Question 1

The third stage in the business buying decision process is to

Accepted Answer

The answer of The third stage in the business buying...

Question 2

____ 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.

Accepted Answer

Vendor analysis is the systematic evaluation of current and potential suppliers that focuses on several dimensions, including price, product quality, delivery service, product dependability, and overall company reliability. It is a crucial part of the procurement process and helps organizations to identify the most suitable vendors who can meet their needs and requirements effectively. Value analysis is focused on improving the value of a product or service by optimizing the costs and benefits, while strategic analysis is a comprehensive examination of an organization's internal and external environment to identify its strengths, weaknesses, opportunities, and threats. Cost analysis is a detailed examination of the costs associated with a particular activity or product. Buying center refers to the group of individuals within an organization who are involved in the procurement process.

Question 3

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

Accepted Answer

The organization is using sole sourcing, which involves buying all of a certain part from a single supplier. This approach may be used when there is a strong relationship with the supplier or when the organization requires the unique capabilities of a particular supplier.

Question 4

Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked members of the computer science department to give input on the purchase decision. In this instance, the student senate would be acting as a(n) ____, while the purchasing agent is a(an) ______.

Accepted Answer

The members of the computer science department would be acting as influencers, as they are providing input on the purchase decision. The purchasing agent, on the other hand, is the decider, as they ultimately make the decision on what to buy. Option D correctly identifies the roles being played by both parties.

Question 5

Individual influencing factors refer to

Accepted Answer

Individual influencing factors refer to the personal characteristics of individuals in the buying center, such as their attitudes, values, beliefs, and expertise, that affect their decision-making process. These factors include personal motives, buying style, level of influence, and risk tolerance, which play a critical role in shaping the buying preferences and actions of the members of the buying center. They are subject to change over time and can be difficult to predict, but savvy sellers can use them to tailor their marketing messages and sales pitch to each member of the buying center.

Question 6

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ____ influence on the business buying decision process.

Accepted Answer

The fact that the supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice indicates that the decision is based on organizational influence, which pertains to factors within the organization that affect the buying decision, such as policies, procedures, and structure. The decision is not based on environmental, interpersonal, individual, or demographic influence.

Question 7

Compared with the SIC system, the North American Industry Classification System (NAICS) will

Accepted Answer

The NAICS was developed to provide more current and detailed information for industries in the NAFTA countries (Canada, Mexico, and the United States), making it more relevant and up-to-date for these partners compared to the older SIC system.

Question 8

As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie 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, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.

Accepted Answer

Sophie understands that administrative assistants have the power to control access to the hospital management staff. They act as gatekeepers by screening calls and messages and deciding which ones are important enough to be passed on to the decision-makers. Therefore, Sophie needs to build a friendly relationship with them to ensure that her marketing materials reach the right people.

Question 9

Compared with consumer goods, marketers aiming at business customers

Accepted Answer

Marketers aiming at business customers have access to more information about their potential customers compared to consumer goods marketers. This is because business customers tend to have clear and publicly available information about their company, their needs, and their buying preferences. This information can be used by marketers to create targeted marketing strategies and to build relationships with potential customers.

Question 10

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?

Accepted Answer

The firm would need to modify the specification development aspect of the purchase process, as they asked for 8GB of memory, which is turning out to be inadequate for their requirements. They would need to revise their specifications based on their new findings.

Question 11

During the search for products and evaluating 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.

Accepted Answer

Value analysis is used to examine various aspects of a product, including quality, design, and materials, with the goal of reducing costs without sacrificing functionality, making it a cost-effective approach for acquiring products.

Question 12

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee 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.

Accepted Answer

The secretary is acting as a gatekeeper in this purchase decision by controlling access to the decision-maker, Renee Dorchette.

Question 13

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

Accepted Answer

Purchasing agents or purchasing managers are responsible for making the actual purchase decisions, therefore they are also known as Buyers.

Question 14

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?

Accepted Answer

The buyer is looking at catalogs and trade publications to search for replacement parts, which is part of the product-supplier search and evaluation stage in the business buying decision process. This stage involves researching and evaluating potential suppliers and products to meet the company's specific needs.

Question 15

The second stage in the business buying decision process is to

Accepted Answer

The second stage in the business buying decision process is to develop product specifications. During this stage, the organization determines the specific characteristics and requirements that the product must meet to fulfill the needs of the buying organization. This stage is critical because it sets the parameters for the search and selection stages that follow.

Question 16

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

Accepted Answer

The four major factors that influence business buying decisions are environmental (external factors like economic conditions), organizational (internal factors like company policies and procedures), interpersonal (influences from people involved in the buying process), and individual (personal preferences and motivations of the decision-makers).

Question 17

Most business buying decisions are made by

Accepted Answer

Most business buying decisions are made by a firm's buying center, which is a group of individuals involved in the buying process, including users, influencers, buyers, gatekeepers, and decision makers. The buying center approach involves analyzing the roles and relationships of various members of the buying center to understand the decision-making process and develop an effective selling strategy. While some decisions may be made by one person or a team of purchasing agents or inventory control personnel, the most common approach is the buying center. The sales force may play a role in the buying process by providing information and facilitating communication with the buying center, but they do not make the final decision.

Question 18

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

Accepted Answer

The buying center refers to the group of individuals involved in the buying decision process within a business, including those who initiate the process, those who make the final decision, and those who have influence over the decision. The other options, such as negotiators and purchasing agents, may be members of the buying center but do not encompass the entire group involved in the decision.

Question 19

Christy 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.

Accepted Answer

Christy Bridgman is considering the purchase of a new fax machine and is comparing the features of the new machine with her current machine based on the price. This is an example of value analysis, which involves comparing the features and benefits of different products or services to determine the best value for the cost.

Question 20

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

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 through to assessing how well the chosen solution met that need.

Quiz 8: Business Markets and Buying Behavior