Deck 13: Organizational Buying Behaviour

Question 1

Organization buying behaviour occurs:

A) when a consumer buys products for the family usage
B) when a consumer is influenced by their reference groups
C) in the context of a formal organization
D) when a consumer is seeking self expressive benefits

Answer 1

in the context of a formal organization

Question 2

Chemicals and additives are an example of which industrial product type?

A) Process materials
B) Accessory equipment
C) Component parts
D) Capital equipment and investments

Answer 2

Process materials

Question 3

Which of the following industrial products do not become part of the final product but are used to facilitate operation of the company?

A) Process materials
B) Accessory equipment
C) Component parts
D) Maintenance, repair and operating supplies

Answer 3

Maintenance, repair and operating supplies

Question 4

Which of the following statements correctly reflects Process Materials?

A) They do not become part of the final product
B) They tend to loose their identity when used in final product
C) They can be standardised and are relatively low in cost
D) They tend to require significant financial expenditure

Question 5

In comparison with consumer markets, industrial markets tend to be:

A) more socially attractive and pervasive
B) more geographically concentrated and have limited number of buyers
C) more spread out throughout the country
D) more emotional and less rational in nature

Question 6

Which of the following correctly illustrates the notion of derived demand within industrial markets?

A) The demand for products and services is linked with inflation
B) The demand for products and services is linked with Bank of England's rate of interest
C) The demand for products and services depends on legislations in the country
D) The demand for products and services is often linked with the demand for consumer products and services

Question 7

In comparison with consumer decision making, the organizational buying process tends to be:

A) more experiential and embedded in the psychology of decision makers
B) more static, rigid but informal in nature
C) more or less similar to consumer decision making process
D) more complex, time consuming and formal in nature

Question 8

In comparison with final consumers, organizational buyers' perception of the degree of risk involved can be:

A) very low all the time given that organizational support is available if something goes wrong
B) very high which means they end up spending more time in deliberation and in evaluating various alternatives
C) moderate all the time irrespective of the nature of product purchased
D) non-existent all the time

Question 9

Which of the following correctly illustrates the nature of buyer seller relationships in organizational markets?

A) Buyer seller relations tend to be non-existent in industrial markets
B) Buyer seller relations tend to be dynamic, complex and often personal
C) Buyer seller relations tend to be less important than in consumer markets
D) Buyer seller relations tend to focus on making a sale and then leaving the buyers alone

Question 10

Extensive information search and evaluation is made in which of the following buying classes?

A) Modified re-buying
B) Straight re-buying
C) New-task buying
D) Impulse buying

Question 11

Limited problem solving applies to which of the following buying classes?

A) Modified re-buying
B) Straight re-buying
C) New-task buying
D) Impulse buying

Question 12

Routine problem solving applies to which of the following buying classes?

A) Modified re-buying
B) Straight re-buying
C) New-task buying
D) Impulse buying

Question 13

Electronic Data Interchange (EDI) systems are commonly used in which of the following buying classes?

A) Modified re-buying
B) Straight re-buying
C) New-task buying
D) Impulse buying

Question 14

According to the risk continuum as developed by Johnston and Lewin (1996), when the risk attached to an organisational purchase increases:

A) the buying centre becomes larger with more people involved leading to a potential increase in conflict among buyers
B) the buying centre becomes smaller with less people involved leading to a potential decrease in conflict among buyers
C) the buying centre remains the same irrespective of the degree of risk associated with the purchase
D) the buying centre become irrelevant

Question 15

Which of the following is NOT a stage in the BuyGrid model?

A) High quality market research to establish the need of customers
B) Determination of characteristics and quantity of needed item
C) Search for and qualification of potential sources of supply
D) Evaluation of proposals and selection of suppliers(s)

Question 16

Which of the following is NOT a strategy for identifying power or relevant member of the buying centre?

A) Isolate the personal stakeholder
B) Follow the information flow
C) Identify the end consumers and their buying power
D) Trace the connection to the top

Question 17

Which of the following is not a variable identified by Webster and Wind (1972) influencing organizational buying behaviour?

A) Environmental influences
B) Organizational influences
C) Interpersonal/social influences
D) Legal and technological influences

Question 18

Which of the following correctly describes the Industrial Marketing and Purchasing Group (IMP)?

A) It is a consortium of researchers in UK and Europe that has developed the interaction model of buyer-seller relationships which are seen to be complex and dynamic
B) It is a consortium of industrial buyers in UK and Europe engaged in buying for large multinational firms
C) It is a consortium of corporate agencies in UK and Europe proving services to industrial clients across Europe
D) It is a consortium of environmental pressure groups in UK and Europe trying to have a say in what big companies buy and where they buy from

Question 19

Which of the following correctly describes a relational selling strategy?

A) A strategic approach adopted by an organisation with a view to implementing lean production methods to reduce costs and pass the benefit to customers
B) A strategic approach adopted by an organisation with a view to developing long term and mutually beneficial relationships with some of its customers
C) A strategic approach adopted by an organisation with a view to promoting internal marketing and a collaborative culture
D) A strategic approach adopted by an organisation to reduce costs and improve profitability by selling premium quality products to customers

Question 20

As per Wilson (1993), which of the following is NOT a task currently required by organizations?

A) Working with customers to create strategic advantage for both the buying and the selling firm and to create a win-win situation
B) Knowing and understanding the buying criteria used by the buying firm
C) Acting as the buyer-seller team coordinator
D) Working with customers with a view to spying on their market operations

Question 21

According to Webster and Wind (1972), organisational buying refers to a decision making process carried out by individuals, in interaction with other people, in the context of a formal organization.

Question 22

Organisational markets tend to be more geographically concentrated than consumer markets and tend to have limited number of buyers.

Question 23

Organisational markets tend to be characterised by derived demand.

Question 24

Maintenance, Repair and Operating Supplies do not become part of the final product but are used to facilitate operation of the company.

Question 25

Customers in the organisational markets tend to be more emotionally involved with the brands they buy and the frequency of contact with the supplier is relatively limited

Question 26

Sometimes business-to-business marketers have to stimulate demand at consumer level by advertising in mass media.

Question 27

As per the risk continuum explored by Thompson et al (1998), as the risk attached to an organisational purchase increases, the buying centre becomes smaller, less people are involved and previously proven suppliers are not preferred.

Question 28

Industrial suppliers are not allowed by law to negotiate prices and offer discounts as this may create disparity in the marketplace.

Question 29

Sometimes business-to-business marketers have to recall their products by advertising in the national press and on their website due to a faulty component supplied by their end users.

Question 30

The concept of buying classes refers to various stages that organizational buyers go through while making decisions.

Question 31

Organizational buyers are likely to use Electronic Data Interchange (EDI) systems when they face new task buying situations as the technology can reduce the time involved in searching for new suppliers.

Question 32

The concept of buying phases refers to various stages that organizational buyers go through while making decisions.

Question 33

Limited problem solving normally occurs in modified buying situations.

Question 34

Extended problem solving normally occurs in straight re-buying situations.

Question 35

There are ten stages involved in the BuyGrid model developed by Robinson et al., (1967).

Question 36

The size and structure of buying centre and the level of involvement by its members often depend upon product type, product complexity and importance of purchase in a given situation.

Question 37

The number of departments represented in the buying centre is known as lateral involvement whereas the level of management involved in or in influencing the decision making process is known as vertical involvement.

Question 38

Given the lateral and vertical involvement, business-to-business marketers face the challenge of identifying customer needs in advance, and then identifying the abilities of suppliers in meeting their needs.

Question 39

Unlike consumer buying, organisational buyer behaviour is influenced by factors related to the buying organisation such as its objectives and goals, purchasing policies, resources, the size and composition of the buying centre and organisation structure.

Question 40

The needs of individual participants in industrial buying centres do not play any role in determining what is bought and from where it is bought

Question 41

What is meant by organizational buying behaviour?

Question 42

Explain organisational products classification.

Question 43

What is meant by geographic concentration of industrial buyers?

Question 44

What is special about the size and number of industrial buyers?

Question 45

Explain the nature of demand as it applies to the organizational markets?

Question 46

Explain the major marketing mix differences between business to business and consumer markets.

Question 47

Explain the notion of rationality as it applies to organizational buying?

Question 48

Explain the concept of risk as it applies to organizational buying?

Question 49

Briefly explain the major influences on organizational buying behaviour.

Question 50

What is Modified Re-buying?

Question 51

What is straight re-buying?