Question 1

The stages of the business buying decision process, in order, are
A)recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.
B)recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance.
C)recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products.
D)establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance.
E)establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

Accepted Answer

The correct sequence for the business buying decision process is: recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. This order reflects the logical progression from identifying a need to evaluating the success of the solution.

Question 2

An organization that decides to buy all of a certain part from the same company is using
A)single-supplier purchasing.
B)multiple sourcing.
C)same vendor analysis.
D)straight rebuy.
E)sole sourcing.

Accepted Answer

Sole sourcing is the strategy where an organization decides to buy all of a particular product or service from a single supplier. This approach offers benefits such as better quality, lower costs, and a stronger relationship between the buyer and supplier. However, it also carries the risk of dependency on a single supplier, which can lead to supply chain disruptions if anything goes wrong with that supplier. Therefore, careful evaluation of the supplier's reliability and capability is essential before opting for sole sourcing.

Question 3

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?
A)Problem recognition
B)Product specification
C)Product-supplier search and evaluation
D)Product-supplier selection
E)Product-supplier post-evaluation

Accepted Answer

The buyer is examining catalogs and trade publications to search for replacement parts, which indicates they are in the product-supplier search and evaluation stage of the business buying decision process.

Question 4

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.
A)Value
B)Vendor
C)Buying center
D)Strategic
E)Cost

Accepted Answer

The description matches vendor analysis, which is the evaluation of current and potential suppliers based on various criteria such as price, quality, delivery service, dependability, and company reliability. Value analysis is more focused on analyzing the cost-benefit of a product or service. Buying center analysis is the evaluation of the individuals and groups involved in the purchasing decision. Strategic analysis is a broader assessment of the company's overall position and direction. Cost analysis is focused on identifying and evaluating the costs associated with a product or service.

Question 5

Christine Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis.
A)vendor
B)downsizing
C)strategic
D)value
E)profit

Accepted Answer

Christine is evaluating the trade-off between the functionality of the fax machine and its cost, which is a value analysis. This involves assessing whether the benefits of a lower-priced, less functional machine outweigh the costs compared to a more expensive, feature-rich model.

Question 6

What are the four major factors that influence business buying decisions?
A)Environmental, organizational, interpersonal, and individual
B)Environmental, organizational, psychological, and individual
C)Environmental, psychological, individual, and technological
D)Technological, organizational, environmental, and interpersonal
E)Environmental, organizational, technological, and individual

Accepted Answer

The four major factors that influence business buying decisions are environmental, organizational, interpersonal, and individual. These factors encompass the external and internal influences that affect how businesses make purchasing decisions, including the broader environment, the structure and culture of the organization itself, the dynamics between individuals involved in the buying process, and the personal motivations and characteristics of those individuals.

Question 7

The second stage in the business buying decision process is to
A)search for products and suppliers.
B)select the most appropriate product.
C)develop product specifications.
D)evaluate product and supplier performance.
E)recognize the problem.

Accepted Answer

In the second stage of the business buying decision process, the buyer develops product specifications. This involves laying out the necessary attributes and features desired in a product or service, based on the organization's needs and requirements. The buyer may also consult with other departments or stakeholders within the organization to establish the necessary criteria for the product. Once the product specifications are established, the buyer can move on to the next stage of searching for potential suppliers.

Question 8

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes ____ demand.
A)joint
B)inelastic
C)consumer
D)fluctuating
E)elastic

Accepted Answer

The term "fluctuating demand" accurately describes a situation where demand for a product rises and falls over time, causing producers to adjust their production levels accordingly. This type of demand is often seen in the context of seasonal goods or products that are subject to fads and trends. Joint demand refers to situations where two or more goods are commonly consumed together (e.g. coffee and creamer), inelastic demand means that a change in price will not have a significant impact on demand, consumer demand refers to the overall demand for goods and services by individuals, and elastic demand means that a change in price will have a significant impact on demand. None of these terms accurately describe the scenario outlined in the question.

Question 9

In a buying center, purchasing agents or purchasing managers are also known as
A)gatekeepers.
B)deciders.
C)buyers.
D)users.
E)influencers.

Accepted Answer

Purchasing agents or purchasing managers are responsible for actually making the purchase, thus they are known as buyers in a buying center. Gatekeepers control access to the buying center, deciders make the final decision, users are the ones who will use the product or service, and influencers have the power to sway the decision-making process.

Question 10

The third stage in the business buying decision process is to
A)evaluate product specifications to solve the problem.
B)evaluate products relative to specifications.
C)select and order the most appropriate product.
D)evaluate product and supplier performance.
E)search for products and suppliers.

Accepted Answer

The third stage in the business buying decision process involves searching for products and suppliers, after recognizing the problem and specifying the product requirements.

Question 11

Most business buying decisions are made by
A)one person.
B)a team of purchasing agents.
C)a firm's buying center.
D)inventory control personnel.
E)the sales force.

Accepted Answer

Business buying decisions are typically made by a group of individuals known as the buying center. This group usually consists of employees from different departments, including purchasing, finance, operations, and marketing. Each member of the buying center has a specific role and influence in the decision-making process, which can involve multiple stages and evaluations before a purchase is made. Therefore, option C is the best choice for this question.

Question 12

Brad Glickman of WP International, a major marketer of word-processing software, calls the secretary of Raine Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.
A)gatekeeper
B)buyer
C)decider
D)buying center captain
E)order giver

Accepted Answer

The secretary acts as the gatekeeper in this purchase decision, controlling access to Raine Dorchette and screening potential vendors such as WP International.

Question 13

Individual influencing factors refer to
A)relationships among those in the firm's buying center.
B)uncontrollable environmental forces.
C)the power an individual controls in the buying center.
D)personal characteristics of individuals in the buying center.
E)activities of suppliers.

Accepted Answer

Individual influencing factors are personal characteristics of individuals in the buying center, such as their personality, values, beliefs, attitudes, and interests. These factors can affect how individuals perceive, evaluate, and respond to different marketing stimuli, including sales messages, advertisements, promotions, and product features. Understanding these factors can help marketers tailor their communication and selling strategies to the needs and preferences of different buying center members.

Question 14

As the new sales representative for H & L Electronics, Michelle is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Michelle knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Michelle is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.
A)users
B)gatekeepers
C)influencers
D)buyers
E)controllers

Accepted Answer

Administrative assistants are often gatekeepers in the buying decision process, as they are responsible for filtering information and deciding what information is passed on to the higher-level management staff. Michelle recognizes this and knows that building a rapport with the administrative assistants is crucial in ensuring that H & L Electronics' information reaches the decision-makers.

Question 15

Within the buying center, ____ are technical personnel who develop product specifications and evaluate alternatives, while _____ actually choose the products.
A)users; buyers
B)influencers; deciders
C)gatekeepers; deciders
D)influencers; buyers
E)deciders; buyers

Accepted Answer

Influencers are technical personnel who develop product specifications and evaluate alternatives, while deciders are the ones who actually choose the products.

Question 16

The group of people within a business who are involved in making business buying decisions is referred to as
A)the new-task team.
B)negotiators.
C)purchasing agents.
D)deciders.
E)the buying center.

Accepted Answer

The group of people who are involved in making business buying decisions is commonly referred to as the buying center. This group usually includes purchasing agents, deciders, influencers, and other key individuals within the organization who have a stake in the purchase decision. The buying center may also involve external parties such as consultants, suppliers, and other stakeholders who may influence the decision-making process. The buying center plays a critical role in the B2B buying process, and understanding this group can help sellers better navigate the complex dynamics of the modern business environment. Therefore, option E is the correct answer.

Question 17

In placing a tire order with Michelin, North Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. North Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.
A)derived
B)inelastic
C)joint
D)fluctuating
E)higher

Accepted Answer

Inelastic demand refers to a situation in which a change in price leads to a relatively smaller change in demand. In this case, North Side Industrial Supply is confident that it can pass on the price increase to future customers, implying that the demand for truck tires is relatively inelastic, meaning that customers will continue to purchase the product, even with a price increase.

Question 18

During the search for products and evaluation of possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.
A)cost
B)value
C)profit
D)strategic
E)SWOT

Accepted Answer

During the search for products and evaluation of possible suppliers stage, marketers use value analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. Cost analysis is focused on determining the actual cost of the product or service. Profit analysis is aimed at determining the profitability of the product or service. Strategic analysis is a broader perspective that evaluates the alignment of the product or service with the company's goals and objectives. SWOT analysis is used to analyze the strengths, weaknesses, opportunities, and threats of the company.

Question 19

Demand for a business product is ____ when two or more items are used in combination to produce a product.
A)inelastic
B)joint
C)fluctuating
D)derived
E)partnered

Accepted Answer

Joint demand occurs when the demand for a product is directly related to the demand for another product, and they are used together as a single product. For example, the demand for ink cartridges is joint with the demand for printers, as they are used together to produce printouts.

Question 20

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Goodyear, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.
A)derived
B)inelastic
C)joint
D)fluctuating
E)higher

Accepted Answer

Valve stems and balancing weights are joint products, which means they are products that are used together in the production process or as complementary products, and demand for one product is closely related to demand for the other. Thus, their demand is joint.

Quiz 7: Business Markets and Buying Behavior

The stages of the business buying decision process, in order, are

An organization that decides to buy all of a certain part from the same company is using

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?

____ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.

Christine Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis.

What are the four major factors that influence business buying decisions?

The second stage in the business buying decision process is to

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes ____ demand.

In a buying center, purchasing agents or purchasing managers are also known as

The third stage in the business buying decision process is to

Most business buying decisions are made by

Brad Glickman of WP International, a major marketer of word-processing software, calls the secretary of Raine Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision.

Individual influencing factors refer to

Within the buying center, are technical personnel who develop product specifications and evaluate alternatives, while _ actually choose the products.

The group of people within a business who are involved in making business buying decisions is referred to as

During the search for products and evaluation of possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

Demand for a business product is ____ when two or more items are used in combination to produce a product.

King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Goodyear, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.