Deck 6: Business and Organizational Customers and Their Buying Behavior

Question 1

In a large company,the "buying center" refers to all the purchasing managers who work for the firm.

Answer 1

False
Explanation: A buying center is made up of all the people who participate in or influence a purchase-users,buyers,influencers,deciders,gatekeepers.

Question 2

Purchasing managers are buying specialists for organizations and may have a lot of power.

Answer 2

True
Explanation: Many organizations rely on specialists or purchasing managers to ensure that purchases are handled sensibly.

Question 3

Organizational buyers are also referred to as industrial or intermediate buyers.

Answer 3

True
Explanation: Organizational customers are sometimes loosely referred to as business buyers,intermediate buyers,or industrial buyers.

Question 4

There are more final consumers than business and organizational customers,so more is purchased by final consumers.

Question 5

"Multiple buying influence" means that several people in an organization share in making a purchase decision,but top management is never involved.

Question 6

Manufacturers and developers are often categorized as intermediaries.

Question 7

A seller's marketing mix should satisfy both the needs of the customer company and the needs of individuals in the buying center.

Question 8

"Multiple buying influence" means that the buyer shares the purchasing decision with several people.

Question 9

Business and organizational customers are selective buyers who buy for the sole purpose of resale.

Question 10

Like final consumers,organizations make purchases to satisfy specific needs,but their basic need is for goods and services that will help them satisfy their own customers or clients.

Question 11

The process of organizational buying is entirely different from consumer buying.

Question 12

A seller's marketing mix should satisfy both the needs of the customer company and the needs of individuals in the buying center.

Question 13

"Multiple buying influence" means that several people rather than top management share in making a purchase decision.

Question 14

Organizational buyers are often referred to as the B2B market.

Question 15

A buying center is generally thought of as all the people who participate in or influence a purchase.

Question 16

For many firms,marketing strategy planning is about meeting the needs of organizational customers,not final consumers.

Question 17

Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.

Question 18

A requisition is a request to buy something.

Question 19

Dependability of supply is usually much less important than price for most business customers.

Question 20

Purchasing managers seldom use purchasing specifications to buy on the Internet.

Question 21

Purchasing specifications may be very simple (with only a brand name or part number)or very detailed (as with services).

Question 22

Online communities are one way for buyers to connect with others who have already dealt with a similar need.

Question 23

White papers,case studies,blogs,and videos are all ways for a seller's website to provide a buyer with useful content.

Question 24

A person who needs to purchase something usually completes a requisition.

Question 25

A straight rebuy is a routine repurchase that may have been made many times before.

Question 26

Purchasing specifications should be used only with products where quality is highly standardized.

Question 27

Organizational buyers often buy on the basis of a set of purchasing specifications.

Question 28

Purchase specifications for services are usually very simple because services tend to be very standardized.

Question 29

As B2B buyers rely more on social networks,it's more likely that communications from sellers will have even more influence.

Question 30

A description of what a firm wants to buy is called its purchasing specifications,whether that description is written or electronic.

Question 31

Few purchasing managers have been able to turn over any of their order placing to computers because so few organizational purchases are routine.

Question 32

When a variety of information sources are readily available in new-task buying,a buyer is much less likely to use a trusted source.

Question 33

Most purchasing managers use search engines as their first step to satisfy new or unfamiliar questions.

Question 34

A competitive bid is the terms of sale offered by a supplier in response to the purchase specifications posted by a buyer.

Question 35

Specialized search engines can help a business buyer search for products using purchase specifications.

Question 36

New-task buying is an in-between process in which some review of the buying situation is done.

Question 37

Straight-rebuy buying takes longer than modified-rebuy or new-task buying and offers more opportunity for promotion impact by the seller.

Question 38

Specialized search engines can help a business buyer search for products by description.

Question 39

Straight rebuys can automatically be handled by e-commerce systems.

Question 40

A business buyer who uses general purpose and/or specialized search engines may reduce the need to arrange for custom-produced items.

Question 41

The goal of vendor analysis is to maximize the total costs associated with purchases in order to ensure maximum product quality.

Question 42

The best vendor is one that helps the customer reduce costs of excess inventory,retooling of equipment,or defective parts.

Question 43

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.

Question 44

Internet tools used in the B2B market that focus primarily on lowering price do not always lower total purchasing costs.

Question 45

In business markets,buyer-seller relationships tend to be an "all or nothing" arrangement-either very close or not at all close.

Question 46

Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.

Question 47

Although we talk about close relationships between firms in business markets,in practice it is just the relationship between the salesperson and purchasing manager that becomes close.

Question 48

The Internet is making it faster and easier for organizational buyers to use competitive bidding procedures.

Question 49

Just-in-time delivery reliably helps to get products and store them long before the customer needs them.

Question 50

In cooperative relationships in a business market,the buyer and seller work together to jointly achieve both mutual and individual objectives.

Question 51

A long-term commitment by an organization to a partner may reduce flexibility.

Question 52

Negotiated contract buying would be used when the buyer knows precisely what he or she wants and the requirements of the job aren't likely to change as the job is done.

Question 53

At a procurement site,competition among sellers is likely to increase.

Question 54

So far,B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.

Question 55

In business markets,suppliers usually want close relationships with customers; however,there's little benefit to the customer of having closer relationships with suppliers.

Question 56

Just-in-time relationships between buyers and sellers usually require operational linkages and information sharing.

Question 57

Firms can add sustainability to a vendor analysis,but it will never result in cost savings.

Question 58

In business markets,a seller would always prefer to have a closer relationship with a customer.

Question 59

Relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

Question 60

A close buyer-seller relationship in a business market may reduce a firm's flexibility.

Question 61

NAICS stands for New Auto Industry Classification Survey.

Question 62

Purchasing managers are even more likely to be involved in buying by small service firms than in buying by large producers.

Question 63

Most manufacturers have more than 500 employees.

Question 64

In a market composed of service producers,most firms are small and geographically dispersed.

Question 65

The U.S.government collects and publishes data by the NAICS codes.

Question 66

The government is the largest customer group in all countries.

Question 67

Relationship-specific adaptations are usually not required when the buying organization uses outsourcing.

Question 68

Purchases by small service firms are often handled by whoever is in charge or their administrative assistant.

Question 69

The U.S.government reports data on the number of firms,sales volume,and number of employees by NAICS code.

Question 70

Government is one of the smallest groups (in sales volume)of customers in the United States.

Question 71

Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31.

Question 72

To protect themselves from unpredictable events,most purchasing managers seek several dependable sources of supply.

Question 73

Specific adaptations are usually made when the buying organization chooses to outsource.

Question 74

Most wholesalers and retailers pay very close attention to each item they handle,treating most products as new-task purchases.

Question 75

Compared to final consumers,manufacturers tend to be more spread out geographically.

Question 76

Sales reps calling on large food retailers must often make their sales presentations to a buyer who doesn't have the final decision responsibility.

Question 77

There are about 17 times as many service firms as manufacturing firms in the United States.

Question 78

In the United States,many factories are concentrated in rural areas.

Question 79

It is very common for manufacturers to concentrate in certain geographic areas and by type of industry.

Question 80

Most retail and wholesale buyers see themselves as purchasing agents for their target customers.