Question 1

In a buying center, purchasing agents or purchasing managers are also known as

Accepted Answer

In a buying center, the role of purchasing agents or purchasing managers is to act as the buyers. They are responsible for making the actual purchase decision and negotiating with suppliers.

Question 2

Most business buying decisions are made by

Accepted Answer

The buying center is a cross-functional team that includes individuals from various departments who have a stake in the purchasing decision. These individuals may include representatives from finance, operations, marketing, and other key areas. Therefore, most business buying decisions are made by a firm's buying center, not just one person or a team of purchasing agents.

Question 3

The group of people within a business who are involved in making business buying decisions is referred to as

Accepted Answer

The buying center is the group of people within a business who are involved in making business buying decisions. The other answer options (new-task team, negotiators, purchasing agents, and deciders) refer to specific roles or functions within the buying center.

Question 4

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 in the product-supplier search and evaluation stage as they are examining catalogs and trade publications to find replacement parts for their machinery. The problem recognition stage would be when the buyer realizes that their machinery needs replacement parts, while the product specification stage would involve defining the specific requirements for the parts needed. The product-supplier selection stage occurs after the evaluation of potential suppliers, and the post-evaluation stage involves assessing the effectiveness of the chosen product and supplier.

Question 5

The stages of the business buying decision process, in order, are

Accepted Answer

The correct sequence for the business buying decision process is: recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. This order reflects the logical progression from identifying a need through to assessing how well the chosen solution met that need.

Question 6

As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.

Accepted Answer

Administrative assistants are often gatekeepers in the buying decision process as they control access to the decision-making individuals or have a say in the decision-making process themselves. Sophie recognizes the importance of building a good relationship with them to ensure her sales efforts are not hampered. The other options, users, influencers, buyers, and controllers, may also play a role in the buying decision process, but in this scenario, the administrative assistants are the most relevant as gatekeepers.

Question 7

Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he as asked members of the student senate to give input on the purchase decision. In this instance, the student senate would be acting as a(n) ____, while the purchasing agent is a(an) ______.

Accepted Answer

The student senate is acting as an influencer, as they are providing input on the purchase decision but do not have the final say. The purchasing agent is still the decider, as they ultimately make the decision on what to buy.

Question 8

____ 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

The description provided in the question is the definition of a vendor analysis, which is the systematic evaluation of current and potential suppliers, considering various factors such as price, product quality, delivery service, product dependability, and overall company reliability. Therefore, the correct choice is B, which refers to a vendor.

Question 9

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?

Accepted Answer

The firm would need to modify the specification development aspect of the purchase process to include requirements for units with more than 8GB of memory.

Question 10

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 11

Christoff's Lawn & Lot is a small business that provides landscaping and grass cutting services in the spring and summer. Christoff's usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35% causing Christoff's to pay more for their supplies. The demand for gas despite its price represents ________ demand for Christoff's Lawn & Lot.

Accepted Answer

The demand for Christoff's Lawn & Lot services is inelastic because the customer is paying the same monthly amount regardless of the number of times the grass needs cutting. The increase in gas prices may cause Christoff's to pay more for supplies, but it does not necessarily translate to a significant increase in the customer's cost. Therefore, the demand for their services remains relatively constant, making it inelastic.

Question 12

The second stage in the business buying decision process is to

Accepted Answer

In the second stage of the business buying decision process, the organization develops product specifications based on their needs and wants. This involves determining the required characteristics, quality, quantity, price, delivery schedule, and any other necessary features for the product or service they are seeking. Only after developing these specifications can the organization move onto the next stages of searching for products and suppliers, evaluating product and supplier performance, and ultimately selecting the most appropriate product.

Question 13

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.

Accepted Answer

Inelastic demand means that a change in price does not have a significant effect on the quantity demanded. In this scenario, South Side Industrial Supply is confident that it can pass on the price increase to future customers, indicating that the demand for these truck tires is likely to be inelastic.

Question 14

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

Accepted Answer

Sole sourcing is the practice of purchasing all of a certain part or service from a single supplier. This strategy can be effective if the supplier is reliable, provides high-quality products, and offers competitive pricing. Sole sourcing can also lead to stronger relationships between the buyer and supplier, which can result in better communication, collaboration, and responsiveness.

Question 15

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Accepted Answer

The secretary is serving as a gatekeeper in this purchase decision by controlling access to Renee Dorchette and setting up the appointment.

Question 16

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.

Accepted Answer

Joint demand refers to the demand for two or more products that are used together to create another product or service, such as tires and valve stems/balancing weights. As King Auto Supply orders the tires, it must also order the accompanying valve stems and balancing weights, making their demand joint.

Question 17

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes ____ demand.

Accepted Answer

The term "fluctuating demand" refers to a situation where demand for a product varies over time. In this case, producers respond to changes in demand by adjusting their material purchases up or down. Since the question describes a situation where producers may buy extra materials and then cut back later, it seems to fit the definition of fluctuating demand.

Question 18

Demand for a business product is ____ when two or more items are used in combination to produce a product.

Accepted Answer

When two or more items are used in combination to produce a product, it is referred to as joint demand. This means that the demand for one product is influenced by the demand for another product, as they are often used together.

Question 19

The third stage in the business buying decision process is to

Accepted Answer

The answer of The third stage in the business buying...

Question 20

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 is conducting a value analysis by comparing the features and cost of her current fax machine to the potential new one. She is seeking to determine if the reduced features of the cheaper machine still provide sufficient value for her business needs.

Quiz 8: Business Markets and Buying Behavior