Chapter 06 - Business-to-Business Marketing

Chapter 06 - Business-to-Business Marketing
Chapter 06 Business-to-Business Marketing

True / False Questions
1. Business-to-business marketing refers to buying and selling goods or services to be used by final consumers. True alse
!. B!B marketing involves manufacturers" #holesalers" and service firms. True alse
$. %esellers differ from producers in that resellers significantly alter the form of goods they sell. True alse
&. The B!B buying process tends to be more formal than B!C buying. True alse
'. The % ( process is used by buyers to allo# customer input into value creation. True alse
6. ) university*s purchasing department is re+uired to get at least three bids for any purchase greater than ,$000. This re+uirement is used to keep suppliers -on their toes.True alse
.. The final step of the business-to-business buying process is a formal vendor analysis. True alse
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/. 0rgani1ational culture may vary by geography. True alse
2. Most B!B buying situations can be categori1ed into three categories3 ne# buys" structured rebuys and automatic rebuys. True alse
10. 4n both ne# buy and straight rebuy situations" all members of a buying center #ill be intensely involved in the purchasing decision. True alse
11. )n architect #orking for a large firm re+uests specific computer soft#are to produce designs" dra#ings and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center. True alse
1!. 5early all small businesses have consensus buying centers. True alse
1$. ) buying center #hose members reach a decision based on a collective agreement is kno#n as an autocratic buying center. True alse
1&. ) small business decides to upgrade its aging phone system. The business #ill probably place a straight rebuy order. True alse
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Multiple Choice Questions
1'. Business-to-business marketing involves buying and selling goods or services to be used by3 ). manufacturers. B. #holesalers. C. retailers. 6. producers. 7. all of these.
16. Business-to-business marketing involves buying and selling goods or services by all of the follo#ing e8cept3 ). manufacturers. B. consumers. C. retailers. 6. producers. 7. #holesalers.
1.. 6erek bought a pick-up truck to transport his e+uipment to fishing tournaments. 9e also bought a pick-up for his la#n maintenance business. 9is purchases #ere3 ). both B!C purchases since he is the user in both situations. B. both B!B purchases since he is the user in both situations. C. neither B!C nor B!B since he is the consumer and his uses might be mi8ed. 6. B!C and B!B" respectively. 7. 5one of these.
1/. :ackie #orks as a sales rep for a company that produces and sells steel used in building construction. :ackie is in ;;;;;;;;;;;;;;;;;;;;;; sales. ). <!B B. B!C C. B!B 6. C!C 7. <!<
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12. =ales of electric components manufactured by %ick*s company depend on sales of ne# cars. %ick*s company faces ;;;;;;;;;;;;;;;; demand. ). synthetic B. situational C. monopolistic 6. autocratic 7. derived
!0. (aula has developed a successful business selling appliances to homebuilders. =he carefully monitors the issuance of ne# home permits to anticipate ho# many appliances she #ill need to buy in order to supply her customers. (aula is concerned #ith ;;;;;;;;;;;;;;. ). modified demand B. secondary demand C. rebuy demand 6. derived demand 7. delayed demand
!1. >hether targeting consumers or B!B Markets" marketers need to focus on3 ). creating value for their customers. B. buying center synergy. C. private e8change efficiency. 6. corporate profit sharing. 7. reducing derived demand.
!!. ?nlike manufacturers" ;;;;;;;;;;;;;;;;; buy products from other businesses but do not significantly alter the form of the products they buy. ). producers B. consumers C. resellers 6. 7nglish auctioneers 7. gatekeepers
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!$. ) ;;;;;;;;;;;;;;;; is a type of reseller" a business that buys from other businesses but does not significantly alter the form of the products it buys. ). manufacturer B. producer C. consumer 6. #holesaler 7. factory
!&. Malcolm buys overrun clothing from factories around the =outh. 9e sells the clothes to discount retailers. Malcolm is a3 ). manufacturer B. producer C. consumer 6. factory agent 7. reseller
!'. 9ospitals" schools" and religious organi1ations are e8amples of ;;;;;;;;;;;; buyers. ). manufacturing B. retail C. institutional 6. factory agent 7. reseller
!6. >hich of the follo#ing is an e8ample of an institutional buyer@ ). Mayo Clinic 9ospital B. (rocter A <amble C. ?.=. Marine Corps 6. 5ucor =teel Corporation 7. >almart
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!.. >hich of the follo#ing is an e8ample of a government buyer@ ). Mayo Clinic 9ospital B. (rocter A <amble C. ?.=. Marine Corps 6. 5ucor =teel Corporation 7. >almart
!/. 4n most countries" ;;;;;;;;;;;;;;;; is one of the largest purchasers of goods and services. ). the largest retailer B. the central government C. the national airline 6. the intelligence agency 7. a consumer buying center
!2. Both the B!B and B!C buying processes begin #ith3 ). central planning. B. need recognition. C. postpurchase dissonance. 6. alternative evaluation. 7. order specification.
$0. Compared to the B!C process" the information search and alternative evaluation steps in the B!B process are3 ). decentrali1ed. B. less focused on customer value creation. C. identical. 6. more formal and structured. 7. based on derived supply analysis.
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$1. Typically" B!B buyers ask potential suppliers to3 ). #rite the % ( for the buyer. B. submit formal proposals. C. sponsor intervie#s #ith final customers in order to determine product needs. 6. al#ays be involved in reselling. 7. organi1e themselves into selling cooperatives.
$!. B!B buying decisions are often made by3 ). governors. B. influencers. C. committees. 6. resellers. 7. consumers.
$$. >hen <ood#ish Marketing decided to upgrade its net#ork" many people #ere involved in the decision. 4n B!B buying systems decisions are often made3 ). +uickly. B. by a single e8pert. C. at auction sites. 6. by a committee after considerable deliberation. 7. through community debating organi1ations.
$&. The first stage of the B!B buying process is3 ). product specification. B. the re+uest for proposals. C. proposal analysis. 6. vendor negotiation and selection. 7. need recognition.
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$'. :udy kno#s it is important to approach business buyers at the right time" #hich is often during the first stage of their buying process. =he stays in touch #ith her customers" hoping to find out #hen they are going through3 ). need recognition. B. the % ( process. C. proposal analysis. 6. vendor negotiation and selection. 7. product specification.
$6. 7d#ard" the leading salesperson for 9arry*s 9onda dealership" began hearing customers asking for hybrid automobiles several years ago. 7d#ard alerted 9arry" and 9arry pre-ordered many 9onda hybrids before they became available. 4n this case" the source of need recognition #as3 ). trade sho# demonstrations. B. ads in trade Bournals. C. customers. 6. the 4nternet. 7. suppliers.
$.. )fter need recognition" a business develops ;;;;;;;;;;;; that suppliers might use to develop their proposals. ). derived demand B. initiator instructions C. determinant attributes 6. product specifications 7. focal alternatives
$/. )fter 9urricane Catrina" many states re-evaluated their coastal area building re+uirements. These ne# building codes represented ;;;;;;;;;;;;;;;; that building materials companies used in developing ne# products. ). derived demand B. initiator instructions C. determinant products 6. product specifications 7. focal alternatives
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$2. Charlie is hoping to get a chance to bid on supplying key components to 5ed*s business. 9e is eager to move for#ard" but he must #ait until3 ). 5ed completes vendor negotiations. B. 5ed develops a list of product specifications. C. 5ed*s buying center has an opening. 6. 5ed agrees to move Charlie*s firm from the evoked set to the retrieval set. 7. )ll of these.
&0. )fter need recognition and product specification" many firms using the B!B buying process3 ). identify contract specifications. B. issue a re+uest for proposals from invited suppliers. C. proceed to proposal analysis. 6. enter vendor negotiation and selection. 7. revise their need recognition analysis.
&1. 6uring the % ( stage" B!B buyers3 ). recogni1e obstacles that the firm must #ork around. B. revise their need recognition analysis. C. invite suppliers to bid on supplying #hat is re+uested. 6. proceed to vendor analysis. 7. negotiate contract terms.
&!. re+uently a B!B buyer #ill post its % (3 ). on T#itter. B. in Commerce Business 6aily. C. in the legal section of a local ne#spaper. 6. on its #ebsite. 7. in the employee human resources office.
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&$. Thomas #ants to get a number of bids for parts and components for the specialty foodprocessing e+uipment his firm #ill manufacture. 9e has developed detailed product specifications and has developed an % (. 9o# #ill he distribute the % ( to ensure a reasonable supply at a reasonable cost@ ). ?se his company*s #ebsite B. Contact potential suppliers directly C. 4nvite current suppliers to bid 6. 5et#ork through his trade association or Chamber of Commerce 7. )ll of these
&&. )fter posting an % ( for telecommunication e+uipment" ?= received si8 proposals from +ualified vendors. 5e8t" ?= #ill3 ). recogni1e obstacles that must be circumvented. B. re-evaluate the firm*s needs. C. give one vendor a purchase order. 6. conduct vendor analysis. 7. evaluate the proposals and narro# the choice to a fe# suppliers.
&'. )fter evaluating proposals they received for ne# telecommunication e+uipment" the buying center for ?= Corporation #ill probably discuss ;;;;;;;;;;; #ith +ualified suppliers. ). price B. +uality C. delivery schedule 6. financing 7. all of these
&6. The buying center for ?= Corporation is in the process of discussing price" +uality" and delivery schedules #ith potential suppliers. They are in the ;;;;;;;;;;;;; stage of the business-to-business buying process. ). vendor negotiation B. product specification C. need recognition 6. vendor performance assessment 7. % (
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&.. >hen revie#ing her firm*s business buying process" Carla noticed a company re+uirement that they have at least three +ualified bids from suppliers for any purchase over ,'0"000. This re+uirement is designed to3 ). minimi1e competitive pressure. B. efficiently organi1e resellers. C. keep suppliers on their toes. 6. foster democratic buying centers. 7. slo# do#n the purchase process.
&/. )s the buyer in 5orthrop*s buying center team" #hen a decision is made" Craig #ill specify3 ). price. B. +uantities. C. delivery schedule. 6. nonperformance penalties. 7. all of these.
&2. rieda has Bust received a maBor order from 5orthrop Corporation for her firm*s hydraulic lift e+uipment. )fter revie#ing the order information" rieda #ill3 ). send an ackno#ledgement that the order has been received. B. re#rite her firm*s proposal. C. submit a competitive bid. 6. proceed to vendor analysis. 7. evaluate performance.
'0. >hen :erry #as negotiating a total renovation for the local health care clinic" he kne# every month the clinic #as closed he #ould lose ,10"000 in rent from the various tenants in the clinic. :erry shre#dly included ;;;;;;;;;;;;;;;;;;; in the renovation contract to encourage the vendor to finish on schedule. ). an automatic payment system B. a nonperformance penalty C. an % ( 6. a ne# buyback bonus 7. a derived demand multiplier
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'1. >hile consumers #eigh postpurchase dissonance" business buyers3 ). file la#suits. B. evaluate organi1ational culture. C. conduct vendor analysis. 6. prepare % (s. 7. remain dissatisfied.
'!. Dendor analysis often involves ;;;;;;;;;;;;;;;;;;;; important to the buyer. ). specifications and #eighting of issues B. % (s C. informal revie# of issues 6. derived demands 7. all of these
'$. )s purchasing manager for )valon 7lectronics" Carrie is re+uired to submit a vendor performance analysis every three months. To meet this re+uirement" Carrie #ill probably3 ). intervie# vendors and seek their feedback. B. specify and #eight performance factors and +uantify results. C. develop an % ( for vendor analysis. 6. recruit ne# suppliers. 7. use a modified rebuy vendor form.
'&. 4n most large organi1ations" several people are responsible for making a purchase decision. This group is called the3 ). derived demand cohort. B. reselling team. C. decider group. 6. buying center. 7. e8pediters.
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''. >hich of the follo#ing is 50T one of the roles typically played by one of the members of a buying center@ ). auctioneer B. initiator C. influencer 6. decider 7. gatekeeper
'6. Melissa is the director of human resources" but is kno#n throughout the firm as being one of the first to hear about and use ne# kinds of communications technologies. >hen the firm #ants to upgrade its net#ork" Melissa #ill probably function in #hat role in the firm*s buying center@ ). initiator B. influencer C. decider 6. user 7. gatekeeper
'.. Carlos recently graduated #ith a degree in marketing" and he has taken an attractive sales position #ith a B!B firm. 9e did +uite #ell in school" but one of his strongest assets is the #ay he #orks #ith people. 4n the firms he plans to visit" he has planned to focus most of his attention on3 ). gatekeepers. B. initiators. C. buyers. 6. deciders. 7. Carlos should focus on all of these.
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'/. %aycom Construction needs heavy-duty e+uipment to install a ne# pipeline in northern )laska. %aycom engineers #ill be asked to evaluate the e+uipment needs and provide detailed specifications and recommendations. The %aycom engineers #ill primarily play the ;;;;;;;;;;;; role in the company*s buying center. ). buyer B. initiator C. influencer 6. user 7. gatekeeper
'2. )t many universities" education faculty members #ere among the first to ask for personal computers. These faculty members #ere ;;;;;;;;;;;;; in the buying center. ). buyers B. initiators C. influencers 6. deciders 7. gatekeepers
60. %aycom Construction needs heavy-duty e+uipment to install a ne# pipeline in northern )laska. %aycom engineers #ill specify the type of e+uipment to be purchased. >hen the decision is made" %eginald #ill handle the paper#ork and send out the purchase order. %eginald plays the ;;;;;;;;;;;;;; in the buying center. ). buyer B. initiator C. influencer 6. user 7. gatekeeper
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61. >hich of the follo#ing is 50T an ethical concern in the pharmaceutical industry@ ). =ales representatives may not provide all the information doctors need before prescribing the drugs. B. =ales representatives obtain confidential patient information. C. )n important study found doctors fre+uently visited by representatives tended to focus on drug therapies even #hen researchers supported nondrug therapies. 6. 4n an important study" researchers found doctors fre+uently visited by representatives from pharmaceutical companies #ere less likely to prescribe generic e+uivalents. 7. )ll of these are ethical issues.
6!. >henever Cim" a te8tbook publisher*s representative" calls on the business faculty at <eneral ?niversity" her first stop is to chat #ith rank" the business department secretary. rom rank" Cim learns #hich professors have left or are ne#" and #hat courses #ill be taught ne8t semester. rank also helps Cim to make appointments to see professors to discuss te8tbook choices. rank acts as the ;;;;;;;;;;;;; in the business department buying center. ). buyer B. initiator C. influencer 6. user 7. gatekeeper
6$. >henever Cim" a te8tbook publisher*s representative" calls on the business faculty at <eneral ?niversity" she also meets #ith several students to get their feedback on the te8tbooks used by the department. The students are the ;;;;;;;;;;;; in the buying center. ). deciders B. initiators C. influencers 6. users 7. gatekeepers
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6&. Many health insurance policies re+uire patients to call and get pre-approval for tests or procedures" or else pay a much higher co-payment. The health insurance company acts as a ;;;;;;;;;;;;;;;;;; for the purchase of medical services. ). decider B. initiator C. influencer 6. user 7. gatekeeper
6'. ?nlike a firm*s mission statement or employee handbook" a firm*s culture often3 ). forces customers to look else#here for value. B. is of no importance to purchase decisions. C. e8ists as a set of unspoken guidelines. 6. is defined by a straight rebuy philosophy. 7. all of these.
66. )n organi1ation*s culture reflects the ;;;;;;;;;;;;;;;;;;;;; that guide its employees* behavior. ). B!B dynamics B. % ( process C. buying center philosophy 6. set of values" traditions" and customs 7. derived set of influences
6.. >hile no one in the firm has discussed it" Brad notices everyone else seems to dress more casually on ridays during the summer. Brad is observing part of his firm*s3 ). culture. B. governing principles. C. human resources policy. 6. employee obligations. 7. gatekeeping.
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6/. >hile training for her ne# Bob as a pharmaceutical sales representative" Mallory spent several days shado#ing an e8perienced company rep. =he #atched the rep focusing on the benefits of the ne# drugs #hile not volunteering pricing information" side effects" or comparison data. Mallory accepted this as being part of the pharmaceutical firm*s3 ). buying center. B. culture. C. mission statement. 6. corporate social responsibility. 7. % ( process.
62. >hich of the follo#ing is 50T one of the four general types of organi1ational cultures@ ). autocratic B. democratic C. consultative 6. capitalist 7. consensus
.0. Cno#ing #hich type of buying center culture is prevalent in a given organi1ation helps sellers to decide3 ). ho# to approach a particular client. B. ho# to deliver pertinent information. C. to #hom to deliver pertinent information. 6. to #hom to make the sales presentation. 7. all of these.
.1. 0livia kno#s that one person" #ho makes all maBor purchase decisions" dominates the firm she is calling on today. Cno#ing the type of buying center she is calling on #ill help 0livia to decide3 ). ho# to approach a particular client. B. ho# to deliver pertinent information. C. to #hom to deliver pertinent information. 6. to #hom to make the sales presentation. 7. all of these.
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.!. The customer Carlotta is calling on today has aEnF ;;;;;;;;;; buying center culture. This means that the decision process #ill involve reaching agreement among all members of the buying center. ). consensus B. autocratic C. consultative 6. republican 7. democratic
.$. Markham (ublishing is kno#n for its consultative buying center culture. %ecogni1ing this corporate culture" someone attempting to sell to Markham (ublishing should3 ). treat all members of the buying center as e+ually important. B. address the concerns of all members of the buying center #ith particular attention to those of the decision maker. C. focus on providing information to and making the sales approach to the one decision maker. 6. attempt to facilitate the collective agreement of all members of the buying center. 7. focus attention on the gatekeeper in the buying center*s team.
.&. ordham 9ard#are is kno#n for its consensus buying center culture. %ecogni1ing this corporate culture" someone attempting to sell to ordham 9ard#are should3 ). treat all members of the buying center as e+ually important. B. address the concerns of all members of the buying center #ith particular attention to those of the decision maker. C. focus on providing information to and making the sales approach to the one decision maker. 6. attempt to facilitate the collective agreement of all members of the buying center. 7. all of these.
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.'. )t the main campus of a large university" faculty al#ays refer to each other as 6octor" #ear suits" and guard their academic domains against each other. This leads to fre+uent namecalling and strenuous debates. Mean#hile" at the various branch campuses" faculty members call each other by their first names" dress casually" and supported each other*s scholarly efforts. This e8ample illustrates the differences in ;;;;;;;;;;;;;;;;;;; that can e8ist #ithin an organi1ation. ). supply chain communication B. autocratic buying center culture C. organi1ational culture 6. business missions 7. corporate social responsibility
.6. 5ot kno#ing the roles of key players in the buying process could cause a sales representative to3 ). bid too high a +uantity. B. fail the vendor analysis. C. respond to an % ( too +uickly. 6. #aste time and alienate people. 7. all of these.
... >hen she gave her presentation to 9armon*s )utomotive =upply" Brie did not kno# the roles of the key players in the buying center. This could cause her to #aste a lot of time and to3 ). bid too many products. B. fail the vendor analysis. C. respond to an % ( too +uickly. 6. alienate the real decision maker. 7. all of these
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./. >hen Geanne gave her presentation to the Big6eal discount buying center team" she treated each member*s +uestion seriously and gave e+ual time to addressing each. Geanne did not reali1e Big6eal has an autocratic buying center culture and she needed to focus on ans#ering Beverly*s +uestions" since she is the decision maker. 4n addition to #asting time by not understanding Big6eal*s culture" Geanne may have also3 ). bid too many products. B. failed the vendor analysis. C. responded to the % ( too +uickly. 6. alienated Beverly" the real decision maker. 7. all of these.
.2. :enny #as feeling frustrated. ->hat*s taking them so long to make a decision@ 4t*s been #eeks since 4 first met #ith them" and they all seem interested in the product. 4*ve also Bumped through all their paper#ork hoops.- :enny is likely selling to a firm in #hat kind of buying situation@ ). 5e# buy B. Modified rebuy C. =traight rebuy 6. <eneric buy 7. )dapted buy
/0. Most B!B buying situations can be categori1ed as ne# buys" modified rebuys" and3 ). generic buys. B. straight rebuys. C. ordinary rebuys. 6. adapted buys. 7. minor buys.
/1. The % ( buying situation is most likely to be associated #ith3 ). a ne# buy. B. a modified rebuy. C. a straight rebuy. 6. either a ne# buy or a modified rebuy. 7. an adapted buy.
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/!. The buying decision is likely to be more comple8 and take longer to complete in aEnF ;;;;;;;;;;; B!B buying situation. ). ne# buy B. modified rebuy C. straight rebuy 6. adapted buy 7. generic buy
/$. 4n #hich buying situation is the buyer most likely to proceed through all si8 steps in the buying process@ ). 5e# buy B. Modified rebuy C. =traight rebuy 6. <eneric buy 7. )dapted buy
/&. Manitoba ?niversity is buying a distance learning system. (reviously" the school had no distance learning technology. or Manitoba ?niversity this represents aEnF ;;;;;;;;;;;;;;; situation. ). adapted buy B. modified rebuy C. straight rebuy 6. ne# buy 7. generic buy
/'. 0lga is the sales rep for )TD communication systems. =he #ants to bid on the % ( issued by Manitoba ?niversity for distance learning technology. =he kno#s she #ill need to provide considerable information and demonstrations of her firm*s technology because Manitoba ?niversity is in a ne# buy situation and does not have3 ). the money to afford it. B. any e8perience #ith the product they #ish to purchase. C. anyone interested in the technology. 6. any derived demand for the system. 7. any students #ho might be interested in distance learning.
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/6. >hen 5atasha took over as facilities manager for Burlington urniture Manufacturing she #as shocked to see the factory #as still heated #ith a coal-fired boiler. 4mmediately" she made a decision to upgrade the heating system to something more efficient. or 5atasha" this represented aEnF ;;;;;;;;;;;;;;;;;; situation. ). adapted buy B. modified rebuy C. straight rebuy 6. generic buy 7. ne# buy
/.. 4n aEnF ;;;;;;;;;;;;;;;;; situation" the buyer has purchased a similar product in the past but has decided to change some specifications. ). ne# buy B. modified rebuy C. straight rebuy 6. adapted buy 7. generic buy
//. >hen a business buyer decides to change specifications such as +uality or options associated #ith products he or she has purchased in the past" the buyer is engaged in aEnF ;;;;;;;;;; situation. ). ne# buy B. modified rebuy C. straight rebuy 6. adapted buy 7. side by side
/2. >hen >almart considers re-ordering items for its stores" its buyers are instructed to negotiate price concession" +uality improvements" andHor added options. 4n this situation" >almart buyers are engaged in aEnF ;;;;;;;;;;;;;;;;;; situation. ). ne# buy B. modified rebuy C. straight rebuy 6. adapted buy 7. generic buy
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20. 4n a modified rebuy situation" ;;;;;;;;;;;;;;;;; are likely to have an advantage in getting the order. ). consumers B. resellers C. current vendors 6. gatekeepers 7. buying centers
21. >hich of the follo#ing circumstance might trigger a modified rebuy instead of a straight rebuy@ ). Changing +uality levels needed in the product or service. B. 6issatisfaction #ith the vendor. C. Change in some of the product specifications. 6. Changes in the desired price. 7. )ll of these
2!. >hen Dal sees the % ( issued by one of his customers" he is concerned that they have changed their specifications since they placed a previous order #ith him. 9is company*s products do not meet the ne# specifications. 4n this situation" being the current vendor3 ). #ill necessitate renegotiating price and delivery terms. B. allo#s for a straight rebuy. C. offsets a consensus buying center culture. 6. #ill probably not be an advantage in getting the ne# order. 7. #ill allo# Dal to get the order even though his products do not meet the specifications.
2$. )EnF ;;;;;;;;;;; occurs #hen the purchasing agent buys additional units of products that have previously been purchased. ). ne# buy B. modified rebuy C. straight rebuy 6. adapted buy 7. generic buy
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2&. 4f a B!B customer is satisfied #ith an e8isting supplier" it #ill probably engage in aEnF ;;;;;;;;;;; to purchase additional +uantities of the item. ). ne# buy B. modified rebuy C. adapted buy 6. straight rebuy 7. generic buy
2'. Ivonne uses her customer relationship management EC%MF system to predict #hen her business customers #ill need more of her company*s packaging materials. >hen she thinks a customer should be ready to make another order" she contacts them. Ivonne is using C%M to encourage customers to engage in aEnF3 ). ne# buy. B. modified rebuy. C. adapted buy. 6. straight rebuy. 7. generic buy.
26. (hil put do#n the phone and told )lice" -4 Bust love that customer. 4 got another big order" and they Bust keep on coming.- (hil is likely selling to a firm in #hat kind of buying situation@ ). 5e# buy B. Modified rebuy C. =traight rebuy 6. <eneric buy 7. )dapted buy
2.. >hen a business customer engages in a straight rebuy" the member of the buying center most likely to be involved in the purchase is the3 ). decider B. initiator C. influencer 6. user 7. buyer
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2/. 4n established businesses" a large proportion of B!B purchases fall into the ;;;;;;;;;;; category. ). straight rebuy B. ne# buy C. adapted buy 6. modified rebuy 7. generic buy
22. The three types of buying situations3 ). create confusion among B!B sellers. B. suggest that B!B sellers should develop one marketing mi8 to use for all situations. C. re+uire business sellers to be consistent in their marketing mi8es. 6. are theoretical and have little relation to #hat happens in the real #orld. 7. call for different marketing and selling strategies.
100. The ;;;;;;;;;;;;; situation usually involves more members of a buying center and involves more time to complete than the other buying situations. ). modified rebuy B. ne# buy C. adapted buy 6. straight rebuy 7. generic buy
101. )EnF ;;;;;;;;;;;;;;; situation in B!B marketing is similar to limited problem solving in the B!C process. ). adapted buy B. ne# buy C. modified rebuy 6. straight rebuy 7. generic buy
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10!. Cimberly has Bust learned that BAB Coffee =upply is looking for a ne# source of commercial-grade coffee makers" one of the products she sells. =he kno#s BAB has been in business for many years" but she has not been able to get any business from them. >hen developing her marketing strategy" Cimberly #ill probably assume that this represents a ;;;;;;;;;;;;;;;;;;; situation for BAB Coffee =upply" and she #ill #ant to find out #hy BAB Coffee =upply is considering alternatives. ). adapted buy B. ne# buy C. modified rebuy 6. straight rebuy 7. generic buy
10$. or B!B salespeople" usually the easiest sale is aEnF ;;;;;;;;;;;;;;;;;; situation. ). adapted buy B. ne# buy C. modified rebuy 6. straight rebuy 7. generic buy
10&. 5ormally" BC bottling company attaches plastic labels to its bottles. 9o#ever" a ne# company is launching a product that re+uires the use of fabric labels. 4n order to use this latest innovation" BC bottling company must no# source these fabric labels from another company. This is an e8ample of3 ). business-to-business marketing. B. e-commerce. C. custom marketing. 6. telemarketing. 7. 4nternet marketing.
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10'. The office policy and procedure states that any purchase re+uisitions that are ,$"000 and over must be given to Ms. %eynolds" #ho #ill then get authori1ation from the C 0 for the purchase re+uest. Ms. %eynolds serves as a ;;;;;;;;;;; in the buying center. ). gatekeeper B. decider C. buyer 6. user 7. initiator
106. The president of the 5orth#oods ?niversity student body made a formal re+uest to the 4T department for additional computers in the main computer lab. The student body president is the ;;;;;;;; in the buying center. ). initiator B. gatekeeper C. decider 6. buyer 7. gate#ay
10.. The 5orth#oods ?niversity 4T department is planning to buy additional computers for the computer lab. (edro Bechara" manager of the lab" is asked for a recommendation" and he suggests buying Macintosh computers instead of >indo#s (Cs. >hat role does (edro play in the buying center@ ). 4nfluencer B. <atekeeper C. 6ecider 6. Buyer 7. 4nitiator
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10/. Bob %oberts founded %obertico" an e+uipment leasing company" three decades ago. )lthough he is no# in his seventies" he still has a -hands on- management style. 9is employees have learned that there isn*t much point in making purchase recommendations for ne# e+uipment" because Bob is going to choose #hatever he thinks is best regardless of their vie#s. %obertico has aEnF ;;;;;;;; buying center culture. ). autocratic B. democratic C. consultative 6. consensus 7. bureaucratic
102. ) buying center that makes its decisions by maBority vote is aEnF ;;;;;;;; buying center. ). democratic B. consultative C. consensus 6. autocratic 7. bureaucratic
110. The local skydiving team is buying ne# parachutes. The team*s coach has invited all team members to make recommendations" after #hich he #ill select the successful vendor. The skydiving team*s buying center has aEnF ;;;;;;;; organi1ational culture. ). democratic B. consultative C. consensus 6. autocratic 7. bureaucratic
111. To ma8imi1e efficiency" farmers send their eggs to a ;;;;;; #ho handles sales and shipments to supermarkets. ). distributor B. fabricator C. contractor 6. trafficker 7. manufacturer
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11!. The chair of the board of the local 9umane =ociety chose the bank #here the organi1ation keeps its moneyJ ho#ever" the office manager is the primary person #ho makes deposits" #rites checks" and balances the account every month. The office manager is the ;;;;;;; in the buying center for the bank account. ). user B. decider C. gatekeeper 6. initiator 7. influencer
11$. B!B partners often connect to each other on the 4nternet through special ;;;;;;;;;; designed to facilitate information e8changes and transactions. ). #eb portals B. #ebmasters C. #eb links 6. #eb hosts 7. 5one of these
11&. ) #holesaler is an e8ample of a3 ). reseller. B. merchandiser. C. reference group. 6. manufacturer. 7. retailer.
11'. >hat type of B!B organi1ation is a retail store such as T.:. Ma88@ ). %eseller B. 4nstitution C. <overnment 6. Manufacturer 7. 4nternet
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116. >hy did =taples decide to partner #ith =tickC.com to launch the -=tickC to 4tK Business Challenge"- #hich helps small businesses monitor their success@ ). To ac+uire more small business customers. B. To build customer loyalty. C. To increase brand a#areness. 6. To increase sales. 7. )ll of these
11.. >hich of the follo#ing details are included in the order specification stage of the B!B buying process@ ). (rices and delivery dates. B. Dendor performance assessment. C. The % (. 6. Bids for supplying the re+uired components or parts. 7. 5one of these.
Essay Questions
11/. :ackson o#ns a bike rental business at a resort destination. 9e is trying to decide ho# many ne# bikes to purchase for ne8t season. >hat #ill demand for his service depend on@
112. Michelin Tire Company produces a variety of tires at factories in =outh Carolina. 4n #hat types of B!B markets #ould Michelin probably sell their tires@
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1!0. >arren used to sell cars at an automobile dealership. 5o# he sells repossession services to automobile dealers. To be successful" #hat changes in the buying process #ill >arren have to adBust to@
1!1. 9o# does the need recognition stage differ bet#een the B!B and the B!C buying processes@
1!!. 7llen is asked to create a vendor analysis process for a physician in private practice" evaluating suppliers of products such as medical supplies. >hat should 7llen include in a vendor analysis@
1!$. Create a realistic e8ample of a B!B buying center" describing the different roles played by members of the team.
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1!&. The buying center concept has parallels in business-to-consumer buying situations #hen groups are making buying decisions. 6escribe a situation #here a group of consumers #ill make a purchasing decision and e8plain ho# consumer roles might mirror those in a buying center.
1!'. )s a business-to-business marketer" #ould you prefer to market to a firm #ith an autocratic or a consensus buying center@
1!6. ilseta is a te8tbook company salesperson about to call on the (hiladelphia =chool 6istrict. =he #ould like to kno# in advance #hether the school district*s buying center is autocratic or democratic. >hat is the difference bet#een the t#o buying center cultures@ 9o# could this information be useful to ilseta@
1!.. >ould you rather be engaged in B!B or B!C marketing@ =upport your choice.
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1!/. 9o# are the B!B and B!C buying processes different@
1!2. 9o# is vendor analysis different from a consumer*s postpurchase evaluation@
1$0. Dance #ants his company to consider using :aBah for D04( telephone calls instead of its e8isting telephone provider. 4n the buying center concept" #hat role does Dance play@
1$1. >hen Dance proposed s#itching the company to :aBah for D04( telephone calls" he had to approach 6eborah" assistant to the firm*s head purchasing agent" to find out ho# to proceed. 7veryone in the company kno#s that nothing gets purchased #ithout going through 6eborah first. >hat role does 6eborah play in a buying center@
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1$!. The >orld Trade 0rgani1ation creates proposals #hich are then discussed by all 1$' member countries and not approved until the proposal is agreeable to all. >hat type of organi1ational culture e8ists in the >T0@
1$$. >hy is it important for marketers to identify #ho plays #hich role in a buying center@
1$&. >hen ulton ?niversity built its first dormitories" it hired a consulting engineer to advise the university in choosing an architectural firm and contractor. or ulton ?niversity" building its first dormitories represented #hat kind of buying situation@
1$'. >hy is important for sales representatives to kno# #hether a potential business customer is making a ne# buy or a modified rebuy decision@
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1$6. 4dentify and give an e8ample of each of the four B!B markets.
1$.. 6efine derived demand and give an e8ample of ho# demand for B!B sales is often derived from B!C sales.
1$/. 4dentify the four general types of organi1ational buying center cultures" and e8plain ho# these may impact the approach taken by a salesperson.
1$2. 0f the three buying situations" in #hich one is a salesperson most likely to be involved@
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Chapter 06 Business-to-Business Marketing )ns#er Cey
True / False Questions
1. (p. 172) Business-to-business marketing refers to buying and selling goods or services to be used by final consumers. FALSE Business-to-business marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: +asy ,opic: B)siness$to$B)siness -ar*eting
!. (p. 172) B!B marketing involves manufacturers" #holesalers" and service firms. T !E B!B organi1ations market goods and services to other businesses but not to the ultimate consumer.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: +asy ,opic: B2B -ar*ets
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$. (p. 17.) %esellers differ from producers in that resellers significantly alter the form of goods they sell. FALSE %esellers do not significantly alter the form of the goods they sell. >holesalers and distributors are t#o types of resellers.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: -e'i)m ,opic: B2B -ar*ets
&. (p. 17#) The B!B buying process tends to be more formal than B!C buying. T !E The B!B buying process is more structured" involving #ritten specification of needs and formal proposals.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: +asy ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
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'. (p. 177) The % ( process is used by buyers to allo# customer input into value creation. FALSE The % ( process allo#s organi1ations to invite alternative vendors or suppliers to bid on supplying things they need.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: -e'i)m ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
6. (p. 171) ) university*s purchasing department is re+uired to get at least three bids for any purchase greater than ,$000. This re+uirement is used to keep suppliers -on their toes.T !E By re+uiring multiple bids" the purchasing department is attempting to ensure that the suppliers offer the best possible price.
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.. (p. 171) The final step of the business-to-business buying process is a formal vendor analysis. T !E 4n this final step" the selected vendor*s performance is evaluated in order to decide #hether or not to give the vendor additional business in the future.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: +asy ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
/. (p. 112) 0rgani1ational culture may vary by geography. T !E 0rgani1ational culture may vary by geography" by division" or by functional department.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: +asy ,opic: Organi2ation C)lt)re
2. (p. 113) Most B!B buying situations can be categori1ed into three categories3 ne# buys" structured rebuys and automatic rebuys. FALSE The three categories are ne# buys" modified rebuys" and straight rebuys.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"4 %etail 'i((erent b)ying sit)ations. Le!el: +asy ,opic: ,&e B)ying Sit)ation
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10. (p. 11.$114) 4n both ne# buy and straight rebuy situations" all members of a buying center #ill be intensely involved in the purchasing decision. FALSE 4n a ne# buy" all members of the buying center #ill be involved in the purchasing decisionJ ho#ever" in a straight rebuy" it is likely that the buyer E#ho may be a purchasing agentF #ill handle the transaction" perhaps #ith prompting from an initiator E#ho might also be the userF.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"4 %etail 'i((erent b)ying sit)ations. Le!el: -e'i)m ,opic: ,&e B)ying Sit)ation
11. (p. 175) )n architect #orking for a large firm re+uests specific computer soft#are to produce designs" dra#ings and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center. FALSE The architect #ill fill the ?ser roleJ in addition" he is probably the 4nitiator. The <atekeeper controls information or access" or both" to decision makers and influencers.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"3 6'enti(y t&e 'i((erent roles 7it&in t&e b)ying center. Le!el: -e'i)m ,opic: ,&e B)ying Center
1!. (p. 112) 5early all small businesses have consensus buying centers. FALSE =mall businesses have different buying center cultures. 4n a given business" the buying center culture might be )utocratic" 6emocratic" Consultative" or Consensus.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: -e'i)m ,opic: Organi2ation C)lt)re
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1$. (p. 112) ) buying center #hose members reach a decision based on a collective agreement is kno#n as an autocratic buying center. FALSE ) consensus buying center is one in #hich all members of the team must reach a collective agreement that they can support a particular decision.
1&. (p. 11.$114) ) small business decides to upgrade its aging phone system. The business #ill probably place a straight rebuy order. FALSE ) straight rebuy is typically used for additional purchases of things that are bought regularly. 4n this case" a ne# buy is the most likely choice.
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Multiple Choice Questions
1'. (p. 172) Business-to-business marketing involves buying and selling goods or services to be used by3 ). manufacturers. B. #holesalers. C. retailers. 6. producers. E" all of these. Business-to-business refers to the process of buying and selling goods and services to be used in the production of other goods and services. Manufacturers and producers buy ra# materials for production. >holesalers and retailers provide service" helping goods to flo# from the manufacturer to the consumer.
16. (p. 172) Business-to-business marketing involves buying and selling goods or services by all of the follo#ing e8cept3 ). manufacturers. B" consumers. C. retailers. 6. producers. 7. #holesalers. Consumers do not participate in business-to-business marketing.
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1.. (p. 172) 6erek bought a pick-up truck to transport his e+uipment to fishing tournaments. 9e also bought a pick-up for his la#n maintenance business. 9is purchases #ere3 ). both B!C purchases since he is the user in both situations. B. both B!B purchases since he is the user in both situations. C. neither B!C nor B!B since he is the consumer and his uses might be mi8ed. #" B!C and B!B" respectively. 7. 5one of these. The truck 6erek purchased for fishing tournaments is for his personal use and #as a businessto-consumer purchase. The truck he bought for his business #as a business-to-business purchase.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: -e'i)m ,opic: B)siness$to$B)siness -ar*eting
1/. (p. 17.) :ackie #orks as a sales rep for a company that produces and sells steel used in building construction. :ackie is in ;;;;;;;;;;;;;;;;;;;;;; sales. ). <!B B. B!C C" B!B 6. C!C 7. <!< :ackie sells materials used by other businessesJ thus" she is in B!B sales.
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12. (p. 172) =ales of electric components manufactured by %ick*s company depend on sales of ne# cars. %ick*s company faces ;;;;;;;;;;;;;;;; demand. ). synthetic B. situational C. monopolistic 6. autocratic E" derived 6erived demand refers to the link bet#een consumers* demand for a company*s output and the company*s purchase of necessary inputs. The car manufacturer*s demand for electric components is derived from the demand for its cars.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: -e'i)m ,opic: B)siness$to$B)siness -ar*eting
!0. (p. 172) (aula has developed a successful business selling appliances to homebuilders. =he carefully monitors the issuance of ne# home permits to anticipate ho# many appliances she #ill need to buy in order to supply her customers. (aula is concerned #ith ;;;;;;;;;;;;;;. ). modified demand B. secondary demand C. rebuy demand #" derived demand 7. delayed demand 6erived demand refers to the link bet#een consumers* demand for a company*s output and the company*s purchase of necessary inputs. The homebuilders* demand for appliances is derived from the demand for its homes.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: -e'i)m ,opic: B)siness$to$B)siness -ar*eting
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!1. (p. 172) >hether targeting consumers or B!B Markets" marketers need to focus on3 A" creating value for their customers. B. buying center synergy. C. private e8change efficiency. 6. corporate profit sharing. 7. reducing derived demand. Dalue creation is a key consideration for both B!C and B!B marketing.
!!. (p. 17.) ?nlike manufacturers" ;;;;;;;;;;;;;;;;; buy products from other businesses but do not significantly alter the form of the products they buy. ). producers B. consumers C" resellers 6. 7nglish auctioneers 7. gatekeepers %esellers--both #holesalers and distributors--buy products from businesses and sell to other businesses" but do not significantly alter the products involved.
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!$. (p. 17.) ) ;;;;;;;;;;;;;;;; is a type of reseller" a business that buys from other businesses but does not significantly alter the form of the products it buys. ). manufacturer B. producer C. consumer #" #holesaler 7. factory %esellers include #holesalers" distributors" and retailers.
!&. (p. 17.) Malcolm buys overrun clothing from factories around the =outh. 9e sells the clothes to discount retailers. Malcolm is a3 ). manufacturer B. producer C. consumer 6. factory agent E" reseller %esellers include #holesalers" distributors" and retailers. %esellers purchase products from businesses and sell them to other businesses #ithout significantly altering them.
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!'. (p. 17.) 9ospitals" schools" and religious organi1ations are e8amples of ;;;;;;;;;;;; buyers. ). manufacturing B. retail C" institutional 6. factory agent 7. reseller 4nstitutional buyers include organi1ations such as hospitals" colleges" and churches.
!6. (p. 17.) >hich of the follo#ing is an e8ample of an institutional buyer@ A" Mayo Clinic 9ospital B. (rocter A <amble C. ?.=. Marine Corps 6. 5ucor =teel Corporation 7. >almart 4nstitutional buyers include organi1ations such as hospitals" colleges" and churches.
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!.. (p. 17#) >hich of the follo#ing is an e8ample of a government buyer@ ). Mayo Clinic 9ospital B. (rocter A <amble C" ?.=. Marine Corps 6. 5ucor =teel Corporation 7. >almart <overnment buyers include national and local government organi1ations" as #ell as the military.
!/. (p. 17#) 4n most countries" ;;;;;;;;;;;;;;;; is one of the largest purchasers of goods and services. ). the largest retailer B" the central government C. the national airline 6. the intelligence agency 7. a consumer buying center The central government is typically one of the largest purchasers in a country. or e8ample" the ?.=. government spends about ,!./ trillion annually on goods and services.
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!2. (p. 17#) Both the B!B and B!C buying processes begin #ith3 ). central planning. B" need recognition. C. postpurchase dissonance. 6. alternative evaluation. 7. order specification. 5eed recognition is the first step of both the B!C and B!B buying processes.
$0. (p. 17#) Compared to the B!C process" the information search and alternative evaluation steps in the B!B process are3 ). decentrali1ed. B. less focused on customer value creation. C. identical. #" more formal and structured. 7. based on derived supply analysis. Because of the buying center and organi1ational re+uirements" the B!B buying process is more formal and tends to have more structure and rules than the B!C buying process.
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$1. (p. 177) Typically" B!B buyers ask potential suppliers to3 ). #rite the % ( for the buyer. B" submit formal proposals. C. sponsor intervie#s #ith final customers in order to determine product needs. 6. al#ays be involved in reselling. 7. organi1e themselves into selling cooperatives. B!B buyers often #rite % (s and provide them to potential suppliers" re+uesting formal proposals in response. 0ccasionally a supplier #ill contribute significantly to the #riting of an % (J ho#ever" this is not as fre+uent an occurrence as the submission of proposals.
$!. (p. 17#) B!B buying decisions are often made by3 ). governors. B. influencers. C" committees. 6. resellers. 7. consumers. B!B buying decisions are often made by a committee" often called the buying center.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: -e'i)m ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
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$$. (p. 17#) >hen <ood#ish Marketing decided to upgrade its net#ork" many people #ere involved in the decision. 4n B!B buying systems decisions are often made3 ). +uickly. B. by a single e8pert. C. at auction sites. #" by a committee after considerable deliberation. 7. through community debating organi1ations. B!B buying decisions are often made by a committee" often called the buying center.
$&. (p. 17#) The first stage of the B!B buying process is3 ). product specification. B. the re+uest for proposals. C. proposal analysis. 6. vendor negotiation and selection. E" need recognition. Both the B!B and the B!C buying processes begin #ith need recognition.
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$'. (p. 17#) :udy kno#s it is important to approach business buyers at the right time" #hich is often during the first stage of their buying process. =he stays in touch #ith her customers" hoping to find out #hen they are going through3 A" need recognition. B. the % ( process. C. proposal analysis. 6. vendor negotiation and selection. 7. product specification. Both the B!B and the B!C buying processes begin #ith need recognition.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: 8ar' ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
$6. (p. 17#) 7d#ard" the leading salesperson for 9arry*s 9onda dealership" began hearing customers asking for hybrid automobiles several years ago. 7d#ard alerted 9arry" and 9arry pre-ordered many 9onda hybrids before they became available. 4n this case" the source of need recognition #as3 ). trade sho# demonstrations. B. ads in trade Bournals. C" customers. 6. the 4nternet. 7. suppliers. 5eed recognition can begin from an internal or e8ternal sourceJ in this case" customer re+uests #ere the source.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: -e'i)m ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
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$.. (p. 177) )fter need recognition" a business develops ;;;;;;;;;;;; that suppliers might use to develop their proposals. ). derived demand B. initiator instructions C. determinant attributes #" product specifications 7. focal alternatives (roduct specifications are detailed descriptions of the business*s specific re+uirements for the purchase occasion.
$/. (p. 177) )fter 9urricane Catrina" many states re-evaluated their coastal area building re+uirements. These ne# building codes represented ;;;;;;;;;;;;;;;; that building materials companies used in developing ne# products. ). derived demand B. initiator instructions C. determinant products #" product specifications 7. focal alternatives The ne# building codes present detailed information that all builders and their suppliers need to adhere to. )s such" they #ill form part of the specifications for any purchase of building supplies.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: 8ar' ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
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$2. (p. 177) Charlie is hoping to get a chance to bid on supplying key components to 5ed*s business. 9e is eager to move for#ard" but he must #ait until3 ). 5ed completes vendor negotiations. B" 5ed develops a list of product specifications. C. 5ed*s buying center has an opening. 6. 5ed agrees to move Charlie*s firm from the evoked set to the retrieval set. 7. )ll of these. ?ntil 5ed develops his product specifications--a detailed list of the attributes and features he needs--5ed #ill not kno# #hat to bid.
&0. (p. 177) )fter need recognition and product specification" many firms using the B!B buying process3 ). identify contract specifications. B" issue a re+uest for proposals from invited suppliers. C. proceed to proposal analysis. 6. enter vendor negotiation and selection. 7. revise their need recognition analysis. The third step" after need recognition and product specification" is for the firm to provide a re+uest for proposals from suppliers detailing #hat the firm needs to purchase.
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&1. (p. 177) 6uring the % ( stage" B!B buyers3 ). recogni1e obstacles that the firm must #ork around. B. revise their need recognition analysis. C" invite suppliers to bid on supplying #hat is re+uested. 6. proceed to vendor analysis. 7. negotiate contract terms. 4n the % ( stage" suppliers are invited to submit proposals in response to the % (.
&!. (p. 177) re+uently a B!B buyer #ill post its % (3 ). on T#itter. B. in Commerce Business 6aily. C. in the legal section of a local ne#spaper. #" on its #ebsite. 7. in the employee human resources office. irms often publish re+uests for proposal E% (sF on their #ebsites so that suppliers have easy access to the information.
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&$. (p. 177) Thomas #ants to get a number of bids for parts and components for the specialty food-processing e+uipment his firm #ill manufacture. 9e has developed detailed product specifications and has developed an % (. 9o# #ill he distribute the % ( to ensure a reasonable supply at a reasonable cost@ ). ?se his company*s #ebsite B. Contact potential suppliers directly C. 4nvite current suppliers to bid 6. 5et#ork through his trade association or Chamber of Commerce E" )ll of these These are all good strategies for identifying potential suppliers.
&&. (p. 177) )fter posting an % ( for telecommunication e+uipment" ?= received si8 proposals from +ualified vendors. 5e8t" ?= #ill3 ). recogni1e obstacles that must be circumvented. B. re-evaluate the firm*s needs. C. give one vendor a purchase order. 6. conduct vendor analysis. E" evaluate the proposals and narro# the choice to a fe# suppliers. )fter the firm has received proposals" it must evaluate the proposals. 0ften" proposals not meeting all needs are e8cluded and a small number of potential suppliers receive final consideration.
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&'. (p. 177$171) )fter evaluating proposals they received for ne# telecommunication e+uipment" the buying center for ?= Corporation #ill probably discuss ;;;;;;;;;;; #ith +ualified suppliers. ). price B. +uality C. delivery schedule 6. financing E" all of these 0nce the list of potential suppliers has been limited to a fe# finalists #ho are able to meet ?= *s needs" the firm #ill probably negotiate #ith each of the finalists regarding price" +uality" delivery" and financing" in order to get the best deal possible.
&6. (p. 177$171) The buying center for ?= Corporation is in the process of discussing price" +uality" and delivery schedules #ith potential suppliers. They are in the ;;;;;;;;;;;;; stage of the business-to-business buying process. A" vendor negotiation B. product specification C. need recognition 6. vendor performance assessment 7. % ( 0nce the list of potential suppliers has been limited to a fe# finalists #ho are able to meet ?= *s needs" the firm #ill probably negotiate #ith each of the finalists regarding price" +uality" delivery" and financing" in order to get the best deal possible.
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&.. (p. 171) >hen revie#ing her firm*s business buying process" Carla noticed a company re+uirement that they have at least three +ualified bids from suppliers for any purchase over ,'0"000. This re+uirement is designed to3 ). minimi1e competitive pressure. B. efficiently organi1e resellers. C" keep suppliers on their toes. 6. foster democratic buying centers. 7. slo# do#n the purchase process. By getting multiple +ualified bids" the firm can set up a competitive situation #here each firm #ill be motivated to offer the best possible terms.
&/. (p. 171) )s the buyer in 5orthrop*s buying center team" #hen a decision is made" Craig #ill specify3 ). price. B. +uantities. C. delivery schedule. 6. nonperformance penalties. E" all of these. The purchase order #ill define all of the above" as previously negotiated #ith the supplier.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: -e'i)m ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
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&2. (p. 171) rieda has Bust received a maBor order from 5orthrop Corporation for her firm*s hydraulic lift e+uipment. )fter revie#ing the order information" rieda #ill3 A" send an ackno#ledgement that the order has been received. B. re#rite her firm*s proposal. C. submit a competitive bid. 6. proceed to vendor analysis. 7. evaluate performance. The ackno#ledgement confirms receipt of the order and the terms specified Eprice" +uantity" delivery schedule" and so onF.
'0. (p. 171) >hen :erry #as negotiating a total renovation for the local health care clinic" he kne# every month the clinic #as closed he #ould lose ,10"000 in rent from the various tenants in the clinic. :erry shre#dly included ;;;;;;;;;;;;;;;;;;; in the renovation contract to encourage the vendor to finish on schedule. ). an automatic payment system B" a nonperformance penalty C. an % ( 6. a ne# buyback bonus 7. a derived demand multiplier ) nonperformance penalty #ould consist of payments to the health care clinic should the renovations run behind schedule. This #ould help to make up for lost rental income.
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'1. (p. 171) >hile consumers #eigh postpurchase dissonance" business buyers3 ). file la#suits. B. evaluate organi1ational culture. C" conduct vendor analysis. 6. prepare % (s. 7. remain dissatisfied. Dendor analysis evaluates a selected supplier*s performance in delivering on the current order" helping the firm to decide #hether or not to continue to do business #ith the supplier.
'!. (p. 171) Dendor analysis often involves ;;;;;;;;;;;;;;;;;;;; important to the buyer. A" specifications and #eighting of issues B. % (s C. informal revie# of issues 6. derived demands 7. all of these Dendor analysis evaluates a selected supplier*s performance in delivering on the current order" helping the firm to decide #hether or not to continue to do business #ith the supplier. Darious performance metrics are calculated" along #ith #eights for these metrics matching the buyer*s priorities.
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'$. (p. 171) )s purchasing manager for )valon 7lectronics" Carrie is re+uired to submit a vendor performance analysis every three months. To meet this re+uirement" Carrie #ill probably3 ). intervie# vendors and seek their feedback. B" specify and #eight performance factors and +uantify results. C. develop an % ( for vendor analysis. 6. recruit ne# suppliers. 7. use a modified rebuy vendor form. Dendor analysis evaluates a selected supplier*s performance in delivering on the current order" helping the firm to decide #hether or not to continue to do business #ith the supplier. Darious performance metrics are calculated" along #ith #eights for these metrics matching the buyer*s priorities.
'&. (p. 175) 4n most large organi1ations" several people are responsible for making a purchase decision. This group is called the3 ). derived demand cohort. B. reselling team. C. decider group. #" buying center. 7. e8pediters. The buying center is a group that #orks together to make a purchase decision.
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''. (p. 175) >hich of the follo#ing is 50T one of the roles typically played by one of the members of a buying center@ A" auctioneer B. initiator C. influencer 6. decider 7. gatekeeper The buying center roles are3 initiator" influencer" gatekeeper" decider" buyer" and user.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"3 6'enti(y t&e 'i((erent roles 7it&in t&e b)ying center. Le!el: -e'i)m ,opic: ,&e B)ying Center
'6. (p. 175) Melissa is the director of human resources" but is kno#n throughout the firm as being one of the first to hear about and use ne# kinds of communications technologies. >hen the firm #ants to upgrade its net#ork" Melissa #ill probably function in #hat role in the firm*s buying center@ ). initiator B" influencer C. decider 6. user 7. gatekeeper 6ue to her e8pertise" Melissa*s opinion and advice #ill probably be sought" making her an influencer.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"3 6'enti(y t&e 'i((erent roles 7it&in t&e b)ying center. Le!el: 8ar' ,opic: ,&e B)ying Center
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'.. (p. 175) Carlos recently graduated #ith a degree in marketing" and he has taken an attractive sales position #ith a B!B firm. 9e did +uite #ell in school" but one of his strongest assets is the #ay he #orks #ith people. 4n the firms he plans to visit" he has planned to focus most of his attention on3 ). gatekeepers. B. initiators. C. buyers. 6. deciders. E" Carlos should focus on all of these. )ll members of the buying center play roles in the decision process and all have valuable information" so Carlos should pay attention to all of them. 6epending on the buying center culture" some members may be more important than others to the final decision" something that Carlos #ill #ant to determine as he gets to kno# the buying center members and their roles.
'/. (p. 175) %aycom Construction needs heavy-duty e+uipment to install a ne# pipeline in northern )laska. %aycom engineers #ill be asked to evaluate the e+uipment needs and provide detailed specifications and recommendations. The %aycom engineers #ill primarily play the ;;;;;;;;;;;; role in the company*s buying center. ). buyer B. initiator C" influencer 6. user 7. gatekeeper 6ue to their technical e8pertise" the %aycom engineers #ill influence the purchase decision #ith their specifications and recommendations.
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'2. (p. 175) )t many universities" education faculty members #ere among the first to ask for personal computers. These faculty members #ere ;;;;;;;;;;;;; in the buying center. ). buyers B" initiators C. influencers 6. deciders 7. gatekeepers By re+uesting computers" the faculty initiated the purchase situation.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"3 6'enti(y t&e 'i((erent roles 7it&in t&e b)ying center. Le!el: +asy ,opic: ,&e B)ying Center
60. (p. 175) %aycom Construction needs heavy-duty e+uipment to install a ne# pipeline in northern )laska. %aycom engineers #ill specify the type of e+uipment to be purchased. >hen the decision is made" %eginald #ill handle the paper#ork and send out the purchase order. %eginald plays the ;;;;;;;;;;;;;; in the buying center. A" buyer B. initiator C. influencer 6. user 7. gatekeeper The buyer is the member of the buying center #ho handles the actual paper#ork. 4n some firms" a full-time purchasing agent does this.
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61. (p. 11"9 +t&ical an' Societal %ilemma) >hich of the follo#ing is 50T an ethical concern in the pharmaceutical industry@ ). =ales representatives may not provide all the information doctors need before prescribing the drugs. B. =ales representatives obtain confidential patient information. C. )n important study found doctors fre+uently visited by representatives tended to focus on drug therapies even #hen researchers supported nondrug therapies. 6. 4n an important study" researchers found doctors fre+uently visited by representatives from pharmaceutical companies #ere less likely to prescribe generic e+uivalents. E" )ll of these are ethical issues. =ince the #elfare of patients is at stake here" pharmaceutical salespeople must be careful to behave ethically. )ll of these are potential ethical issues in the pharmaceutical industry.
6!. (p. 175) >henever Cim" a te8tbook publisher*s representative" calls on the business faculty at <eneral ?niversity" her first stop is to chat #ith rank" the business department secretary. rom rank" Cim learns #hich professors have left or are ne#" and #hat courses #ill be taught ne8t semester. rank also helps Cim to make appointments to see professors to discuss te8tbook choices. rank acts as the ;;;;;;;;;;;;; in the business department buying center. ). buyer B. initiator C. influencer 6. user E" gatekeeper =ince rank controls access both to information Eabout personnel changes and course offeringsF and people Eappointments #ith facultyF" he is a gatekeeper.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"3 6'enti(y t&e 'i((erent roles 7it&in t&e b)ying center. Le!el: -e'i)m ,opic: ,&e B)ying Center
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6$. (p. 175) >henever Cim" a te8tbook publisher*s representative" calls on the business faculty at <eneral ?niversity" she also meets #ith several students to get their feedback on the te8tbooks used by the department. The students are the ;;;;;;;;;;;; in the buying center. ). deciders B. initiators C. influencers #" users 7. gatekeepers The students are users of the selected te8tbooks.
6&. (p. 111) Many health insurance policies re+uire patients to call and get pre-approval for tests or procedures" or else pay a much higher co-payment. The health insurance company acts as a ;;;;;;;;;;;;;;;;;; for the purchase of medical services. ). decider B. initiator C. influencer 6. user E" gatekeeper =ince the insurance company controls access to tests and procedures Eat least" at the lo#er priceF" it is a gatekeeper in health-related decisions.
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6'. (p. 111) ?nlike a firm*s mission statement or employee handbook" a firm*s culture often3 ). forces customers to look else#here for value. B. is of no importance to purchase decisions. C" e8ists as a set of unspoken guidelines. 6. is defined by a straight rebuy philosophy. 7. all of these. Culture is generally unspoken" and is learned by e8perience and by observing others.
66. (p. 111) )n organi1ation*s culture reflects the ;;;;;;;;;;;;;;;;;;;;; that guide its employees* behavior. ). B!B dynamics B. % ( process C. buying center philosophy #" set of values" traditions" and customs 7. derived set of influences :ust as nations and regions have cultures--sets of values" traditions" and customs-organi1ations have cultures too.
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6.. (p. 111$112) >hile no one in the firm has discussed it" Brad notices everyone else seems to dress more casually on ridays during the summer. Brad is observing part of his firm*s3 A" culture. B. governing principles. C. human resources policy. 6. employee obligations. 7. gatekeeping. The organi1ation*s culture is a set of values" traditions" and customs that are typically un#ritten. -Casual riday- dress is an e8ample of such a custom.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: -e'i)m ,opic: Organi2ation C)lt)re
6/. (p. 111$112) >hile training for her ne# Bob as a pharmaceutical sales representative" Mallory spent several days shado#ing an e8perienced company rep. =he #atched the rep focusing on the benefits of the ne# drugs #hile not volunteering pricing information" side effects" or comparison data. Mallory accepted this as being part of the pharmaceutical firm*s3 ). buying center. B" culture. C. mission statement. 6. corporate social responsibility. 7. % ( process. The organi1ation*s culture is a set of values" traditions" and customs that are typically un#ritten. ?nfortunately" Mallory is observing a lack of regard for ethics that might be characteristic of this one sales rep" or might be an aspect of the company*s culture.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: 8ar' ,opic: Organi2ation C)lt)re
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62. (p. 112) >hich of the follo#ing is 50T one of the four general types of organi1ational cultures@ ). autocratic B. democratic C. consultative #" capitalist 7. consensus The four types of organi1ational cultures are )utocratic" 6emocratic" Consultative" and Consensus.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: +asy ,opic: Organi2ation C)lt)re
.0. (p. 112) Cno#ing #hich type of buying center culture is prevalent in a given organi1ation helps sellers to decide3 ). ho# to approach a particular client. B. ho# to deliver pertinent information. C. to #hom to deliver pertinent information. 6. to #hom to make the sales presentation. E" all of these. =ellers can use information about the buying center*s culture to ans#er these +uestions. >ithout this kno#ledge" the sales representative may deliver inappropriate information to the #rong people.
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.1. (p. 112) 0livia kno#s that one person" #ho makes all maBor purchase decisions" dominates the firm she is calling on today. Cno#ing the type of buying center she is calling on #ill help 0livia to decide3 ). ho# to approach a particular client. B. ho# to deliver pertinent information. C. to #hom to deliver pertinent information. 6. to #hom to make the sales presentation. E" all of these. =ellers can use information about the buying center*s culture to ans#er these +uestions. >ithout this kno#ledge" the sales representative may deliver inappropriate information to the #rong people. 0livia kno#s that this is an autocratic buying center" and so she must attend carefully to the +uestions and attitudes of the decider.
.!. (p. 112) The customer Carlotta is calling on today has aEnF ;;;;;;;;;; buying center culture. This means that the decision process #ill involve reaching agreement among all members of the buying center. A" consensus B. autocratic C. consultative 6. republican 7. democratic ) consensus buying center culture is one #here the members #ork together until they reach an agreement.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: 8ar' ,opic: Organi2ation C)lt)re
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.$. (p. 112) Markham (ublishing is kno#n for its consultative buying center culture. %ecogni1ing this corporate culture" someone attempting to sell to Markham (ublishing should3 ). treat all members of the buying center as e+ually important. B" address the concerns of all members of the buying center #ith particular attention to those of the decision maker. C. focus on providing information to and making the sales approach to the one decision maker. 6. attempt to facilitate the collective agreement of all members of the buying center. 7. focus attention on the gatekeeper in the buying center*s team. ) consultative buying center culture is one in #hich the opinions of all members are sought by the decider" but sHhe makes the final decision.
.&. (p. 112) ordham 9ard#are is kno#n for its consensus buying center culture. %ecogni1ing this corporate culture" someone attempting to sell to ordham 9ard#are should3 ). treat all members of the buying center as e+ually important. B. address the concerns of all members of the buying center #ith particular attention to those of the decision maker. C. focus on providing information to and making the sales approach to the one decision maker. #" attempt to facilitate the collective agreement of all members of the buying center. 7. all of these. ) consensus buying center culture is one #here the members #ork together until they reach an agreement.
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.'. (p. 111$112) )t the main campus of a large university" faculty al#ays refer to each other as 6octor" #ear suits" and guard their academic domains against each other. This leads to fre+uent name-calling and strenuous debates. Mean#hile" at the various branch campuses" faculty members call each other by their first names" dress casually" and supported each other*s scholarly efforts. This e8ample illustrates the differences in ;;;;;;;;;;;;;;;;;;; that can e8ist #ithin an organi1ation. ). supply chain communication B. autocratic buying center culture C" organi1ational culture 6. business missions 7. corporate social responsibility The t#o campuses reflect #idely different organi1ational cultures--one is formal and competitive" #hereas the other is casual and encourages cooperation.
.6. (p. 112) 5ot kno#ing the roles of key players in the buying process could cause a sales representative to3 ). bid too high a +uantity. B. fail the vendor analysis. C. respond to an % ( too +uickly. #" #aste time and alienate people. 7. all of these. ) failure to understand the roles and culture of the buying center can cause a sales representative to #aste time by focusing too much on the #rong people. The representative might also alienate people by not paying enough attention to key players in the decision.
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... (p. 112) >hen she gave her presentation to 9armon*s )utomotive =upply" Brie did not kno# the roles of the key players in the buying center. This could cause her to #aste a lot of time and to3 ). bid too many products. B. fail the vendor analysis. C. respond to an % ( too +uickly. #" alienate the real decision maker. 7. all of these ) failure to understand the roles and culture of the buying center can cause a sales representative to #aste time by focusing too much on the #rong people. The representative might also alienate people by not paying enough attention to key players in the decision.
./. (p. 112) >hen Geanne gave her presentation to the Big6eal discount buying center team" she treated each member*s +uestion seriously and gave e+ual time to addressing each. Geanne did not reali1e Big6eal has an autocratic buying center culture and she needed to focus on ans#ering Beverly*s +uestions" since she is the decision maker. 4n addition to #asting time by not understanding Big6eal*s culture" Geanne may have also3 ). bid too many products. B. failed the vendor analysis. C. responded to the % ( too +uickly. #" alienated Beverly" the real decision maker. 7. all of these. ) failure to understand the roles and culture of the buying center can cause a sales representative to #aste time by focusing too much on the #rong people. The representative might also alienate people by not paying enough attention to key players in the decision.
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.2. (p. 11.) :enny #as feeling frustrated. ->hat*s taking them so long to make a decision@ 4t*s been #eeks since 4 first met #ith them" and they all seem interested in the product. 4*ve also Bumped through all their paper#ork hoops.- :enny is likely selling to a firm in #hat kind of buying situation@ A" 5e# buy B. Modified rebuy C. =traight rebuy 6. <eneric buy 7. )dapted buy The time being consumed and the amount of paper#ork are probably hallmarks of a ne# buy situation" #hich #ill involve e8tra analysis and negotiations.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"4 %etail 'i((erent b)ying sit)ations. Le!el: 8ar' ,opic: ,&e B)ying Sit)ation
/0. (p. 113) Most B!B buying situations can be categori1ed as ne# buys" modified rebuys" and3 ). generic buys. B" straight rebuys. C. ordinary rebuys. 6. adapted buys. 7. minor buys. The three kinds of B!B buying situations are ne# buys" modified rebuys" and straight rebuys.
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/1. (p. 11.$114) The % ( buying situation is most likely to be associated #ith3 ). a ne# buy. B. a modified rebuy. C. a straight rebuy. #" either a ne# buy or a modified rebuy. 7. an adapted buy. ) ne# buy or a modified rebuy may re+uire an % (J ho#ever" straight rebuys do not re+uire one since they are simple repurchases of previously purchased products.
/!. (p. 11.) The buying decision is likely to be more comple8 and take longer to complete in aEnF ;;;;;;;;;;; B!B buying situation. A" ne# buy B. modified rebuy C. straight rebuy 6. adapted buy 7. generic buy The ne# buy decision is generally the most comple8 since the organi1ation does not have e8perience #ith purchasing the product" nor any e8isting vendor relationships.
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/$. (p. 11.) 4n #hich buying situation is the buyer most likely to proceed through all si8 steps in the buying process@ A" 5e# buy B. Modified rebuy C. =traight rebuy 6. <eneric buy 7. )dapted buy The ne# buy decision is generally the most comple8 since the organi1ation does not have e8perience #ith purchasing the product" nor any e8isting vendor relationships. or this reason" the firm is likely to go through all si8 steps of the process.
/&. (p. 11.) Manitoba ?niversity is buying a distance learning system. (reviously" the school had no distance learning technology. or Manitoba ?niversity this represents aEnF ;;;;;;;;;;;;;;; situation. ). adapted buy B. modified rebuy C. straight rebuy #" ne# buy 7. generic buy =ince Manitoba has no e8perience buying distance learning systems and no e8isting vendor relationships" this is a ne# buy situation.
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/'. (p. 11.) 0lga is the sales rep for )TD communication systems. =he #ants to bid on the % ( issued by Manitoba ?niversity for distance learning technology. =he kno#s she #ill need to provide considerable information and demonstrations of her firm*s technology because Manitoba ?niversity is in a ne# buy situation and does not have3 ). the money to afford it. B" any e8perience #ith the product they #ish to purchase. C. anyone interested in the technology. 6. any derived demand for the system. 7. any students #ho might be interested in distance learning. =ince Manitoba has no e8perience buying distance learning systems and no e8isting vendor relationships" this is a ne# buy situation.
/6. (p. 11.) >hen 5atasha took over as facilities manager for Burlington urniture Manufacturing she #as shocked to see the factory #as still heated #ith a coal-fired boiler. 4mmediately" she made a decision to upgrade the heating system to something more efficient. or 5atasha" this represented aEnF ;;;;;;;;;;;;;;;;;; situation. ). adapted buy B. modified rebuy C. straight rebuy 6. generic buy E" ne# buy 5atasha and Burlington urniture lack e8perience #ith updated heating systems" so this #ill be a ne# buy situation.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"4 %etail 'i((erent b)ying sit)ations. Le!el: -e'i)m ,opic: ,&e B)ying Sit)ation
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/.. (p. 114) 4n aEnF ;;;;;;;;;;;;;;;;; situation" the buyer has purchased a similar product in the past but has decided to change some specifications. ). ne# buy B" modified rebuy C. straight rebuy 6. adapted buy 7. generic buy ) modified rebuy situation is one in #hich the buyer has purchased similar products in the past" but no# #ants to modify some specifications.
//. (p. 114) >hen a business buyer decides to change specifications such as +uality or options associated #ith products he or she has purchased in the past" the buyer is engaged in aEnF ;;;;;;;;;; situation. ). ne# buy B" modified rebuy C. straight rebuy 6. adapted buy 7. side by side ) modified rebuy situation is one in #hich the buyer has purchased similar products in the past" but no# #ants to modify some specifications.
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/2. (p. 114) >hen >almart considers re-ordering items for its stores" its buyers are instructed to negotiate price concession" +uality improvements" andHor added options. 4n this situation" >almart buyers are engaged in aEnF ;;;;;;;;;;;;;;;;;; situation. ). ne# buy B" modified rebuy C. straight rebuy 6. adapted buy 7. generic buy ) modified rebuy situation is one in #hich the buyer has purchased similar products in the past" but no# #ants to modify some specifications.
20. (p. 114) 4n a modified rebuy situation" ;;;;;;;;;;;;;;;;; are likely to have an advantage in getting the order. ). consumers B. resellers C" current vendors 6. gatekeepers 7. buying centers ) modified rebuy situation is one in #hich the buyer has purchased similar products in the past" but no# #ants to modify some specifications. Thus" current vendors may have an advantage since they have an e8isting relationship #ith the buyer" as long as they are able to adapt to the changed specifications.
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21. (p. 114) >hich of the follo#ing circumstance might trigger a modified rebuy instead of a straight rebuy@ ). Changing +uality levels needed in the product or service. B. 6issatisfaction #ith the vendor. C. Change in some of the product specifications. 6. Changes in the desired price. E" )ll of these ) modified rebuy situation is one in #hich the buyer has purchased similar products in the past" but no# #ants to modify some specifications. )ll of these could trigger this sort of situation.
2!. (p. 114) >hen Dal sees the % ( issued by one of his customers" he is concerned that they have changed their specifications since they placed a previous order #ith him. 9is company*s products do not meet the ne# specifications. 4n this situation" being the current vendor3 ). #ill necessitate renegotiating price and delivery terms. B. allo#s for a straight rebuy. C. offsets a consensus buying center culture. #" #ill probably not be an advantage in getting the ne# order. 7. #ill allo# Dal to get the order even though his products do not meet the specifications. =ince Dal cannot meet the ne# specifications" his e8isting relationship #ith the buyer #ill not offer him any advantage.
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2$. (p. 114) )EnF ;;;;;;;;;;; occurs #hen the purchasing agent buys additional units of products that have previously been purchased. ). ne# buy B. modified rebuy C" straight rebuy 6. adapted buy 7. generic buy ) straight rebuy occurs #hen the company is buying more of a product it has bought in the past.
2&. (p. 114) 4f a B!B customer is satisfied #ith an e8isting supplier" it #ill probably engage in aEnF ;;;;;;;;;;; to purchase additional +uantities of the item. ). ne# buy B. modified rebuy C. adapted buy #" straight rebuy 7. generic buy ) straight rebuy occurs #hen the company is buying more of a product it has bought in the past.
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2'. (p. 114) Ivonne uses her customer relationship management EC%MF system to predict #hen her business customers #ill need more of her company*s packaging materials. >hen she thinks a customer should be ready to make another order" she contacts them. Ivonne is using C%M to encourage customers to engage in aEnF3 ). ne# buy. B. modified rebuy. C. adapted buy. #" straight rebuy. 7. generic buy. ) straight rebuy occurs #hen the company is buying more of a product it has bought in the past. This is #hat Ivonne is trying to encourage.
26. (p. 114) (hil put do#n the phone and told )lice" -4 Bust love that customer. 4 got another big order" and they Bust keep on coming.- (hil is likely selling to a firm in #hat kind of buying situation@ ). 5e# buy B. Modified rebuy C" =traight rebuy 6. <eneric buy 7. )dapted buy ) straight rebuy occurs #hen the company is buying more of a product it has bought in the past. 4t sounds like (hil*s customer places straight rebuy orders fre+uently.
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2.. (p. 114) >hen a business customer engages in a straight rebuy" the member of the buying center most likely to be involved in the purchase is the3 ). decider B. initiator C. influencer 6. user E" buyer ) straight rebuy occurs #hen the company is buying more of a product it has bought in the past. or this reason" only the buyer E#ho handles the paper#orkF usually needs to be involved.
2/. (p. 114) 4n established businesses" a large proportion of B!B purchases fall into the ;;;;;;;;;;; category. A" straight rebuy B. ne# buy C. adapted buy 6. modified rebuy 7. generic buy ) straight rebuy occurs #hen the company is buying more of a product it has bought in the past. Businesses typically repurchase many products they have purchased in the past-supplies" ra# materials" and parts" for e8ample.
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22. (p. 114) The three types of buying situations3 ). create confusion among B!B sellers. B. suggest that B!B sellers should develop one marketing mi8 to use for all situations. C. re+uire business sellers to be consistent in their marketing mi8es. 6. are theoretical and have little relation to #hat happens in the real #orld. E" call for different marketing and selling strategies. 7ach buying situation re+uires different marketing and selling strategies. or a ne# buy situation" the seller must provide comprehensive information and support and must gain a clear understanding of the buying center culture and of the roles of the buying center members. or a modified rebuy" some of this activity may be re+uired" but a current vendor #ill #ant to preserve the relationship" and a prospective vendor #ill #ant to find out #hy the buyer is seeking alternatives. or a straight rebuy" the seller should make the process as straightfor#ard as possible for the buyer.
100. (p. 11.) The ;;;;;;;;;;;;; situation usually involves more members of a buying center and involves more time to complete than the other buying situations. ). modified rebuy B" ne# buy C. adapted buy 6. straight rebuy 7. generic buy The ne# buy decision is generally the most comple8 since the organi1ation does not have e8perience #ith purchasing the product" nor any e8isting vendor relationships. or this reason" the process often takes longer and involves a larger buying center.
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101. (p. 114) )EnF ;;;;;;;;;;;;;;; situation in B!B marketing is similar to limited problem solving in the B!C process. ). adapted buy B. ne# buy C" modified rebuy 6. straight rebuy 7. generic buy Gimited problem solving in the B!C process has elements in common #ith a modified rebuy situation in the B!B process. Both involve a limited search for information and evaluation of alternatives--not to the same degree as a ne# buy Eor e8tended problem solvingF" but also not the straightfor#ard" simple process of a straight rebuy Eor habitual decision makingF.
10!. (p. 114) Cimberly has Bust learned that BAB Coffee =upply is looking for a ne# source of commercial-grade coffee makers" one of the products she sells. =he kno#s BAB has been in business for many years" but she has not been able to get any business from them. >hen developing her marketing strategy" Cimberly #ill probably assume that this represents a ;;;;;;;;;;;;;;;;;;; situation for BAB Coffee =upply" and she #ill #ant to find out #hy BAB Coffee =upply is considering alternatives. ). adapted buy B. ne# buy C" modified rebuy 6. straight rebuy 7. generic buy BAB is apparently looking for a ne# supplier for a product it has purchased in the past" #hich makes this a modified rebuy situation. Cimberly #ill #ant to find out #hy BAB is not simply e8ecuting a straight rebuy" since this #ill give her insight into the company*s unmet needs.
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10$. (p. 114) or B!B salespeople" usually the easiest sale is aEnF ;;;;;;;;;;;;;;;;;; situation. ). adapted buy B. ne# buy C. modified rebuy #" straight rebuy 7. generic buy ) straight rebuy is the easiest sale since the buyer is purchasing an additional +uantity of a product they have bought in the past" #ith little or no change to the specifications under #hich past orders #ere placed.
10&. (p. 172) 5ormally" BC bottling company attaches plastic labels to its bottles. 9o#ever" a ne# company is launching a product that re+uires the use of fabric labels. 4n order to use this latest innovation" BC bottling company must no# source these fabric labels from another company. This is an e8ample of3 A" business-to-business marketing. B. e-commerce. C. custom marketing. 6. telemarketing. 7. 4nternet marketing. Business-to-business marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services" for consumption by the buying organi1ation andHor resale by #holesalers and retailers.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: 8ar' ,opic: B2B -ar*ets
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10'. (p. 175) The office policy and procedure states that any purchase re+uisitions that are ,$"000 and over must be given to Ms. %eynolds" #ho #ill then get authori1ation from the C 0 for the purchase re+uest. Ms. %eynolds serves as a ;;;;;;;;;;; in the buying center. A" gatekeeper B. decider C. buyer 6. user 7. initiator The gatekeeper is the person #ho controls information or access" or both" to decision makers and influencers.
106. (p. 175) The president of the 5orth#oods ?niversity student body made a formal re+uest to the 4T department for additional computers in the main computer lab. The student body president is the ;;;;;;;; in the buying center. A" initiator B. gatekeeper C. decider 6. buyer 7. gate#ay The initiator is the first to suggest buying a particular product or service.
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10.. (p. 175) The 5orth#oods ?niversity 4T department is planning to buy additional computers for the computer lab. (edro Bechara" manager of the lab" is asked for a recommendation" and he suggests buying Macintosh computers instead of >indo#s (Cs. >hat role does (edro play in the buying center@ A" 4nfluencer B. <atekeeper C. 6ecider 6. Buyer 7. 4nitiator )n influencer is a person #hose vie#s influence other members of the buying center in making the final decision.
10/. (p. 112) Bob %oberts founded %obertico" an e+uipment leasing company" three decades ago. )lthough he is no# in his seventies" he still has a -hands on- management style. 9is employees have learned that there isn*t much point in making purchase recommendations for ne# e+uipment" because Bob is going to choose #hatever he thinks is best regardless of their vie#s. %obertico has aEnF ;;;;;;;; buying center culture. A" autocratic B. democratic C. consultative 6. consensus 7. bureaucratic )n autocratic buying center is made up of multiple participants" #here one person makes the decision alone.
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102. (p. 112) ) buying center that makes its decisions by maBority vote is aEnF ;;;;;;;; buying center. A" democratic B. consultative C. consensus 6. autocratic 7. bureaucratic ) democratic buying center is one #here the maBority opinion is used to make the purchase decision.
110. (p. 112) The local skydiving team is buying ne# parachutes. The team*s coach has invited all team members to make recommendations" after #hich he #ill select the successful vendor. The skydiving team*s buying center has aEnF ;;;;;;;; organi1ational culture. ). democratic B" consultative C. consensus 6. autocratic 7. bureaucratic ) consultative buying center is one in #hich a single person makes the decision" but first gets opinions from others.
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111. (p. 17.) To ma8imi1e efficiency" farmers send their eggs to a ;;;;;; #ho handles sales and shipments to supermarkets. A" distributor B. fabricator C. contractor 6. trafficker 7. manufacturer ) distributor buys products from manufacturers or producers" and then sells the products to retailers.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: -e'i)m ,opic: B2B -ar*ets
11!. (p. 175) The chair of the board of the local 9umane =ociety chose the bank #here the organi1ation keeps its moneyJ ho#ever" the office manager is the primary person #ho makes deposits" #rites checks" and balances the account every month. The office manager is the ;;;;;;; in the buying center for the bank account. A" user B. decider C. gatekeeper 6. initiator 7. influencer The user is the person #ho consumes or uses the product or service.
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11$. (p. 177) B!B partners often connect to each other on the 4nternet through special ;;;;;;;;;; designed to facilitate information e8changes and transactions. A" #eb portals B. #ebmasters C. #eb links 6. #eb hosts 7. 5one of these ) #eb portal is an 4nternet site #hose purpose is to be a maBor starting point for users #hen they connect to the #eb. =peciali1ed portals e8ist to facilitate B!B e8changes.
11&. (p. 17.) ) #holesaler is an e8ample of a3 A" reseller. B. merchandiser. C. reference group. 6. manufacturer. 7. retailer. >holesalers" distributors" and retailers are all resellers.
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11'. (p. 17.$1749 A''ing :al)e #.1) >hat type of B!B organi1ation is a retail store such as T.:. Ma88@ A" %eseller B. 4nstitution C. <overnment 6. Manufacturer 7. 4nternet >holesalers" distributors" and retailers are all resellers.
116. (p. 1139 0o7er o( t&e 6nternet #.1) >hy did =taples decide to partner #ith =tickC.com to launch the -=tickC to 4tK Business Challenge"- #hich helps small businesses monitor their success@ ). To ac+uire more small business customers. B. To build customer loyalty. C. To increase brand a#areness. 6. To increase sales. E" )ll of these =taples set up its marketing campaign to focus on small businesses and the potential for gro#th. The campaign also offered opportunities to create long-term loyalty" to increase sales" and to create product a#areness among small business consumers.
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11.. (p. 171) >hich of the follo#ing details are included in the order specification stage of the B!B buying process@ A" (rices and delivery dates. B. Dendor performance assessment. C. The % (. 6. Bids for supplying the re+uired components or parts. 7. 5one of these. 4n the order specification stage" the buyer places an order that includes a detailed description of the goods" prices" delivery dates" and in some cases" penalties for noncompliance.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"2 List t&e steps in t&e B2B b)ying process. Le!el: +asy ,opic: ,&e B)siness$to$B)siness B)ying 0rocess
Essay Questions
11/. (p. 172) :ackson o#ns a bike rental business at a resort destination. 9e is trying to decide ho# many ne# bikes to purchase for ne8t season. >hat #ill demand for his service depend on@ 6emand for bike rentals #ill depend on demand for the resort destination. )s such" :ackson faces derived demand.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: 8ar' ,opic: B)siness$to$B)siness -ar*eting
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112. (p. 17.$17#) Michelin Tire Company produces a variety of tires at factories in =outh Carolina. 4n #hat types of B!B markets #ould Michelin probably sell their tires@ They #ould sell to automobile manufacturers" resellers including tire store chains" and possibly to government through specialty military purchases.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: 8ar' ,opic: B2B -ar*ets
1!0. (p. 17#) >arren used to sell cars at an automobile dealership. 5o# he sells repossession services to automobile dealers. To be successful" #hat changes in the buying process #ill >arren have to adBust to@ >arren has moved from B!C sales to B!B sales. 4n general" B!B sales are more formal and structured. 9e #ill probably have to provide more information in #riting" deal #ith different types of buying centers" and respond to formal vendor analysis.
1!1. (p. 17#$177) 9o# does the need recognition stage differ bet#een the B!B and the B!C buying processes@ 4n B!B buying" need recognition may come from consumers* comments" suppliers* information" tradesho# demonstrations" or trade Bournals. Consumers* need recognition is typically initiated by an unfulfilled need or desire" #hile business need recognition often originates from e8ternal sources.
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1!!. (p. 171) 7llen is asked to create a vendor analysis process for a physician in private practice" evaluating suppliers of products such as medical supplies. >hat should 7llen include in a vendor analysis@ )ns#ers #ill vary but should include3 L The issues or criteria important to the physician and his or her staff. L >eighting of the issues or criteria by importance. L ) data collection process including ho#" #hen" and ho# often vendor analysis #ill be conducted. L ) system for summari1ing and presenting results. L ) set of criteria for retaining or replacing vendors.
1!$. (p. 175) Create a realistic e8ample of a B!B buying center" describing the different roles played by members of the team. )ns#ers #ill vary but should include the si8 roles3 initiator" influencer" decider" buyer" user" and gatekeeper.
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1!&. (p. 175) The buying center concept has parallels in business-to-consumer buying situations #hen groups are making buying decisions. 6escribe a situation #here a group of consumers #ill make a purchasing decision and e8plain ho# consumer roles might mirror those in a buying center. =tudents might choose a situation such as friends planning a vacation" a family buying a car" or a purchase decision by a social organi1ation. %oles of the initiator" influencer" decider" buyer and user #ill be relatively easy to chart. The gatekeeper role may be a bit more difficult.
1!'. (p. 112) )s a business-to-business marketer" #ould you prefer to market to a firm #ith an autocratic or a consensus buying center@ =tudents* responses #ill vary #ith their o#n preferences" but should e8plore the t#o cultures to demonstrate variations in the kind and number of contacts that #ould be re+uired" the nature of the marketing challenge and distinctions in the kinds of negotiations that might emerge.
AACSB: Analytic Bloom's: /n'erstan' Learning Ob ecti!e: "#$". %escribe t&e 'i((erent types o( organi2ational c)lt)res. Le!el: 8ar' ,opic: Organi2ation C)lt)re
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1!6. (p. 112) ilseta is a te8tbook company salesperson about to call on the (hiladelphia =chool 6istrict. =he #ould like to kno# in advance #hether the school district*s buying center is autocratic or democratic. >hat is the difference bet#een the t#o buying center cultures@ 9o# could this information be useful to ilseta@ 4n an autocratic buying center" there may be multiple participants but one person makes the purchase decision alone. 4f ilseta can identify that person" she can focus information and attention to the decision maker. 4n a democratic buying center" a maBority vote or opinion #ill likely determine #hich te8tbooks are adopted. 4n this environment" ilseta #ill need to address each buying center member*s concerns e+ually.
1!.. (p. 172$11#) >ould you rather be engaged in B!B or B!C marketing@ =upport your choice. =tudent responses #ill depend on their o#n preferences" but the response should demonstrate their mastery of both areas.
AACSB: Analytic Bloom's: Apply Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: 8ar' ,opic: B)siness$to$B)siness -ar*eting
1!/. (p. 17#$175) 9o# are the B!B and B!C buying processes different@ The B!B buying process tends to be more formal and structured than the B!C process and may include more participants.
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1!2. (p. 171) 9o# is vendor analysis different from a consumer*s postpurchase evaluation@ Dendor analysis tends to be more formal and structured than a consumer*s postpurchase evaluation.
1$0. (p. 175) Dance #ants his company to consider using :aBah for D04( telephone calls instead of its e8isting telephone provider. 4n the buying center concept" #hat role does Dance play@ 9e is the initiator" the person #ho starts the consideration of alternatives.
1$1. (p. 175) >hen Dance proposed s#itching the company to :aBah for D04( telephone calls" he had to approach 6eborah" assistant to the firm*s head purchasing agent" to find out ho# to proceed. 7veryone in the company kno#s that nothing gets purchased #ithout going through 6eborah first. >hat role does 6eborah play in a buying center@ =he plays the role of gatekeeper" controlling access to decision makers.
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1$!. (p. 112) The >orld Trade 0rgani1ation creates proposals #hich are then discussed by all 1$' member countries and not approved until the proposal is agreeable to all. >hat type of organi1ational culture e8ists in the >T0@ The >T0 has a consensus organi1ational culture.
1$$. (p. 175) >hy is it important for marketers to identify #ho plays #hich role in a buying center@ 4t can save a lot of time. By identifying participant roles" marketers can adBust their communications to meet the needs of each participant.
1$&. (p. 11.) >hen ulton ?niversity built its first dormitories" it hired a consulting engineer to advise the university in choosing an architectural firm and contractor. or ulton ?niversity" building its first dormitories represented #hat kind of buying situation@ 4t represented a ne# buy situation" and involved many ne# issues and decisions.
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1$'. (p. 11.$114) >hy is important for sales representatives to kno# #hether a potential business customer is making a ne# buy or a modified rebuy decision@ ) potential customer in a ne# buy situation #ill re+uire more information and involve more members of a buying center" #hile a modified rebuy situation #ill involve more comparison of alternatives" and #ill probably involve a smaller buying center.
1$6. (p. 173$17#) 4dentify and give an e8ample of each of the four B!B markets. The four B!B markets are %esellers" Manufacturers" 4nstitutions" and <overnments. %esellers may be #holesalers or distributors #ho buy products and then sell them to retailers. Manufacturers buy ra# materials and parts and make them into end products. 4nstitutions are schools" hospitals and religious organi1ations. 4n most countries" the central government is one of the largest purchasers of goods and services.
1$.. (p. 172) 6efine derived demand and give an e8ample of ho# demand for B!B sales is often derived from B!C sales. 6erived demand reflects the link bet#een consumers* demand for company*s output and the company*s purchase of necessary inputs to manufacture or assemble that particular output. or e8ample" =plenda is a key ingredient for products such as Coca-Cola lo# calorie drinks.
AACSB: Analytic Bloom's: Remember Learning Ob ecti!e: "#$"1 %escribe t&e 'i((erent types o( b)yers an' sellers t&at participate in b)siness$to$b)siness (B2B) mar*ets. Le!el: -e'i)m ,opic: B2B -ar*ets
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1$/. (p. 112) 4dentify the four general types of organi1ational buying center cultures" and e8plain ho# these may impact the approach taken by a salesperson. The four types of organi1ational buying cultures are 6emocratic" )utocratic" Consultative" and Consensus. )s a salesperson" it is important to understand the different organi1ational buying cultures as this may impact ho# and to #hom information about your product is presented. or an autocratic buying center" you may present to multiple participants but #ill focus on Bust one person #ho #ill be making the decision. or a democratic buying center" the salesperson #ill need to convince multiple people about the productHservice as the maBority #ill rule on the decision. ) salesperson presenting to a consultative buying center #ill need to have e8ternal facts to contribute to describing the productHservice. (resenting to a consensus buying center" the salesperson should find #ays to help the buying center members to reach an agreement.
1$2. (p. 11.) 0f the three buying situations" in #hich one is a salesperson most likely to be involved@ The salesperson is mostly likely to be involved in a ne# buy situation because the buying organi1ation lacks e8perience #ith the item andHor the company making the sale.
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Chapter 06 - Business-to-Business Marketing

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Chapter 06 - Business-to-Business Marketing

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Chapter 06 - Business-to-Business Marketing