Question 1

In the business-to-business buying process, the first step is:
A) identification of a need
B) establishment of specifications
C) identification of alternatives
D) appointing a committee

Accepted Answer

Before any specifications or alternatives can be considered, there needs to be a recognized need for a product or service within the business. This step often involves identifying a problem or opportunity within the company and recognizing that a solution is necessary.

Question 2

A new task purchasing decision involves:
A) re-ordering from the same vendor
B) ordering new materials from the same vendor
C) requesting bids from multiple vendors since the contractual period with the current vendor has expired
D) buying an expensive good or service for the first time

Accepted Answer

A new task purchasing decision typically involves buying an expensive good or service for the first time, which requires extensive research and consideration due to the novelty and potential impact of the purchase.

Question 3

A straight rebuy involves:
A) re-ordering raw materials from the same vendor
B) buying materials from a new vendor
C) seeking bids from a new vendor because of dissatisfaction with the current supplier
D) purchasing a new building for an expansion project

Accepted Answer

A straight rebuy involves re-ordering from the same vendor without any changes or adjustments in the order. It is generally done for regularly purchased items such as raw materials or office supplies. Buying from a new vendor or seeking bids from a new vendor would involve additional evaluation and decision-making, making them not a part of a straight rebuy. Purchasing a new building for expansion is not related to purchasing materials and supplies, making it also not a part of a straight rebuy.

Question 4

When members of the buying center agree to consider IBM, Dell, and Hewlett-Packard in purchasing new computers because they are the firms that expressed interest, which stage of the business-to-business buying process is taking place?
A) vendor selection
B) identification of alternatives
C) identification of vendors
D) vendor evaluation

Accepted Answer

Identification of vendors is the stage of the business-to-business buying process in which potential suppliers are identified.

Question 5

A modified rebuy is most likely to occur when:
A) the company becomes dissatisfied with a vendor and wants to examine new options
B) re-ordering raw materials from the same vendor
C) buying a new computer system
D) purchasing a new building for an expansion project

Accepted Answer

A modified rebuy occurs when a company is looking to potentially change vendors due to dissatisfaction or a desire to explore new options, rather than when making routine purchases, significant new purchases, or capital investments.

Question 6

Buying center members with higher levels of cognitive involvement will:
A) use the purchasing process to further personal power goals
B) ask more questions during the purchasing process
C) have no opinion about purchase risk
D) be most inclined to base a purchase decision on nepotism

Accepted Answer

Buying center members with higher levels of cognitive involvement are more likely to be knowledgeable and have a greater interest in the product or service being purchased. This makes them more likely to ask questions during the purchasing process to ensure they are making an informed decision. Option A is incorrect as personal power goals are not relevant to higher levels of cognitive involvement. Option C is incorrect as higher levels of cognitive involvement are associated with higher levels of purchase risk perception. Option D is incorrect as nepotism is not a rational or objective factor in the decision-making process.

Question 7

Kimberly-Clark is going to place an additional order for plastic from its current vendor because of a larger order it has received from a customer for products the company manufacturers. The additional order for plastic would be a:
A) straight rebuy purchase
B) modified rebuy purchase
C) new task purchase
D) none of the above

Accepted Answer

A straight rebuy purchase is made by a buyer who has purchased a product or service from the same supplier in the past and wants to repeat the purchase without making any significant changes. In this case, Kimberly-Clark already has a current vendor for plastic, and the additional order is due to a larger order from a customer, indicating a straight rebuy purchase.

Question 8

A company that buys a product but only has limited or infrequent experience with that product will be involved in a:
A) straight rebuy
B) modified rebuy
C) new task purchase
D) joint demand purchase

Accepted Answer

The answer of A company that buys a product but...

Question 9

A company has reached the end of a contractual agreement with a vendor and wants to open it up for bid again before signing a new contract. This type of purchase situation is a:
A) straight rebuy
B) modified rebuy
C) new task purchase
D) joint demand purchase

Accepted Answer

This is a modified rebuy because the company has previous experience with the vendor and product, but they want to re-evaluate their options before signing a new contract. A straight rebuy would occur if the company simply renewed the contract without any further evaluation, while a new task purchase would involve an entirely new product or service being purchased. Joint demand purchases involve complementary or related products being purchased together.

Question 10

If a potential vendor offers what is perceived by a member of the buying center to be a better buy, the company may want to revisit the purchase decision. This type of situation is typically a:
A) straight rebuy
B) modified rebuy
C) new task purchase
D) joint demand purchase

Accepted Answer

In a modified rebuy situation, the buying center is open to considering other options and may revisit the purchase decision if a better buy is perceived. In a straight rebuy, the decision is automatic and routine without considering other options, while a new task purchase involves a completely new purchase decision and joint demand purchase involves multiple parties jointly making the purchase decision.

Question 11

A modified rebuy purchase decision occurs in each of the following situations, except:
A) when the firm has previously chosen a vendor and intends to place a reorder
B) when a company is dissatisfied with their current vendor and wants to consider new options
C) when a new company makes an offer that appears to be more attractive than what is currently being supplied by their current vendor
D) at the end of a contractual relationship and the company wants to evaluate competitive bids

Accepted Answer

A modified rebuy purchase decision involves some change or modification in the requirements or in the supplier relationship, but option A describes a straight rebuy situation, where a firm simply reorders from an existing vendor without seeking changes or considering new options.

Question 12

There is no evaluation of vendor alternatives or information in which situation?
A) modified rebuy
B) straight rebuy
C) new task
D) high-involvement

Accepted Answer

In a straight rebuy situation, the buyer simply reorders from the same vendor without evaluating alternatives or seeking for any additional information.

Question 13

In the "establishing specifications" step of the business-to-business purchasing process, for a modified rebuy situation, specifications are:
A) examined to ensure that they are current and still meet the company's needs
B) never examined
C) developed by the users of the product
D) developed with the assistance of the vendors bidding on the contract

Accepted Answer

In a modified rebuy situation, specifications are examined to ensure that they are current and still meet the company's needs. This is because the company is already familiar with the product and its features, but may need to make adjustments or updates to the specifications in order to better suit their changing needs. The users of the product may provide input on these changes, but the specifications ultimately need to be reviewed and approved by the purchasing decision-makers within the company. Vendors may also provide input and suggestions during the specifications development process, but they should not be the sole source of input.

Question 14

Derived demand is demand:
A) from consumers for new goods and services
B) from manufacturers to find new customers
C) linked to the production and sale of some other item
D) as specified by governmental orders

Accepted Answer

Derived demand is demand that is created by the production and sale of some other item or service. It is often seen in the case of raw materials or intermediate goods that are used in the production of finished goods. Therefore, option C is the correct answer. Option A refers to regular demand from consumers, while option B is related to marketing and sales activities. Option D is incorrect as it refers to demand specified by the government, which is not necessarily derived demand.

Question 15

The linkage between the demand for automobile tires and sales of automobiles is an example of:
A) derived demand
B) co-demand
C) joint demand
D) fabricated demand

Accepted Answer

Derived demand refers to the demand for a product that arises from the demand for another product. In this case, the demand for automobile tires is derived from the demand for automobiles. As more automobiles are sold, there is a corresponding increase in the demand for automobile tires to replace worn-out or damaged tires.

Question 16

When a firm's buying center agrees that defect rates for a purchased component part should be less than .01% of items received, the team is:
A) identifying needs
B) establishing specifications
C) evaluating vendors
D) negotiating purchase terms

Accepted Answer

When a firm's buying center agrees on the defect rates for a purchased component part, they are establishing specifications, which involves setting clear and measurable requirements for the product or service being purchased. Identifying needs relates to understanding what the buyer organization requires, evaluating vendors is about assessing potential suppliers' ability to meet those needs, and negotiating purchase terms refers to the process of reaching agreement on price, delivery, and other terms with the chosen vendor.

Question 17

Which takes the most time to complete and involves the highest number of people in the buying process?
A) straight rebuy
B) modified rebuy
C) new task purchase
D) identifying a need

Accepted Answer

A new task purchase takes the most time to complete and involves the highest number of people in the buying process. This is because the purchase requires the buyer to identify a completely new need or problem, which involves extensive research, consultation, and an evaluation of different alternatives before making a final decision. This requires the involvement of different people, including buyers, influencers, gatekeepers, and decision-makers, who work together to ensure that the best possible purchase decision is made. In contrast, a straight rebuy involves buying the same product or service from the same supplier without any changes, while a modified rebuy involves making some changes to the existing product or supplier. These types of purchases are relatively straightforward and involve fewer people and less time than new task purchases.

Question 18

Individuals with high levels of cognitive involvement will display all of the following characteristics, except:
A) want more information prior to making a decision
B) ask more questions during the purchase process
C) spend less time deliberating prior to making a decision
D) want clear message arguments

Accepted Answer

Individuals with high levels of cognitive involvement are more likely to spend more time deliberating and considering options prior to making a decision, rather than spending less time. Therefore, choice C is the exception among the given characteristics.

Question 19

A straight rebuy purchase decision occurs:
A) when the firm has previously chosen a vendor and intends to place a reorder
B) when a company is dissatisfied with their current vendor and wants to consider new options
C) when a new company makes an offer that appears to be more attractive than what is currently being supplied by the current vendor
D) at the end of a contractual relationship and the company wants to evaluate competitive bids

Accepted Answer

A straight rebuy purchase decision occurs when the firm has previously chosen a vendor and intends to place a reorder. This means that the company is satisfied with their current supplier and is not interested in exploring new options or evaluating competitive bids.

Question 20

The purchase decision that requires the least effort and is often made quickly is a(n):
A) straight rebuy
B) modified rebuy
C) new task
D) accelerated buy

Accepted Answer

A straight rebuy is a purchase decision that requires the least effort and is often made quickly because it involves purchasing a product that has been purchased before without any significant changes. The buyer already knows the product, vendor, and pricing, so the decision-making process is simple and straightforward. The other options, such as modified rebuy, new task, and accelerated buy, involve greater complexity and effort in making the purchase decision.

Quiz 3: Buyer Behaviors

In the business-to-business buying process, the first step is:

A new task purchasing decision involves:

A straight rebuy involves:

When members of the buying center agree to consider IBM, Dell, and Hewlett-Packard in purchasing new computers because they are the firms that expressed interest, which stage of the business-to-business buying process is taking place?

A modified rebuy is most likely to occur when:

Buying center members with higher levels of cognitive involvement will:

Kimberly-Clark is going to place an additional order for plastic from its current vendor because of a larger order it has received from a customer for products the company manufacturers. The additional order for plastic would be a:

A company that buys a product but only has limited or infrequent experience with that product will be involved in a:

A company has reached the end of a contractual agreement with a vendor and wants to open it up for bid again before signing a new contract. This type of purchase situation is a:

If a potential vendor offers what is perceived by a member of the buying center to be a better buy, the company may want to revisit the purchase decision. This type of situation is typically a:

A modified rebuy purchase decision occurs in each of the following situations, except:

There is no evaluation of vendor alternatives or information in which situation?

In the "establishing specifications" step of the business-to-business purchasing process, for a modified rebuy situation, specifications are:

Derived demand is demand:

The linkage between the demand for automobile tires and sales of automobiles is an example of:

When a firm's buying center agrees that defect rates for a purchased component part should be less than .01% of items received, the team is:

Which takes the most time to complete and involves the highest number of people in the buying process?

Individuals with high levels of cognitive involvement will display all of the following characteristics, except:

A straight rebuy purchase decision occurs:

The purchase decision that requires the least effort and is often made quickly is a(n) :