Deck 6: Business Markets and Business Buyer Behavior

Question 1

Although there are many differences between business buying behavior and consumer buying behavior,both respond to the same four stimuli: product,price,promotion,and .

A)personal relationships
B)precision
C)publicity
D)place
E)packaging

Answer 1

D

Question 2

Which of the following is NOT included in the decision- making unit of a buying organization?

A)individuals who use the product or service
B)individuals who influence the buying decision
C)individuals who make the buying decision
D)individuals who control buying information
E)individuals who supply the product

Answer 2

E

Question 3

Charlie Van Dusen,executive vice president of National Central Bank,is going through all of the stages of the buying process to purchase a computer system for the bank.Charlie is facing a(n) situation.

A)limited budget
B)straight rebuy
C)new- task buying
D)modified rebuy
E)independent buying

Answer 3

C

Question 4

Refer to the scenario below to answer the following questions.
A- 1 Stampings,Inc.produces 14 metal stampings for the automotive industry.Due to industry design changes,for the next model year,six of those stampings will require a slight change: two will have an extra hole punched through the side,two will require an extra plating process,and two will require an additional weld operation.
In the meantime,the purchasing agent Richard Koehl has been asked to reduce the number of A- 1's steel suppliers in an effort to cut costs.After obtaining updated price quotations and steel samples from his current suppliers,Richard faced a dilemma.Until now,he had selected his suppliers based on quality and price,but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers.Not all of A- 1's suppliers could produce the exact grades of steel needed;some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A- 1 who had worked with the various types of steel in the past.The quality control manager and line inspector,for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked best in which presses.Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces.Each person contributed the necessary information to help Richard in making his decision.
In this scenario,which of the following had the greatest influence on the business buying behavior at A- 1 Stampings?

A)organizational structure
B)shifting authority
C)regulatory developments
D)individuals' risk attitudes
E)technological changes

Question 5

B- to- B e- procurement yields many benefits.These include all of the following EXCEPT _ _.

A)elimination of much of the paperwork associated with traditional ordering procedures
B)reduced order processing costs
C)reduced transaction costs
D)more efficient purchasing for both buyers and sellers
E)elimination of inventory problems

Question 6

In what type of buying situation would a seller most likely send only a catalog to the buyer during the proposal solicitation stage of the business buying process?

A)solution selling
B)independent task
C)straight rebuy
D)modified rebuy
E)new task

Question 7

During the stage of the business buying decision process,the buying center assesses the proposals.

A)supplier selection
B)order- routine specification
C)performance review
D)proposal solicitation
E)product value analysis

Question 8

The world's largest buyer of products and services is .

A)the U.S.government
B)the Russian government
C)the Chinese government
D)the General Services Administration
E)the Department of Veteran Affairs

Question 9

Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition?

A)A buyer gets a new idea from an advertisement.
B)A buyer receives a call from a salesperson offering better service terms.
C)A buyer is unhappy with a current supplier's price.
D)A buyer learns about a new product at an industry convention.
E)A buyer gets a new idea at a trade show.

Question 10

In one way or another,most large companies sell to .

A)not- for- profit companies
B)the service sector
C)other organizations
D)consumers
E)employees

Question 11

In routine buying situations,which members of the buying center have formal or informal power to select or approve the final suppliers?

A)buyers
B)influencers
C)users
D)deciders
E)gatekeepers

Question 12

There are many sets of purchases made for each set of purchases.

A)product;service
B)service;product
C)tangible;intangible
D)consumer;business
E)business;consumer

Question 13

Refer to the scenario below to answer the following questions.
A- 1 Stampings,Inc.produces 14 metal stampings for the automotive industry.Due to industry design changes,for the next model year,six of those stampings will require a slight change: two will have an extra hole punched through the side,two will require an extra plating process,and two will require an additional weld operation.
In the meantime,the purchasing agent Richard Koehl has been asked to reduce the number of A- 1's steel suppliers in an effort to cut costs.After obtaining updated price quotations and steel samples from his current suppliers,Richard faced a dilemma.Until now,he had selected his suppliers based on quality and price,but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers.Not all of A- 1's suppliers could produce the exact grades of steel needed;some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A- 1 who had worked with the various types of steel in the past.The quality control manager and line inspector,for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked best in which presses.Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces.Each person contributed the necessary information to help Richard in making his decision.
The management directive to reduce the number of steel suppliers is most accurately classified as which type of influence affecting business buying behavior?

A)interpersonal
B)individual
C)commercial
D)environmental
E)organizational

Question 14

Policies,procedures,and systems are all examples of _ influences on business buyer behavior.

A)organizational
B)environmental
C)interpersonal
D)authoritative
E)cultural

Question 15

When suppliers' offers are very similar,business buyers have little basis for a strictly .

A)personal choice
B)rational choice
C)independent choice
D)emotional choice
E)intuitive choice

Question 16

The owners of the company you work for have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of products.This is an example of management.

A)value chain
B)network relationship
C)core channel
D)channel captain
E)supplier development

Question 17

When competing products differ greatly,business buyers are more accountable for their purchase choices and tend to pay more attention to _.

A)intuition
B)economic factors
C)emotional choice
D)creative factors
E)personal factors

Question 18

The demand for many business goods and services tends to change more,and more quickly,than the demand for consumer goods and services does.This is referred to as demand.

A)inelastic
B)supplier
C)fluctuating
D)derived
E)elastic

Question 19

In the generally accepted stages of the business buying process,the step following product specification is .

A)proposal solicitation
B)problem recognition
C)order- routine specification
D)general need description
E)supplier search

Question 20

There are many factors considered in government buying,but is typically the most important.

A)personal selling
B)packaging
C)public relations
D)price
E)advertising

Question 21

Empire Products has begun a process to find the best suppliers.Empire Products is actively engaged in .

A)supplier control
B)value analysis
C)supplier search
D)supplier selection
E)performance review

Question 22

To ensure an adequate and available supply of key scarce materials,many companies are now willing to .

A)decrease levels of demand
B)buy and hold large inventories of the materials
C)reduce the length of the supply chain
D)experiment with just- in- time technologies
E)eliminate distribution and warehousing partners

Question 23

Sage,Inc.provides food services to schools,hospitals,and nursing homes in the Midwest.Management at Sage is involved in the market.

A)local
B)government
C)global
D)institutional
E)not- for- profit

Question 24

The EPA has mandated that,in order to reduce local pollution,your printing plant switch from oil- based to water- based inks.This will require entirely new printing presses and a new printing plate technology.After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work,your printing plant's buying center will be ready to make this _ purchase.

A)straight rebuy
B)modified rebuy
C)new task
D)situational analysis
E)straight task

Question 25

Hewlett- Packard and Dell buy Intel microprocessor chips because consumers buy personal computers.This demonstrates an economic principle called .

A)derived demand
B)elastic demand
C)market demand
D)joint demand
E)fluctuating demand

Question 26

Reverse auctions,trading exchanges,and company buying sites are all ways that companies can participate in _ .

A)secure extranets
B)e- procurement
C)vendor- managed inventory systems
D)product value analysis
E)blanket contracts

Question 27

In which stage of the business buying process is it a supplier's task to make sure that the supplier is giving the buyer the expected satisfaction?

A)performance review
B)problem recognition
C)supplier selection
D)order- routine specification
E)supplier search

Question 28

As a purchasing agent,Benni Lopez buys goods and services for use in the production of products that are sold and supplied to others.Benni is involved in _ .

A)consumer buying behavior
B)interpretive business research
C)postpurchase dissonance
D)retail buyer behavior
E)business buyer behavior

Question 29

A buyer would be most likely to review trade directories in which stage of the business buying process?

A)product specification
B)general need description
C)supplier search
D)problem recognition
E)supplier selection

Question 30

Don Amspacher,in his role on the buying committee,provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing.Don is a(n)_ .

A)decider
B)buyer
C)gatekeeper
D)influencer
E)user

Question 31

Under a _,a supplier monitors and replenishes a buyer's stock automatically as needed.

A)vendor- managed inventory
B)stand- alone contract
C)negotiated contract
D)periodic purchase order
E)blanket contract

Question 32

In which of the following ways is Boeing like most other large companies?

A)Most of its business comes from commercial and industrial customers.
B)Most of its business comes from final consumers.
C)It produces hundreds of products for a wide range of markets.
D)It has an entertainment division.
E)It has an investment division.

Question 33

Which of the following statements about e- procurement security issues is true?

A)Providing e- procurement security can involve a substantial financial investment from a company.
B)Extranet users and Internet users face the same security risks and use the same security tools.
C)Hackers are not interested in many business- to- business transactions.
D)Firewalls provide adequate security for all Internet exchanges.
E)There are no security risks for companies doing business on the Internet.

Question 34

Which of the following statements about buying centers is true?

A)The buying center roles are specified on the organizational chart.
B)The typical buying center has five employees,one to assume each of the buying center's roles.
C)An individual's role in the buying center does not change.
D)The buying center may involve informal participants who are not obvious to sellers.
E)The buying center is like a standing committee.

Question 35

Economic,technological,and political factors are all that affect the business buying process.

A)interpersonal influences
B)individual influences
C)marketing stimuli
D)environmental factors
E)organizational factors

Question 36

Most newspapers use so they do not need to rely on only one supplier to provide the tons of paper that they use annually.

A)single sourcing
B)blanket contracting
C)cross- docking
D)vendor- managed inventory
E)multiple sourcing

Question 37

Which of the following can be especially useful for a company that needs to conduct secure and frequent communications and transactions with key suppliers?

A)an extranet
B)buying centers
C)a trading exchange
D)a reverse auction
E)an intranet

Question 38

Instead of focusing on individual purchases,a seller should focus on managing the .

A)buyer's reputation in the marketplace
B)total customer relationship
C)organizational environment
D)use of blanket contracts
E)order- routine specifications

Question 39

Refer to the scenario below to answer the following questions.
A- 1 Stampings,Inc.produces 14 metal stampings for the automotive industry.Due to industry design changes,for the next model year,six of those stampings will require a slight change: two will have an extra hole punched through the side,two will require an extra plating process,and two will require an additional weld operation.
In the meantime,the purchasing agent Richard Koehl has been asked to reduce the number of A- 1's steel suppliers in an effort to cut costs.After obtaining updated price quotations and steel samples from his current suppliers,Richard faced a dilemma.Until now,he had selected his suppliers based on quality and price,but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers.Not all of A- 1's suppliers could produce the exact grades of steel needed;some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A- 1 who had worked with the various types of steel in the past.The quality control manager and line inspector,for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked best in which presses.Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces.Each person contributed the necessary information to help Richard in making his decision.
At what stage in the buying process was Richard when he sought input from others in the firm?

A)general need description
B)supplier search
C)order- routine specification
D)proposal solicitation
E)supplier selection

Question 40

The decision- making unit of a buying organization is called the .

A)buying system
B)buying center
C)business- to- business market
D)business buyer
E)supplier- development center

Question 41

Which of the following is the last stage of the business buying process?

A)performance review
B)supplier selection
C)vendor analysis
D)order- routine specifications
E)value analysis

Question 42

ABC Enterprises sold 9,000 units @ $2.99/unit in July.The firm sold 9,000 units @ $4.29/unit in August.This illustrates demand.

A)contrived
B)inelastic
C)derived
D)joint
E)fluctuating

Question 43

One of Dr.Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.Dr.Albrecht,who runs a solo practice in a small rural town,located some articles on the chemical sterilizer and read about how the machine works.After gathering more information and talking to salespeople,Dr.Albrecht placed his order for the machine.In terms of the buying center,Dr.Albrecht had the role of .

A)agent
B)decider
C)initiator
D)liaison
E)influencer

Question 44

A problem with the rapidly expanding use of e- purchasing is that it _ .

A)can erode established customer- supplier relationships
B)generates less cost savings than predicted
C)saves less time than expected
D)reduces the amount of time purchasing people can spend on strategic issues
E)generates more transactions to document

Question 45

All of the following are difficulties associated with selling to government buyers EXCEPT .

A)regulations
B)considerable paperwork
C)large group decision making
D)low sales volume
E)bureaucracy

Question 46

Giant Food Stores buys a lot of frozen turkey products at Thanksgiving and Christmas due to high consumer demand.This is an example of demand.

A)static
B)joint
C)elastic
D)derived
E)inelastic

Question 47

Business buying behavior refers to the buying behavior of organizations that buy all of the following EXCEPT .

A)products for use in production of other products
B)products purchased for personal consumption
C)products purchased to rent to others
D)services for use in production of other services
E)products purchased to resell to others

Question 48

The Pure Drug Company produces insulin,a product with a very stable demand,even though the price has changed several times in the past two years.Insulin is a product with demand.

A)service
B)inelastic
C)elastic
D)fluctuating
E)joint

Question 49

The first step of the business buying process is .

A)general need description
B)alternative evaluations
C)performance review
D)order- routine specification
E)problem recognition

Question 50

Another name for systems selling is selling.

A)blanket contract
B)solutions
C)vendor- managed inventory
D)periodic purchase
E)negotiated contract

Question 51

Which of the following is NOT a way that business and consumer markets differ?

A)decision processes
B)types of decisions
C)satisfaction of needs through purchases
D)nature of the buying unit
E)market structure and demand

Question 52

Government organizations tend to favor suppliers over suppliers.

A)foreign;domestic
B)nonunionized;unionized
C)local;domestic
D)part- time;full- time
E)domestic;foreign

Question 53

Members of the buying center at ABC Kid's World are drawing up a list of desired toy supplier attributes and their relative importance.Next,they intend to compare several suppliers to these attributes.In which step of the business buying process is the buying center at ABC Kid's World engaged?

A)proposal solicitation
B)performance review
C)supplier search
D)supplier selection
E)order- routine specification

Question 54

A _ consists of the actual users of products,those who control buying information,those who influence the decisions,those who do the actual buying,and those who make the buying decisions.

A)quality management center
B)cross- functional team
C)supplier development team
D)buying center
E)partnership management team

Question 55

Which of the following types of factors influencing members of a buying center are typically the most difficult for marketers to assess?

A)political
B)technological
C)economic
D)organizational
E)interpersonal

Question 56

You regularly purchase cleaning supplies for your custodial staff,using the same vendor and ordering relatively consistent amounts of the same products with each purchase.This is an example of a _ situation.

A)straight rebuy
B)modified rebuy
C)solution selling
D)new task
E)value analysis

Question 57

The leading barrier to expanding electronic links with customers and partners online is .

A)concern over security
B)lack of trained personnel
C)lack of evidence of efficiencies gained through e- procurement
D)lack of knowledge
E)cost

Question 58

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise.It allows Pace retailers to link with other Pace retailers to ask for managerial and marketing advice.It also allows Pace retailers to ask their suppliers about product usage,deliveries,and warranties,and it allows suppliers to send new- product information directly to Pace retailers.In this scenario,Pace Hardware is using a(n)_ .

A)intranet
B)search engine
C)reverse auction
D)extranet
E)trading exchange

Question 59

Which of the following is the best advice for an international marketer planning to interact with businesspeople from many different cultures?

A)Trust your instincts and behave as you normally do.
B)Assume that businesspeople from different cultures will make accommodations for you.
C)Remember that countries all over the world are fascinated with American culture.
D)Cultures really are different,so do your best to learn about those differences.
E)Use the same strategies with all of your clients,no matter what their cultural backgrounds are.

Question 60

Buyers are heavily influenced by the current and expected economic environment.That includes which of the following buyer influences?

A)the cost of money
B)economic outlook
C)level of primary demand
D)A and B only
E)all of the above

Question 61

Worthington Farm raises chickens.For years,it has used wooden coops to haul its poultry to market.When Bob Worthington went to reuse some of his coops,he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced.Worthington was at which stage of the business buying process when he decided to replace his old coops?

A)product specification
B)general need description
C)problem recognition
D)product value analysis
E)performance review

Question 62

One of Dr.Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.In terms of the buying center,the dental assistant had the role of .

A)gatekeeper
B)influencer
C)initiator
D)buyer
E)liaison

Question 63

In which stage of the business buying process is a supplier most likely to provide a buyer with information about the importance of different product characteristics?

A)supplier search
B)general need description
C)order- routine specification
D)problem recognition
E)supplier selection

Question 64

Which business buying situation is the marketer's greatest opportunity and challenge?

A)system rebuy
B)new task
C)multiple rebuys
D)straight rebuy
E)modified rebuy

Question 65

A buying center is not a fixed,formally identified unit within an organization,but rather a set of assumed by different people for different purchases.

A)marketing positions
B)status roles
C)buying roles
D)budgetary limits
E)informal job titles

Question 66

Which of the following statements about the supplier selection stage of the business buying decision process is true?

A)Before selecting a supplier,many companies consider the supplier's reputation for ethical corporate behavior and honest communication.
B)Price and warranty are the only two factors businesses consider before making a purchase decision.
C)Price is the only factor businesses consider before making a purchase decision.
D)Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier.
E)Buyers do not negotiate for better terms before making a final supplier selection.

Question 67

Which of the following is most likely true about a straight rebuy?

A)It involves more opportunities for "out" buyers than other types of purchasing situations do.
B)It often involves products with low risks.
C)It is more complex than a new- task situation.
D)It requires little customer relationship management.
E)It occurs when a buyer wants to locate the best deal on the market.

Question 68

A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel.In terms of the buying center,the truck drivers who must make sure that the trucks do not run out of fuel are the .

A)initiators
B)deciders
C)influencers
D)buyers
E)users

Question 69

In a typical organization,buying activity consists of two major parts: the buying and the buying .

A)deciders;influencers
B)time;reorder point
C)economic order quantity;reorder point
D)committee;time
E)center;decision process

Question 70

John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments.This approach to cost reduction likely took place in the stage of the business buying process.

A)supplier search
B)proposal solicitation
C)problem recognition
D)general need description
E)product specification

Question 71

When compared to consumer markets,business markets are .

A)smaller
B)approximately the same
C)somewhat larger
D)less complex
E)huge

Question 72

Which of the following accurately describes a cultural difference international marketers should be aware of?

A)German people tend to be impressed by overstatement and showiness.
B)Japanese people tend to put a high value on rank.
C)French businesspeople are accustomed to building relationships between buyer and seller through quick and easy familiarity.
D)British businesspeople are accustomed to making more business deals over the telephone than in person.
E)Outside of English- speaking countries,most business leaders do not speak English.

Question 73

Which of the following is true about business marketers in comparison to consumer marketers?

A)They deal with the same decision buying process.
B)They deal with fewer demands in fluctuation.
C)They deal with far fewer but far larger buyers.
D)They deal with a more elastic market.
E)They deal with far more but far small buyers.

Question 74

Worthington Farm raises chickens.For years,it has used wooden coops to haul its poultry to market.The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use.This purchase of coops is an example of a _.

A)value analysis
B)straight rebuy
C)solution selling situation
D)new task
E)modified rebuy

Question 75

Refer to the scenario below to answer the following questions.
A- 1 Stampings,Inc.produces 14 metal stampings for the automotive industry.Due to industry design changes,for the next model year,six of those stampings will require a slight change: two will have an extra hole punched through the side,two will require an extra plating process,and two will require an additional weld operation.
In the meantime,the purchasing agent Richard Koehl has been asked to reduce the number of A- 1's steel suppliers in an effort to cut costs.After obtaining updated price quotations and steel samples from his current suppliers,Richard faced a dilemma.Until now,he had selected his suppliers based on quality and price,but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers.Not all of A- 1's suppliers could produce the exact grades of steel needed;some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A- 1 who had worked with the various types of steel in the past.The quality control manager and line inspector,for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked best in which presses.Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces.Each person contributed the necessary information to help Richard in making his decision.
The demand for A- 1 Stampings' products is ultimately based on the demand for new automobiles in the consumer market.This is an example of demand.

A)increasing
B)derived
C)static
D)inelastic
E)independent

Question 76

Refer to the scenario below to answer the following questions.
A- 1 Stampings,Inc.produces 14 metal stampings for the automotive industry.Due to industry design changes,for the next model year,six of those stampings will require a slight change: two will have an extra hole punched through the side,two will require an extra plating process,and two will require an additional weld operation.
In the meantime,the purchasing agent Richard Koehl has been asked to reduce the number of A- 1's steel suppliers in an effort to cut costs.After obtaining updated price quotations and steel samples from his current suppliers,Richard faced a dilemma.Until now,he had selected his suppliers based on quality and price,but a major consideration had been the type of steel required and the specialized production processes of his respective suppliers.Not all of A- 1's suppliers could produce the exact grades of steel needed;some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at A- 1 who had worked with the various types of steel in the past.The quality control manager and line inspector,for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked best in which presses.Even the warehouse foreman gave input regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces.Each person contributed the necessary information to help Richard in making his decision.
Demand for outboard motors depends on consumers purchasing fishing boats.This is an example of demand.

A)derived
B)contrived
C)leisure
D)joint
E)fluctuating

Question 77

You call in a department manager to assist in a purchase of industrial equipment.You are considering a change in product specifications,terms,and possibly suppliers.This is most likely a situation.

A)solution selling
B)modified rebuy
C)new task
D)straight rebuy
E)value analysis

Question 78

A(n)controls the flow of information to others in the buying center.

A)user
B)gatekeeper
C)influencer
D)buyer
E)decider

Question 79

Many institutional markets are characterized by and .

A)captive patrons;limited access
B)mismanagement;disgruntled workers
C)special needs;vague criteria
D)low budgets;vague criteria
E)low budgets;captive patrons

Question 80

Large business purchasers usually call for detailed product specifications,written purchase orders,careful supplier searches,and formal approval.These are all examples of how the business buying decision process is more _ than the consumer buying decision process is.

A)formalized
B)relationship- oriented
C)creative
D)independent
E)concentrated