1. The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others is referred to as
Answer: business marketing.
2. Organizational buyers include manufacturers, wholesalers, retailers, and government agencies
Answer: That buy goods and services for their own use or resale
3. Which of the following statements represents an organizational buying decision?
Answer: The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.
4. Organizational buyers can be divided into three different markets. They are
Answer: industrial, reseller, and government markets.
5. The services market sells diverse services such as legal advice, auto repair, and dry cleaning. Along with finance, insurance, real estate businesses, and __________, communication and public utility firms, as well as not-for-profit organizations, these firms represent about 75 percent of all industrial firms.
Answer: transportation
6. Archer Daniels Midland (ADM) Co. is the world's largest cocoa-bean processor. It buys cocoa beans and converts the beans into cocoa powder and cocoa butter, which it sells to companies that manufacture consumer products that contain chocolate. The cocoa-bean processor is operating in a(n) __________ market.
Answer: industrial
7. Wholesalers and retailers that buy physical product and resell them without any reprocessing are
Answer: reseller firms
8. The reseller market includes
Answer: retailers and wholesalers.
9. In terms of organizational buyers, Amazon.com, Lands' End, and JCPenney would all be classified as __________.
Answer: resellers.
10. When Louisiana State University buys new laptops for its faculty it is operating as a(n)
Answer: government unit.
11. The system that provides common industry definitions for Canada, Mexico, and the United States, which make easier the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) is called:
Answer: the North American Industry Classification System (NAICS).
12. the North American Industry Classification System (NAICS).
Answer: The system that provides common industry definitions between Canada the United States, which makes it easier to measure economic activity and releases barriers of trade for manufacturing and distribution for cross-border firms. The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
13. Derived demand refers to
Answer: the demand for industrial products and services that is driven by demand for consumer products and services.
14. Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as.
Answer: derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances
15. Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand.
Answer: derived
16. Which of the following statements about organizational buying compared to consumer buying is most accurate?
Answer: Brand loyalty exists in both organizational and consumer buying.
17. Important product or service characteristics in organizational buying behavior include: products or services of a technical nature, purchased on the basis of specifications; a large portion of goods are purchased in a raw or semi-finished state, and
Answer: a heavy emphasis placed on delivery time, technical assistance, and postsal service.
18. Which of the following statements accurately characterizes buying behavior in organizational markets?
Answer: Fewer customers typically exist in organizational markets than in consumer markets.
19. The primary organizational buying objective is to
Answer: help the firm achieve its objectives.
20. Seven of the most commonly used organizational buying criteria are (1) __________, (2) ability to meet the quality specifications required for the item, (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7) production facilities and capacity.
Answer: price
21. Seven of the most commonly used organizational buying criteria are (1) price, (2) __________, (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7) production facilities and capacity.
Answer: ability to meet the quality specifications required for the item
22. Seven of the most commonly used organizational buying criteria are (1) price, (2) ability to meet the quality specifications required for the item, (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7) __________.
Answer: production facilities and capacity
23. To be a Wal-Mart supplier, a firm must be able to deliver its products to Wal-Mart distribution centers within a 15-minute window. If the driver arrives before or after the scheduled window they will be turned away and fined. Wal-Mart's insistence of choosing a supplier based upon their ability to provide on-time delivery is an example of a(n)
Answer: organizational buying criterion.
24. Supplier development refers to
Answer: the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers
25. Harley-Davidson is admired by its suppliers for involving suppliers in future products, referring to suppliers as stakeholders, using quality benchmarks, and
Answer: building long-term relationships.
26. Reciprocity refers to
Answer: an industrial buying practice in which two organizations agree to purchase each other's products and services
27. Supply partnership refers to
Answer: a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of and/or increasing the value of goods and services delivered to the ultimate customer.
28. Starbucks purchases from coffee growers located in more than 20 countries. Starbucks pays the coffee farmers a fair price for the beans; the coffee is grown in an ecologically sound manner; and Starbucks invests in the farming communities where the coffees are produced. This is an example of
Answer: community involvement.
29. Organizational buying behavior refers
Answer: the decision-making process organizations use to establish the need for products and services and to identify, evaluate, and choose among alternative brands and suppliers.
30. The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision are referred to as the
Answer: buying center.
31. In an effort to make better and more efficient purchase decisions, the Ford Motor Company forms loosely organized groups of people who work together on purchase decisions. The people included in these groups change depending on the purchase situation and may include key personnel from various departments, including research and development, finance, marketing, shipping, and sales. Such a loosely organized group of people within an organization who are involved in the purchase decision is correctly called an organizational
Answer: buying center.
32. Sales engineers from Siemens, a German manufacturer, have won a contract for a new space telescope. They must now evaluate whether components and assemblies will be purchased from outside suppliers or be built by Siemens itself. At what stage of the buying decision process is this determined?
Answer: problem recognition.
33. At which stage in the buying decision process would design and production engineers draft specifications?
Answer: information search
34. During the third stage of the organizational purchase decision process, the organization engages in:
Answer: alternative evaluation.
35. At which stage in the buying decision process would a firm visit a potential supplier to assess their financial status?
Answer: alternative evaluation
36. During the next-to-the-last stage of the organizational purchase decision process, the organization
Answer: makes the purchase decision
37. As in the consumer decision process, evaluation occurs in the industrial decision process, but it is more formalized and often more sophisticated. All items purchased are examined in a formal product acceptance process. The performance of the vendor is also monitored and recorded. This evaluation is described as
Answer: postpurchase behavior.
38. The people in the organization who actually use the product or service are referred to as __________.
Answer: users.
39. Within the buying center, influencers are people who
Answer: affect the buying decision, usually by helping define the specifications for what is bought.
40. In a buying center, __________ have the formal or informal power to select or approve the supplier that receives the contract.
Answer: .deciders.
41. Mark manages a small family-owned amusement park. He believes the park can increase its profits if its owners will buy three food concession trailers. He has contacted three dealers of such trailers, which come fully customized to user specifications, and has determined Century Industries has the best price. He will present only the Century Industries information to the family tomorrow. In which buying center roles is Mark acting?
Answer: influencer, gatekeeper, and decider
42. June Golden is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway (a very large trucking firm) regularly buys June's secretary lunch. The representative does this because he views the secretary as a(n) __________ and he wants to be sure that information about his company reaches June.
Answer: gatekeeper
43. June Golden is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway (a very large trucking firm) regularly buys June's secretary lunch. The representative does this because he views the secretary as a(n) __________ and he wants to be sure that information about his company reaches June.
Answer: gatekeeper
44. The three types of organizational buy classes are
Answer: straight rebuy, new buy, and modified rebuy.
45. The assistant heard her supervisor in the supply room yell, "Call Crate & Barrel—we need another case of their coffee mugs for the conference next week." The supervisor was asking her assistant to make a:
Answer: straight rebuy.
46.In the __________, users, influencers, or deciders in the buying center want to change product specifications, price, delivery schedule, or suppliers.
Answer: modified rebuy
47.The office of SFX Entertainment, a talent promoter, needs a new fax machine that will print at three seconds a page (instead of five seconds per page like the one it is using now) and that has both local and network printing capabilities. Its purchase of a replacement fax machine would be an example of a
Answer: modified rebuy
48. At the weekly meeting for Choice Hotels (the company that owns Clarion Hotel, Quality Inn, Comfort Inn, Comfort Suites, Sleep Inn, and Mainstay Inn), the marketing manager said, "We need an inexpensive creative way to increase awareness of our hotels among people who travel by automobile. To do that I want to find some new media that the other hotel chains are not using." The purchase of this new media for the hotel chains' advertising would be an example of a
Answer: new buy.
49. If a purchase is a new buy for a manufacturer, the seller should expect a long time for a buying decision to be reached, work with technical personnel and
Answer: to act as a consultant to the buyer.
50. A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definition is uncertain, and the buying influence comes from technical/operating personnel, the buy class situation most likely is a
Answer: new buy
51. A straight rebuy is a(n) __________ while a modified rebuy is a(n) __________.
Answer: reorder; changed order
52. If a purchase is a straight or modified rebuy for a manufacturer, the seller should emphasize a reliable supply and __________ in meetings with the purchasing agent.
Answer: competitive price
53. In terms of the buying center, Lands' End quality assurance personnel would assume the role of __________.
Answer: influencers
54. Online buying in organizational markets is prominent because Internet/Web technology
Answer: substantially reduces buyer order processing costs.
55. E-Marketplaces refer to
Answer: online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.
56. eBay is the predominant person-to-person trading community in the world. The eBay Business Web site is an example of a(n)
Answer: e-marketplace.
57. E-marketplace can take two different formats
Answer: independent trading communities and private exchanges.
58. Plastics Net, Hospital Network.com, Textile Web, and eBay Business are all examples of
Answer: independent e-marketplaces.
59. Large companies tend to favor __________ that link them with their network of qualified suppliers and customers.
Answer: private exchanges
60. When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a(n)
Answer: traditional auction
61. Dell, Inc. sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid sequentially. This is an example of a(n)
Answer: traditional auction.
62. Reverse auction refers to fada
Answer: an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
63. In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other is referred to as a
Answer: reverse auction.
64. Reverse auctions
Answer: are buyer-initiate
