Chapter 3

The overall cycle time in the buying process has been reduced due to: a. increased usage of information technology. b. increased shipping times. c. reduced usage of supply chain management. d. reduction in postpurchase services. e. maximization of mistakes in the process.

A) increased usage of information technology

A business buyer's purchase process ends with: a. performance feedback and evaluation. b. selection of an order routine. c. determination of the characteristics of the item needed. d. recognition of a problem or need. e. acquisition and analysis of proposals.

A) performance feedback and evaluation

If a buyer is evaluating a sales offering on its eagerness to satisfy, the buyer is assessing the sales offering on the basis of a _____. a. psychological attribute b. situational attribute c. knowledge attribute d. functional attribute e. must-have attribute

A) psychological attribute

Jennifer just moved to a job as a retail salesperson in the same company where she was previously working as a business-to-business salesperson. Which of the following changes can she expect? a. She will have to work with a higher number of customers. b. She will have to work with a larger size of customers. c. She will not have to worry about the buying influences of her customers. d. She will have to work in a high demand fluctuation market. e. She will not have to know as much about her company's products.

A) she will have to work with a higher number of customers

The overall evaluation scores of a staple pin as per ease of application, strength, durability, reliability, and shelf-life in storage are 85, 65, 78, 75, and 62, respectively. The importance of which of the following attributes is most likely to be deemphasized by a salesperson selling the staple pin? a. Shelf-life in storage b. Durability c. Reliability d. Ease of application e. Strength

A) shelf life in storage

Due to a high usage of information technology in the buying process: a. some of the power has shifted to buyers, who can accompany more bidders. b. buyers have difficulty in accessing information on vendors. c. the postpurchase services, provided by the sellers, are reduced. d. the landscape of the buying process has become less competitive. e. the overall cycle times of the buying process are increased.

A) some of the power has shifted to buyers who can accompany more bidders

In response to the increasing demand for electronic gadgets with advanced capabilities, Ziff Corp., an electronic gadget manufacturer, has increased its inventories and plant capacity in order to meet the demand. This increase in inventories and plant capacity due to an increase in demand for electronic gadgets can be best explained by _____. a. the acceleration principle b. the demand principle c. Hubble's principle d. Heisenberg's principle e. the alchemist principle

A) the acceleration principle

Low-assertive individuals tend to: a. control situations. b. be deliberate in their communication. c. take confrontational positions. d. be opinionated. e. be fast-paced.

B) be deliberate in their communication

In the context of types of buyers, which of the following statements is true? a. Unlike in business markets, the demand for goods is highly volatile in consumer markets. b. Business buyers tend to be smaller in number than consumer buyers. c. Business markets and consumer markets are unrelated to each other. d. Business buyers tend to be smaller in size than consumer buyers. e. Unlike business buyers, consumer buyers are trained as purchasing agents.

B) business buyers tend to be smaller in number than consumer buyers

Jason, a salesperson for Green Tools, proposed a sale of solar panels to Timothy Energy Solutions. Timothy Energy Solutions was not willing to get into business with Green Tools, however, because its manager believed that their solar panels were inferior to the ones supplied by Timothy Energy Solutions' conventional suppliers. Jason presented the findings of a certified research body that compared the various solar panels that are offered by different companies. It was evident from the findings that Green Tools' solar panels were superior to those of other companies. This eventually led Timothy Energy Solutions to buy solar panels from Green Tools. Which of the following strategies was used by Jason to procure the business? a. Electronic data interchange b. Competitive depositioning c. Continued affirmation d. Importance weights alteration e. Two-factor evaluation

B) competitive despositioning

Suppliers have more time to devote to postsale services because: a. the shipping times of the products have increased over time. b. information technology is being used widely in the buying process. c. the overall cycle time has increased. d. the mistakes in the buying process are maximized. e. supply chain management is no longer a concern in the buying process.

B) information technology is being used widely in the buying process

In order to be successful in the business market, where buyers are trained to identify suppliers as part of their jobs, salespeople: a. need not think of the buyers as purchasing agents. b. need to possess increased levels of knowledge and expertise. c. need not be thoroughly informed about their products. d. need to adopt a very casual approach to selling. e. need not provide a detailed assortment of applications for their products

B) need to possess increased levels of knowledge and expertise

James has never had a motorcycle before but is planning to purchase one to replace his old bicycle. James is set to make a _____ purchasing decision. a. strategic task b. new task c. functional task d. modified task e. straight task

B) new task

Allen and Spade, a firearms manufacturer, has received a new order for customized hand guns. The company understands that the production of this order will require a new set of machinery. With the help of its engineers, the company has figured out the specifications of the machinery required. Now, the company should begin: a. evaluating the performance of the new machines compared to the old ones. b. searching for machine manufacturers. c. evaluating proposals from machinery providers. d. acquiring proposals from machine manufacturers. e. purchasing new machines.

B) searching for machine manufacturers

Which of the following is an impact of information technology on the buying process? a. Order times are increased. b. Shipping times are reduced. c. Postsale services are reduced. d. Mistakes are maximized. e. Overall cycle times are increased.

B) shipping times and reduced

Which of the following is a difference between functional needs and psychological needs? a. Unlike functional needs, psychological needs are a result of conditions related to the specific environment, time, and place. b. Unlike functional needs, psychological needs reflect the desire for feelings of assurance and risk reduction. c. Unlike functional needs, psychological needs represent the need for a specific core task to be performed. d. Unlike psychological needs, functional needs represent the desire for personal development, information, and knowledge. e. Unlike psychological needs, functional needs are the need for acceptance from and association with others

B) unlike functional needs, psychological needs reflect the desire for feelings assurance and risk reduction

Which of the following strategies leads to an effective sales presentation? a. Retaining the product offering being proposed even if it is different from buyer's needs b. Giving equal importance to all the attributes irrespective of their importance weights c. Altering the buyer's beliefs about the proposed offerings when the buyer underestimates the product d. Avoiding calling attention to neglected attributes e. Refraining from altering the buyer's beliefs about the competitor's offerings even when the buyer overestimates the competitor's product

C) altering the buyers beliefs about the proposed offerings when the buyer underestimates the product

Identify one of the strategies used to plan, create, and deliver an effective presentation. a. Avoid modifying the product offering being proposed as per buyer's needs. b. Avoid altering the buyer's beliefs about the proposed offerings when the buyer underestimates the product. c. Avoid giving equal importance to all the attributes irrespective of their importance weights. d. Avoid calling attention to neglected attributes. e. Avoid altering the buyer's beliefs about the competitor's offerings when the buyer overestimates the competitor's product.

C) avoid giving equal importance to all the attributes irrespective of their importance weights.

Due to the increased interdependence between buyers and sellers and the mutual desire to reduce risk of the unknown: a. the emphasis on developing short-term buyer-seller relationships has increased. b. buyers do not expect higher levels of service from sellers. c. buyer-seller interactions have increased and the service expectations of buyers has risen. d. the interdependence of buyers and sellers has reduced. e. buyers and sellers are discarding supply chain management.

C) buyer-seller interactions have increased and the service expectations of buyers has risen

In the context of communication styles, _____ are low on responsiveness but high on assertiveness. a. analyticals b. coequals c. drivers d. amiables e. expressives

C) drivers

Jamie is a salesperson making a sales proposal to a potential customer. During the presentation, she learns that some of the attributes of her product offering will not be able to maximize the buyer's evaluation score when compared to a competitor's offering. Which the following is probably the best strategy for Jamie to follow? a. She should avoid calling attention to neglected attributes. b. She should end her presentation without disclosing her product's weaknesses. c. She should attempt to explain to the buyer that the characteristics on which her product scores low are not really important. d. She should modify the price to one that is more suited to the current product offering even if her company incurs a loss. e. She should exaggerate a little to improve her score.

C) she should attempt to explain to the buyer that the characteristics on which her product scores low are not really important

Which of the following is a difference between situational needs and social needs? a. Unlike social needs, situational needs are the need for acceptance from and association with others. b. Unlike situational needs, social needs represent the need for a specific core task to be performed. c. Unlike social needs, situational needs are a result of conditions related to the specific environment, time, and place. d. Unlike social needs, situational needs represent the desire for personal development, information, and knowledge. e. Unlike situational needs, social needs reflect the desire for feelings of assurance and risk reduction.

C) unlike social needs, situational needs are a result of conditions related to the specific environment, time and place

If a buyer mistakenly believes that a competitor's offering has higher level attributes or qualities than it actually does, the salesperson should attempt to: a. reassure the buyer that his or her product is at par with the competitors' offerings. b. refrain from modifying the proposed offering just to suit the buyer's needs. c. avoid calling attention to neglected attributes. d. alter the buyer's beliefs about the competitor's offering by providing accurate information. e. alter the importance weights of the buyer's offering.

D) alter the buyers beliefs about the competitor's offering by providing accurate information

Sarah recently bought a bicycle. After a few days of cycling, she realized that she needs a basket attached to the bicycle in which she could keep her bag and other articles while cycling. Sarah's need of a basket is a _____. a. social need b. situational need c. knowledge need d. functional need e. psychological need

D) functional need

If a buyer is evaluating a sales offering on its ability to meet standards, the buyer is assessing the sales offering on the basis of a _____. a. situational attribute b. knowledge attribute c. delighter attribute d. must-have attribute e. psychological attribute

D) must have attribute

Straight rebuy decisions occur when: a. ordering is manual. b. the products being purchased are unconventional. c. the sources of purchase are different. d. needs have been predetermined. e. there is a short-term purchase agreement.

D) needs have been predetermined

Chindanel Hotels, a chain of luxury hotels, wants to install new security systems in all of its franchises. Based on the specifications provided by Chindanel, a few companies have submitted tenders to acquire the contract. Chindanel Hotels has shortlisted one company and has decided to give the contract to it. Now, Chindanel Hotels should begin: a. acquiring proposals from security system manufacturers. b. identifying the faults in the existing security system. c. evaluating performance of the new security systems compared to the old ones. d. selecting an order routine of the security systems. e. evaluating proposals from security system manufacturers.

D) selecting an order routine of the security systems

While selling to drivers, salespeople should adopt a _____ type of communication style. a. relationship-oriented and fast-paced b. relationship-oriented and less assertive c. task-oriented and slow-paced d. task-oriented and fast-paced e. relationship-oriented and highly responsive

D) task oriented and fast paced

In the context of buying teams, which of the following is a role of influencers? a. To determine which product or service will be purchased b. To negotiate final terms of purchase with suppliers c. To point out the need for a product and thus initiate the search d. To provide inputs and assessments of different product offerings e. To facilitate the exchange of information between a salesperson and a buying team

D) to provide inputs and assessments of different product offerings

The most common categorization of buyers splits them into which of the following two groups? a. Government market and intermediaries b. Consumer market and end user market c. Government market and business market d. Business market and intermediaries e. Consumer market and business market

E) consumer market and business market

When the consumer demand for vehicle tires increases, the demand for rubber also goes up. This increased demand for rubber due to the increase in demand for tires shows the effect of _____ on business markets. a. autonomous demand b. acceleration demand c. concentrated demand d. direct demand e. derived demand

E) derived demand

Due to an increase in the usage of information technology in the buying process: a. postsale services are reduced. b. order times are increased. c. overall cycle times are increased. d. shipping times are increased. e. mistakes are minimized.

E) mistakes are minimzed

The business market includes: a. people who purchase goods and services for their own use or consumption. b. people whose purchase decisions are highly influenced by peer group behavior. c. people whose purchase decisions are highly influenced by personal taste. d. people whose purchase decisions are highly influenced by aesthetics. e. people who acquire goods and services to use as inputs into their own manufacturing operations.

E) people who acquire goods and services to use as inputs into their own manufacturing operations

While selling to amiables, salespeople should adopt a _____ type of communication style. a. relationship-oriented and fast-paced b. task-oriented and less responsive c. task-oriented and slow-paced d. task-oriented and highly assertive e. relationship-oriented and slow-paced

E) relationship oriented and slow paced

In the context of the context of types of business markets, which of the following statements is true? a. Business buyers tend to be larger in number than consumer buyers. b. Unlike business buyers, consumer market buyers are trained as purchasing agents. c. Business markets and consumer markets are unrelated to each other. d. Business buyers tend to be smaller in size than consumer buyers. e. The demand for goods and services in the business market is more volatile than that of the consumer market.

E) the demand for goods and services in the business market is more volatile than that of the consumer market

In the context of buying teams, which of the following is a role of gatekeepers? a. To point out the need for a product and thus initiate the search b. To provide inputs and assessments of different product offerings c. To determine which product or service will be purchased d. To negotiate final terms of purchase with suppliers e. To facilitate the exchange of information between a salesperson and a buying team

E) to facilitate the exchange of information between a salesperson and a buying tea

Allied Co., a technological firm, requires new data servers. Based on the specifications provided by its engineers, Allied Co. has acquired tenders—from several different companies—for the required number of servers. Now, the company should begin: a. evaluating proposals from server providers. b. acquiring proposals from server manufacturers. c. purchasing new machines. d. evaluating performance of the new servers compared to the old ones. e. searching for server manufacturers.

a) evaluating proposals from server providers

Powell Motors is interested in purchasing new air filters for its automobiles. To select a supplier, the company is to consider two characteristics: reliability and durability. The purchase decision lies on the performance score and importance weight of each characteristic. The performance score with respect to reliability of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 10, 9, 8, 6, and 7, respectively. The performance score with respect to durability of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 5, 7, 8, 8, and 6, respectively. The company, however, scores the importance weight of reliability as 9 against the score of 8 for durability. According to the multiattribute model, Powell Motors should select _____. a. supplier 3 b. supplier 2 c. supplier 1 d. supplier 4 e. supplier 5

b) supplier 2

Jason was all set to go home after his day of work. As soon as he stepped out of the office building, it started to rain. Jason wished he had an umbrella, as he walks to and from work, and now he cannot get home without getting drenched in rain. Jason's need of an umbrella is a _____. a. social need b. situational need c. psychological need d. knowledge need e. functional need

d) situational need

Reductions in the size of the customer base and increased usage of supply chain management have led to: a. decreased levels of buyer-seller interaction. b. lower levels of service expectations by buyers. c. poor risk management. d. development of short-term buyer-seller relationships. e. buyers and sellers being more interdependent.

e) buyers and sellers being more interdependent