Deck 3: Understanding Buyers

Question 1

According to the textbook, how is the business buying process different from the consumer buying process?

A) a larger number of sellers
B) a greater number of defined phases
C) fewer people influencing the buying decision
D) less frequent contact with sellers

Answer 1

B

Question 2

What is the concept that demand for business markets is closely associated with the demand for consumer goods called?

A) articulated demand
B) secondary demand
C) primary demand
D) derived demand

Answer 2

D

Question 3

Which step in the selling process typically corresponds to the recognition of the problem or need phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Answer 3

A

Question 4

In the introduction to Chapter 3, Calvin Carson, customer value manager for International Paper, recognized that his new approach to selling has been a success. What are the three signs that highlighted the success?

A) increased sales, reduced cost, increased sales bonus
B) increased sales, reduced time, reduced effort
C) increased sales, reduced costs, customer response
D) increased sales, targeted customers, customer response

Question 5

According to the textbook, which concept is illustrated by business markets increasing the buildup or reduction of inventories by increasing or decreasing plant capacity in response to changes in consumer demand?

A) concentrated demand
B) the acceleration principle
C) higher levels of demand fluctuation
D) multiple buying influences

Question 6

Which step in the selling process typically corresponds to creating new value opportunities?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 7

Tony worked in retail sales while completing his college degree. After graduating, he took a job as a business-to-business salesperson. What changes can he expect?

A) His new customers are likely to be more professional and rational in their approach to purchasing.
B) His new customers are likely to be more dependent upon him for information.
C) His new customers are more likely to use fewer buying influences when making a purchase decision.
D) Because these new customers take a more rational approach, Tony will be less likely to establish close working relationships with them.

Question 8

In today's markets, smaller customer bases and the increased use of supply chain management have resulted in greater interdependence between the customer and the salesperson. What is the result?

A) derived demand
B) higher levels of demand fluctuation
C) multiple buying influences
D) closer buyer-seller relationships

Question 9

A salesperson's willingness to support the buyer and be a partner in his or her success in the firm demonstrates what to the buyer?

A) The salesperson has a lot of time for this sale.
B) The salesperson really needs the sale.
C) The salesperson is committed to the relationship.
D) The salesperson is being overly aggressive.

Question 10

Sersha has quit her job selling vacuum cleaners door-to-door. Now she is selling computer equipment to businesses. What can she expect as a result of this change?

A) She will call on fewer but larger customers.
B) Demand for her products will fluctuate less, due to derived demand.
C) She will call on more and larger customers.
D) Her selling approach will be less complex, due to the multiple buying influences.

Question 11

According to the textbook, which distinguishing characteristic of business markets does the acceleration principle demonstrate?

A) concentrated demand
B) derived demand
C) higher levels of demand fluctuation
D) multiple buying influences

Question 12

In the introduction to Chapter 3, Calvin Carson, customer value manager for International Paper, highlights that in order for the salespeople to best understand their customers' business regarding controlling capital expenditures and improving accounts receivable the salespeople should be sent on what kind of training?

A) product training
B) financial training
C) service training
D) management training

Question 13

Which step in the selling process typically corresponds to the search for and qualification of potential sources of supply phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 14

Frank sells building materials used in new home construction to building supply stores. Increased real estate activity and new home construction in his territory has coincided with a noticeable increase in his sales to building supply stores. What does this demonstrate?

A) articulated demand
B) secondary demand
C) derived demand
D) primary demand

Question 15

Which distinguishing characteristic of business markets is addressed by a salesperson's ability to identify, understand, and respond to the role and key buying motives of each member of the buying centre or team?

A) derived demand
B) higher levels of demand fluctuation
C) more professional and rational approach to purchasing
D) multiple buying influences

Question 16

Which statement best describes the difference between consumer and business markets?

A) Consumers purchase goods and services for their own consumption, while businesses buy goods and services for other reasons.
B) Business markets are characterized by low concentration of buyers.
C) Consumers purchase goods and services based on the concept of derived demand, while businesses are most concerned about primary demand.
D) Demand in consumer markets is less susceptible to economic cycles than demand in business markets.

Question 17

In the introduction to Chapter 3, Calvin Carson, customer value manager for International Paper, recognized that the company required salespeople who could add value to the customer interaction. Which of the following would best assist with this?

A) understand the customer's business strategy
B) understand when the customer needs the product
C) understand the competition's offering
D) understand the impact on your bonus

Question 18

Which step in the selling process typically corresponds to the determination of the characteristics of the item and the quality needed phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 19

According to the textbook, which step in the selling process involves strategic prospecting, assessing the prospect's situation, and planning value-based sales dialogue and presentations?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 20

What is it about business markets that means a salesperson needs more knowledge and expertise to provide customers with a richer and more detailed assortment of application, performance, and technical data?

A) derived demand
B) higher levels of demand fluctuation
C) more professional and rational approach to purchasing
D) multiple buying influences

Question 21

According to the textbook, which step in the selling process typically involves engaging prospects and customers through sales dialogue and presentations, co-creating and validating customer value, and earning customer commitment?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 22

Which type of buyer needs include a desire for personal development, information, and knowledge to increase thought and understanding as to how and why things happen?

A) knowledge
B) functional
C) social
D) psychological

Question 23

In the context of the business buying process, what is a perceived difference between a buyer's desired state of being and actual state of being called?

A) an evaluative criteria
B) a dissatisfaction motivator
C) a negative discrepancy
D) a needs gap

Question 24

Which type of buyer needs is the need for acceptance from and association with others?

A) knowledge
B) functional
C) social
D) psychological

Question 25

In response to his request for the order, Alan's customer said, "Switching our buying to your company will make my job easier with less worrying about quality and delivery issues." Which type of buyer needs was the customer expressing?

A) situational
B) functional
C) social
D) psychological

Question 26

According to the textbook, which step in the selling process typically involves assessing value and relationship performance, creating new value opportunities, and increasing customer value through self-leadership and teamwork?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) demonstrating the customer relationship

Question 27

When Mohamad's customer said, "Due to forecasts for a much colder winter this year, we are going to need to order more of your product than in previous years," which type of buyer needs was he expressing?

A) situational
B) functional
C) social
D) psychological

Question 28

Which type of buyer needs is contingent on and often the result of conditions related to the specific environment, time, and place?

A) situational
B) functional
C) social
D) psychological

Question 29

Which step in the selling process typically corresponds to the acquisition and analysis of proposals phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 30

Which step in the selling process typically corresponds to the performance feedback and evaluation phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) demonstrating the customer relationship

Question 31

Which step in the selling process typically corresponds to the selection of an order routine phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 32

Suspecting that his prospective buyer was not fully aware of the deficiencies of his current production equipment, Pierre helped the buyer to analyze production data to determine its true efficiency and level of quality. In doing this, which tactic was Pierre attempting to use in identifying the needs gap?

A) raising the buyer's perception of the desired state
B) lowering the buyer's perception of the desired state
C) raising the buyer's perception of the actual state
D) lowering the buyer's perception of the actual state

Question 33

Which type of buyer needs is the desire to belong to some reference group such as a specific affinity group or segment associated with a particular service or product?

A) knowledge
B) functional
C) social
D) psychological

Question 34

On a recent sales call, Jennifer's customer responded to a question regarding current needs by saying, "I am perfectly happy with our present situation." With respect to the problem recognition phase of the business buying decision process, what should Jennifer do next?

A) change the subject of the conversation to an area with greater potential
B) probe further to determine if any gap exists between the buyer's perceived desired state and actual state
C) challenge the buyer's level of satisfaction with his current situation
D) to keep the door open for another sales call in the future, politely thank the customer for his time

Question 35

At the end of the sales visit, Danica's customer said to her, "We need to raise our profile within the industry with respect to the quality of suppliers we choose to do business with." Which type of buyer needs was the customer expressing?

A) knowledge
B) functional
C) social
D) psychological

Question 36

On a recent sales visit, Carol's buyer said, "We need a new machine that can combine the cutting, sorting, and cleaning of the raw materials into one step rather than three." Which type of buyer needs was he was expressing?

A) knowledge
B) functional
C) social
D) psychological

Question 37

In his sales presentation, Frank spoke at length about the higher production capacity of his company's equipment in comparison to what the prospective buyer was currently using. Which tactic in identifying the needs gap was Frank attempting to use?

A) raising the buyer's perception of the desired state
B) lowering the buyer's perception of the desired state
C) raising the buyer's perception of the actual state
D) lowering the buyer's perception of the actual state

Question 38

Which type of buyer needs is the need for a specific core task or function to be performed?

A) knowledge
B) functional
C) social
D) psychological

Question 39

Which step in the selling process typically corresponds to the evaluation of proposals and selection of suppliers phase of the business buying process?

A) initiating customer relationships
B) developing customer relationships
C) enhancing the customer relationship
D) evaluating the customer relationship

Question 40

Which type of buyer needs would a buyer requesting a sales presentation on a new product because she wanted to learn more about the new technology embedded in the product be addressing?

A) knowledge needs
B) functional needs
C) social needs
D) psychological needs

Question 41

Suppose that you are a salesperson making a sales proposal to a potential customer who you know uses a multiattribute model when making buying decisions. During the presentation, you perceive that the buyer underestimates the true qualities of the product offering being proposed. What is probably the best strategy to follow?

A) modify the product offering being proposed
B) alter the buyer's beliefs about the proposed offering
C) alter the buyer's beliefs about the competitor's offering
D) alter the importance weights

Question 42

What must buyers remember to do when using the multiattribute model for evaluating suppliers and products?

A) to contact all potential solution providers
B) to include all the benefits associated with the various solution alternatives
C) to apply weights, indicating relative importance, to the desired characteristics
D) to interview all solution providers

Question 43

Libby is a salesperson making a sales proposal to a potential customer who uses a multiattribute model when making buying decisions. During the presentation she learns that your product offering will not maximize the buyer's evaluation score in comparison with a competitor's offering. What is probably her best strategy to follow?

A) end the presentation without disclosing her product's weaknesses
B) exaggerate a little on several dimensions to improve the score
C) attempt to explain to the buyer that the characteristics on which her product scores low are not really important
D) modify the market offer to one that is more customized to her buyer's needs

Question 44

What does the acronym RFP stand for?

A) request for partners
B) request for proposal
C) request for problem
D) request for pricing

Question 45

Suppose that, as a salesperson, you know that one of your potential buyers uses the multi-attribute model when making purchase decisions. Before making your proposal, which of the following should you probably try to accomplish?

A) develop a presentation that includes all of the benefits your product has to offer
B) understand your general strengths and weaknesses relative to your competitors
C) understand the weights of relative importance that the buyer will assign to the desired characteristics
D) determine the most efficient way to deliver your proposal

Question 46

Suppose that you are a salesperson making a sales proposal to a potential customer who you know uses a multiattribute model when making buying decisions. During the sales presentation, you perceive that the buyer has unrealistic or mistaken beliefs regarding competitive offerings. What is probably the best strategy to follow?

A) modify the product offering being proposed
B) alter the buyer's beliefs about the competitor's offering
C) alter the importance weights
D) call attention to neglected attributes

Question 47

In the business buying process, what is the purpose of soliciting an RFP?

A) to offer qualified potential suppliers the opportunity to submit a proposal to provide the products as specified in the previous stage of the buying process
B) to give interested suppliers the opportunity to be evaluated for their capability to provide the preferred solution to the buyer's problem
C) to assess the performance capabilities of existing suppliers
D) to signal to competitors that the buyer is looking for new sources of supply

Question 48

In evaluating business buying decisions, what are the features and characteristics that are related to what the product actually does or is expected to do?

A) delighter attributes
B) functional attributes
C) psychological attributes
D) must-have attributes

Question 49

Suppose that you are a salesperson making a sales proposal to a potential customer who you know uses a multiattribute model when making buying decisions. Over the course of the sales presentation, it becomes apparent that significant attributes of the product may have been missed or overlooked in the discussion. What is probably the best strategy to follow?

A) modify the product offering being proposed
B) alter the buyer's beliefs about the competitor's offering
C) alter the importance weights
D) call attention to neglected attributes

Question 50

In the business buying process, what is the term for when a salesperson provides information to create a more accurate picture of a competitor's attributes or qualities?

A) competitive depositioning
B) multiattribute model recalibration
C) sequential revision process
D) competitive performance evaluation

Question 51

In evaluating business buying decisions, what are features of the core product that the customer takes for granted, such as reliability, durability, and conformance to specifications?

A) delighter attributes
B) functional attributes
C) psychological attributes
D) must-have attributes

Question 52

Why should a salesperson be familiar with the basic types of buyer needs?

A) to ensure that the buyer is happy with the product
B) to ensure that no significant problems or needs have been overlooked in the process of needs discovery
C) to ensure that the buyer will learn to trust the salesperson
D) to ensure there is sufficient inventory to meet the demand

Question 53

Suppose that you are a salesperson making a sales proposal to a potential customer who you know uses a multiattribute model when making buying decisions. Given the detailed product specifications provided by the customer, you know that your product rates exceptionally high on three of the five characteristics but poorly on the remaining two. What is probably the best strategy to follow?

A) modify the product offering being proposed
B) alter the buyer's beliefs about the competitor's offering
C) alter the importance weights
D) call attention to neglected attributes

Question 54

What is a postpurchase evaluation process that business buyers use to evaluate a product purchase by using functional and psychological attributes?

A) multiattribute model
B) cognitive dissonance model
C) two-factor model of evaluation
D) Herzberg's two-factor theory

Question 55

In the business buying process, what is the term for a procedure for evaluating suppliers and products that incorporates weighted averages across desired characteristics?

A) request for proposal
B) multiattribute model
C) sequential revision process
D) supplier evaluation system

Question 56

According to the textbook, what opportunity is offered to the salesperson by the stage of the buying process where the general characteristics of a solution to a particular problem or need are determined?

A) the opportunity to overcome negative stereotypes that buyers have of salespeople
B) the opportunity to use knowledge and expertise to assist the buyer in analyzing and interpreting the problem situation and needs
C) the opportunity to initiate the buying process by offering to gather information on the buyer's behalf
D) the opportunity to build a relationship with the customer

Question 57

What is the term for a form created by companies and distributed to qualified potential suppliers that helps them to develop and submit proposals to provide products as specified by the firm?

A) request for partners
B) request for proposal
C) request for problem
D) request for pricing

Question 58

Which statement best characterizes the difference between consumer buyer needs and business buyer needs?

A) Consumer buyer needs are primarily situational in nature and, unlike business buyer needs, cannot be predicted with any degree of accuracy.
B) While both consumer and business buyers are influenced by the same needs, the business buyer must also satisfy the needs and requirements of the organization.
C) Business buyer needs are primarily functional in nature and therefore simpler to understand than consumer buyer needs.
D) Psychological needs rarely influence business buyers while consumers focus primarily on them.

Question 59

What should the buyer do once he or she has completed phase three of the buying process, describing the characteristics of the item and quantity needed?

A) begin searching for and qualifying potential solution providers
B) start analyzing proposals
C) attempt to determine the needs
D) evaluate the solution

Question 60

According to the textbook, what are the primary determinants of customer satisfaction and loyalty in business buying?

A) providing technical and product support
B) flexible delivery and payment schedules to meet the needs of each customer
C) guaranteed competitive pricing and delivery over the length of the contract
D) salesperson communication and interaction with the customer after the sale

Question 61

In evaluating business buying decisions, what are the augmented features and characteristics included in the total market offering that go beyond buyer expectations and have a significant positive impact on customer satisfaction called?

A) delighter attributes
B) functional attributes
C) psychological attributes
D) must-have attributes

Question 62

Simin is an individual who is very animated, communicative, and values building close relationships with others. Simin is demonstrating what communication style?

A) amiables
B) analyticals
C) expressives
D) drivers

Question 63

What is a purchase decision characterized by a somewhat familiar problem or need, moderate information requirements and limited information search, limited consideration of alternatives, and moderate levels of buying influences and financial risk called?

A) a straight rebuy decision
B) a modified rebuy decision
C) a flexible rebuy decision
D) a new task decision

Question 64

With respect to the communication styles matrix, what is the term for individuals who are high on both responsiveness and assertiveness, are animated and communicative, and value building close relationships with others?

A) amiables
B) analyticals
C) expressives
D) drivers

Question 65

What is a purchase decision resulting from an ongoing purchasing relationship with a supplier called?

A) a straight rebuy decision
B) a modified rebuy decision
C) a flexible rebuy decision
D) a new task decision

Question 66

What kind of purchase decision occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products and suppliers?

A) a straight rebuy decision
B) a modified rebuy decision
C) a flexible rebuy decision
D) a new task decision

Question 67

With respect to the communication styles matrix, what is the term for individuals who are low on responsiveness and assertiveness, and are meticulous and disciplined in everything they do?

A) amiables
B) analyticals
C) expressives
D) drivers

Question 68

With respect to buying teams, what is the term for individuals within an organization who identify a need?

A) initiators
B) influencers
C) users
D) deciders

Question 69

In evaluating business buying decisions, what is the term for how things are carried out between buyer and seller, such as responding to requests, being innovative, and having consideration for the customer?

A) delighter attributes
B) functional attributes
C) psychological attributes
D) must-have attributes

Question 70

With respect to communication styles, what is the term for the degree to which a person holds opinions about issues and attempts to dominate or control situations by directing the thoughts and actions of others?

A) responsiveness
B) analysis
C) assertiveness
D) sociability

Question 71

With respect to the communication styles matrix, what is the term for individuals who are high on responsiveness, low on assertiveness, prefer to belong to groups, and are interested in others?

A) amiables
B) analyticals
C) expressives
D) drivers

Question 72

With respect to the communication styles matrix, what is the term for individuals who are low on responsiveness, high on assertiveness, and tend to be detached from relationships?

A) amiables
B) analytical
C) expressive
D) drivers

Question 73

With respect to buying teams, what is the term for individuals within an organization who guide the decision process by making recommendations and expressing preferences?

A) initiators
B) influencers
C) users
D) deciders

Question 74

What is a purchase decision characterized by an unfamiliar problem or need, high information requirements prompting extensive information search, consideration of many alternatives, and high levels of buying influences and financial risk called?

A) a straight rebuy decision
B) a modified rebuy decision
C) a flexible rebuy decision
D) a new task decision

Question 75

According to the textbook, which of the following statements best describes the results of research conducted on the differential impact of functional versus psychological attributes on customer satisfaction?

A) Delighter attributes have up to twice as much influence on customer satisfaction and loyalty as must-have attributes.
B) Psychological attributes have up to twice as much influence on customer satisfaction and loyalty as functional attributes.
C) Must-have attributes have up to twice as much influence on customer satisfaction and loyalty as delighter attributes.
D) Functional attributes have up to twice as much influence on customer satisfaction and loyalty as psychological attributes.

Question 76

What kind of purchase decision occurs when a buyer is purchasing a product or service for the first time?

A) a straight rebuy decision
B) a modified rebuy decision
C) a flexible rebuy decision
D) a new task decision

Question 77

What is a purchase decision characterized by a familiar problem or need, minimal information requirements and research, little to no consideration of alternatives, few buying influences, and low financial risk called?

A) a straight rebuy decision
B) a modified rebuy decision
C) a flexible rebuy decision
D) a new task decision

Question 78

From a salesperson's perspective, which of the following best summarizes how to use the communication styles matrix to become more effective?

A) A salesperson should not strive to match his or her communication style to that of the buyer as it will almost always be perceived as insincere.
B) A salesperson should adapt his or her communication style to that of the buyer to enhance effectiveness.
C) A salesperson should match his or her communication style to that of the buyer as similar styles enhance effectiveness.
D) A salesperson should change his or her communication style to the opposite of the buyer to enhance communication.

Question 79

With respect to communication styles, what is the term for the level of feelings and sociability an individual openly displays?

A) responsiveness
B) analysis
C) assertiveness
D) persuasiveness

Question 80

What is the biggest challenge for a salesperson trying to gain business from a customer who considers a specific purchase a straight rebuy decision situation from another supplier?

A) convincing the buyer that a gap exists between his or her actual and desired state
B) repositioning the buying decision to include more attributes
C) changing the importance weights attached to product attributes
D) using competitive depositioning to open up the contract for rebidding