A Framework For Marketing Management - Chapter 6

Front 1

________ is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate and choose among alternative brands and suppliers.

Back 1

Organizational buying

Front 2

Buying Phases (8)

Back 2

Series of stages that individuals or groups go through when making purchasing decisions.

need recognition
need description
product specification
seller identification
proposal solicitation
proposal evaluation and selection
ordering procedures and order route specifications
performance review

Front 3

The overall business market includes ________ and ________ organizations in addition to profit-seeking companies.

Back 3

institutional; government

Front 4

What business market characteristic fits the following example? Salespeople for SecureWorks, a network security firm, talk with key decision-makers and invite influencers to participate in Web-based presentations and ask questions.

Back 4

multiple buying influences

Front 5

________ is when the purchasing departments reorder on a routine basis from an approved list.

Back 5

Straight rebuy

Front 6

________ is the practice that originated with government purchase of major systems like weapons and communications systems.

Back 6

Systems buying

Front 7

________ are those who decide on product requirements or on supplies.

Back 7

Deciders

Front 8

An important skill that marketers need to understand is how business people in other cultures prefer to _______.

Back 8

communicate

Front 9

All of the following EXCEPT _______ are types of business customers.
price-oriented
solution-oriented
gold-standard
strategic-value
competition-oriented

Back 9

competition-oriented

Front 10

The ________ begins when someone in the company recognizes a problem or need that can be met by acquiring a good or service.

Back 10

buying process

Front 11

________ is the final stage of the buying process, in which the buyer periodically reviews the performance of the chosen supplier(s) using one of three methods.

Back 11

Performance review

Front 12

The business market consists of only schools, hospitals, nursing homes, prisons or other institutions that provide good and services to people in their care.

Back 12

False

Front 13

Airlines around the world buying airplanes directly from Boeing is characterized as direct purchasing.

Back 13

True

Front 14

In most countries, government organizations are a major buyer of goods and services.

Back 14

True

Front 15

In a modified rebuy buying situation the in-suppliers become nervous and have to protect the account.

Back 15

True

Front 16

Deciders are those who decide on product requirements or on suppliers.

Back 16

True

Front 17

The solution-oriented customer segment is characterized as believing that price is everything.

Back 17

False

Front 18

Business buying passes through eight stages called buy phases.

Back 18

True

Front 19

During the supplier search the buyer now tries to identify the most appropriate supplier through trade directories, contacts with other companies, trade advertisements and trade shows.

Back 19

True

Front 20

Blanket contracts are sometimes called stockless purchase plans.

Back 20

True

Front 21

Specific investments are those expenditures tailored to a particular company and value-chain partner

Back 21

True

Front 22

Explain what is meant by multiple buying influences as a characteristic of business markets.

Back 22

More people influence business buying decisions; buying committees are common in major purchases. Firms must send knowledgeable salespeople to deal with well-trained buyers.

Front 23

What is meant by corporate credibility?

Back 23

Building strong business relationships depends on how the buyer perceives the supplier's credibility. Corporate credibility refers to the extent to which customers believe that a firm can design and deliver offerings that satisfy their needs and wants.

Front 24

Organizational buying occurs within which type of market?

Back 24

business market

Front 25

The ________ consists of schools, hospitals, nursing homes, prisons and their institutions that provide goods and services to people in their care

Back 25

institutional market

Front 26

An increase of only 10% in consumer demand might result in a 200% increase in business demand for products and services in the next period; a 10% drop in consumer demand might cause a complete collapse in business demand. What business market characteristic fits this example?

Back 26

fluctuating demand

Front 27

In most countries, government organizations are a ________ buyer of goods and services.

Back 27

major

Front 28

New task buying passes through all the following stages EXCEPT ________.
awareness
interest
evaluation
experimentation
adoption

Back 28

experimentation

Front 29

_______ are those people who authorize the proposed actions of deciders or buyers.

Back 29

Approvers

Front 30

Which author cautions that ultimately, individuals, not organizations, make purchasing decisions?

Back 30

Webster

Front 31

In defining target segments, all the following EXCEPT ________ are typical types of business customers who often are identified.

Back 31

price-oriented
solution-oriented
gold-standard
strategic-value
- product-oriented

Front 32

Business buying passes through ________ stages called buyphases.

Back 32

eight

Front 33

________ focus on industries, and ________ focus on specific functions.

Back 33

Vertical hubs; functional hubs

Front 34

Organizational buying is the acquiring of goods and services used in the production of other products or services that are sold, rented or supplied to other customers.

Back 34

False

Front 35

Derived demand is characterized as a demand for business goods that is ultimately derived from demand for consumer goods, so business marketers must monitor the buying patterns of ultimate consumers.

Back 35

True

Front 36

While Public Works and Government Services Canada buys services for most federal departments, the departments buy most goods themselves.

Back 36

False

Front 37

Systems' selling is a key industrial marketing strategy in bidding to build large scale industrial projects such as dams, steel factories or pipelines.

Back 37

True

Front 38

Webster and Wind call the decision-making unit of a buying organization the gatekeepers.

Back 38

False

Front 39

Risk-and-gain sharing can be used to offset requested price reductions from customers.

Back 39

True

Front 40

Business buying passes though eight stages called the buying centre.

Back 40

False

Front 41

During the proposal solicitation stage the buyer invites qualified suppliers to submit proposals.

Back 41

True

Front 42

A blanket contract establishes a long-term relationship in which the supplier promises to re-supply the buyer as needed at agreed-upon prices over a specified period.

Back 42

True

Front 43

Corporate credibility refers to those expenditures tailed to a particular company and value-chain partner.

Back 43

False

Front 44

Explain what is meant by direct purchasing; one of the characteristics of business markets.

Back 44

Business buyers often buy directly from manufacturers rather than through intermediaries, especially items that are technically complex or expensive.

Front 45

Explain the role that gatekeeprs play in the purchase decision process.

Back 45

Gatekeepers are people who have the power to prevent sellers or information from reaching members of the buying center; examples are purchasing agents, receptionists and telephone operators.