure, who initiates the buying process?
The doctor
Who or what determines the buying decisions in a democratic buying center?
The majority vote share
A software development firm has built a program that can help businesses more efficiently target advertisements toward those who are most likely to buy. The sales team wants to introduce the product to potential clients but doesn't want to overwhelm them with a pushy sales pitch or overly technical language. To do this, they should create which of the following?
White paper
Resellers can be thought of as ______.
intermediaries
You place an order with your usual office supply vendor, except this time you upgrade the quality of the printer paper you are ordering. This is referred to as a ______.
modified rebuy
There are various types of buying situations for different marketing and selling strategies. The most complex and difficult is the ___ buy situation.
new
In ______ rebuys, the buyer is often the only member of the buying center involved in the process.
straight
Place the steps of the B2B buying process in order by placing the FIRST step at the top of the list and the LAST step at the bottom of the list.
Need Recognition Product Specification RFP Process Proposal analysis and Supplier selection Order Specification Vendor/performance assessment using metrics
The majority of B2B buying situations can be described as which three of the following?
New buys Straight rebuys Modified rebuys
______ refers to a set of unspoken guidelines that employees share in various work situations.
Organizational culture
Which of the following would be considered appropriate methods for a firm to use when engaging in the request for proposals (RFP) process?
Posting its RFP needs on its own website Contacting potential suppliers directly
The ___ will be the person who ultimately determines any part of the buying decision.
decider
An example of a firm's ______ marketing plan would be to create a special discount program for the retailers who sell the firm's products.
B2B
In stage 4 of the buying process, firms will often negotiate with suppliers over the key terms of the sale. Which of the following issues are frequently discussed within these negotiations?
Financing Price Quality
In the third stage of the B2B buying process, the firm will invite alternative suppliers to bid on supplying the firm's required components. This is known as the ______ process.
request for proposals
What is required for a buying decision to be made in a consensus buying center?
Complete agreement among the buying team
Marla is a buyer at a major corporation. Although she is authorized to make purchasing decisions on her own, she often seeks the input of trusted colleagues before settling on a decision. What type of buying center does Marla participate in?
Consultative
Which of the following are general types of organizational buying cultures?
Consultative Autocratic
The social network ______.com is mainly used for professional networking in B2B markets.
Which social network is commonly used by B2B marketers to send short messages to other businesses at any time, as often as they want?
Like business to-consumer firms, business-to-business firms ultimately seek to create ______ for customers.
Value
Within a typical buying center, the ______ is the person who FIRST suggests buying a particular product or service.
initiator
Which department of the U.S. federal government was budgeted to spend over $582 billion on goods and services in fiscal year 2017, making it one of the largest B2B spenders in the country?
Department of Defense
Within a typical buying center, who is the person who controls information, access, or both to decision makers and influencers?
Gatekeeper
A doctor who recommends a procedure and determines which equipment and products will be required participates in which buying role?
Initiator
Match each buying role with the correct description.
Initiator - Person who first suggests buying the product Influencer - Person whose views persuade others Decider - Person who ultimately determines the buying decision Buyer - Person who handles the paperwork of the purchase User - Person who consumes or uses the product Gatekeeper - Person who controls information and/or access to decision makers and influencers
Although the B2B buying process differs from the B2C buying process, they both start in the same way. Which of the following actions indicates the beginning of both types of buying processes?
Need recognition
Once a firm recognizes a need, the firm will consider alternative solutions and develop a list of requirements to be given to potential vendors. What is the name for this process?
Product specification
The fourth stage of the B2B buying process has a number of mini steps within itself. Which of the following is NOT one of the steps within the fourth stage?
Product specification
Cindi suffers from severe allergies and visits her doctor to try and find a solution. The doctor prescribes a new medication, and after taking it for several days, Cindi finally feels some relief from her symptoms. In this scenario, which role in the buying process does Cindi play?
User
Using metrics to evaluate a supplier of raw materials to a manufacturer is part of which stage of the B2B buying process?
Vendor performance assessment
What factor most commonly influences a firm's decision about whether to negotiate with several vendors at once?
Whether the product or service represents a key component or aspect of the business
A firm selling its products to consumers is known as business-to-consumer marketing. However, when a firm buys raw materials from another firm to make its products, this is an example of ______ marketing.
business-to-business
A(n) ______ buying center is where one person makes the decisions alone.
autocratic
Manufacturers, resellers, institutions, and governments are considered the main organizations that make up ___ -to- ___ markets.
business; business
___ -to- ___ marketing refers to the process of buying and selling goods or services to be used in producing other goods and services for consumption by the buying organization and/or for resale by wholesalers and retailers.
business; business
Within a typical buying center, there will be someone who handles the paperwork for the actual purchase. This person is referred to as the ______.
buyer
Prior to finalizing a purchase, the procurement department may consult ______ to ensure that the purchase being made is suitable for the function it will have in the company.
employees who use the materials design team members
Both the B2B and B2C buying processes use the same overall concepts (from recognizing a need through evaluation), but their approaches are a little different. B2B buyers are typically more ______ in their buying decisions, indicating their needs in writing and submitting official proposals. In contrast, B2C buyers are usually more ______ in their buying decisions, and the purchase may be unplanned or even impulsive.
formal; informal
The ___ is the role that controls information, access, or both to decision makers and influencers.
gatekeeper
The person who may agree with the initiator and convince others in the firm to agree with buying a particular item is called a(n) ______.
influencer
Hospitals, universities, and religious organizations could be considered ______ to which a B2B vendor would sell products.
institutions
Many business-to-business firms find it more productive to focus their efforts on ______.
key industries or market segments
In most country markets, the central government tends to be the ______ purchaser of goods and services.
largest
Some firms buy raw materials, components, and parts that allow them to make their own goods. These firms are known as ___ or producers.
manufacturers
In the first stage of the B2B buying process, the buying organization recognizes, through either internal or external sources, that it has a(n) ______ need.
unfulfilled
Jan recently submitted a request for additional printer paper and ink cartridges for the printer in Martin's cubicle. Martin is the only person in the office who uses the printer. For this purchase, Martin could be considered by the buying center to be the ___.
user
The buying process is often significantly affected by the individual who ultimately consumes a product, such as a patient receiving a medical device. This individual is known as the ______.
user
The final stage of the B2B buying process is also known as ___ performance assessment using metrics.
vendor
In the third stage of the B2B buying process, a firm will administer a request for proposals (RFP) in which ______ will bid on providing products or services to meet the firm's product specifications.
vendors