Deck 6: Business and Organizational Customers and Their Buying Behavior

Question 1

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

Answer 1

False
Explanation: Organizations typically focus on economic factors when they make purchase decisions and are usually less emotional in their buying than final consumers.

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

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

Answer 3

False
Explanation: The basic approaches marketers use to deal with business customers in international markets are much less varied than those required to reach individual consumers.

Question 4

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 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

A requisition is a request to buy something.

Question 18

Organizational buyers are often referred to as the B2B market.

Question 19

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

Question 20

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

Question 21

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

Question 22

ISO 9000 is only relevant to domestic suppliers.

Question 23

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

Question 24

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

Question 25

The Internet is making even straight rebuys more competitive.

Question 26

ISO 9000 is only relevant to international suppliers.

Question 27

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

Question 28

ISO 9000 is relevant to both domestic and international suppliers.

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

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 43

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

Question 44

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

Question 45

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 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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 77

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

Question 78

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

Question 79

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

Question 80

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