Deck 6: Business Markets and Business Buyer Behavior

Question 1

Large business purchasers call for detailed product specifications,written purchase orders,careful supplier searches,and formal approval.These are all examples of how the business buying decision process tends to be more _________ than the consumer buying decision process.

A) formalized
B) creative
C) relationship-oriented
D) independent
E) concentrated

Answer 1

formalized

Question 2

In one way or another,most large companies sell to ________.

A) consumers
B) other organizations
C) employees
D) not-for-profit companies
E) the service sector

Answer 2

other organizations

Question 3

In a typical organization,buying activity consists of two major parts: the buying ________ and the buying ________.

A) committee; time
B) time; reorder point
C) economic order quantity; reorder point
D) center; decision process
E) deciders; influencers

Answer 3

center; decision process

Question 4

Business buying behavior refers to the buying behavior of organizations that buy ________.

A) goods purchased for the use of production
B) goods purchased by retailers
C) goods purchased by wholesalers
D) services supplied or rented to others
E) all of the above

Question 5

When compared to consumer markets,business markets are ________.

A) approximately the same
B) smaller
C) huge
D) somewhat larger
E) less complex

Question 6

The demand for many business goods and services tends to change more,and more quickly,than the demand for consumer goods and services does.This is referred to as ________ demand.

A) fluctuating
B) derived
C) inelastic
D) elastic
E) supplier

Question 7

Another name for systems selling is ________ selling.

A) solutions
B) blanket contract
C) vendor-managed inventory
D) negotiated contract
E) periodic purchase

Question 8

Business buying behavior refers to the buying behavior of organizations that buy all of the following EXCEPT ________.

A) products for use in production of other products
B) services for use in production of other services
C) products purchased to resell to others
D) products purchased to rent to others
E) products purchased for personal consumption

Question 9

In which type of buying situation would a supplier most likely focus on maintaining product and service quality?

A) straight rebuy
B) modified rebuy
C) new task
D) systems task
E) solutions task

Question 10

Economic,technological,and political factors are all ________ that affect the business buying process.

A) organizational factors
B) environmental factors
C) interpersonal influences
D) individual influences
E) marketing stimuli

Question 11

If we were to compare business purchasers to consumer purchasers,it would be safe to say ________.

A) they deal with far fewer but far larger buyers
B) they are paid and the consumer is not paid for buying
C) business buyers almost always work in committees
D) derived demand exists between business purchasers
E) none of the above

Question 12

Which business buying situation is the marketer's greatest opportunity and challenge?

A) modified rebuy
B) straight rebuy
C) new task
D) multiple rebuys
E) system rebuy

Question 13

Which of the following is NOT a way that business and consumer markets differ?

A) market structure and demand
B) nature of the buying unit
C) satisfaction of needs through purchases
D) types of decisions
E) decision processes

Question 14

A2Z Pharmaceuticals produces insulin,a product with a very stable demand,even though the price has changed several times in the past two years.Insulin is a product with ________ demand.

A) joint
B) service
C) inelastic
D) elastic
E) fluctuating

Question 15

You just lost a major account because a competitor provided the most complete system to meet the customer's needs and solve the customer's problems,and made the sale.In other words,the competition beat you with ________.

A) solutions selling
B) team selling
C) cross-functional skill
D) customer relationship management
E) promotions

Question 16

Hewlett-Packard and Toshiba buy Intel microprocessor chips because consumers buy personal computers.This demonstrates an economic principle called ________.

A) elastic demand
B) fluctuating demand
C) derived demand
D) joint demand
E) market demand

Question 17

Although there are many differences between business buying behavior and consumer buying behavior,both respond to the same four stimuli: product,price,promotion,and ________.

A) precision
B) personal relationships
C) place
D) publicity
E) packaging

Question 18

The owners of the company you work for have developed a core network of suppliers they are working closely with to ensure an appropriate and dependable supply of products.This is an example of ________ management.

A) value chain
B) network relationship
C) channel captain
D) core channel
E) supplier development

Question 19

Business customers also tend to be more __________________.

A) geographically concentrated
B) reactive to markets
C) service oriented
D) consumer oriented
E) price oriented

Question 20

As a purchasing agent,Benny Lim buys goods and services for use in the production of products that are sold and supplied to others.Benny is involved in ________.

A) consumer buying behavior
B) post-purchase dissonance
C) retail buyer behavior
D) business buyer behavior
E) interpretive business research

Question 21

The decision-making unit of a buying organization is called the ________.

A) business buyer
B) buying center
C) buying system
D) business-to-business market
E) supplier-development center

Question 22

Policies,procedures,and systems are all examples of ________ influences on business buyer behavior.

A) environmental
B) authoritative
C) interpersonal
D) organizational
E) cultural

Question 23

Which of the following types of factors influencing members of a buying center are typically the most difficult for marketers to assess?

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

Question 24

A ________ consists of the actual users of products,those who control buying information,those who influence the decisions,those who do the actual buying,and those who make the buying decisions.

A) supplier development team
B) cross-functional team
C) buying center
D) quality management center
E) partnership management team

Question 25

Gail Khor 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) user
B) influencer
C) buyer
D) decider
E) gatekeeper

Question 26

To ensure an adequate and available supply of key scarce materials,many companies are now willing to ________.

A) decrease levels of demand
B) buy more and hold large inventories of the materials
C) eliminate distribution and warehousing partners
D) experiment with just-in-time technologies
E) reduce the length of the supply chain

Question 27

Influence,Expertise and Authority are all examples of ________ influences on business buyer behavior.

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

Question 28

Charlie Ho,executive vice president of National Central Bank,is going through all of the stages of the buying process to purchase a computer system for the bank.Charlie is facing a(n)________ situation.

A) straight rebuy
B) modified rebuy
C) new-task buying
D) limited budget
E) independent buying

Question 29

Buyers are heavily influenced by the current and expected economic environment.That includes which of the following buyer influences?

A) level of primary demand
B) economic outlook
C) the cost of money
D) A and B only
E) all of the above

Question 30

Many companies now are more willing to buy more and hold large inventories in order to ________.

A) get low-cost items
B) ensure a supply of scarce materials
C) deal with government-regulated materials
D) handle imported materials
E) reorder high-theft items

Question 31

When competing products differ greatly,business buyers are more accountable for their purchase choices and tend to pay more attention to ________.

A) economic factors
B) emotional choice
C) intuition
D) personal factors
E) creative factors

Question 32

Which of the following is NOT included in the decision-making unit 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 the product
E) individuals who control buying information

Question 33

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

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

Question 34

Lu Zhang as the purchasing agent for the Shanghai Food Group will be influenced by each of the following basic factors EXCEPT ________.

A) environmental
B) organizational
C) interpersonal
D) individual
E) group influences

Question 35

The business marketer must learn who participates in the _____________,each participant's relative influence,and what evaluation criteria each decision participant uses.

A) budget decision
B) informal decision
C) buying decision
D) status roles
E) marketing decision

Question 36

It is safe to say that business buyers react in purchase decisions with both reason and emotion,therefore they respond to both personal and ________ factors.

A) economic
B) consumer
C) supplier
D) reseller
E) psychological

Question 37

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

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

Question 38

Don Gan,in his role on the buying committee,provides information for evaluating the alternative purchase decisions and helps define and set specifications for evaluating alternatives for purchasing.Don is a(n)________.

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

Question 39

The major influences on the buying process at SIA Engineering include company policies and systems,technological change,and economic developments.The types of influences on the buying process in this scenario are most accurately categorized as ________ and ________.

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

Question 40

When suppliers' offers are very similar,business buyers have little basis for a strictly ________.

A) emotional choice
B) rational choice
C) personal choice
D) intuitive choice
E) independent choice

Question 41

Business marketers often alert customers to potential problems and then show how their products provide solutions.These marketers are hoping to influence which stage of the business buying process?

A) general need description
B) alternative evaluations
C) problem recognition
D) order-routine specification
E) performance review

Question 42

Which of the following is an example of an internal stimulus that might lead to the business buying process stage of 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 price.
D) A buyer receives a call from a salesperson offering better service terms.
E) A buyer learns about a new product at an industry convention.

Question 43

During the ________ stage of the business buying decision process,the buying center reviews the proposals.

A) proposal solicitation
B) supplier selection
C) product value analysis
D) order-routine specification
E) performance review

Question 44

Which of the following is the process of the buying center deciding on the best product characteristics?

A) value analysis
B) general need description
C) marketing myopia
D) purchase order
E) product specification

Question 45

A buyer would be most likely to review trade directories in which stage of the business buying process?

A) problem recognition
B) general need description
C) product specification
D) supplier search
E) supplier selection

Question 46

Which of the following is the last stage of the business buying process?

A) order-routine specifications
B) supplier selection
C) performance review
D) value analysis
E) vendor analysis

Question 47

The purchasing agent at your company is working with engineers and users to define the items to purchase by describing general characteristics and quantities needed.He is also ranking the importance of reliability,durability,and price.The buyer is preparing a(n)________.

A) value analysis
B) product specifications list
C) general need description
D) order-routine specification
E) product proposal

Question 48

Under a ________,a supplier monitors and replenishes a buyer's stock automatically as needed.

A) vendor-managed inventory
B) negotiated contract
C) stand-alone contract
D) periodic purchase order
E) blanket contract

Question 49

In which stage of the business buying process is it a supplier's task to make sure that the buyer has experienced expected satisfaction?

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

Question 50

Which of the following statements about the supplier selection stage of the business buying decision process is true?

A) Price is the only factor businesses consider before making a purchase decision.
B) Even companies that have adopted a total quality management approach consider price to be the most important factor in choosing a supplier.
C) Price and warranty are the only two factors businesses consider before making a purchase decision.
D) Buyers do not negotiate for better terms before making a final supplier selection.
E) Before selecting a supplier, many companies consider the supplier's reputation for ethical corporate behavior and honest communication.

Question 51

The first step of the business buying process is ________.

A) general need description
B) alternative evaluations
C) problem recognition
D) order-routine specification
E) performance review

Question 52

_____________ gives buyers access to new suppliers,lowers purchasing costs,and hastens order processing and delivery.

A) Email communication
B) E-journals
C) A blanket contract
D) E-commerce
E) E-procurement

Question 53

During which stage of the business buying process is a buyer most likely to conduct a value analysis,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 54

In the generally accepted stages of the business buying process,the step following problem recognition is ________.

A) proposal solicitation
B) supplier search
C) product value analysis
D) general need description
E) performance review

Question 55

In the case of maintenance,repair,and operating items,buyers may use a ________ rather than periodic purchase orders.

A) blanket contract
B) negotiable instrument
C) binding purchase order
D) locked-in sale
E) solutions purchase

Question 56

In which stage of the business buying process is a supplier most likely to provide a buyer with information about the value of different product characteristics?

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

Question 57

Empire Products has begun a process to find the best vendors.Empire Products is actively engaged in ________.

A) value analysis
B) performance review
C) supplier search
D) supplier control
E) supplier selection

Question 58

In the generally accepted stages of the business buying process,the step following product specification is ________.

A) proposal solicitation
B) supplier search
C) problem recognition
D) general need description
E) order-routine specification

Question 59

Which of the following can be useful for a company that needs to conduct secure and frequent communications and transactions with key suppliers to purchase equipment,materials,and supplies?

A) an intranet link
B) an extranet link
C) buying centers
D) a reverse auction
E) a trading exchange

Question 60

Members of the buying center at ABC Kid's World are drawing up a list of desired toy supplier attributes and their relative importance.Next,they intend to compare several suppliers to these attributes.What step of the business buying process is the ABC Kid's World engaged?

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

Question 61

All of the following are difficulties associated with selling to government buyers EXCEPT ________.

A) considerable paperwork
B) bureaucracy
C) regulations
D) low sales volume
E) decision making delays

Question 62

Total government spending is determined by ________ rather than by any ________ to develop this market.

A) price; contracts
B) elected officials; contracts
C) elected officials; marketing effort
D) marketing efforts; elected officials' effort
E) product and service availability; marketing strategies

Question 63

The world's major buyers of products and services are ________.

A) MNCs
B) non-profit organizations
C) government organizations
D) Asian companies
E) global joint ventures

Question 64

Shop N Save buys a lot of frozen turkey products at Christmas due to high consumer demand.This is an example of ________ demand.

A) joint
B) derived
C) elastic
D) static
E) inelastic

Question 65

Many institutional markets are characterized by ________ and ________.

A) low budgets; vague criteria
B) special needs; vague criteria
C) low budgets; captive patrons
D) captive patrons; limited access
E) mismanagement; disgruntled workers

Question 66

Under a(n)________,buyers share sales and inventory information directly with key suppliers.

A) intranet system
B) vendor-managed inventory system
C) inventory system
D) trading exchange
E) router

Question 67

Helping Hands Inc.provides food services to schools,hospitals,and nursing homes in Thailand.Management at Helping Hands is involved in the ________ market.

A) government
B) not-for-profit
C) local
D) institutional
E) global

Question 68

ABC Enterprises sold 9,000 units @ $2.99/unit in July.The firm sold 9,000 units @ $4.29/unit in August.This illustrates ________ demand.

A) derived
B) contrived
C) fluctuating
D) joint
E) inelastic

Question 69

GE operates a company trading site on which it posts its buying needs and invites bids,negotiates terms,and places orders.GE is utilizing a(n)_______________ .

A) intranet system
B) vendor-managed inventory system
C) E-procurement system
D) trading exchange
E) router

Question 70

A firewall is a(n)________.

A) commonly used technique to safeguard Internet and extranet transactions
B) method of communicating with e-commerce customers
C) tool used by hackers to infiltrate corporate Web sites
D) method for increasing employee productivity
E) effective method for efficiently linking buyer and seller Web sites

Question 71

Government organizations tend to favor ________ suppliers over ________ suppliers.

A) local; domestic
B) part-time; full-time
C) foreign; domestic
D) domestic; foreign
E) nonunionized; unionized

Question 72

B2B e-procurement yields many benefits.These include all of the following EXCEPT:

A) Reduced transaction costs
B) More efficient purchasing for both buyers and sellers
C) Elimination of inventory problems
D) Reduces the time between order and delivery
E) Frees purchasing people to focus on issues that are more strategic

Question 73

The rapidly expanding use of E-procurement presents some problems to purchasing professionals,including ________.

A) the erosion of long-term relationships
B) security problems
C) the creation of extensive drudgery work
D) A and B
E) all of the above

Question 74

Demand for wet suits depends on consumers taking up scuba diving lessons and scuba diving holiday packages.This is an example of ________ demand.

A) fluctuating
B) joint
C) derived
D) contrived
E) leisure

Question 75

Which of the following statements about E-procurement security issues is true?

A) There are no security risks for companies doing business on the Internet.
B) Firewalls provide adequate security for all Internet exchanges.
C) Hackers are not interested in many business-to-business transactions.
D) Extranet users and Internet users face the same security risks and use the same security tools.
E) Providing E-procurement security can involve a company spending millions.

Question 76

FedEx serves both consumer and business markets,but most of its revenues come from its business customers.FedEx has become a strategic logistics ally for many of its business customers,going far beyond offering delivery services to offering inventory management,international trade management,and even financing to its commercial customers.This is an example of which of the following differences between the consumer and business markets?

A) Business purchases involve more buyers.
B) Buyers and sellers in the business market build close, long-term relationships.
C) Business markets contain more and larger buyers.
D) Business buyer demand is derived.
E) Demand in business markets is inelastic.

Question 77

There are many factors considered in government buying,but ________ is typically the most important.

A) price
B) public relations
C) advertising
D) personal selling
E) packaging

Question 78

A problem with the rapidly expanding use of e-purchasing is that it ________.

A) can erode established customer-supplier relationships
B) saves less time than expected
C) generates more transactions to document
D) generates less cost savings than predicted
E) reduces the amount of time purchasing people can spend on strategic issues

Question 79

Although E-procurement through email and home banking transactions can be protected by basic encryption,the _______________ that businesses need to carry out confidential interactions is often still lacking.

A) expertise
B) trained personnel
C) secure environment
D) knowledge
E) efficiencies

Question 80

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

A) Sign Systems sells interior signs to an Asian resort.
B) A country club buys chemicals for its swimming pool.
C) Sue buys a gift for her mother.
D) A Thai software company buys tickets to send a group of salespeople to make a presentation to a heavy equipment manufacturer in Japan.
E) Selling a vinyl printing press to a manufacturer of plastic bags.