Deck 3: Buying Behavior and the Buying Process

Question 1

Salespeople selling OEM products need to demonstrate that their product helps customers produce products which will offer superior value.

Answer 1

True

Question 2

In the Chapter 3 opening profile Jenna Weber notes whether it is the corporate buyer or the end consumer, once you understand it, the purchasing process is very simple.

Answer 2

False

Question 3

When the office manager of an established dentist orders a new case of dental floss, it is probably a straight rebuy.

Answer 3

True

Question 4

Organizational selling often requires salespeople to know about the customer's customers.

Question 5

A buying center is an informal group of people in the purchasing department involved in a purchase decision.

Question 6

Resellers consider three elements when making decisions about what products to sell: customer profiles, targeted return, and equilibrium.

Question 7

Salespeople often trigger the buying process by demonstrating how their products can improve the efficiency of the customer's operation.

Question 8

Barton Wholesaling Company, Tommy Hilfiger (a designer of men's clothing) and Carlyle Trucking are all examples of resellers.

Question 9

One of the current trends in organizational buying, purchasing is becoming more decentralized.

Question 10

Creeping commitment means that a customer becomes increasingly committed to a particular course of action while going through the steps in the buying process.

Question 11

The ultimate goal of just-in-time (JIT) inventory control is to eventually eliminate all inventories except material in production and in transit.

Question 12

When the Rose Bowl Parade committee votes to buy flowers to make mantles for the cars in the parade, it is an example of a new task buy.

Question 13

Your supervisor directs you to investigate alternatives to regular postal service delivery. Your supervisor is acting as the gatekeeper in the buying process.

Question 14

Global sourcing is a key factor in achieving a sustainable competitive advantage.

Question 15

Life-cycle costing is a method of pricing based on product life cycle stages.

Question 16

From the salesperson's point of view, the initial steps in the buying process are critical in new-task situations.

Question 17

Members of the purchasing department and technical experts from engineering, production, and quality control departments perform value analyses.

Question 18

In some countries it is difficult for a salesperson to determine who the members of the buying center are.

Question 19

Always-a-share means each vendor will always get a share.

Question 20

Derived demand means demand is derived from the increase in GDP.

Question 21

The purchase of maintenance, repair, and operating (MRO) supplies:

A)is usually overseen by the department placing the order.
B)includes the services offered by accountants and advertising agencies.
C)is treated as a new-task buying situation.
D)is considered equally important as the purchase of capital equipment.
E)is typically done without an evaluation of the supplier.

Question 22

In the opening profile Hormel sales rep, Jenna Weber states that since most Hormel products are impulse purchases, it is critical that her company's products:

A)seem luxurious.
B)be highly visible.
C)be environmentally friendly.
D)use a humorous appeal.
E)all of the above

Question 23

Regan wants to develop a long-term relationship with his customers. To accomplish this objective Regan will pay close attention to:

A)the acquisition and analysis of proposals.
B)the definition of the type of product needed.
C)the evaluation of product performance.
D)the receipt of an order.
E)the recognition of a need or problem.

Question 24

Westex makes uniforms and overalls for employees in any industry where there is a potential for fire injury. It uses Indura Tuf Stuf fabric in all of the uniforms it manufactures. If there is a decline in the chemical industry, then there will be a decrease in employment in that industry. Since fewer uniforms will be needed, then sales for Tuf Stuf fabric will decline. This is an example of:

A)derived demand.
B)a competitive advantage for the seller.
C)economies of scale in marketing.
D)just-in-time (JIT) inventory control.
E)a new-task buy.

Question 25

Which of the following would be an example of a capital equipment purchase for a manufacturer of stained glass windows?

A)Lead solder to hold the pieces of glass together.
B)The designs that are used for each project.
C)The wood used to build frames for the windows.
D)The building which houses the workers.
E)Gas for the company's delivery van.

Question 26

_______________________ is the major source of information for bidding on contracts to provide goods and services to the Federal government.

A)The New York Times
B)Commerce Business Daily
C)Forbes
D)Business Week
E)Financial Times

Question 27

In which stage of the buying process was the chief executive of Norell, an agency that supplies businesses with temporary workers, when he realized that the health-care industry necessitated temporary workers as much if not more than goods-oriented businesses?

A)preparation of the salesperson's presentation
B)evaluation of alternatives
C)development of specifications
D)recognizing a need
E)evaluation of the result of sale calls

Question 28

Reginald is determining which new products he will add to his gift and card store. As a reseller, Reginald considers three elements:

A)emotional needs, new task ordering and creeping commitment.
B)annual spend, buying center dynamics and influencers.
C)profit margin, turnover and effort.
D)JIT, automatic replenishment, and MRO.
E)gatekeepers, life-cycle costing and lost-for-good.

Question 29

Alcoa Aluminum is a large manufacturer of "can sheets" used to manufacturer drink cans. Its ability to sell to Pearl Brewing Company is directly related to how many people buy Pearl beer. This is an example of:

A)derived demand.
B)a competitive advantage for the seller.
C)economies of scale in marketing.
D)just-in-time (JIT) inventory control.
E)a new-task buy.

Question 30

Eva is considering new items for her store and is concerned about her profit margin. She will ask the sales rep:

A)What the unit cost is and the suggested retail price.
B)What is the marginal turnover rate and the expected delivery time.
C)What are servicing requirements and the cost of repairs.
D)Which JIT system will maximize in-store inventory.
E)How likely will it be that competitors substitute derived demand products for institutional design requirements.

Question 31

When P.C. Logic, a facsimile machine manufacturer, purchases ceramic printing heads from Kyocera to install in its fax machines, it is acting as a(n):

A)reseller.
B)original equipment manufacturer.
C)"out" supplier.
D)end user.
E)acquisition expert.

Question 32

Westex makes uniforms and overalls for employees in any industry where there is a potential for fire injury. It uses Indura Tuf Stuf fabric in all of the uniforms it manufacturers because Tuf Stuf has been rated the most fire-resistant fabric on the market today. Westex is an example of a(n):

A)reseller.
B)original equipment manufacturer.
C)government regulator.
D)end user.
E)acquisition expert.

Question 33

Effective selling to government agencies requires:

A)The New York Times.
B)effective internal controls designed to maximize just-in-time delivery of requests for proposals.
C)advanced knowledge of 80-20 ordering procedures.
D)thorough knowledge of their unique procurement procedures and rules.
E)active listening centered on gatekeeper's internal satisfaction requirements.

Question 34

Salespeople need to understand that purchases made by their customers' customers exemplify:

A)derived demand.
B)a competitive advantage for the seller.
C)economies of scale in production.
D)just-in-time (JIT) inventory control.
E)new-task buys.

Question 35

The first step in supplier relationship management is to determine the end user spending patterns.

Question 36

In which of the following buying situations is creeping commitment most likely to occur?

A)the purchase of a replacement hydraulic motor for a forklift
B)the purchase of a local area network (LAN) system
C)the purchase of the annual Christmas tree from Farmer Gregson
D)the ordering of a case of paper towels for a service station
E)the purchase of a new goldfish to replace the one that died

Question 37

Handell has established a small company that manufactures decorative items for the home. One of the company's newest items is a line of thermometers reproduced from ones that were given away free before World War II. Since quality is essential to the company's success, it spent a great deal of time and effort locating the best suppliers for the metal, wood, paint, and mercury that went into its first production. The purchase of these components would be an example of a _____ buying situation.

A)new-task
B)straight-rebuy
C)derived-demand
D)value-added
E)modified-rebuy

Question 38

Compared to consumer purchase decisions, organizational purchase decisions:

A)are much larger.
B)involve fewer people.
C)seldom require negotiations.
D)are less complex.
E)take a shorter period of time.

Question 39

By showing a paper products manufacturer that theC.G. Bretting napkin-folding machine could fold 2,000 paper napkins per minute, twice the rate of their current machine, the Bretting salesperson:

A)forced the manufacturer to perform a vendor analysis.
B)showed the manufacturer that it needed this product to improve its efficiency.
C)showed the manufacturer that it needed to develop a detailed list of features that would want to make all of its equipment more efficient.
D)created derived demand.

Question 40

The last step in the buying process is the:

A)establishment of a long-term relationship with the seller.
B)receipt of the product.
C)vendor analysis.
D)evaluation of product performance.
E)placement of the order.

Question 41

The key decision maker in a straight rebuy buying situation for a heavy equipment manufacturer is most likely to be the:

A)chief executive officer.
B)company's head engineer.
C)purchasing agent.
D)organization's legal officer.
E)vice-president of procurement.

Question 42

The human resource director at a commercial laundry is having trouble providing the labor needed for the business. In a trade journal, he read about a VAC Soil Counting System that is a computerized system for sorting and counting incoming soiled textiles. The system can reduce labor costs by up to 50 percent. He called the toll-free number in the ad and has talked to the salesperson. The VAC salesperson had been trying to get an interview with the owner of the laundry for over a year, so he was pleased when the HR director showed interest in the product and expressed willingness to take the information to the owner. In terms of the buying center, the HR director is acting as a(n):

A)initiator.
B)buyer.
C)user.
D)decider.
E)gatekeeper.

Question 43

Keeler is the purchasing agent for a hospital that is looking to change its supplier of replacement joints. He wants to give the contract to Kyocera because it manufactures the cheapest and most durable joint replacements on the market. This is an example of a buying center member expressing a(n) _____ need.

A)emotional
B)formal
C)external
D)verbal
E)rational

Question 44

Using the life-cycle costing approach, salespeople can demonstrate that:

A)a product in the decline stage of its product life cycle will have little, if any, service.
B)a product with a higher initial cost will have lower overall costs.
C)operational costs do not change over the life time of capital equipment.
D)a product in the introductory stage of its product life cycle will have more problems than one in a later stage.
E)operational costs actually decreased over the life time of capital equipment due to increased familiarity.

Question 45

Your supervisor directs you to investigate alternatives to regular postal service delivery. Your supervisor is acting as the ___________ in the buying process.

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

Question 46

Which of the following is NOT an example of a straight rebuy?

A)renewing subscriptions to trade journals
B)purchasing a new computerized inventory system to facilitate the implementation of a just-in-time (JIT) inventory system
C)ordering glass sheets from the firm's usual supplier
D)restocking the glue needed to attach decorative trim to the product
E)buying cleaning supplies from the list left by the maintenance staff

Question 47

The evaluation and selection of products and suppliers are affected by the needs of both the organization and the individuals making the decision. These needs are categorized as:

A)emotional and rational.
B)formal and informal.
C)verbal and nonverbal.
D)external and internal.
E)behavioral and attitudinal.

Question 48

A manufacturer of aquariums for consumers' homes is most likely to go through all eight stages of the buying process when she is:

A)renewing subscriptions to trade journals.
B)purchasing a new computerized inventory system to facilitate the implementation of a just-in-time (JIT) inventory system.
C)ordering glass sheets from the firm's usual supplier.
D)restocking the glue needed to make the tanks leak-proof.
E)buying cleaning supplies from the list left by the maintenance staff.

Question 49

The salesperson for the Big Apple Sign Corporation was trying to get the hardware storeowner to buy a new kind of advertising tool called floor graphics, an opaque vinyl film that applies directly to the floor, is easy to remove, and can be used to promote in-store specials. Since the storeowner has purchased advertising before--just not this particular kind of advertising, this is an example of a _____ buying situation.

A)derived rebuy
B)straight-rebuy
C)derived-demand
D)value-added
E)modified-rebuy

Question 50

Imagine the manufacturer of Fancy Feast cat food has purchased "can sheets" for making its cans from Alcoa Aluminum for years, but it has recently decided to become more environmentally friendly. In doing so, it plans to talk to Reynolds Aluminum about its recycling project. In this instance, the purchase of "can sheets" would be an example of a _____ buying situation.

A)new-task
B)straight-rebuy
C)derived-demand
D)value-added
E)modified-rebuy

Question 51

Bruce is the executive assistant to a movie director. It is his job to examine all scripts sent to the director for consideration. If Bruce likes a script, he gives it to the director to read, and if he does not like a script, he throws it in the trash. In terms of the buying center, Bruce serves as a(n):

A)idea creator.
B)influencer.
C)judge.
D)user.
E)gatekeeper.

Question 52

The hospital is considering changing its supplier of replacement joints. While surgeons make the final decision, the hospital's purchasing department is promoting Kyocera because it manufactures one of the cheapest and most durable hip joints on the market. In terms of the buying center, the purchasing department is a(n):

A)decider.
B)influencer.
C)judge.
D)user.
E)demand deriver.

Question 53

The human resource director at a commercial laundry is having trouble providing the labor needs for the business. In a trade journal, he read about a VAC Soil Counting System that is a computerized system for sorting and counting incoming soiled textiles. The system can reduce labor costs by up to 50 percent. He is encouraging the floor supervisor to buy the system, but the supervisor says while he liked to see such a system used by the laundry such a decision has to be approved by the laundry's owner. In terms of the buying center, the HR director is a(n) ____, the supervisor is a(n) ____, and the owner is a(n) ____.

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

Question 54

_____ control the flow of information and limit the alternatives considered.

A)Deciders
B)Influencers
C)Buyers
D)Users
E)Gatekeepers

Question 55

Byorn, a purchasing manager, is part of the team evaluating VOIP communication systems, a major capital investment for his telemarketing company. Byorn is involved in a(n) ____________ situation.

A)life-cycle costing
B)new task
C)end user emotional needs
D)straight rebuy
E)modified MRO

Question 56

Ruth markets rock concerts. She is looking for a company that will handle all of the various mailings needed to promote the purchase of concert tickets. She wants to use Graham Mail House because she is a close personal friend with the mailing house's operation manager, but others involved in the decision making want to take bids from other mailing houses. In this example Ruth is expressing a(n) _____ need.

A)emotional
B)formal
C)external
D)verbal
E)rational

Question 57

The chief executive officer for a manufacturer of leather handbags would be most likely to become a member of the buying center when the company:

A)orders a replacement housing for one of its assembly line machines to better protect its line workers.
B)instructs the printer to print 1,000 additional copies of the company newsletter.
C)buys a new health insurance plan for all of its employees.
D)renews its membership in trade associations.
E)buys paper supplies for its laser printers.

Question 58

The owner of a commercial laundry is having trouble providing the labor needed for the business. In a trade journal, he read about a VAC Soil Counting System that is a computerized system for sorting and counting incoming soiled textiles. The system can reduce labor costs by up to 50 percent. To satisfy _____ needs, he is considering purchasing the system or one similar to it.

A)emotional
B)formal
C)external
D)verbal
E)rational

Question 59

Daplast is a Spanish company that manufactures stadium seating for sports venues. It is one of many such manufacturers. The purchase of Daplast stadium seating for the 2012 Olympic stadium would probably be an example of a _____ situation while the purchase of replacement seating for the Ohio State University football stadium from Daplast would probably be a _____ situation.

A)straight rebuy; modified rebuy
B)new task buy; straight rebuy
C)modified rebuy; new task buy
D)straight rebuy; new task buy
E)new task buy; modified rebuy

Question 60

Kevin works for Irish Pub Company, a design and construction outfit that sells completely finished, made-in-Ireland pubs--complete with everything from beer taps to mosaic floors to decorative bric-a-brac like antique whiskey bottles--to American entrepreneurs. Kevin is trying to sell the Irish pub concept to a retired New York City business executive who wants to own his own business. Since the executive is not an experienced pub owner and is reluctant to invest $300,000 in the project, Kevin should consider this to be a _____ buying situation.

A)new-task
B)straight-rebuy
C)derived-demand
D)value-added
E)modified-rebuy

Question 61

Foster has decided to buy all his MRO supplies from Alexia's Supply House. For competitors, Foster's account is:

A)always-a-share.
B)JIT.
C)a modified rebuy.
D)lost-for-good.
E)derived demand.

Question 62

Because DLS Aquatics has proven to be a satisfactory supplier of aquarium filters for Fins Aloft, a tropical fish retailer, the store's owner has ____, which is illustrated by his continued buying from that company in spite of sales calls from salespeople from other distributors.

A)vendor loyalty
B)brand equity
C)buyer allegiance
D)top-of-mind awareness
E)creeping commitment

Question 63

The organizational buyer for Van Bloom Gardens frequently uses _____ to make sure that all important factors are considered, such as bulb size, delivery speed, bulb sprouting time, and level of sales support, before selecting a supplier.

A)a vendor analysis
B)a marketing audit
C)outsourcing
D)a needs assessment
E)a value analysis

Question 64

Sparkling clean floors are both eye-pleasing and difficult to maintain in high-traffic areas. Most stores use floor mats, especially at doors, to keep floors clean, but these mats get dirty easily and are troublesome to clean. A salesperson from a mat rental service can show a retailer how much money can be saved by comparing costs of owning mats to the costs of renting mats. In this way, the salesperson for the mat rental service can:

A)satisfy both the service and economic criteria of the buyer.
B)perform a vendor analysis.
C)create a sustainable differential advantage for the user.
D)satisfy the quality and service criteria of the buyer.
E)centralize its purchasing processes.

Question 65

Hallmark supplies its retailers with handheld Crownlink electronic data interchange terminals. All of its retailers use these terminals to transmit merchandise orders to Hallmark in Kansas City. Inventory is stocked as needed. Stockouts cannot occur. Shipments will be placed daily if that is what the individual retailer needs. This is an example of a _____ system.

A)efficient consumer response
B)total quality management
C)marketing information
D)zero-defect management
E)material requirements planning

Question 66

Which of the following members of the buying center would typically NOT be involved in a value analysis?

A)a representative from the engineering department
B)members of the purchasing department
C)technical experts from the production department
D)technical experts from the quality control department
E)a representative from the advertising department

Question 67

The need for risk reduction is one of the factors affecting the individual making the organizational buying decision. What can a salesperson do to help reduce the risk?

A)Turn a straight rebuy situation into a modified rebuy situation.
B)Provide the buyer with product information from independent sources not connected with the company for which the salesperson works.
C)Send the buyer the complete portfolio of all collateral sales materials.
D)Make the buyer understand that every buy should be a new-task buy situation.
E)Persuade the buyer to not perform vendor analyses.

Question 68

In which stage of the buying process are personal, noncommercial sources of information most important?

A)need recognition
B)development of specifications
C)sales calls
D)proposal evaluation
E)order replacement

Question 69

Which of the following statements about a material requirements planning (MRP) system is true?

A)The MRP system can be used to forecast sales.
B)An MRP system would never be implemented by a company trying to use a total quality management approach to managing its business.
C)The MRP system is most often used to uncover needs or problem areas within an organization's various functional departments.
D)An MRP system is a type of JIT program.
E)The MRP system often creates bottlenecks.

Question 70

To make its world famous barbecue, the Old Smoke House restaurant needs a steady supply of hickory wood. Because the Old Smoke House's owner believes in ____, she has used the same wood supplier for almost fifteen years.

A)value loyalty
B)purchase certainty
C)supplier devotion
D)supplier allegiance
E)vendor loyalty

Question 71

Jackson likes his major parts supplier for his automobile repair business but always buys some of his parts from another competitor. Jackson is using a __________________ strategy.

A)value loyalty
B)always-a-share
C)supplier devotion
D)straight rebuy
E)derived demand

Question 72

Ryan wants a vendor who will provide ingredients for her restaurant each day, adjusted for the number of reservations he has for that evening. Ryan is looking for a vendor who will provide:

A)risk reduction.
B)just-in-time inventory control.
C)material requirements planning.
D)supply chain management.
E)outsourcing.

Question 73

Daimler-Chrysler uses a supply chain management system called ______ to schedule delivery of auto parts to arrive at its plants thirty minutes before the parts are to be used in the assembly process.

A)efficient consumer response
B)total quality management
C)just-in-time inventory control
D)zero-defect management
E)material requirements planning

Question 74

The objective of a(n) _____ system is to minimize inventory by having frequent deliveries, sometimes daily, as needed for assembly into a final product.

A)efficient consumer response
B)total quality management
C)just-in-time inventory control
D)zero-defect management
E)material requirements planning

Question 75

To develop the close coordination needed for just-in-time (JIT) inventory control systems, manufacturers tend to rely on one supplier. How is this supplier selected?

A)by lowest item-by-item cost
B)by its ability to be flexible
C)by product quality
D)by size of operation
E)by lowest overall cost

Question 76

When using life-cycle costing as one of the criteria for evaluating and selecting a supplier for a new oil well drilling platform, a purchasing agent should look at:

A)the initial cost of the platform.
B)the estimated maintenance cost for the platform over a ten-year period.
C)how soon the platform will need to be replaced.
D)the cost of installing the platform at a drilling site.
E)all of the above

Question 77

_____ systems are used to forecast sales, develop production schedules, and select inventory dates that minimize costs.

A)Efficient consumer response
B)Total quality management
C)Marketing research
D)Zero-defect management
E)Material requirement planning

Question 78

The business environment is changing dramatically, and organizational buying is also changing. As organizations are pressured to improve product quality, control costs, and minimize inventory, they are:

A)elevating their purchasing directors to reflect the increasing importance of this function.
B)replacing just-in-time inventory control with a more practical technique.
C)using less global sourcing to reduce transportation costs.
D)using less value analysis.
E)doing all of the above

Question 79

In "Developing a Diverse Supplier Base" vendor diversity is defined as:

A)a large variety of suppliers.
B)suppliers with a large variety of products.
C)buying from vendors owned by women, minorities, and disabled veterans.
D)geographic diversification.
E)breadth and depth in the vendor vetting process.

Question 80

LifeStream Industries has used GE light bulbs for years. When it needs new light bulbs, it uses a straight rebuy. The distributor of Tungstram LED light bulbs would like an opportunity to get his product considered by LifeStream. A _____ would be particularly useful for Tungstram, the out supplier.

A)quality-service analysis
B)organizational audit
C)environmental assessment
D)value analysis
E)multi-attribute model