Deck 2: Organizational Buying Behavior

Question 1

Because of the technical complexity of the product,the difficulty of evaluating alternatives,or the unpredictable aspects of dealing with a new supplier,this type of buying decision involves the greatest level of uncertainty.

A)complex modified rebuy decision
B)strategic modified rebuy decision
C)judgmental new task decision
D)strategic new task decision
E)lost-for-good decision

Answer 1

C

Question 2

Strategies that would be appropriate for an "out" supplier to follow when confronting a modified rebuy situation include:

A)offering performance guarantees.
B)encouraging the organization to sample the firm's offering.
C)defining and responding to the organization's problem with the existing supplier.
D)all of the above
E)(b)and (c)only

Answer 2

D

Question 3

The problem solving approach followed by an organizational buyer in a modified rebuy situation is:

A)limited.
B)selective.
C)routinized.
D)extended.
E)cerebral.

Answer 3

A

Question 4

When organizational buyers have well-defined criteria to apply to the purchase decision,but are uncertain about which suppliers can best fit their needs,they are operating in a stage of _____ problem solving.

A)cerebral
B)limited
C)selective
D)routinized
E)extended

Question 5

Mary Bronson,purchasing manager for the Los Angeles Tool Company,placed her quarterly order for supplies from the Gibson Paper Company. Mary has been dealing with Gibson for many years. What type of problem solving would Mary employ in this purchase decision?

A)routine problem solving
B)casual problem solving
C)limited problem solving
D)extended problem solving
E)specialized problem solving

Question 6

Upon meeting with a General Electric buyer,a salesperson learned that the G.E. purchasing function is unhappy with the supplier's performance and is openly considering new options. This provides an illustration of:

A)a new task buying situation.
B)a straight rebuy.
C)a modified rebuy.
D)extended problem solving.
E)value analysis.

Question 7

In choosing a new piece of manufacturing equipment,the buying organization is uncertain of the model or brand to choose,the suitable level of quality,and the appropriate price to pay. This represents which type of buying situation?

A)complex modified rebuy decision
B)strategic modified rebuy decision
C)judgmental new task decision
D)strategic new task decision
E)lost-for-good decision

Question 8

Strategies that would be appropriate for an "out" supplier to follow in dealing with a well-satisfied customer in a straight rebuy situation include:

A)attempting to gain a position on the organization's preferred list of suppliers.
B)demonstrating to the organization that the potential benefits of reexamining requirements and suppliers exceed the costs of doing so.
C)convincing organizational buyers that their purchasing requirements have changed or that the requirements should be interpreted differently.
D)all of the above
E)(b)and (c)only

Question 9

The environmental forces that influence organizational buying behavior include:

A)economic factors.
B)political and legal factors.
C)technological factors.
D)all of the above.
E)(a)and (b)only.

Question 10

Those buying decisions that involve a narrow set of choice alternatives,encompass a moderate amount of both information search and analysis,and concentrate on the long-term relationship potential of suppliers are called:

A)simple modified rebuy.
B)complex modified rebuy.
C)casual purchases.
D)routine low priority purchases.
E)specialty purchases.

Question 11

The simple modified rebuy:

A)involves a narrow set of choice alternatives.
B)centers on a product of minor importance to the firm.
C)encompasses little or no information search or analysis.
D)all of the above.
E)(b)and (c)only.

Question 12

The problem solving approach followed by an organizational buyer in a new task buying situation is:

A)selective.
B)extensive.
C)cerebral.
D)systematic.
E)none of the above

Question 13

As a result of poor delivery performance by a supplier of high quality metal components,Jim Houser,purchasing agent at Milton Toy Company,plans to consider a possible change in suppliers. This provides an illustration of:

A)the backlash effect.
B)routinized problem solving.
C)a modified rebuy.
D)a straight rebuy.
E)selective perception.

Question 14

When buying influentials and decision makers lack well-defined criteria for comparing alternative products and suppliers and they also lack strong predispositions toward a particular solution,they are operating in a stage of _____ problem solving.

A)cerebral
B)limited
C)selective
D)routinized
E)extensive

Question 15

The purchase of an expensive piece of material handling equipment would be classified as:

A)a new task buying situation.
B)a modified rebuy.
C)a straight rebuy.
D)any of the above.
E)none of the above.

Question 16

Concerning the eight-stage model of the organizational buying process,research suggests that:

A)the process may be reoriented at any point by a redefinition of the basic problem.
B)the process may be discontinued by a change in the external environment.
C)certain stages may be completed concurrently.
D)many small or incremental decisions are made during the procurement process that ultimately translate into the final selection of a supplier.
E)all of the above

Question 17

Jim Parker,Purchasing Manager for the Boston Motor Works,is involved in many organizational buying decisions each year. The forces that influence Jim's organizational buying decisions might be broadly classified as:

A)economic,organizational,group,and legal.
B)group,environmental,individual,and organizational.
C)organizational,cultural,environmental,and economic.
D)legal,political,organizational,and group.
E)organizational,domestic,legal,and international.

Question 18

When organizational buyers have well developed choice criteria to apply to the purchase decision,they are operating in a stage of problem solving known as:

A)cerebral response behavior.
B)limited response behavior.
C)selective response behavior.
D)routine response behavior.
E)extended response behavior.

Question 19

The organizational buying process,which ultimately may lead to the purchase of a new computer,could be set into action by:

A)the existing computer breaking down.
B)a new cost accounting system.
C)an IBM sales presentation.
D)(a)and (b)only.
E)any of the above.

Question 20

Those buying decisions that are of extreme importance to the firm strategically and financially are referred to as:

A)strategic new task buying decisions
B)strategic modified rebuy decisions
C)judgmental new task decisions
D)lost-for-good decisions
E)complex modified rebuy decisions

Question 21

For a salesperson trying to determine the impact of group forces on the organizational buying process,which of the following questions are appropriate?

A)Which organizational members take part in the buying process?
B)What is each member's relative influence in the decision?
C)What criteria are important to each member in evaluating prospective suppliers?
D)All of the above questions are appropriate.
E)Only (a)and (b)are appropriate.

Question 22

Those buying decisions that involve a large set of choice alternatives and pose little uncertainty,and involve buyers actively searching for information,applying sophisticated analysis techniques,and careful consideration of long-term needs are called:

A)simple modified rebuy.
B)complex modified rebuy.
C)casual purchases.
D)routine low priority purchases.
E)specialty purchases.

Question 23

The formation of organizational preferences and ultimately the organization's buying choice is determined by the _____ of the members of the buying center.

A)interaction structure
B)operating resources
C)relevant set
D)primary set
E)none of the above.

Question 24

A _____ consists of individuals who participate in the purchasing decision and share the goals and risks arising from the decision.

A)buying center
B)target market
C)sales force
D)strategic task force

Question 25

Within the buying center,an individual who has formal authority for selecting a supplier and implementing all procedures connected with securing the product is performing the role of:

A)a user.
B)a gatekeeper.
C)an implementer.
D)a decider.
E)a buyer.

Question 26

As the risk associated with an organizational purchase decision increases:

A)buying center participants will be motivated to invest greater effort throughout the purchase process.
B)product quality becomes more important than price.
C)after-sale service becomes more important than price.
D)all of the above.
E)(a)and (b)only.

Question 27

Individuals actually making the buying decision,whether or not they have the formal authority to do so,are performing the role of:

A)a user.
B)a gatekeeper.
C)an influencer.
D)a decider.
E)a buyer.

Question 28

The composition of the buying center:

A)evolves during the purchasing process.
B)varies from one purchasing situation to another.
C)varies from firm to firm.
D)All of the above are true.
E)(a)and (b)only.

Question 29

A common identifiable element in buying centers in all sectors of the industrial market is:

A)the chief executive officer.
B)the accounting function.
C)the purchasing function.
D)the production function.
E)the engineering function.

Question 30

Buying decisions that are somewhat important to the firm and involve a moderate amount of analysis are:

A)casual purchases.
B)routine low priority purchases.
C)straight rebuy purchases.
D)extensive problem-solving purchases.

Question 31

A significant increase in the price of gasoline that leads to a decrease in the purchases of new automobiles is an example of the impact of which environmental force?

A)economic factors.
B)political and legal factors.
C)technological factors.
D)all of the above.
E)(a)and (c)only.

Question 32

The evaluative criteria that engineers apply to a purchasing decision may be quite different from those used by purchasing managers because engineers:

A)are exposed to different journals or publications.
B)possess different professional goals and values.
C)have a different educational background.
D)attend different conferences.
E)all of the above.

Question 33

Which of the following are ambitious strategic priorities being pursued by many chief procurement officers?

A)Becoming business partners,not just buyers.
B)Developing fewer and deeper relationships with strategic suppliers.
C)Emphasizing more than just price,including a focus on business outcomes,total cost of ownership,and the development of long-term value creation.
D)All of the above.
E)Only (a)and (c).

Question 34

In the purchase of a new papermaking machine,what role would the firm's manufacturing superintendent assume in the buying center?

A)influencer
B)decider
C)gatekeeper
D)any or all of the above.

Question 35

Within the buying center,individuals who actually make the organizational buying decision,whether or not they have formal authority to do so,are performing the role of:

A)a user.
B)a gatekeeper.
C)an influencer.
D)a decider.
E)a buyer.

Question 36

In a modified rebuy situation,the "in" supplier should do which of the following?

A)Make every effort to understand and satisfy the procurement need.
B)Try to move decision makers into straight rebuy.
C)Both (a)and (b).
D)Neither (a)nor (b).

Question 37

Individuals affecting the purchasing decision by supplying information for the evaluation of alternatives or by setting buying specifications is performing the role of:

A)a gatekeeper.
B)a user.
C)an influencer.
D)a decider.
E)a buyer.

Question 38

Individuals who control the flow of information into the buying center are performing the role of:

A)a user.
B)a gatekeeper.
C)an implementer.
D)a decider.
E)a buyer.

Question 39

When organizational buyers modify a salesperson's message to make it more consistent with their predispositions toward the company,this provides an illustration of:

A)selective exposure.
B)selective attention.
C)selective perception.
D)selective retention.
E)selective memory.

Question 40

In a modified rebuy situation,the "out" supplier should do which of the following?

A)Try to move decisions makers into straight rebuy.
B)Hold the buying organization in modified rebuy status long enough to consider new alternatives.
C)Both (a)and (b).
D)Neither (a)nor (b).

Question 41

Purchasing managers assume a dominant role in repetitive buying situations.

Question 42

Selective _____ is the tendency to accept communication messages consistent with existing attitudes and beliefs.

A)exposure
B)attention
C)perception
D)retention
E)memory

Question 43

Which of the following statements about buying centers is true?

A)The composition can change from one buying situation to another.
B)Different individuals are important to the process at different times.
C)Buying centers vary from firm to firm.
D)All of the above are true.
E)Only (a)and (c)are true.

Question 44

The Total Cost of Ownership

A)Includes all costs associated with the product and its delivery
B)Is used by buyers to determine what they should spend on an item
C)Considers the full range of costs associated with the purchase and use of a product or service over its complete life cycle
D)Is an accounting concept that buyer's use to compare the value of competing offerings
E)None of the above.

Question 45

The information requirements of organizational buyers are highest in modified rebuy situations.

Question 46

Well-known companies,recognized as credible sources,tend to be favored by organizational buyers facing high-risk decisions.

Question 47

Influencers control information to be reviewed by other members of the buying center.

Question 48

Members of the buying center are generally in agreement concerning the criteria that should be used in evaluating the merits of alternative suppliers.

Question 49

As the risk associated with an organizational purchase decision increases,which of the following occur?

A)The buying center becomes smaller.
B)The information search is a active and a wide variety of information sources are consulted.
C)Buying center participants invest greater effort.
D)All of the above occur.
E)Only (b)and (c)occur.

Question 50

The buying center becomes larger and comprises members with higher levels of organizational status and authority as perceived risk increases.

Question 51

A purchasing manager could assume the roles of buyer,gatekeeper,and influencer in the buying center.

Question 52

The greatest level of uncertainty confronts firms in judgmental new task situations because of the technical complexity of the product and the difficulty of evaluating the alternatives.

Question 53

The higher the level of perceived risk in a buying situation,the lower the probability that the organizational buying decision will be made by a group.

Question 54

The decision to purchase a fork-lift truck may be a new task buying situation in one organization and a modified or straight rebuy in another.

Question 55

Which of the following represent clues or techniques for identifying powerful buying center members?

A)Isolating the personal stakeholders.
B)Following the information flows.
C)Identifying the experts.
D)All of the above.
E)None of the above.

Question 56

Many small or incremental decisions are made during the procurement process that ultimately translate into the final selection of a supplier.

Question 57

Technical and engineering personnel tend to be more important to the organizational buying process where the rate of technological change is great.

Question 58

Which of the following statements are true of reverse auctions?

A)They are most appropriate for commodity-type items.
B)They involve one buyer who invites bids from several pre-qualified suppliers.
C)Both a and b are true.
D)Neither a or b is true.

Question 59

For "risky" purchase decisions,the buying center will become larger and will be comprised of members with higher levels of organizational status and authority.

Question 60

Those individuals who have an important personal stake in the decision will exert more influence than other members of the buying center.

Question 61

What are the two components that determine perceived risk in purchase decisions? Please describe some of the characteristics of the buying center and decision-making process when perceived risk is high. What actions should a salesperson take when selling to an organization when perceived risk is high?

Question 62

The four groups of forces that have an impact on organizational buying behavior are environmental,organizational,strategic,and individual.

Question 63

Alternative proposals are evaluated by a purchasing manager and a number of members of the production department in which stage of the Organizational Buying Process?

Question 64

Key influencers are frequently located outside of the____________________department.

Question 65

Collectively,uncertainty about the outcome of a decision and the magnitude of consequences from making the wrong choice comprise ____________________.

Question 66

Mary Bronson recently completed the sales training program at Dow Chemical and has spent the past few months in San Diego,her assigned territory. Today she plans to call on two accounts and then complete a sales forecast for next quarter.The first account is a small,high-tech firm that potentially could use a Dow product directly in a production process. This production process is new and the purchasing manager indicated that several substitute products will likely receive consideration. What strategy should Mary follow in dealing with this customer?
The second account has been buying their chemical products from Allied for the past three years. Of course,Mary would like them to change to Dow but the purchasing manager at this firm seems preoccupied with other matters. What strategy should Mary follow here? She wonders if it's even worth stopping by because she could spend the time talking to an existing customer.

Question 67

____________________forces involve job function,past experience,and buying motives of individual decision participants

Question 68

Because globalization is upsetting traditional patterns of competition,the rise of material costs,and customer resistance to price increases,the influence of the procurement function is increasing in most organizations.

Question 69

Boeing,AT&T,and 3M are among the corporations that have adopted centralized procurement. Other large corporations may find that a decentralized procurement structure constitutes a better fit for their operations. First,which factors are conducive to the development of a centralized procurement function? Second,what adjustments must be made in business marketing strategy to reach the centralized purchasing unit?

Question 70

There are four categories of forces that influence organizational buying behavior. Please identify and briefly describe the four categories of forces. Assume that you are a salesperson in any industry you choose,provide one specific example in each category of how these forces affect organizational buying behavior in the industry you have chosen.

Question 71

A business marketer confronting a new-task buying situation can gain a differential advantage by participating actively in the initial stages of the procurement process.

Question 72

To remain competitive,Johnston Equipment has decided to adopt more sophisticated manufacturing technology. The eight members of the firm who have been actively involved in defining specifications and in evaluating suppliers are evenly split over "which way to go." Four members are strong advocates for Supplier A;four are committed to Supplier B. Describe the factors that motivate individual decision makers during the organizational buying process and explain why product perceptions and evaluation criteria often differ among organizational decision makers.

Question 73

Using an illustration of your choice,describe the factors that might move a purchasing manager to shift from a straight rebuy to a modified rebuy. Next,describe the steps that should be taken by both the "in" supplier and "out" supplier as a modified rebuy situation develops.

Question 74

The first stage of the Organizational Buying Process involves:

Question 75

Members of the buying center assume different roles throughout the procurement or organizational buying process. Discuss the nature of the five roles that a buying center member may assume. Provide an example of each role in the organizational buying context.

Question 76

Texas Instruments has a major manufacturing plant that falls within your new sales territory. On your initial visit to this plant,you learn from a receptionist that the purchasing department is in the very preliminary stages of making a major purchase of the type of production equipment that you sell. First,how would you predict the likely composition of the buying center for this particular purchase? Second,what questions could you ask to determine the relative influence that different organizational members might exert on the buying decision?