Deck 7: Business Markets and Business Buyer Behaviour

Question 1

The decider is the person in the business buying process who controls the flow of information to others involved.

Answer 1

False

Question 2

One set of business purchases is made for each set of consumer purchases.

Answer 2

False

Question 3

Business buyers usually face more complex buying decisions than do consumer buyers.

Answer 3

True

Question 4

A business marketer normally deals with far fewer buyers than the consumer marketer does.

Question 5

Demand in business markets is subject to more fluctuation than in consumer markets.

Question 6

The main differences between business and consumer markets include market structure and demand,the nature of the buying unit,and the types of decisions.

Question 7

Buying centre participants with the highest rank always have the most influence.

Question 8

Buyer and seller are less dependent upon each other in the business buying process than in the consumer buying process.

Question 9

Business buyer behaviour refers to the buying behaviour of organizations that buy goods and services for use in the production of other products and services that are sold,rented,or supplied to others.

Question 10

Buyers have different buying styles influenced by interpersonal factors,such as age,income,education,professional identification,and attitudes toward risk.

Question 11

Rob Taylor is the buyer for Major Memories.He regularly orders inexpensive merchandise in a fairly routine fashion without any modifications.He may choose other suppliers from time to time.Rob's decisions take the form of a modified rebuy.

Question 12

The marketer need not be aware of what happens within the organization to turn stimuli into purchase responses.

Question 13

In business buying decisions,the role of emotion is negligible in comparison to the role of reason.

Question 14

Of the different types of buying situations,the modified rebuy presents the fewest decisions for a business buyer to make.

Question 15

Nancy Zahm works for LeBray Beverage Company.She often helps to define product specifications and also provides information for evaluating alternatives.In this role she is acting as a gatekeeper.

Question 16

The buying centre is not a fixed or formally identified unit within an organization.

Question 17

Business demand ultimately derives from the demand for consumer goods and services.

Question 18

Environmental,organizational,interpersonal,and individual factors all influence business buyer behaviour.

Question 19

Straight rebuy is a business buying situation in which the buyer routinely reorders something without any modifications.

Question 20

A small percentage increase in consumer demand can cause large increases in business demand.

Question 21

Dell buys microprocessor chips because consumers buy computers.This demonstrates an economic principle called ________.

Question 22

According to the text,the majority of large companies sell to ________ as a part of their normal operations.

Question 23

Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.

Question 24

Business buying behaviour refers to the buying behaviour of organizations that buy ________.

Question 25

The benefits of e-procurement include access to new suppliers,lower purchasing costs,and more time-efficient order processing and delivery.

Question 26

E-procurement typically reduces drudgery and paperwork,thereby freeing purchasing personnel to focus on more strategic issues.

Question 27

Which of the following is true about consumer marketers in comparison to business marketers?

A) They deal with far fewer but far larger buyers.
B) They deal with far more but far smaller buyers.
C) They deal with a more elastic market.
D) They deal with fewer demands in fluctuation.
E) They deal with the same decision buying process.

Question 28

In the product specification stage of the business buying process,the buyer ranks the importance of reliability,price,and other desired product characteristics.

Question 29

When conducting a performance review,the seller monitors different factors than those monitored by the buyer to make sure that the seller is giving the expected satisfaction.

Question 30

The act of buying goods and services for use in the production of products that are sold and supplied to others is called ________.

Question 31

It is rare that noneconomic factors play a role in government buying.

Question 32

According to the stages of the business buying process,after completing a general need description,a business buyer should next invite qualified suppliers to submit proposals.

Question 33

E-procurement shaves transaction costs and results in more efficient purchasing for both buyers and suppliers,and it also reduces the time between order and delivery.

Question 34

Online purchasing is standard procedure for most companies today.

Question 35

In some ways,business markets are ________ consumer markets.

Question 36

Business and consumer markets are similar in this regard.Satisfaction of needs through purchases

A) Satisfaction of needs through purchases
B) Nature of the buying unit
C) Market structure and demand
D) Types of decisions
E) Decision processes

Question 37

A statement prepared by a business buyer describing the quantity and general characteristics of the items needed is a product specification description.

Question 38

Proposals should be marketing documents and not just technical documents.

Question 39

Unfortunately,most governments do not provide would-be suppliers with detailed guides describing how to sell to the government.

Question 40

A customer relationship might involve many different types of purchases ongoing at a given time,all in different stages of the buying process.

Question 41

The _________ buying situation is both the marketer's greatest opportunity and also its greatest challenge.

Question 42

When you are considering the actual users of products,those who control buying information,those who influence the decisions,those who do the actual buying,and those who make the buying decisions you are considering the _____________.

Question 43

Bernie's Funeral Home produces caskets,a product with a very stable demand even though the price has changed several times in the past two years.Caskets are a product with ________ demand.

Question 44

The EPA has mandated that,in order to reduce local pollution,your printing plant switch from oil-based to water-based inks.This will require entirely new printing presses and a new printing plate technology.After carefully searching through numerous manufacturers' equipment descriptions and gathering opinions from all relevant parties related to the work,the printing plant's buying centre will be ready to make this ________ purchase.

Question 45

In routine buying situations,which members of the buying centre have formal or informal power to select or approve the final suppliers?

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

Question 46

____________ is when a company provides a complete system to meet the customer's needs and solve the customer's problems.

Question 47

In most organizations the buying activity can be divided into the buying ________ and the buying ________.

Question 48

Business goods and services demand tends to change more,and more quickly,than the demand for consumer goods and services does.This type of changing demand is referred to as ________ demand.

Question 49

Which of the following statements about buying centres is true?

A) The buying centre is like a standing committee.
B) The buying centre roles are specified on the organizational chart.
C) The typical buying centre has five employees, one to assume each of the buying centre's roles.
D) An individual's role in the buying centre does not change.
E) The buying centre may involve informal participants who are not obvious to sellers.

Question 50

ABC Enterprises sold 9000 units @ $2.99/unit in July.The firm sold 9000 units @ $4.29/unit in August.This illustrates ________ demand.

Question 51

The business buying decision process is often more ________ than the consumer buying decision process is.For example,large business purchasers usually call for detailed product specifications,written purchase orders,careful supplier searches,and formal approval where small purchasers may not.

Question 52

A supplier will most likely focus on maintaining product and service quality in the __________ type of buying situation.

Question 53

Which of the following is most likely true about a straight rebuy?

A) It requires little customer relationship management.
B) It is more complex than a new-task situation.
C) It often involves products with low risks.
D) It occurs when a buyer wants to locate the best deal on the market.
E) It involves more opportunities for "out" buyers than other types of purchasing situations do.

Question 54

UPS serves both consumer and business markets,but most of its revenues come from its business customers.UPS has become a strategic logistics ally for many of its business customers,going far beyond offering delivery services to offering inventory management,international trade management,and even financing to its commercial customers.This is an example of which of the following differences between the consumer and business markets?

A) Business purchases involve more buyers.
B) Buyers and sellers in the business market build close, long-term relationships.
C) Business markets contain more and larger buyers.
D) Business buyer demand is derived.
E) Demand in business markets is inelastic.

Question 55

Another name for solutions selling is ________ selling.

Question 56

You regularly purchase cleaning supplies for your custodial staff,using the same vendor and ordering relatively consistent amounts of the same products with each purchase.This is an example of a ________ situation.

Question 57

The buying centre of a buying organization is also called the ________.

Question 58

You call in a department manager to assist in a purchase of industrial equipment.You are considering a change in product specifications,terms,and possibly suppliers.This is most likely a ________ situation.

Question 59

Worthington Farm raises chickens.For years,it has used wooden coops for hauling its poultry to market.The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use.This purchase of coops is an example of a ________.

Question 60

A(n)________ controls the flow of information to others in the buying centre.

Question 61

One of Dr.Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.In terms of the buying centre,the dental assistant had the role of ________.

Question 62

The ______________ factors influencing a buying centre are often the most difficult factors for marketers to assess.

Question 63

Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition?

A) A buyer gets a new idea from an advertisement.
B) A buyer gets a new idea at a trade show.
C) A buyer is unhappy with a current supplier's price.
D) A buyer receives a call from a salesperson offering better service terms.
E) A buyer learns about a new product at an industry convention.

Question 64

Which environmental factor is the reason that many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply?

A) The level of primary demand
B) The economic outlook
C) The cost of money
D) Culture and customs
E) Shortages in key materials

Question 65

When suppliers' offers are very similar,business buyers have little basis for strictly ________.

Question 66

One of Dr.Albrecht's dental assistants told the dentist he should buy a machine that would sterilize his tools without using any water because water tends to cause the tools to rust or corrode over time.Dr.Albrecht,who runs a solo practice in a small rural town,located some articles on the chemical sterilizer and read about how the machine works.After gathering more information and talking to salespeople,Dr.Albrecht placed his order for the machine.In terms of the buying centre,Dr.Albrecht had the role of ________.

Question 67

When competing products differ greatly,business buyers are more accountable for their purchase choices and tend to pay more attention to ________.

Question 68

The major influences on the buying process at General Aeronautics include company policies and systems,technological change,and economic developments.The influences on the buying process in this scenario are most accurately categorized as ________ and ________.

Question 69

The first step of the business buying process is ________.

Question 70

A buying centre is not a fixed,formally identified unit within an organization but,rather,a set of ________ assumed by different people for different purchases.

Question 71

To ensure an adequate and available supply of key scarce materials,many companies are now willing to ________.

Question 72

Don Brady is responsible for obtaining price quotations from various vendors.After reviewing them,Don then determines whether or not to include the vendor on the approved vendor list.Don apparently plays two roles,that of ________ and ________.

Question 73

Often people who have formal authority to select the suppliers and arrange terms of purchase for items a company uses are called ________.

Question 74

Policies,procedures,and systems are all examples of ________ influences on business buyer behaviour.

Question 75

Which of the following accurately describes a cultural difference international marketers should be aware of?

A) Outside of English-speaking countries, most business leaders do not speak English.
B) British businesspeople are accustomed to making more business deals over the telephone than in person.
C) German people tend to be impressed by overstatement and showiness.
D) Japanese people tend to put a high value on rank.
E) French businesspeople are accustomed to building relationships between buyer and seller through quick and easy familiarity.

Question 76

Status,empathy,and persuasiveness are all examples of ________ influences on business buyer behaviour.

Question 77

Someone who provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing is often called a(n)________.

Question 78

Charlie Nolan,executive vice-president of National Central Bank,is going through all of the stages of the buying process to purchase a computer system for the bank.Charlie is facing a(n)________ situation.

Question 79

Business marketers that alert customers to potential problems and then show how their products provide solutions are trying to influence the ________ stage of the business buying process.

Question 80

A trucking company is considering purchasing new trucks that are powered by ethanol instead of diesel fuel.In terms of the buying centre,the truck drivers who must make sure that the trucks do not run out of fuel are the ________.