Mrkt 444 chapter 5

Paul is the groundskeeper for a golf course. He not only mows the greens and fairways but is also an expert on the grass that is used and how to care for it. The golf pro and club manager consult with him about what new equipment the club needs to maintain the greens. Paul plays the role of a(n)_____ in the buying process.

User

_____ represents the relationship between price and quality and it is a significant facet of the purchase decision.

Value Criteria

____ represents the relationship between price and quality and it is a significant facet of the purchase decision.

Value criteria

In the buying process the "user" is characterized as _____.

the actual consumer of the product

Gatekeepers are important in the B2B buying process because _____.

they limit the number of vendors in a given buying process

Deciders are an important group for the salesperson to be able to identify because _____.

they make the ultimate purchase decision

A big industrial firm is interested in evaluating the potential purchase of a machine. In order to do this, managers should look at _____.

total costs over the life of the machine

Which of the following statements is true about the purchase decision process?

Businesses buy not just a product; they also make a supplier choice.

Johnson & Marshall, a growing producer of organic tea, decides to create a group that is made up of people from the purchasing department, senior management with financial knowledge, and engineers with design expertise. This group best represents a(n) _____.

Buying Center

When Anne, an architect, specifies which products, like plumbing fixtures, will be used in the building she has designed, she is playing the role of a(n) _____.

Decider

Coca-Cola's customers are its bottling plants. However, it sponsors many television ads to entice the end user to purchase the product. This is an example of stimulating _____.

Derived Demand

_____ are a set of analyses and metricsgrouped together to assess the cost of ownership.

Financial Criteria

Maryanne has noticed that one of the manufacturing teams has lost productivity over a six-month period. She puts together a document that describes the productivity loss and does a study to determine the cause. She finds that one of the key machines in the process breaks down often. Maryanne asks several machine manufacturers to come in to make proposals for new machines. Maryanne is playing the role of a(n)_____. influencer

Initiator

Mike is the production manager in a company that makes components for the automobile industry. He has been concerned about the age of the equipment and decides to do a study to evaluate the time and money lost due to equipment failure. He decides to bring his research to the monthly board meeting. In this scenario, Mike is playing the role of a(n) _____ in the buying process.

Intiator

_____ is the vendor's ability to meet contractual obligations including delivery times and service schedules.

Reliability

A _____ is the synchronized movement of goods through the channel.

Supply chain

Which of the following statements is true about business-to-business markets?

The demand for products is more inelastic and fluctuates with changes in consumer demand.

The nature of business-to-business markets requires _____.

a more personal relationship between the buyer and seller

Business-to-business demand is said to be relatively inelastic. This means that _____.

changes in demand are not significantly affected by the price

A characteristic of B2B companies is that they often make products that end up as _____ in a finished product.

components

Gatekeepers are important to the buying process because they _____.

control access to key participants in the buying center

One of the benefits of EDI is that _____.

customer grievances regarding late deliveries and defective products can be readdressed in atimelymanner

Boris Jankowski is a salesperson for a manufacturer of equipment used in beer-making. He discovers that a regional microbrewery is going to expand into another state. It has created a buying center to purchase the needed equipment. Boris's first job is to _____.

discover who is part of the buying center

Once a sale is made and the product delivered in the B2B market, the buyer _____.

evaluates the product and supplier in a post-purchase process

Business-to-business markets are characterized by having _____.

fewer but larger customers

When a company solicits RFPs from suppliers with an open vendor search, the goal is to _____.

get several proposals to help with negotiations

Once the company's needs have been identified and product specifications havebeen outlined, the next step would involve _____.

identifying and determining potential suppliers

A request for proposal (RFP) _____.

is the starting point from which vendors put together their product solution

The North American Industrial Classification System codes _____.

offers a great starting point for researching a particular business market

The most fundamental criterion in vendor selection is _____.

reliability

The three main types of buying situations can be characterized as _____.

straight rebuy, modified rebuy, and new purchase