Question 1

When purchasing disposable surgical gowns,Mercy Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns.If the findings favor disposable gowns,then the operating-room administrator compares various competitors' products and prices and makes a choice.Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand.In this situation,the operating-room administrator performs the role of the ________.

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Question 2

Jason Riggs' company is considered to be an in-supplier for a lawn mower manufacturer.However,recently the lawn mower company has put out a memo to in- and out-suppliers indicating that it would like to modify product specifications and delivery schedules.Which of the following buying situations is most likely to be in operation given this data?

Accepted Answer

The lawn mower manufacturer's request to modify product specifications and delivery schedules indicates a change in buying behavior, which is characteristic of a modified rebuy situation. In this situation, the company may consider both in-suppliers and out-suppliers, and the decision-making process may involve multiple stakeholders.

Question 3

Orica Ltd.competes in the market for commercial explosives and recently changed its business model to the management of an entire blast in a quarry,selling contracts for "broken rock," rather than just selling explosives.This customer-solution-based approach to the sale of explosives is an example of ________.

Accepted Answer

The customer-solution-based approach to the sale of explosives, where Orica Ltd. sells contracts for "broken rock" rather than just selling explosives, is an example of systems selling. This approach involves selling not just the product but also additional services and support to ensure that the customer's needs are fully met.

Question 4

List the stages (buyphases)of the industrial buying process.

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Question 5

When purchasing disposable surgical gowns,Mercy Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns.If the findings favor disposable gowns,then the operating-room administrator compares various competitors' products and prices and makes a choice.Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand.In this situation,the surgeons perform the role of the ________.

Accepted Answer

The surgeons in this situation are simply the users of the disposable surgical gowns. They do not initiate the decision to purchase them, nor do they act as the gatekeeper (controlling the flow of information). The vice president of purchasing acts as the decider, and the operating-room administrator acts as the buyer.

Question 6

Identify four types of contract restrictions that business suppliers can use to protect their margins when dealing with price-oriented buyers.

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Question 7

Illustrate the differences between a straight rebuy,modified rebuy,and a new-task purchase.

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Question 8

Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period.This is an example of ________.

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Question 9

Describe the practices of systems buying and systems contracting.

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Question 10

All of the following are considered to be guidelines for selling to small businesses EXCEPT ________.

Accepted Answer

The other four options are all valid guidelines for selling to small businesses, while option A is incorrect as the Internet is a valuable tool for reaching small businesses.

Question 11

Think about what you have learned about a buying center.If you performed the role of the ________,you would be the person that has the power to prevent sellers or information from reaching other members of the buying center.

Accepted Answer

The role described in the question is that of a gatekeeper, who controls the flow of information to other members of the buying center. The initiator proposes the need for a product or service, the influencer provides input from their expertise, the decider ultimately makes the decision, and the approver gives final approval.

Question 12

List and briefly describe the seven roles played by members of a buying center.

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Question 13

Shoe manufacturers are not going to buy much more leather if the price of leather falls,nor will they buy much less leather if the price rises,unless they can find satisfactory substitutes.This is an example of ________.

Accepted Answer

Inelastic demand refers to a situation where the quantity of a product demanded does not change significantly in response to a change in its price. In this scenario, the demand for leather by shoe manufacturers is relatively inelastic because they cannot easily find substitutes for it. Therefore, even if the price of leather falls or rises, they are unlikely to significantly increase or decrease their purchases.

Question 14

If you decided to go into the systems contracting business,which of the following categories would constitute your main area of expertise,the service you provide for customers?

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Question 15

Business markets have several characteristics that contrast sharply with those of consumer markets.Name and briefly characterize five of those characteristics.

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Question 16

Explain the concept of solution selling.Give one example of this approach.

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Question 17

List and briefly characterize five methods of assessing customer value.

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Question 18

According to Webster,with respect to buying center influences,senior managers should remember that people are ________.

Accepted Answer

Senior managers should remember that people in a buying center are not just buying products, they are buying solutions to problems. This means that the decision-making process is focused on finding a solution to a particular problem or need within the organization, rather than simply purchasing a product. Understanding this perspective is crucial for senior managers who want to effectively influence the buying center.

Question 19

Identify the five factors affecting partner interdependence and environmental uncertainty that influence the development of a relationship between business partners.

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Question 20

Researchers have found that buyer-supplier relationships differed according to four factors: availability of alternatives;importance of supply;complexity of supply;and supply market dynamism.Based on these four factors,they classified buyer-supplier relationships into eight different categories.What are those categories?

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Quiz 7: Analyzing Business Markets