Deck 6: Business and Organizational Customers and Their Buying Behavior

Question 1

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

Answer 1

False
Explanation: More purchases are made by businesses and other organizations than by final consumers.

Question 2

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.

Answer 2

True
Explanation: Most organizations make purchases with the basic intent to satisfy their own customers and clients.

Question 3

ISO 9000 is relevant to both domestic and international suppliers.

Answer 3

True
Explanation: ISO 9000 is a way for a supplier to document its quality procedures according to internationally recognized standards and is relevant to both domestic and international suppliers.

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

ISO 9000 is only relevant to international suppliers.

Question 15

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

Question 16

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

Question 17

ISO 9000 is only relevant to domestic suppliers.

Question 18

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

Question 19

Organizational buyers are often referred to as the B2B market.

Question 20

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

Question 21

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

Question 22

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

Question 23

The Internet is making even straight rebuys more competitive.

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

A requisition is a request to buy something.

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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 45

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

Question 46

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 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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 79

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

Question 80

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