Deck 19: Organizational and Buyer Behavior

Question 1

Which of the following is NOT a stage in the organizational buying decision process?

A) vendor support programs
B) problem recognition
C) information search
D) postpurchase processes
E) alternative evaluation and selection

Answer 1

A
Explanation: Problem recognition, information search, alternative evaluation, and outlet selection and purchase are all stages in the organizational buying decision process.

Question 2

Decision-making units often function as _____ when they consist of individuals from various areas of the firm, such as accounting, engineering, manufacturing, and marketing, who meet specifically to make a purchase decision.

A) buying centers
B) purchasing agents
C) consultants
D) intermediaries
E) opinion leaders

Answer 2

A
Explanation: These are often relatively permanent for recurring decisions and ad hoc for nonroutine ones.

Question 3

Which of the following is an external influence on organizational buyer behavior?

A) organizational values
B) motives
C) emotions
D) reference groups
E) learning

Answer 3

D
Explanation: Reference groups influence organizational behavior and purchasing decisions.

Question 4

Which of the following is a characteristic of a decision-making unit?

A) They are often relatively permanent for nonroutine decisions.
B) Even less important decisions are likely to involve individuals from a wide variety of functional areas.
C) Large, highly structured organizations ordinarily involve more individuals in a purchase decision than do small, less formal organizations.
D) Decision-making units are typically a separate permanent organizational department in large organizations.
E) Small organizations do not use formalized decision-making units.

Question 5

Which of the following is a stage in the organizational decision process?

A) problem recognition
B) information search
C) alternative evaluation
D) outlet selection and purchase
E) all of the above

Question 6

Which of the following is FALSE regarding what drives businesses?

A) Small and moderate sized businesses have a lot of potential.
B) Branding doesn't matter.
C) Personal relationships matter.
D) Businesses are consumers.
E) None of the above is false.

Question 7

Maria is a pharmaceutical sales representative who calls on hospitals. She is taking on a new territory, and she is trying to learn the internal influences on each hospital's culture. Which of the following is something that she should consider with respect to internal influences?

A) firmographics
B) organizational values
C) reference groups
D) lead users
E) competitors' marketing activity

Question 8

Firmographics, culture, government, reference groups, and marketing activities are _____ influences on organizational buyer behavior.

A) internal
B) external
C) insignificant
D) primary
E) secondary

Question 9

Different functional areas of an organization often do all of the following EXCEPT _____.

A) play different roles in the purchase process
B) utilize different information sources
C) use different evaluative criteria
D) assign different weights to evaluative criteria
E) All of the above are done by different functional areas.

Question 10

Matt is currently undergoing sales training and is trying to understand the external influences on organizational buyer behavior. Which of the following is an external influence?

A) firmographics
B) culture
C) government
D) marketing activities
E) all of the above

Question 11

Which of the following influences organizational culture and thus, organizational buyer behavior?

A) culture
B) marketing activities
C) organizational values
D) motives
E) all of the above

Question 12

Marketers have learned which of the following with respect to segmenting business customers?

A) The segment of small and moderate-sized businesses has a lot of potential.
B) The segment of small and moderate-sized businesses has limited potential.
C) The segment of large businesses is the most attractive.
D) The segment of large businesses is the least attractive.
E) Tapping the potential of the small and moderate-sized business segment does not require adapting the marketing strategy from that used to target larger businesses.

Question 13

The individuals (representing functional areas and management) within an organization who participate in making a given purchase decision make up the _____.

A) strategic business unit (SBU)
B) decision center (DC)
C) decision-making unit (DMU)
D) strategic decision unit (SDU)
E) functional decision unit (FDU)

Question 14

A difference between large and small organizations when making a purchase decision is _____.

A) small organizations generally involve more individuals in the decision-making process
B) large organizations generally involve more individuals in the decision-making process
C) large organizations typically have less specialization
D) small organizations typically have more specialized purchasing tools
E) all of the above

Question 15

Sinclair is from accounting and is a member of a committee to purchase a new mainframe computer system for his company. Sinclair is a member of the _____.

A) strategic business unit (SBU)
B) decision center (DC)
C) decision-making unit (DMU)
D) strategic decision unit (SDU)
E) functional decision unit (FDU)

Question 16

Which of the following is NOT an internal influence on organizational buyer behavior?

A) firmographics
B) organizational values
C) perception
D) motives
E) memory

Question 17

Which of the following is NOT an external influence on organization buyer behavior?

A) firmographics
B) culture
C) perception
D) government
E) marketing activities

Question 18

Carlos is trying to understand the organizational buyer behavior of firms in his sales territory. Which of the following is an external influence on an organization's culture that he should examine?

A) organizational values
B) needs
C) desires
D) firmographics
E) motives

Question 19

Problem recognition, information search, alternative evaluation and selection, outlet selection and purchase, and postpurchase processes represent _____.

A) external influences
B) internal influences
C) organizational culture
D) the decision process
E) types of buying decisions

Question 20

Which of the following is an internal influence on organizational buyer behavior?

A) motives
B) firmographics
C) culture
D) reference groups
E) all of the above

Question 21

For which stage of the product life cycle is the size of the decision-making unit typically large?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 22

Which type of organizational purchase situation occurs when the purchase is of minor importance and is not complex?

A) nominal
B) modified rebuy
C) limited
D) straight rebuy
E) routine

Question 23

Bob is an engineer. For which stage of the product life cycle is he likely to be a member of a key function influencing purchase decisions?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 24

For which stage of the product life cycle is the size of the decision-making unit likely to be neither small nor large, but medium?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 25

Which type of organizational purchase situation is characterized by low purchase importance, low choice complexity, level of decision-making unit (DMU) at low levels of the organization, a very small DMU, very brief time to decision, and very limited decision search?

A) nominal
B) straight rebuy
C) modified rebuy
D) new task
E) limited

Question 26

The College of Business at a major university is considering the purchase of technology necessary to enable them to put their curriculum online. This decision is very important and includes a very large and evolving decision-making unit. Which type of organizational purchase situation does this represent?

A) nominal
B) straight rebuy
C) modified rebuy
D) new task
E) limited

Question 27

In high-tech markets, who is most likely to recognize a problem or need to purchase?

A) CEO
B) accounting personnel
C) purchasing manager
D) head of a department
E) consumer

Question 28

Juan's job as a purchasing agent consists mostly of reordering basic supplies and component parts. Which type of organizational purchase situation does this represent?

A) nominal
B) straight rebuy
C) modified rebuy
D) new task
E) limited

Question 29

Which of the following is an organizational purchase situation?

A) nominal
B) modified rebuy
C) limited
D) extended
E) routine

Question 30

Which type of organizational purchase situation is characterized by high purchase importance and complexity, a large and evolving decision-making unit that includes the top of the organization, a long time to decision, extensive information search and analysis techniques, and a dominant strategic focus?

A) nominal
B) straight rebuy
C) modified rebuy
D) new task
E) limited

Question 31

For products in which stage of the product life cycle are engineering and R&D likely to be key functions influencing the purchase decision?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 32

Shawn tries to obtain information that might assist his company whenever he talks with sales representatives, attends trade shows, or when he reads the journals related to his industry. Shawn is conducting a(n) _____.

A) formal information search
B) informal information search
C) direct information search
D) indirect information search
E) secondary information search

Question 33

For products in which stage of the product life cycle is the purchasing function of an organization likely to be the key function influencing the purchase decision?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 34

Members of the decision-making unit play which of the following roles?

A) information gatherer
B) key influencer
C) decision maker
D) purchaser
E) all of the above

Question 35

For which stage of the product life cycle is the decision-making unit likely to be small?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 36

Which type of decision rule is very common in the first step of a two-stage decision for an organizational purchase?

A) conjunctive
B) disjunctive
C) lexicographic
D) compensatory
E) elimination-by-aspects

Question 37

Which of the following is NOT a role played by members of the decision-making unit?

A) information gatherer
B) key influencer
C) regulator
D) user
E) purchaser

Question 38

Madeline works in purchasing for a major corporation. For purchase of products, in which stage of the product life cycle is she likely to perform a key function influencing purchase decisions?

A) introduction
B) growth
C) maturity
D) decline
E) fortification

Question 39

Which of the following can possibly be part of the informal information search process for organizational buyers?

A) site visits to evaluate a potential vendor
B) laboratory test of a new product or prototype
C) investigation of possible product specifications
D) discussions with sales representatives
E) All of the above are part of informal information search.

Question 40

Darryl is a chemist at a pharmaceutical company, and he was asked by the decision-making unit at his company to visit and evaluate potential vendors that will supply his company with the chemicals required to manufacture their products and to conduct laboratory tests of a new product that can be used in the manufacture of their products. Darryl is assisting the company with which type of information search?

A) formal
B) informal
C) priority
D) secondary
E) direct

Question 41

Which term is often used to refer to the organizational culture of a business firm?

A) firmographics
B) lifestyle
C) corporate culture
D) corporate style
E) internal style

Question 42

Which of the following statements is FALSE regarding a firm's size?

A) Large organizations are more likely than smaller ones to have a variety of specialists who attend to purchasing, finance, marketing, and general management.
B) The same promotional message needs to be targeted to all of the various functions in the firm.
C) Larger organizations are generally more complex than smaller ones because more individuals participate in managing the organization's operations.
D) The purchase decision in a smaller firm might involve only the owner or manager.
E) One message would need to address all the key purchase issues when targeting a smaller firm.

Question 43

General Electric commits millions of dollars a year to research and development to develop new products. How would this be classified with respect to general organizational objectives and the nature of the organizational activity?

A) commercial objective, routine activity
B) commercial objective, complex activity
C) commercial objective, technical activity
D) cooperative objective, technical activity
E) nonprofit objective, complex activity

Question 44

_____ involve both organization characteristics (e.g., size, activities, and location) and characteristics of the composition of the organization (e.g., gender, age, education).

A) Firmographics
B) Psychographics
C) Demographics
D) Geographics
E) Behaviorgraphics

Question 45

Organizations have a type of self-concept and lifestyle that the text refers to as _____.

A) organizational ethos
B) organizational culture
C) organizational demeanor
D) organizations structure
E) none of the above

Question 46

Roger owns 200 shares of stock in Home Depot. Which type of commercial firm is Home Depot?

A) public firm
B) cooperative firm
C) private firm
D) open firm
E) trade firm

Question 47

Which of the following is NOT a category of organizational objectives?

A) commercial
B) governmental
C) nonprofit
D) cooperative
E) temporal

Question 48

Which of the following is NOT a component of firmographics?

A) company size
B) reference groups
C) company objective
D) company location
E) All of the above are components of firmographics.

Question 49

Marcus works in operations. Which of the following evaluative criteria is NOT important to him?

A) ease of maintenance of equipment
B) competence of service technicians
C) vendor offers a broad line
D) time needed to install equipment
E) product warranty

Question 50

Which of the following sources is rated as the most important information source for purchasers and purchase influencers within organizations?

A) online database services
B) B2B magazines
C) salespeople
D) television business networks
E) general business press

Question 51

Organizational objectives can be categorized as _____.

A) commercial
B) governmental
C) nonprofit
D) cooperative
E) all of the above

Question 52

Payments, warranties, delivery dates, and so forth represent _____.

A) purchase specifications
B) product specifications
C) terms and conditions
D) postpurchase evaluation
E) relationship marketing

Question 53

A commercial firm in which one or a few individuals owns a controlling share of the firm is known as a(n) _____.

A) public firm
B) cooperative firm
C) private firm
D) open firm
E) nontrade firm

Question 54

A commercial firm in which stock is widely traded is known as a(n) _____.

A) public firm
B) cooperative firm
C) private firm
D) open firm
E) trade firm

Question 55

The beliefs and attitudes an organization's members have about the organization and how it operates is known as _____.

A) policy and procedure
B) firmographics
C) lifestyle
D) organizational style
E) organizational culture

Question 56

Laura's job is to negotiate the payment schedule, warranties, and delivery dates for major purchases made by her company. Laura deals with the _____ of the purchase.

A) evaluative criteria
B) product specifications
C) terms and conditions
D) postpurchase evaluation
E) relationship marketing aspect

Question 57

Which of the following variables represents an organization's firmographics?

A) size
B) activities and objectives
C) location
D) industry category
E) all of the above

Question 58

The American Red Cross participates in fund-raising activities all throughout the year. How would this be classified with respect to general organizational objectives and the nature of the organizational activity?

A) commercial objective, routine activity
B) governmental objective, routine activity
C) nonprofit objective, routine activity
D) cooperative objective, routine activity
E) nonprofit objective, complex activity

Question 59

Given the informational role of the web in today's B2B environment, salespeople need to _____.

A) adopt the role of solution provider
B) adopt the role of information provider
C) replace the use of search engines
D) redesign corporate websites
E) all of the above

Question 60

Organizational activities can be categorized as _____.

A) routine
B) complex
C) technical
D) A and B
E) A, B, and C

Question 61

_____ refers to the flow of purchase influence within an industry.

A) User reference groups
B) Reference group infrastructure
C) Diffusion of innovations
D) Two-stage decision process
E) Buying centers

Question 62

Which of the following is NOT considered a user reference group in organizational buying?

A) lead user
B) trade press
C) early adopters
D) followers
E) All of the above are considered a user reference group.

Question 63

Which of the following is the MOST important element of the communications mix in most industrial markets?

A) advertising
B) sales promotion
C) sales calls
D) public relations
E) pricing

Question 64

Which of the following is an infrastructure reference group?

A) business press
B) followers
C) early adopters
D) lead firms
E) government regulators

Question 65

Lead users tend to accelerate diffusion of information through infrastructure, which is labeled as _____.

A) market pull
B) primary demand
C) market push
D) secondary demand
E) leading indicator

Question 66

Which of the following is a value representative of an innovative organization that seeks to change, views problems as opportunities, and rewards individual efforts?

A) Risk taking is discouraged.
B) Cooperation is more important than competition.
C) Change is negative and actively avoided.
D) Hard work comes first, leisure second.
E) Rank or status is more important than performance.

Question 67

Which of the following is NOT an objective uncovered through research that drives the management of privately held firms?

A) building a place for the entire family to work and be involved
B) becoming wealthy
C) avoiding corporations and working for others
D) building a lasting "empire"
E) changing governmental regulations

Question 68

Which of the following is a reason for the significant role of salespeople in industrial markets?

A) It is the least expensive form of communication for the selling organization.
B) Business buyers prefer to do business with firms they know, like, and trust, and sales personnel are the most common representative of the selling organization.
C) Advertising has been shown to not have any positive impact on awareness and sales.
D) Business buyers usually are not allowed to purchase without the assistance of a sales representative.
E) None of the above is a reason.

Question 69

The types of individuals who work in the organization represent the organization's _____.

A) size
B) composition
C) macrosegment
D) reference group
E) demographic group

Question 70

Which of the following statements regarding culture and government is TRUE?

A) Variations in values and behaviors across cultures affect organizations as well as individuals.
B) In Europe, bribery and similar approaches for making sales are acceptable.
C) In the United States, there is a close working relationship between businesses and government.
D) Worker welfare is more important than corporate profit in most U.S. companies.
E) Plant closure laws, layoff regulations, and worker benefits tend to be much higher in the United States than in European countries.

Question 71

The culture of most organizations is influenced most heavily by which of the following?

A) government
B) overall membership
C) founder and top management
D) competition
E) customers

Question 72

Which organization buyer segment doesn't want value-added service and doesn't want to pay for it?

A) commodity buyers
B) underperforming buyers
C) partner buyers
D) most-valuable buyers
E) government buyers

Question 73

Perhaps the most powerful type of reference group in industrial markets is that of _____.

A) innovators
B) lead users
C) government regulators
D) market mavens
E) business press

Question 74

Innovative organizations that derive a great deal of their success from leading change are referred to as _____.

A) innovators
B) lead users
C) government regulators
D) market mavens
E) opinion leaders

Question 75

Robert Mondavi is a well-known winery in Napa Valley, CA. It is a family-owned business and is not traded on any stock exchange. Which type of commercial firm is this known as?

A) public firm
B) cooperative firm
C) private firm
D) open firm
E) nontrade firm

Question 76

For which type of industry are average costs per sales call the highest?

A) manufacturing
B) service
C) retail
D) wholesale distribution
E) nonprofit

Question 77

Lead users tend to accelerate market adoption, which is labeled as _____.

A) market pull
B) primary demand
C) market push
D) secondary demand
E) leading indicator

Question 78

Organizations with distinguishing firmographics can be grouped into market segments through a process called _____.

A) industry identification
B) infrastructure segmentation
C) conjoint analysis
D) macrosegmentation
E) factor analysis

Question 79

Which of the following can influence an organization's decision to buy or not buy a given product, or to buy or not buy from a given supplier?

A) trade associations
B) financial analysts
C) dealer organizations
D) business press
E) all of the above

Question 80

Microsoft is a company that has derived a great deal of success from leading change, and other computer-related companies look to Microsoft for cues as to where technology will be heading in the future. Microsoft would be classified as which type of user reference group?

A) lead user
B) industry leader
C) early adopters
D) followers
E) supportive firm