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The following questions refer to the scenario below.
A-1 Stampings, Inc., produces 14 metal stampings for the automotive industry. Due to industry design changes, for the next model year, six of those stampings will require a slight change: two will h
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123
The demand for A-1 Stampings' products is ultimately based on the demand for new automobiles in the consumer market. This is an example of ________ demand.
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derived
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In this scenario, which of the following had the greatest influence on the business buying behavior at A-1 Stampings?
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technological changes
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The management directive to reduce the number of steel suppliers is most accurately classified as which type of influence affecting business buying behavior?
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organizational
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At what stage in the buying process was Richard when he sought input from others in the firm?
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supplier selection
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The main differences between business and consumer markets include market structure and demand, the nature of the buying unit, and the types of decisions.
t/f
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true
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One set of business purchases is made for each set of consumer purchases.
t/f
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false
129
A business marketer normally deals with far fewer buyers than the consumer marketer does.
t/f
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true
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Buyer and seller are less dependent upon each other in the business buying process than in the consumer buying process.
t/f
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false
131
The business buying process consists of business buyers determining which products and services their organizations need to purchase, and then finding, evaluating, and choosing among alternative suppliers and brands.
t/f
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true
132
Business demand ultimately derives from the demand for consumer goods and services.
t/f
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true
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Demand in business markets is subject to more fluctuation than in consumer markets.
t/f
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true
134
Of the different types of buying situations, the modified rebuy presents the fewest decisions for a business buyer to make.
t/f
134
false
135
Rob Taylor is the buyer for Major Memories. He regularly orders inexpensive merchandise in a fairly routine fashion without any modifications. He may choose other suppliers from time to time. Rob's decisions take the form of a modified rebuy.
t/f
135
false
136
The buying center is not a fixed or formally identified unit within an organization.
t/f
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true
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Nancy Zahm works for LeBray Beverage Company. She often helps to define product specifications and also provides information for evaluating alternatives. In this role she is acting as a gatekeeper.
t/f
137
false
138
The decider is the person in the business buying process who controls the flow of information to others involved.
t/f
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false
139
In business buying decisions, the role of emotion is negligible in comparison to the role of reason.
t/f
139
false
140
Environmental, organizational, interpersonal, and individual factors all influence business buyer behavior.
t/f
140
true
141
Buyers have different buying styles influenced by interpersonal factors such as age, income, education, professional identification, and attitudes toward risk.
t/f
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false
142
A statement prepared by a business buyer describing the quantity and general characteristics of the items needed is a product specification description.
t/f
142
false
143
In the product specification stage of the business buying process, the buyer ranks the importance of reliability, price, and other desired product characteristics.
t/f
143
false
144
According to the stages of the business buying process, after completing a general need description, a business buyer should next invite qualified suppliers to submit proposals.
t/f
144
false
145
Proposals should be marketing documents and not just technical documents.
t/f
145
true
146
Suppliers are more likely to stay price competitive when the purchasing company uses single sourcing than when it uses multiple sourcing.
t/f
146
false
147
When conducting a performance review, the seller monitors different factors than those monitored by the buyer to make sure that the seller is giving the expected satisfaction.
t/f
147
false
148
E-procurement typically reduces drudgery and paperwork, thereby freeing purchasing personnel to focus on more strategic issues.
t/f
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true
149
The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery.
t/f
149
true
150
Unfortunately, most governments do not provide would-be suppliers with detailed guides describing how to sell to the government.
t/f
150
false
151
) It is rare that noneconomic factors play a role in government buying.
t/f
151
false
152
Explain how the decision process in the business market and consumer market differs.
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Business buyers usually face more complex buying decisions than do consumer buyers, as business purchases more often involve large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the b
153
Describe the three major types of business buying situations and what differentiates each from the other two.
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A straight rebuy is a fairly routine decision in which the buyer reorders without any modifications from existing suppliers. In a modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers and usually involves more d
154
Explain the advantages of systems selling.
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Many business buyers prefer to buy a packaged solution to problem from a single seller instead of buying separate products and services from different sellers and then integrating them. The sale often goes to the firm that provides the most complete s
155
Describe the typical roles played by the various members of a buying center.
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The buying center includes all members of the organization who play any of five roles in the purchase process: user, influencer, buyer, decider, and gatekeeper. Users physically use the product or service. Influencers often help define the specificati
156
Provide a brief explanation of the major influences on business buyers.
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Both economic and personal factors play a part in buying decisions. The environmental influences of the level of primary demand, the economic outlook, and the cost of money all make their way into the decision. Each organization has its own objectives
157
What is the buying center concept? Explain why this concept presents a major marketing challenge.
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The buying center is the decision-making unit of a buying organization. The buying center is composed of all the individuals and units that play a role in the business purchase decision-making process, including the actual users of the product or serv
158
Describe the eight steps in the business buying process.
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The steps are problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review. Problem recognition is the step during which someone r
159
Briefly describe the major advantages of business-to-business marketing on the Internet.
159
E-procurement gives buyers access to new suppliers, lowers purchasing costs, and hastens order processing and delivery. In turn, business marketers can connect with customers online to share marketing information, sell products and services, provide c
160
What are the major characteristics of institutional markets?
160
The institutional market is made up of schools, hospitals, prisons, and other institutions that provide goods and services to people in their care. These markets are characterized by low budgets and captive patrons. For many institutions, the buying o
161
What are the major characteristics of government markets?
161
Government markets offer large opportunities for companies. Although they also buy on a negotiated contract basis, government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder. The proc
162
Explain the concept of derived demand, giving an example of a product that has derived demand.
162
Derived demand is created when demand increases due to consumers' increasing demand for some other product either made with or dependent upon the product in question.
163
Why is demand in the business market mostly inelastic?
163
The demand in business-to-business markets is mostly inelastic because what is being sold is often just one of the many parts or materials that go into producing the consumer product. It is not unusual for a large increase in a business product's pric
164
How is the business buying process more formalized than the consumer buying process?
164
Business purchases usually call for product specification, written purchase orders, and supplier searches.
165
How have relationships between customers and suppliers changed in recent years?
165
Customers and suppliers have had adversarial relationships in the past, but because they are dependent on each other, they have begun to act more as partners; many customer companies now practice supplier development, systematically developing network
166
In what type of purchase would one person most likely assume all buying center roles?
166
One person will likely play all roles in purchasing routine products and services, or a straight rebuy.
167
Why is the new-task buying situation both a great opportunity and a challenge for a marketer?
167
In the new-task buying situation, decision participants put forth substantial effort to collect information and so are positioned to be influenced by a marketer's message; these situations are likely to be competitive, as other marketers also want to
168
Although a company has purchased printers and copiers before, Xerox now offers the firm a multitasking machine that prints, copies, scans, and faxes. Explain what type of buying situation this is.
168
This is a modified rebuy. The firm has already purchased similar machinery, but this purchase now involves a modified machine.
169
Explain the buyer center role of the influencer.
169
An influencer often helps define specifications and provide information for evaluating alternatives.
170
Which roles in the buying center are likely to change with different purchases?
170
Although any of the roles may change from purchase to purchase, the roles of of users and influencers are the most likely to change with each type of purchase a business makes.
171
When are business buyers most likely to make decisions heavily influenced by personal factors?
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If suppliers' offers are very similar, there is little basis for a rational, objective choice; in these situations, buyers are more likely to allow emotions and other personal factors to influence their decision.
172
Why is it difficult to assess interpersonal factors that influence the business buying process?
172
Interpersonal factorssuch as who is liked, who controls rewards and punishments, and who has special relationships with other important participantsare subtle and not obvious to the external observer.
173
How can marketers influence business buyers who are in the problem recognition stage?
173
Through advertising, business marketers can make buyers aware of and concerned about potential problems and then offer their products as solutions to the newly recognized problem.
174
What information is a buyer likely to include in the general need description?
174
This element describes the general characteristics and quantity of the needed item.
175
Describe two advantages of using multiple source contracts.
175
With multiple source contracts, a buyer avoids being totally dependent on one supplier and can conduct comparisons of prices and performance of several suppliers over time.
176
What type of noneconomic criteria impact government buying?
176
Government buyers are asked to favor depressed business areas, small business firms, minority-owned firms, and business firms that avoid race, gender, or age discrimination.