Deck 4: Organizational Buyer Behavior

Question 1

A person's ability to perform specific tasks is best measured by perceived self-esteem.

Answer 1

False

Question 2

Creation of cross-functional teams influences buying.

Answer 2

True

Question 3

A low-risk decision is either one with a high probability of a positive outcome,or the outcome itself is relatively unimportant.

Answer 3

True

Question 4

Organizational markets are relatively small in terms of the number of customers.

Question 5

Formalization affects the latitude that a buying center member has in choosing how to go about making the purchase.

Question 6

Self-orientation and company orientation operate independently.

Question 7

While buying agents respond strongly to financial and/or performance risks associated with purchase,social risks are of little or no concern.

Question 8

Today,the best marketing strategy is to determine who typically participates in the decision-making process and then work to satisfy the needs of the participants.

Question 9

In terms of the buying center,decisions concerning component parts tend to be "wide".

Question 10

There is no connection between a buyer's motivation to expend effort on the tasks required in various purchase situations and the products that might be purchased in those situations.

Question 11

Organizational buyers reduce their perceptions of risk by spreading the risk to other members of the firm.

Question 12

Organizational buying theories emphasize how people make decisions when buying for their organization.

Question 13

Experience reduces risk because uncertainty can be more accurately evaluated.

Question 14

Buyers may consider many vendors when economic risk is great and the benefits of looking around outweigh shopping costs.

Question 15

Experience with a product should influence the choice of a strategy.

Question 16

Gatekeepers control information between members of a group.

Question 17

Buyer choice theory emphasizes the reward structure rather than the buy-grid.

Question 18

Guarantees are only as good as the reputation of the company that offers them.

Question 19

Buying centers are composed of individuals,each of whom plays an autonomous role.

Question 20

Spreading purchases among several vendors increases performance risk.

Question 21

Globalization is a trend that has been facilitated by _____ factors such as free-trade policies and technology.

A) Market
B) Individual
C) Organizational
D) Environmental
E) Demographic

Question 22

Which of the following statements about market factors is FALSE?

A) Market factors include the number and relative size of competitors
B) Market factors are the characteristics of the market that influence buyer behavior
C) Relative size of buyers can make an impact on buying behavior
D) The number of competitors can be affected by the availability of substitutes
E) Organizational markets are relatively large in terms of the number of customers

Question 23

In terms of the buying center,vertical dimensions refer to:

A) The probability of an outcome and the importance or cost associated with the outcome
B) The latitude that a buying center member has in choosing how to go about making the purchase
C) The degree to which purchasing tasks and roles are defined
D) The number of departments involved in making a decision
E) How many layers of management are involved

Question 24

Corporate experience is a(n):

A) Market characteristic
B) Individual characteristic
C) Demographic characteristic
D) Organizational characteristic
E) Environmental characteristic

Question 25

Decision-making time is more likely to be lengthened,when buying centers:

A) Have a few personnel who are experienced in making purchase decisions
B) Have many personnel who are experienced in making purchase decisions
C) Are composed of many personnel who are inexperienced in making purchase decisions
D) Have only one experienced person making purchase decisions
E) Are small in size

Question 26

Ron is an engineer working in Affinity Technology Group Inc.,a provider of consumer financial services.He is the primary contact for his company with vendors,AND controls all of the information,deciding what to pass along to others in the decision-making process.The result is that Ron is able to slant perceptions of the vendors by choosing which information is passed along,and the final decision reflects his own personal preferences.In terms of the buying center,Ron is a(n):

A) Purchasing agent
B) Gatekeeper
C) Decision maker
D) User
E) Controller

Question 27

In terms of the buying center roles,the person who sets the budget for the purchase is the:

A) Controller
B) Influencer
C) Gatekeeper
D) Purchasing agent
E) Decision maker

Question 28

Which of the following statements regarding business marketing is TRUE?

A) The buying determinants model offers a framework for combining buyers into groups
B) There is a competitive advantage to be gained in selling the way vendors want buyers to buy
C) Business marketing comes down to only personal selling
D) Business marketing fundamentally represents only the individual dealing with each individual decision process
E) The buying determinants model recognizes selling patterns that enable marketing managers to create marketing strategies

Question 29

One characteristic of buying centers is that members come and go.This characteristic is called:

A) Vertical dimension
B) Company orientation
C) Formalization
D) Time fragmentation
E) Horizontal dimension

Question 30

In organizational buying,the _____ starts the purchase process by recognizing the need.

A) Controller
B) Initiator
C) Influencer
D) Gatekeeper
E) Purchasing agent

Question 31

Individuals who seek to affect the decision maker's final decision through which products are best suited to solve the organization's needs and who can also affect the evaluation of the organization's needs are referred to as:

A) Users
B) Gatekeepers
C) Influencers
D) Decision makers
E) Purchasing agents

Question 32

In terms of individual factors,which of the following statements is NOT true?

A) They include demographic factors that influence an individual's buying behavior
B) They include psychographic factors that influence an individual's buying behavior
C) They include age, education, and title or organizational level of the buyer
D) They include the size of the company, profitability, and corporate culture
E) They can be psychological factors such as the propensity to take risks

Question 33

In terms of the buying center,which of the following statement is INACCURATE?

A) A buying center means that a committee is formed, with individuals designated as a gatekeeper, influencer, etc
B) Cross-functional sourcing teams are formal examples of buying centers and are growing in use
C) The buying center is a changing, complex, and informal group
D) Initiators may not be involved again once they've set the purchase in motion
E) Initiators may also act as influencers and as gatekeepers

Question 34

Role theory:

A) Enables us to examine markets for patterns in buying behavior
B) Describes behavior as a result of combined effects of organizational, individual, environmental, and market factors
C) States that buyers go through a choice process to arrive at decisions on how they will buy
D) Suggests that people behave within a set of norms of others due to the role in which they have been placed
E) Recognizes that extrinsic rewards are a function of the reward/measurement systems of the organization

Question 35

In terms of the buying center roles,_____ are the people who control information into and out of the buying group or between members of the group.

A) Influencers
B) Purchasing agents
C) Decision makers
D) Users
E) Gatekeepers

Question 36

Reward-measurement systems are a set of _____ factors that influence buyer behavior.

A) Market
B) Demographic
C) Organizational
D) Environmental
E) Individual

Question 37

Secretaries are most likely to function as _____,when they screen telephone calls for their boss.

A) Purchasing agents
B) Gatekeepers
C) Initiators
D) Controllers
E) Decision makers

Question 38

When more than one person is involved in making a purchase decision,the group of participants in the company are called the:

A) Advocates
B) Assessment center
C) Buying center
D) Administered channels
E) Net buying influences

Question 39

If the decision maker tells a subordinate to order another box of copier paper,then the subordinate is the _____ for that purchase.

A) User
B) Influencer
C) Gatekeeper
D) Controller
E) Purchasing agent

Question 40

In Egypt,Islamic values of honor and family loyalty often guide buyer behavior.This best illustrates the fact that buyer behavior is influenced by:

A) Technology
B) Cultural values
C) Government's actions
D) Economical factors
E) Religious beliefs

Question 41

Which of the following is a noncommercial source of information for buyers?

A) Advertisements
B) Articles in trade publications
C) Brochures
D) Personal selling
E) Product manuals

Question 42

According to the text,which of the following is often the MOST important source of information for buyers?

A) Salespeople
B) Stockbrokers
C) Wholesalers
D) Producers
E) Publications

Question 43

In terms of the buying center,horizontal dimensions imply:

A) How many departments are involved
B) How many layers of management are involved
C) The degree to which purchasing tasks and roles are defined
D) The latitude that a buying center member has in choosing how to go about making the purchase
E) The probability of an outcome and the importance or cost associated with the outcome

Question 44

What is the key challenge for highly fragmented buying centers?

A) Length of time taken in the decision-making process
B) Company policies and procedures may limit the choice of buying activities
C) The costs of reaching people
D) Needs and purchasing motivations vary greatly
E) Many different people must be reached in order to accomplish a sale

Question 45

Social risk is:

A) Highly correlated with financial risk
B) Associated with the cost of the new product
C) The risk that the product will not perform as intended
D) The risk associated with the potential for lost revenue if a product breaks down
E) Risk that the purchase will not meet the approval of an important reference group

Question 46

Which of the following is a commercial,personal source of information?

A) Advertising
B) Sales literature
C) Trade publications
D) Word of mouth from colleagues
E) Trade shows

Question 47

Which of the following can help a marketer understand the relationship between the vertical dimension of the buying center and who needs what?

A) Benefit stack
B) Instrumentality
C) Decile report
D) Data mining
E) Conceptual map

Question 48

Buyers are more likely to consider many vendors when:

A) Performance is great
B) Performance or economic risk is great
C) Shopping costs outweigh the benefits of looking around
D) Economic risk is low
E) The existing vendor is delivering as per agreements

Question 49

Guarantees:

A) Are usually through word-of-mouth
B) Typically means a lot to a business buyer
C) Can hinder the development of relationships
D) Are defined as the belief in the reliability of a supplier
E) Are ways that marketers can reduce risk

Question 50

Buyers collect information to reduce risk.In terms of the sources of information,which of the following statements is TRUE?

A) Commercial sources are relied on more heavily than are noncommercial sources
B) Personal sources are more widely used early in the process
C) Compared to personal sources, impersonal sources grow in importance over the course of the decision
D) Buyers constantly review noncommercial and commercial sources, even when no purchase is imminent
E) Commercial sources are those sources outside the control of the marketer

Question 51

Commercial sources of information for buyers include:

A) Articles in trade publications
B) Word-of-mouth from colleagues within the organization
C) Professional associates
D) Product manuals
E) Consultants

Question 52

This is a noncommercial,impersonal source of information.

A) Web sites
B) Word of mouth from consultants
C) Trade publications
D) Telemarketing
E) Word-of-mouth from colleagues

Question 53

Formalization:

A) Is the degree to which the individual works to achieve personal benefit
B) Is based on how much and how well buyers do certain tasks
C) Affects the latitude that a buying center member has in choosing how to go about making the purchase
D) Is the degree to which the individual works to achieve benefit for the company
E) Can be thought of in terms of the probability of an outcome and the cost associated with the outcome

Question 54

The degree to which purchasing tasks and roles are defined by written documents describing procedures and policies is:

A) Centralization
B) Instrumentality
C) Decentralization
D) Valence
E) Formalization

Question 55

If a piece of equipment breaks down while under warranty and the breakdown does not slow down production,_____ risk would be realized.

A) Performance
B) Financial
C) Performance and financial
D) Social
E) Environmental

Question 56

The risk associated with the cost of a new product and with the potential for lost revenue if the product breaks down or does not perform as advertised is:

A) Demand risk
B) Performance risk
C) Social risk
D) Financial risk
E) Environmental risk

Question 57

Which buying theory states that buyers go through a choice process to arrive at decisions of how they will buy,as opposed to the choice process of what will be bought modeled as part of the buy-grid?

A) Reward-measurement theory
B) Buying determinants theory
C) Role theory
D) Behavior choice theory
E) Resource-advantage theory

Question 58

Which of the following is a challenge specific to marketers operating within wide buying centers?

A) Needs and purchasing motivations vary greatly
B) Many different people must be reached in order to accomplish a sale
C) Company policies and procedures may limit the choice of buying activities
D) The terms of payment are not important
E) Length of time taken in the decision-making process

Question 59

A low-risk decision is one:

A) Where the outcome is of high important
B) With a high probability of a positive outcome
C) Where the outcome itself is not at all important
D) With a low probability of a positive outcome
E) With a high probability of a negative outcome

Question 60

When a company routinizes a decision (makes it a straight rebuy),

A) The purchase decisions need to be evaluated more carefully
B) The opportunity is there for a vendor to build a relationship
C) It is usually because the product being purchased is relatively important
D) The likelihood of a poor decision increases
E) Outsiders are involved in the buying process

Question 61

Compare and contrast influencers and gatekeepers?

Question 62

Explain the behavior choice theory?

Question 63

Which of the following is an example of an intrinsic reward?

A) Salary
B) Satisfaction
C) Promotion
D) Praise
E) Bonus

Question 64

Compare and contrast financial risk,performance risk,and social risk?

Question 65

According to the behavior choice theory,what is the first stage of the choice process?

A) Choose behavior strategy
B) Assess action alternatives
C) Identify situation
D) Assess requirements
E) Evaluate personal relevance

Question 66

According to the expanded buying determinants theory,which of the following is an organizational factor that influences buyer behavior?

A) Choice of reward
B) Role expectations
C) Buyer's experience
D) Valence of reward
E) Probability perceptions

Question 67

The degree to which the individual works to achieve benefit for the organization is called:

A) Company orientation
B) Self-orientation
C) Market orientation
D) Offensive strategy
E) Defensive strategy

Question 68

_____ is the person's perception of their ability to perform specific tasks.

A) Pride
B) Self-esteem
C) Self-efficacy
D) Valence
E) Self-orientation

Question 69

Write a short note on time fragmentation?

Question 70

According to the buying determinants theory,how do market factors impact how decisions are made?

Question 71

The degree to which the individual works to achieve personal benefit is called:

A) Defensive strategy
B) Company orientation
C) Performance risk
D) Offensive strategy
E) Self-orientation

Question 72

According to the expanded buying determinants theory,which of the following is an individual factor that influences buyer behavior?

A) Cross-functional purchasing teams
B) Extrinsic reward systems
C) Corporate culture
D) Choice of reward
E) Role expectations

Question 73

Behavior choice theory recognizes that extrinsic rewards are a function of:

A) Probability and valence
B) A the product
C) A the reward/measurement systems of the organization
D) A experience with the product
E) A motivation

Question 74

Choosing an off-brand for service could be a(n)_____,designed to maximize gain through saving the company the most money or making a name for oneself as an innovator.

A) Offensive strategy
B) Horizontal dimension
C) Intrinsic reward
D) Extrinsic reward
E) Defensive strategy

Question 75

In which stage of the choice process does the buyer examine the reward structures associated with the situation?

A) Choose behavior strategy
B) Assess action alternatives
C) Assess requirements
D) Evaluate personal relevance
E) Identify situation

Question 76

Getting as many people involved as possible in order to share the blame if things go wrong is an example of:

A) Self-efficacy
B) Offensive strategies
C) Company orientation
D) Defensive strategies
E) Self-orientation

Question 77

_____ refers to the likelihood that if individuals successfully engage in certain actions,those actions will yield the rewards they want.

A) Formalization
B) Instrumentality
C) Reciprocation
D) Centralization
E) Valence

Question 78

The degree of importance attached to a reward is described as its:

A) Utility
B) Power
C) Reach
D) Efficacy
E) Valence

Question 79

According to the expanded buying determinants theory,policies supporting vertical and horizontal dimensions are:

A) Organizational factors
B) Individual factors
C) Market factors
D) Environmental factors
E) Demographic factors

Question 80

An inexperienced buyer may be more likely to select a defensive strategy due to:

A) Financial risk
B) Risk associated with the purchase
C) Instrumentality
D) Self-orientation
E) Low self-efficacy