Deck 6: Business Markets and Business Buyer Behavior

Question 1

Business buyer behavior refers to the ________.

A) buying behavior of consumers who buy goods and services for personal consumption
B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
C) buying behavior of consumers who rely on small retailers for the regular supply of provisions
D) decision process by which business buyers determine which products and services their organizations need to purchase
E) strong affinity of businesses for value-for-money deals

Answer 1

B

Question 2

Business demand that ultimately comes from the demand for consumer goods is known as ________ demand.

A) derived
B) negative
C) primary
D) latent
E) elastic

Answer 2

A

Question 3

The owners of a manufacturing firm in Ohio have developed a core network of suppliers to ensure an uninterrupted supply of products. This is an example of ________.

A) capability management
B) a supply bottleneck
C) asset management
D) backsourcing
E) supplier development

Answer 3

E

Question 4

The business marketer normally deals with ________ than the consumer marketer does.

A) far fewer but far larger buyers
B) far more but far smaller buyers
C) negligible customer complaints
D) far less fluctuations in demands
E) far more elastic demand

Question 5

The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand.

A) latent
B) negative
C) inelastic
D) derived
E) composite

Question 6

In business markets with inelastic demand ________.

A) the total demand for products is not much affected by short-term price changes
B) buyers are highly sensitive to price changes
C) derived demand is absent
D) a business purchase usually involves less decision participants
E) a business purchase usually does not involve a professional purchasing effort

Question 7

Which of the following is true about business purchases?

A) Business purchases involve more professional purchasing effort than consumer purchases.
B) Business purchases involve less participants in decision making compared to consumer purchases.
C) Purchasing agents are absent in business purchases.
D) Business purchases involve less technical and economic considerations compared to consumer purchases.
E) Business purchases are usually quicker and more informal than are consumer purchases.

Question 8

Green Bees, a popular American heavy-metal band, will perform in Berlin during Christmas. There is a high demand for concert tickets among fans worldwide who are looking forward to the much-awaited performance. In this instance, the high demand for tickets for the Green Bees concert is representative of ________.

A) primary demand
B) negative demand
C) derived demand
D) cross elasticity of demand
E) latent demand

Question 9

Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.

A) derived demand
B) inelastic demand
C) a straight rebuy
D) a new task
E) a modified rebuy

Question 10

The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands is known as ________.

A) situational analysis
B) business buying process
C) business diversification
D) business process automation
E) lateral expansion

Question 11

Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand.

A) composite
B) derived
C) primary
D) latent
E) inelastic

Question 12

Business markets are similar to consumer markets in that ________.

A) the nature of the buying unit is the same for both
B) the decision processes involved in both the markets are same
C) both involve people who assume buying roles and make purchase decisions to satisfy needs
D) both share the same market structure
E) the types of decisions are fairly consistent in both the markets

Question 13

In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms, or suppliers.

A) reverse auction
B) straight rebuy
C) new task
D) modified rebuy
E) absolute auction

Question 14

Which of the following is NOT part of the business market?

A) Kruger Group sells interior security systems to resorts.
B) A country club buys safety equipment for its swimming pool.
C) Sue shops for her family's groceries at the local Whole Foods store.
D) A firm buys laptops from Dell for company salespeople to use when traveling.
E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.

Question 15

In which of the following would the buyer reorder a product without any modifications?

A) reverse auction
B) solution selling
C) new task
D) straight rebuy
E) modified rebuy

Question 16

In a ________ situation, the "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account and the "out" suppliers may see the present situation as an opportunity to make a better offer and gain new business.

A) straight rebuy
B) new task
C) reverse auction
D) modified rebuy
E) solutions selling

Question 17

A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions?

A) Are buyers sensitive toward price changes in consumer markets?
B) What are the major influences on buyers?
C) Are niche markets more profitable than mass markets?
D) How do interpersonal factors affect organizational performance?
E) Is the role of gatekeepers relevant in the international business environment?

Question 18

A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only slightly affected following a 12 percent hike in tuition the following Fall. This illustrates a(n) ________ demand.

A) derived
B) negative
C) highly elastic
D) composite
E) inelastic

Question 19

________ involves systematically developing networks of supplier-partners to ensure a dependable supply of products and materials for use in making products or reselling them to others.

A) Supplier development
B) Backsourcing
C) Supplier quality assurance
D) Corporate recovery
E) Executive development

Question 20

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

A) primary
B) composite
C) derived
D) latent
E) negative

Question 21

Paul, a purchasing agent for Kiel Inc., has the authority to prevent salespersons from seeing the decision makers in his organization. Which of the following best describes Paul's position?

A) influencer
B) decider
C) gatekeeper
D) buyer
E) user

Question 22

A(n) ________ controls the flow of information to others in the buying center.

A) user
B) influencer
C) buyer
D) gatekeeper
E) decider

Question 23

Solutions selling ________.

A) is often a key business marketing strategy for winning and holding accounts
B) refers to a business buying situation in which the buyer purchases a product or service for the first time
C) refers to a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
D) is equivalent to cold calling
E) refers to a business buying situation in which the buyer routinely reorders something without any modifications

Question 24

The ________ Web site provides a single point of entry through which commercial vendors and government buyers can post, search, monitor, and retrieve opportunities solicited by the entire federal contracting community.

A) U.S. Small Business Administration
B) Center for Regulatory Effectiveness
C) Federal Business Opportunities
D) Federal Civil Defense Authority
E) U.S. Commerce Department

Question 25

Ralph works for a manufacturing company in Ohio. Recently, he called in a department manager to assist in the purchase of some heavy machineries. After consulting the department manager, Ralph is considering a change in product specifications and characteristics and expects suppliers to meet his requirements. Which of the following is evident here?

A) modified rebuy
B) new task
C) straight rebuy
D) product differentiation
E) reverse auction

Question 26

In a straight rebuy, ________.

A) the "in" suppliers try to maintain product and service quality to keep the business
B) the "in" suppliers feel pressured to protect an account
C) the "out" suppliers view the situation as an opportunity to gain new business
D) a company buys a product or a service for the first time
E) buyers are keen on revising product specifications

Question 27

In routine buying situations, which of the following members of the buying center has formal or informal power to select or approve the final suppliers?

A) users
B) influencers
C) gatekeepers
D) deciders
E) buyers

Question 28

________ refers to a business buying situation in which the buyer purchases a product or service for the first time.

A) Modified rebuy
B) Straight rebuy
C) New task
D) Reverse auction
E) Derived demand

Question 29

________ have formal authority to select the supplier and arrange the terms of purchase.

A) Users
B) Influencers
C) Buyers
D) Gatekeepers
E) Deciders

Question 30

Which of the following is most likely true about a straight rebuy?

A) Suppliers are not required to focus on quality of products or services delivered.
B) A straight rebuy is far more complex than a new-task situation.
C) A straight rebuy is handled on a routine basis by the purchase department.
D) A straight rebuy occurs only when a buyer wants to pinpoint and procure the best deal in the market.
E) A straight rebuy involves more opportunities for "out" buyers than do other types of purchasing situations.

Question 31

Who among the following does NOT participate in the purchase decision process of a buying organization?

A) individuals who use the product or service
B) individuals who influence the buying decision
C) individuals who make the buying decision
D) individuals who supply raw materials
E) individuals who control the flow of information to others

Question 32

The ________ refers to all the individuals and units that play a role in the purchase decision-making process.

A) research and development center
B) value chain
C) buying center
D) marketing information system
E) immersion group

Question 33

Dora has formal authority to select the suppliers and arrange terms of purchase for many of the items her firm uses. Her role in the buying center is that of a(n) ________.

A) user
B) influencer
C) buyer
D) decider
E) gatekeeper

Question 34

________ may help shape product specifications, but their major role is in selecting vendors and negotiating.

A) Gatekeepers
B) Deciders
C) Buyers
D) Influencers
E) Users

Question 35

Eric Mason, an employee of Huntington Steelworks, is responsible for defining product specifications and providing relevant information for evaluating alternatives in his organization's buying center. Eric, whose opinions affect the buying decisions of his organization to a great extent, is most likely a(n) ________.

A) user
B) influencer
C) decider
D) gatekeeper
E) buyer

Question 36

________ refer to members of the buying organization who will actually use the purchased product or service.

A) Gatekeepers
B) Usurers
C) Users
D) Influencers
E) Buyers

Question 37

The decision-making unit of a purchasing organization is called its ________.

A) value chain
B) buying center
C) customer support system
D) quality center
E) innovation center

Question 38

________ refers to buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

A) Systems selling
B) Outsourcing
C) Insourcing
D) Cold calling
E) Direct marketing

Question 39

________ refer to people in an organization's buying center who affect the buying decision; they often help define specifications and provide information for evaluating alternatives.

A) Users
B) Influencers
C) Buyers
D) Gatekeepers
E) Deciders

Question 40

Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. This is an example of ________.

A) a modified rebuy situation
B) a new task
C) a straight rebuy situation
D) reverse auction
E) product differentiation

Question 41

The major influences on the buying process at General Aeronautics Limited include supply conditions and technological changes, which would both be categorized as ________ factors.

A) organizational
B) individual
C) systemic
D) interpersonal
E) environmental

Question 42

If a buying center is most influenced by authority in the business buying process, it can be safely concluded that ________ factors have a major influence on its buying behavior.

A) technological
B) systemic
C) interpersonal
D) strategic
E) economic

Question 43

Which of the following factors influencing the business buying process do marketers typically find most difficult to assess?

A) economic
B) technological
C) interpersonal
D) organizational
E) environmental

Question 44

Factors such as a firm's objectives, procedures, and systems are examples of ________ influences on the business buyer behavior.

A) political
B) interpersonal
C) technological
D) organizational
E) cultural

Question 45

Marissa Hopkins, a hospital nurse, notices that the gurneys used in the hospital are not durable enough. She informed the hospital authorities about Grace Care Inc., a new company selling light-weight and durable gurneys. In this instance, Marissa played the role of a(n) ________.

A) strategist
B) buyer
C) gatekeeper
D) influencer
E) decider

Question 46

________ occurs when someone in the company identifies a need that can be met by acquiring a specific product or service.

A) Solutions selling
B) Proposal solicitation
C) Problem recognition
D) Performance review
E) Real-time marketing

Question 47

Business buyers are heavily influenced by factors in the current and expected economic environment, such as ________.

A) level of primary demand
B) organizational objectives
C) group dynamics
D) individual motives
E) culture and customs

Question 48

Worthington's Farm is an old poultry farm in Mount Prospect, Illinois. For years, it has used wooden coops to haul its poultry to the market. The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. Consequently, the owner of Worthington's Farm ordered 100 customized coops from its regular supplier. This exemplifies ________.

A) a modified rebuy
B) a new task
C) a straight rebuy
D) derived demand
E) composite demand

Question 49

Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________.

A) faces a new task situation
B) faces a modified rebuy situation
C) is most likely to benefit the most from reverse auction
D) faces the need for product differentiation
E) plans to attract customers by offering products at below-market prices

Question 50

Which of the following is an environmental factor that influences business buyers?

A) organizational procedures
B) individual motives
C) organizational objectives
D) supply of key materials
E) group dynamics

Question 51

In routine buying, the buyers are often the ________, or at least the approvers.

A) monitors
B) influencers
C) gatekeepers
D) deciders
E) primary advertisers

Question 52

Jason Perkins has the informal power to approve the final suppliers in his organization. In other words, Jason plays the role of a(n) ________ in his organization's buying center.

A) gatekeeper
B) decider
C) buyer
D) influencer
E) user

Question 53

Buyers who face a ________ usually go through all stages of the buying process.

A) straight rebuy
B) modified rebuy
C) new-task buying situation
D) routine buying situation
E) need for limited problem solving

Question 54

Sheffield Cargo serves both consumer and business markets, but most of its revenue comes from its business customers. Of late, the business customers of Sheffield Cargo have demanded a change in the packaging of heavy cargo along with a more sophisticated and user-friendly extranet framework. Sheffield Cargo is under pressure to offer better products and services or risk losing a huge portion of its customers. This is an example of ________.

A) a new task
B) a modified rebuy situation
C) a straight rebuy situation
D) trade exchange
E) reverse auction

Question 55

In the beginning of the buying process, Timothy Perry, a product development manager, noticed that the raw materials that were being procured from his company's regular supplier were of poor quality. Consequently, he decided to change the existing supplier as a remedial measure. The stage of the buying process in which Timothy identified the quality breach represents the ________ stage.

A) problem recognition
B) general needs description
C) product specification
D) supplier search
E) performance review

Question 56

Which of the following is an organizational factor that influences business buyers?

A) technology
B) company procedures
C) employee attitudes
D) employee motives
E) group dynamics

Question 57

Rudolf Technologies Inc. decided to enter the automobile service market. Consequently, it decided to procure the tools and machines required for servicing cars from a reputed supplier. Rudolf Technologies is facing ________.

A) a new task situation
B) a modified rebuy situation
C) negative competition
D) the need to outsource its primary service offering
E) the pressure to diversify its market

Question 58

A nurse in a hospital told the chief dentist, Dr.Albrecht, that the hospital should purchase equipment that would sterilize the dentists' tools without using any water because water tends to affect the durability of the tools over time. Dr. Albrecht located some articles on chemical sterilizers and gathered more information on how they worked. After talking to salespeople, Dr. Albrecht finally placed his order for the machine. In this instance, Dr. Albrecht played the role of a(n) ________.

A) monitor
B) decider
C) agent
D) influencer
E) gatekeeper

Question 59

After searching extensively for vendors, Mike Miller, the owner of a manufacturing firm, selected Texcom Technologies Inc. as his firm's primary supplier of bearings and shafts of a specific dimension. Mike is currently preparing an order form that specifies the number of shafts needed and the expected time of delivery. In other words, he is preparing the ________.

A) order routine specification
B) general needs description
C) product specification
D) marketing mix
E) product mix

Question 60

The United States Environment Protection Agency (EPA) has mandated that, in order to reduce local pollution, all printing plants have to switch from oil-based inks to water-based inks. This will require entirely new printing presses and the procurement of a completely different printing plate technology. In this instance, the buying center of an organization using printing plants is most likely to face ________.

A) a need for market segmentation
B) a new task situation
C) a straight rebuy situation
D) a need for market diversification
E) delayed differentiation

Question 61

During which of the following stages of the business buying process is a buyer most likely to conduct a value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?

A) proposal solicitation
B) general need description
C) order-routine specification
D) performance review
E) product specification

Question 62

SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo Limited through its Web site in 2012. This is an example of ________.

A) e-procurement
B) insourcing
C) crowdsourcing
D) blanket contract
E) customer relations management

Question 63

In which stage of the business buying process does a buyer ask users to rate their satisfaction with the supplied materials?

A) problem recognition
B) performance review
C) supplier search
D) supplier selection
E) order-routine specification

Question 64

________ refers to purchasing through electronic connections between buyers and sellers-usually online.

A) E-procurement
B) Inverted sourcing
C) Strategic sourcing
D) Outsourcing
E) Value chain management

Question 65

Pace Hardware uses Learningnow.com to improve sales force effectiveness and facilitate sharing of expertise. It allows Pace retailers to connect with each other for seeking managerial and marketing advice. It also allows Pace retailers to ask their suppliers about product usage, deliveries, and warranties, and send new-product information directly to the retailers. In this instance, Pace Hardware is facilitating communication through ________.

A) extranet links
B) podcasts
C) search engines
D) trading exchanges
E) reverse auctions

Question 66

________ refers to the stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item.

A) Performance review
B) General needs description
C) Product development
D) Proposal solicitation
E) Product specification

Question 67

In the ________ stage of the buying process, the alert business marketer can help the buyers define their needs and provide information about the value of different product characteristics.

A) problem recognition
B) general needs description
C) supplier search
D) supplier selection
E) order-routine specification

Question 68

Members of the buying center at Kid's World, a store for children's clothing, are drawing up a list of desired supplier attributes and their relative importance. Next, they intend to compare several suppliers' proposals to these attributes. In which step of the business buying process is the buying center at Kid's World involved in?

A) general needs description
B) proposal solicitation
C) supplier selection
D) order-routine specification
E) performance review

Question 69

Sam Doharty, a purchasing manager in Willard Groups of Companies, is currently working with engineers and consultants to define the items to be purchased. Additionally, Sam and his team are ranking the importance of reliability, durability, and price desired in the items. In other words, they are preparing a(n) ________.

A) decision tree
B) supplier list
C) general need description
D) order-routine specification
E) product proposal

Question 70

Which of the following is an example of an internal stimulus that would most likely lead to problem recognition?

A) A buyer gets a new idea from an advertisement.
B) A buyer gets a new idea at a trade show.
C) A buyer is unhappy with a current supplier's product quality.
D) A buyer receives a call from a salesperson offering better service.
E) A buyer learns about a new product at an industry convention.

Question 71

________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.

A) Proposal solicitation
B) General needs description
C) Order-routine specification
D) Cost-benefit analysis
E) Product value analysis

Question 72

Which of the following most likely occurs in the supplier selection stage of the business buying decision process?

A) The buyer calls for detailed written proposals or formal presentations from each potential supplier.
B) The buyer compiles a small list of qualified suppliers by reviewing trade directories, doing computer searches, or contacting other companies for recommendations.
C) The buying team decides on the best product characteristics and specifies them accordingly.
D) The buyer prepares a general need description and identifies the quantity of the needed item.
E) The buying center draws up a list of the desired supplier attributes and their relative importance.

Question 73

Which of the following can help a company create direct procurement accounts with suppliers, through which company buyers can purchase equipment, materials, and supplies directly?

A) backsourcing
B) extranet
C) company blog
D) reverse auction
E) trade exchange

Question 74

Under ________, buyers share sales and inventory information directly with key suppliers who monitor and replenish the buyer's stock automatically as needed.

A) vendor-managed inventory
B) delayed differentiation
C) demand chain management
D) enterprise resource planning
E) materials management

Question 75

The first step of the business buying process is ________.

A) general needs description
B) product specification
C) problem recognition
D) order-routine specification
E) performance review

Question 76

By showing buyers a better way to make an object, outside sellers can ________ that give them a chance to obtain new business.

A) turn straight rebuy situations into modified rebuy situations
B) reduce delivery times and save money
C) provide incentives for larger orders
D) turn straight rebuy situations into new task situations
E) discourage straight rebuys

Question 77

A ________ creates a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed prices for a set time period.

A) blanket contract
B) request for proposal
C) supplier proposal
D) change order
E) noncompete clause

Question 78

Sail Metalworks Inc. is currently looking for the best vendors of metal sheets. In other words, Sail Metalworks is ________.

A) preparing a general needs description
B) deciding on product specification
C) conducting a supplier search
D) preparing an order-routing specification
E) reviewing suppliers' performance

Question 79

Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He sources most of the raw materials needed by his company from Kramer Corp. However, Ross is unhappy with Kramer's prices. Additionally, he thinks that the quality of the raw materials supplied by Kramer is sub-standard. Which of the following stages in the business buying process is Ross' company currently in?

A) general needs description
B) product specification
C) problem recognition
D) order-routine specification
E) performance review

Question 80

Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling. Which of the following is evident here?

A) order-routine specifications
B) supplier selection
C) performance review
D) general needs description
E) proposal solicitation