Deck 5: Organizational Buying Behavior

Question 1

Which of the following variables are operating variables used for industrial marketing segmentation?

A)delivery speed of the product
B)order size
C)technologies used by the customer
D)number of employees

Answer 1

C

Question 2

________ are the set of descriptor variables based on the newness of the purchasing situation.

A)Demographics
B)Operating variables
C)Situational factors
D)Buy classes

Answer 2

D

Question 3

Which of the following is a purchasing situation that is unusual or occurs infrequently in a given organization?

A)straight rebuys
B)modified rebuys
C)new-task purchase
D)repetition purchase

Answer 3

C

Question 4

Which of the following variables used for industrial marketing segmentation includes dimensions of the customer's operations,such as what technologies the customer is currently using and how many of your services or products they need?

A)demographics
B)operating variables
C)purchasing approaches
D)situational factors

Question 5

The seller of industrial products is part of the buyer's ________ and must provide timely inventory replenishment,service and maintenance,spare parts,and efficient order handling.

A)supply chain
B)communication channel
C)service chain
D)promotional program

Question 6

________ characterize purchasing situations in which something has changed since the last purchase.

A)Straight rebuys
B)Modified rebuys
C)New-task purchase
D)Repetition purchase

Question 7

When a firm markets a product or service to another organization,it is called:

A)consumer marketing.
B)industrial marketing.
C)market segmentation.
D)consumer behavior.

Question 8

Because of the need for more detailed communications,industrial marketers are heavy users of:

A)print media.
B)television.
C)radio.
D)banners.

Question 9

Identify the correct statement about organizational marketing.

A)Industrial products are normally less complex than consumer products.
B)Industrial companies are more likely to be customer focused rather than product focused.
C)Organizational marketing is also known as B-to-B marketing.
D)Most of the industrial marketers advertise on television.

Question 10

Industrial products are normally more complex than consumer products.It means that industrial companies are more likely to be:

A)product focused rather than customer focused.
B)customer focused rather than product focused.
C)market focused rather than customer focused.
D)technology focused rather than market focused.

Question 11

This type of segmentation variable includes company size,industry type,geographic location,and number of employees.

A)demographics
B)operating variables
C)purchasing approaches
D)situational factors

Question 12

Most industrial markets are not mass markets because:

A)the required raw material is scarcely available.
B)transporting the industrial equipments is very difficult.
C)the supply chain involved in industrial markets is very complicated.
D)the products are highly specialized in nature.

Question 13

Organizational marketing refers to:

A)explaining the importance of marketing to all the departments in the organization.
B)marketing a product or service to another organization.
C)allowing customers to contact any member of the organization for any assistance.
D)creating the corporate strategy based on a marketing plan.

Question 14

Which of the following best describes routine purchases made from the same suppliers used in the past?

A)straight rebuys
B)modified rebuys
C)new-task purchase
D)repetitive purchase

Question 15

Which of the following is a category of segmentation variables used for industrial marketing segmentation?

A)strategic variables
B)operating variables
C)interpersonal variables
D)supply chain variables

Question 16

Which of the following is an example of a straight rebuy?

A)frequently purchased routine purchases such as printer toner
B)upgrading the local intranet with new technologies
C)purchasing the first local intranet for a small business
D)routine purchases that have changed in some way such as air travel

Question 17

The group normally involved in the purchase decision for an organization is called a:

A)buying center.
B)decision center.
C)buying department.
D)decision maker.

Question 18

Which of the following variables used for industrial marketing segmentation includes the customer's delivery speed needs,order size needs,and particular uses of the product?

A)demographics
B)operating variables
C)purchasing approaches
D)situational factors

Question 19

________ is normally targeted toward a group of individuals collectively involved in the purchase decision.

A)Consumer marketing
B)Organizational marketing
C)Market development
D)Market penetration

Question 20

Organizational marketing is also known as:

A)industrial marketing.
B)company marketing.
C)consumer marketing.
D)service marketing.

Question 21

In a ________,the purchasing organization realizes that the problem cannot be solved without buying something new.

A)straight rebuy situation
B)modified rebuy situation
C)new-task situation
D)repetition purchase

Question 22

In the chasm model,the first small crack appears between:

A)the late majority and the laggards.
B)the innovators and the early adopters.
C)the early adopters and the early majority.
D)the early majority and the late majority.

Question 23

In industrial marketing situations,________ are often used as beta test sites,where new products are tested and debugged.

A)innovators
B)early majority
C)late majority
D)laggards

Question 24

Which one of the examples below best characterizes a modified rebuy?

A)purchasing paper clips for the office
B)purchasing airline tickets under a new fare schedule
C)purchasing the first local intranet for a small business
D)purchasing toner for the office

Question 25

Which of the following is an example of a new task purchase?

A)purchasing paper clips for the office
B)upgrading the local intranet with new technologies
C)purchasing a corporate jet aircraft
D)purchasing printer and toner for the office

Question 26

Chasm refers to the large gap between:

A)the late majority and the laggards.
B)the early majority and the late majority.
C)the innovators and the early adopters.
D)the early adopters and the early majority.

Question 27

Because marketing research budgets in industrial companies are usually lower than consumer product companies,industrial companies tend to use:

A)primary data.
B)secondary data.
C)observational research data.
D)phenomenological research data.

Question 28

With reference to the chasm model,the term conservatives refers to the:

A)innovators.
B)early majority.
C)late majority.
D)laggards.

Question 29

Identify the correct statement about a straight rebuy.

A)It is a very complex process.
B)A long time frame is required for this process.
C)The current supplier is in an advantageous position in a straight rebuy.
D)It takes place while purchasing expensive and seldom-purchased products.

Question 30

With reference to the chasm model,early majority are referred to as:

A)pragmatists.
B)visionaries.
C)technologists.
D)conservatives.

Question 31

In which purchasing decision should the supplier focus on maintaining a good relationship with the customer and focus on timely deliveries at the expected quality level?

A)straight rebuys
B)modified rebuys
C)new-task purchase
D)repetition purchase

Question 32

The first buyers of an innovation in industrial marketing situations are known as:

A)early adopters.
B)lead users.
C)early majority.
D)late majority.

Question 33

More effort by both external and internal parties is necessary for need recognition in a ________ situation.

A)modified rebuy
B)straight rebuy
C)new-task
D)repetition purchase

Question 34

Which of the following statements is true about the chasm in the chasm model?

A)It is the first small crack that appears in the chasm model.
B)It appears between pragmatists and conservatives.
C)It represents the problem of getting laggards to buy a product.
D)Pursuing a thematic niche is one of the approaches that can be used to cross the chasm.

Question 35

The first step in the business-to-business purchase decision is:

A)need recognition.
B)establishment of specification.
C)source identification.
D)proposal evaluation.

Question 36

Parsimony is important in industrial marketing because:

A)there are very few targetable segments in the market.
B)the industrial customers are well informed about the products.
C)the industrial products are expensive.
D)it is inefficient to pursue too many segments.

Question 37

In the chasm model,the third small crack between the Conservatives and the Skeptics is the problem of:

A)getting laggards to buy a product.
B)getting late majority to buy a product.
C)getting innovators to buy a product.
D)getting early adopters to buy a product.

Question 38

With reference to the chasm model,the term visionaries refers to:

A)innovators.
B)early majority.
C)early adopters.
D)late majority.

Question 39

Which of the following best describes upgrading the existing copier to take advantage of new technology?

A)straight rebuy situation
B)modified rebuy situation
C)new-task situation
D)repetition purchase

Question 40

In ________ cases,the current supplier is in an advantageous position because the buying process is likely to be automatic.

A)straight rebuy
B)modified rebuy
C)new-task purchase
D)repetition purchase

Question 41

A company is not happy with the present document-copying capabilities so it decides to outsource its copying to a service firm.This is an example of a:

A)straight rebuy.
B)modified rebuy.
C)repetition purchase.
D)new-task situation.

Question 42

Usually in this stage of the buying process,benefits rather than specific product or service characteristics are stated.

A)determine the characteristics
B)establish specifications
C)search for and qualify potential suppliers
D)request proposals

Question 43

Most advertisements of industrial products in trade magazines are very ________ oriented.

A)feature
B)status
C)price
D)service

Question 44

In this stage of the buying process,needs are translated into specific product features and characteristics.

A)determine the characteristics
B)establish specifications
C)search for and qualify potential suppliers
D)request proposals

Question 45

This is the person in an organization who has the ultimate authority for a "go-no-go" purchase decision.

A)the initiator
B)the influencer
C)the decider
D)the purchaser

Question 46

When marketing a product to an organization,it is vital to understand that:

A)innovators are not sure of what they want.
B)initiators do not have any impact on the purchase situation.
C)many individuals are involved in the purchase decision.
D)the purchaser is the only person needed to be focused on.

Question 47

A company recognizes the need for a new system to handle customer enquiries.During the buying process,who is most likely to be concerned with the return on investment (ROI)?

A)the initiator
B)the user
C)the decider
D)the purchaser

Question 48

After the need has been determined,the next step in the buying sequence is ________ for the product or service needed.

A)determining the characteristics
B)establishing specifications
C)searching for and qualifying potential suppliers
D)requesting proposals from qualified suppliers

Question 49

The selling organization tries to be in the ________ of as many customers as possible.

A)inert set
B)supplementary set
C)evoked set
D)complementary set

Question 50

A company recognizes the need for a new database management system.During the process of purchasing the new system,who is most likely to be concerned with installation timing,and after-sale support?

A)the initiator
B)the user
C)the decider
D)the purchaser

Question 51

In a straight rebuy situation,the need for purchase occurs when:

A)the existing systems are to be updated.
B)a new technology is to be introduced.
C)inventory is low.
D)a service is to be outsourced.

Question 52

At the ________ stage of the buying process,a sale can be made or lost so it is crucial to understand the needs of the different people involved with making the purchase decision.

A)determining the characteristics
B)establishing specifications
C)search for and qualify potential suppliers
D)request proposals

Question 53

Because of the technical nature of the products,industrial product purchases are more likely to be based on:

A)cost rather than features.
B)features rather than benefits.
C)cost rather than benefits
D)benefits rather than features.

Question 54

Which of the following stages in a buying sequence will result in a specific option or set of options from which price,delivery,system compatibility,and other characteristics can be determined?

A)determine the characteristics
B)establish specifications
C)search for and qualify potential suppliers
D)request proposals

Question 55

________ is the person who actually authorizes payment for the product.

A)The initiator
B)The influencer
C)The decider
D)The purchaser

Question 56

________ is the person who first recognizes the need for the product or service.

A)The initiator
B)The influencer
C)The decider
D)The purchaser

Question 57

Following ________,there are seven stages in the buying process.

A)need recognition
B)establishing specifications
C)request for proposals
D)post-purchase evaluation

Question 58

Which of the following influences the decision about which supplier is chosen?

A)the initiator
B)the influencer
C)the decider
D)the purchaser

Question 59

Different entities involved in the buying process (like initiator,influencer etc.),have:

A)the same needs and seek the same benefits.
B)different needs but seek the same benefits.
C)the same needs but seek different benefits.
D)different needs and seek different benefits.

Question 60

The objective of which phase of the buying process is for the buyer not only to have a list of potential suppliers,but to also identify those who are qualified?

A)evaluate proposals and select a supplier
B)request proposals
C)establish specifications
D)search for and qualify potential suppliers

Question 61

Market segmentation is irrelevant in industrial marketing.

Question 62

Traditionally,the __________ have been the most popular distribution channels for industrial products.

A)retail stores and direct sales
B)sales force and industrial distributors
C)Internet and retail stores
D)personal selling and wholesalers

Question 63

A group of individuals collectively involved in a purchase decision are known as a buying center.

Question 64

According to the classification system for global organizational culture as developed by Hofstede,the degree to which employees are threatened by ambiguity is known as:

A)power distance.
B)uncertainty avoidance.
C)ambiguity tolerance.
D)long-term orientation.

Question 65

Vertical marketing occurs across industries,particularly where the needs and uses are similar.

Question 66

According to the classification system for global organizational culture as developed by Hofstede,which of the following dimensions indicates the extent to which less powerful parties accept the existing distribution of power and the degree to which adherence to formal channels is maintained?

A)power distance
B)uncertainty avoidance
C)ambiguity tolerance
D)long-term orientation

Question 67

Most industrial markets are mass markets.

Question 68

During a purchase process,a junior or inexperienced salesperson is more likely to be focused on the:

A)purchaser.
B)influencer.
C)decider.
D)initiator.

Question 69

For industrial purchases,the seller is part of the buyer's supply chain and must provide timely inventory replenishment,service and maintenance,spare parts,and efficient order handling.

Question 70

Situational factors used for industrial market segmentation include the customer's delivery speed needs and order size needs.

Question 71

For industrial purchases the purchasing cycle can last for several years.

Question 72

During a buying process,the normal procedure once a list of qualified suppliers is formed is to send out a ________ to potential suppliers.

A)request for product review
B)request for proposals
C)request for quotation
D)request for product specifications

Question 73

Organizational marketing normally targets an individual.

Question 74

The two key factors that affect industrial purchasing are:

A)the buyer's age and gender.
B)the number of people in the buying center and the competitive position of the company in the market.
C)the customers' fiscal years and general economic cycles.
D)the market potential of the company and the growth of the Gross Domestic Product (GDP).

Question 75

Which of the following statements is true regarding the Japanese style of decision making?

A)short-term selling cycle
B)lack of relationship building
C)involving more consensus
D)direct negotiating style

Question 76

When a firm markets a product or service to another organization,it is called organization marketing.

Question 77

The demand for an industrial product is derived from underlying consumer demand.

Question 78

After the customer receives the proposals,the ________ deliberate(s)over the alternatives and make(s)a choice.

A)CEO
B)user
C)buying center
D)initiators

Question 79

Industrial products are normally less complex than consumer products.

Question 80

With reference to the classification system for global organizational culture as developed by Hofstede,whether a country has inclination toward consumption or is interested in preserving status-based relationships and deferred gratification is indicated by which dimension?

A)uncertainty avoidance
B)power distance
C)individualism vs.collectivism
D)long-term orientation