Question 1

Which one of the following countries is not included in the data presented in NAICS?

Accepted Answer

NAICS is the North American Industry Classification System, which covers business establishments in the United States, Canada, and Mexico. Japan is not included in the data presented in NAICS.

Question 2

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?

Accepted Answer

The buyer is currently in the product-supplier search and evaluation stage as they are examining catalogs and trade publications to find replacement parts for aging machinery. This stage involves researching potential suppliers and products to meet the identified need.

Question 3

Individual influencing factors refer to

Accepted Answer

Individual influencing factors are related to personal characteristics of the individuals in the buying center. These factors include traits such as age, education, personality, and attitudes that can affect the decision-making process. Knowing these characteristics can help marketers tailor their communication strategies to influence decision-making in a positive way.

Question 4

An organization that decides to buy all of a certain part from the same company is using

Accepted Answer

Sole sourcing is when an organization decides to buy all of a certain part from the same company. This allows for a close relationship between the buyer and the seller, and can lead to more efficient and effective communication and problem-solving. However, it also carries some risks, such as dependence on a single supplier and potential reduction in competition.

Question 5

Scenario 8.1 Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. Which of the following groups should Samsung not include in its buying center for the new equipment?

Accepted Answer

Potential future Samsung customers should not be part of the buying center as they are not directly involved in the production process and their input may not be relevant. The other groups, including purchasing agents, eventual users, gatekeepers, and senior managers, all have a role to play in the decision-making process for purchasing the new equipment.

Question 6

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

Accepted Answer

Value analysis is used to examine various aspects of a product, including quality, design, and materials, with the goal of reducing costs without sacrificing functionality, making it a cost-effective approach for acquiring products.

Question 7

Ben Davideau is assigned by his sales manager to come up with the names and addresses of 20 firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in

Accepted Answer

The answer of Ben Davideau is assigned by his sales...

Question 8

Scenario 8.1 Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not?

Accepted Answer

Demographic factors, such as age, gender, and income, are not relevant to Samsung's business buying decisions for the production equipment of their French Door Refrigerator. Factors such as environmental considerations (e.g. energy efficiency), organizational requirements (e.g. compatibility with existing systems), interpersonal relationships (e.g. supplier reputation), and individual preferences of decision-makers (e.g. personal experience with the equipment) are more likely to influence their purchasing decisions.

Question 9

The second stage in the business buying decision process is to

Accepted Answer

During the second stage, the buying organization determines the product specifications, which involves developing a detailed description of the product or service, including technical requirements, delivery schedules, and acceptable supplier characteristics. This stage is critical for ensuring that the product can meet the organization's needs and align with their goals and objectives.

Question 10

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis.

Accepted Answer

Christy Bridgman is evaluating the trade-off between the functionality of a fax machine and its cost, which is a consideration of the value that the machine provides relative to its price. This is known as value analysis.

Question 11

Scenario 8.2 Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the Northeastern and Southern regions. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern region, while dealers who sell to small business landscaping companies tend to be located in the Northeastern region. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. When Precision Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be ____, part of the buying center.

Accepted Answer

Engineers who design the tractors would be part of the buying center as they have the ability to influence the decision-making process of the manufacturers. As they are involved in the design process, they can recommend suppliers such as Precision Brake Company for brake components. However, they are not the final decision-makers or buyers, hence they would not be classified as buyers or controllers of the buying center. They also may not have the ability to control access to the decision-makers, so they would not be classified as gatekeepers.

Question 12

Compared with consumer goods, marketers aiming at business customers

Accepted Answer

Marketers aiming at business customers have access to a vast amount of information regarding their potential customers, including purchasing history, credit reports, industry trends, and more. This allows them to tailor their marketing efforts more effectively and efficiently compared to consumer goods marketers, who may have to rely on more general demographic information.

Question 13

Scenario 8.1 Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods?

Accepted Answer

The first step in the buying decision process is recognizing the problem or need, which was Samsung's need for various pieces of equipment, including the quasi-assembly pods.

Question 14

What are the four major factors that influence business buying decisions?

Accepted Answer

The four major factors that influence business buying decisions are environmental (external factors like economic conditions), organizational (internal factors like company policies and procedures), interpersonal (influences from people involved in the buying process), and individual (personal preferences and motivations of the decision-makers).

Question 15

Scenario 8.2 Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the Northeastern and Southern regions. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern region, while dealers who sell to small business landscaping companies tend to be located in the Northeastern region. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to?

Accepted Answer

Precision Brake Company operates in a B2B (business-to-business) market, supplying brake components to manufacturers and dealers, making it least likely to sell directly to consumers (D).

Question 16

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.

Accepted Answer

Vendor analysis is the correct term for the systematic evaluation of current and potential suppliers across various dimensions such as price, product quality, delivery service, product dependability, and overall company reliability.

Question 17

Scenario 8.1 Use the following to answer the questions.
Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives.
Refer to Scenario 8.1. What type of business purchase is Samsung undertaking?

Accepted Answer

Samsung is entering a new market with its French Door Refrigerator, which requires the purchase of various pieces of equipment. This is a new-task purchase, as it involves a significant investment of time and resources to identify and evaluate potential suppliers. Additionally, Samsung has already contacted several producers and begun negotiations, which indicates that they are actively seeking input and considering their options, rather than simply reordering from existing suppliers (straight rebuy) or making minor modifications to existing orders (modified rebuy).

Question 18

Scenario 8.2 Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the Northeastern and Southern regions. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern region, while dealers who sell to small business landscaping companies tend to be located in the Northeastern region. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. When Precision Brake sells to the individual dealers, it would be considered which of the following business types?

Accepted Answer

Precision Brake Company is selling its products to independent repair centers, dealers, and other wholesalers, which make it a reseller business type.

Question 19

The third stage in the business buying decision process is to

Accepted Answer

The third stage in the business buying decision process is to search for products and suppliers after recognizing the need and defining product specifications.

Question 20

Scenario 8.2 Use the following to answer the questions.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the Northeastern and Southern regions. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern region, while dealers who sell to small business landscaping companies tend to be located in the Northeastern region. Company executives are considering expansion of its distribution to markets in the Midwest.
Refer to Scenario 8.2. Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of

Accepted Answer

The decline in sales for Precision Brake due to the increase in consumers hiring small landscaping businesses is an example of derived demand. This means that the demand for Precision Brake's products is derived from the demand for lawn tractors and small landscaping businesses, which are the end products being manufactured or serviced.

Quiz 8: Business Markets and Buying Behavior