Deck 8: Business and Organizational Customers and Their Buying Behavior

Question 1

In a large company,the "buying center" refers to all of 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

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

Answer 2

False
Explanation: Multiple-buying influence means that the buyer shares the purchasing decision with several people including users, influencers, deciders, gatekeepers. In many cases, top management plays a part in making a purchase decision.

Question 3

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

Answer 3

False
Explanation: Multiple buying influence means that several people-perhaps even top management-play a part in making a purchase decision.

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Manufacturers and developers are often categorized as Intermediaries.

Question 16

Organizational buyers are often referred to as the B2B market.

Question 17

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 18

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

Question 19

The approaches used to serve business customers in international markets are even more varied than those required to reach individual consumers.

Question 20

Marketing strategy planning is about meeting the needs of organizational customers,not final consumers.

Question 21

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

Question 22

ISO 9000 is relevant to both domestic and international suppliers.

Question 23

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

Question 24

A requisition is a request to buy something.

Question 25

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

Question 26

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

Question 27

ISO 9000 is only relevant to international suppliers.

Question 28

With ISO 9000 someone is responsible for quality at every step.

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

The Internet is making even straight rebuys more competitive.

Question 34

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 35

ISO 9000 reduces the need for a customer to conduct its own audit of a supplier's quality procedures.

Question 36

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

Question 37

ISO 9000 is a way for a supplier to document that its quality procedures meet internationally recognized standards.

Question 38

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

Question 39

ISO 9000 is only relevant to domestic suppliers.

Question 40

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

Question 41

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

Question 42

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

Question 43

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 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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 65

In the U.S.,many factories are concentrated in rural areas.

Question 66

The term "NAICS" stands for New Auto Industry Classification Survey.

Question 67

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

Question 68

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 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

Most manufacturers are quite small,with 250 or fewer employees.

Question 77

There are about 17 times as many service firms as manufacturing firms.

Question 78

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

Question 79

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

Question 80

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