Question 1

In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as

Accepted Answer

Vendors are the suppliers from whom organizations purchase products and services, and the buying function involves gathering information about these vendors.

Question 2

During the next-to-last stage of the organizational buying decision process, the organization

Accepted Answer

The answer of During the next-to-last stage of the organizational...

Question 3

At which stage of the organizational buying decision process would a firm select a supplier, negotiate terms, and award a contract?

Accepted Answer

The selection of a supplier, negotiation of terms, and awarding of a contract occur during the purchase decision stage of the organizational buying decision process. This is the stage at which the buyer evaluates alternatives and makes a final decision on which supplier to choose.

Question 4

At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?

Accepted Answer

Purchasing would assess the financial status of potential suppliers during the alternative evaluation stage, where they are evaluating potential suppliers and comparing them to make a final decision. Understanding a supplier's financial stability is an important factor in this evaluation process.

Question 5

A buying center refers to

Accepted Answer

A buying center refers to the group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision. This group typically includes individuals from different departments and functions within the organization, such as procurement, marketing, finance, and operations. The buying center is responsible for evaluating and selecting suppliers, negotiating contracts, and making purchasing decisions.

Question 6

The first stage in the organizational buying decision process is

Accepted Answer

The first stage in the organizational buying decision process is problem recognition. This is when the organization recognizes that there is a need to make a purchase in order to achieve its goals or objectives. The other stages in the process are information search, alternative evaluation, purchase decision, and post-purchase evaluation.

Question 7

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the

Accepted Answer

The buying center is a group of people within an organization who are involved in the purchasing decision-making process. They share common goals, risks, and knowledge important to the purchase decision. The other options are either specific roles within the buying center (such as gatekeeper) or refer to specific departments or committees within an organization.

Question 8

Large multistore chain retailers such as 7-Eleven convenience stores, Safeway, and Target use a highly formalized buying center that is referred to as

Accepted Answer

Large multistore chain retailers, such as 7-Eleven convenience stores, Safeway, and Target, typically use a highly formalized buying center known as a buying committee. This committee typically includes representatives from various functional areas within the organization, such as marketing, finance, and logistics, who work together to make purchasing decisions that align with the overall business strategy.

Question 9

Organizational buying behavior is similar to consumer behavior in some ways and different in others. Common to both is that they

Accepted Answer

The answer of Organizational buying behavior is similar to consumer...

Question 10

Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, the ________ stage is more formal, often involving a vendor rating system.

Accepted Answer

The answer of Comparing the stages in a consumer and...

Question 11

What is the last stage of the organizational buying decision process?

Accepted Answer

The last stage of the organizational buying decision process is postpurchase behavior, which involves evaluating the product or service after purchase to determine if the expectations were met or exceeded, and if there are any problems or issues that need to be addressed.

Question 12

At which stage of the organizational buying decision process would purchasing and engineering personnel visit potential suppliers to assess their facilities, production capability, and quality control?

Accepted Answer

During the alternative evaluation stage, organizations assess potential suppliers by visiting their facilities to evaluate their production capabilities and quality control measures.

Question 13

The sales department's identification of an improvement made to a competitor's product would occur during which stage of the organizational buying decision process?

Accepted Answer

The answer of The sales department's identification of an improvement...

Question 14

Comparing the stages in a consumer and organizational purchase decision process reveals key differences. In organizations, ________ becomes more important for deadlines and quality control, since a long-term relationship is anticipated.

Accepted Answer

Supplier capability becomes more important in organizational purchase decisions because organizations anticipate long-term relationships and need to ensure that suppliers can meet deadlines and maintain quality control.

Question 15

Marketers need to understand their customers' buying centers. A series of questions can be used to facilitate this process. Which of the following questions would be the least useful when trying to understand the operations of a buying center?

Accepted Answer

While understanding how the buying center was selected is important, it is not as useful in understanding the operations of the buying center itself. The other questions all relate to understanding how the buying center functions and how the marketer can best interact with them.

Question 16

Organizational buying behavior is similar to consumer behavior in some ways and different in others. One key difference is that in the organizational buying process,

Accepted Answer

In the organizational buying process, post-purchase evaluation behavior is more formalized than in consumer behavior. This is because there are more individuals involved in the decision-making process, and the decision has a greater impact on the organization as a whole. Therefore, post-purchase evaluation is necessary to ensure that the decision was the right one and that the organization is achieving its goals.

Question 17

At which stage of the organizational buying decision process would design and production engineers draft specifications?

Accepted Answer

Design and production engineers would draft specifications during the information search stage of the organizational buying decision process. This is because they need to gather information about the options available in the market and the specific requirements of the organization in order to create detailed specifications for the product or service needed.

Question 18

Which of the following possible characteristics of consumer buying is least likely to enter into an organizational buying decision?

Accepted Answer

Organizational buying decisions are typically made by a group of individuals within the business, with the primary focus being on fulfilling the needs of the organization rather than individual self-actualization motives. Therefore, E - problem recognition triggered by self-actualization motives would be least likely to enter into an organizational buying decision.

Question 19

General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which stage in the organizational buying decision process would GE make this evaluation?

Accepted Answer

This is a part of post-purchase behavior stage where GE evaluates and measures the performance of the supplier and decides whether to continue with them or not based on their quality standards.

Question 20

Which of the following is indicative of the purchase decision stage of the organizational buying decision process?

Accepted Answer

The answer of Which of the following is indicative of...

Quiz 5: Understanding Organizations As Customers