Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
45 Cards in this Set
- Front
- Back
________ 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.
|
Organizational buying
|
|
Buying Phases (8)
|
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 |
|
The overall business market includes ________ and ________ organizations in addition to profit-seeking companies.
|
institutional; government
|
|
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.
|
multiple buying influences
|
|
________ is when the purchasing departments reorder on a routine basis from an approved list.
|
Straight rebuy
|
|
________ is the practice that originated with government purchase of major systems like weapons and communications systems.
|
Systems buying
|
|
________ are those who decide on product requirements or on supplies.
|
Deciders
|
|
An important skill that marketers need to understand is how business people in other cultures prefer to _______.
|
communicate
|
|
All of the following EXCEPT _______ are types of business customers.
price-oriented solution-oriented gold-standard strategic-value competition-oriented |
competition-oriented
|
|
The ________ begins when someone in the company recognizes a problem or need that can be met by acquiring a good or service.
|
buying process
|
|
________ 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.
|
Performance review
|
|
The business market consists of only schools, hospitals, nursing homes, prisons or other institutions that provide good and services to people in their care.
|
False
|
|
Airlines around the world buying airplanes directly from Boeing is characterized as direct purchasing.
|
True
|
|
In most countries, government organizations are a major buyer of goods and services.
|
True
|
|
In a modified rebuy buying situation the in-suppliers become nervous and have to protect the account.
|
True
|
|
Deciders are those who decide on product requirements or on suppliers.
|
True
|
|
The solution-oriented customer segment is characterized as believing that price is everything.
|
False
|
|
Business buying passes through eight stages called buy phases.
|
True
|
|
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.
|
True
|
|
Blanket contracts are sometimes called stockless purchase plans.
|
True
|
|
Specific investments are those expenditures tailored to a particular company and value-chain partner
|
True
|
|
Explain what is meant by multiple buying influences as a characteristic of business markets.
|
More people influence business buying decisions; buying committees are common in major purchases. Firms must send knowledgeable salespeople to deal with well-trained buyers.
|
|
What is meant by corporate credibility?
|
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.
|
|
Organizational buying occurs within which type of market?
|
business market
|
|
The ________ consists of schools, hospitals, nursing homes, prisons and their institutions that provide goods and services to people in their care
|
institutional market
|
|
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?
|
fluctuating demand
|
|
In most countries, government organizations are a ________ buyer of goods and services.
|
major
|
|
New task buying passes through all the following stages EXCEPT ________.
awareness interest evaluation experimentation adoption |
experimentation
|
|
_______ are those people who authorize the proposed actions of deciders or buyers.
|
Approvers
|
|
Which author cautions that ultimately, individuals, not organizations, make purchasing decisions?
|
Webster
|
|
In defining target segments, all the following EXCEPT ________ are typical types of business customers who often are identified.
|
price-oriented
solution-oriented gold-standard strategic-value - product-oriented |
|
Business buying passes through ________ stages called buyphases.
|
eight
|
|
________ focus on industries, and ________ focus on specific functions.
|
Vertical hubs; functional hubs
|
|
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.
|
False
|
|
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.
|
True
|
|
While Public Works and Government Services Canada buys services for most federal departments, the departments buy most goods themselves.
|
False
|
|
Systems' selling is a key industrial marketing strategy in bidding to build large scale industrial projects such as dams, steel factories or pipelines.
|
True
|
|
Webster and Wind call the decision-making unit of a buying organization the gatekeepers.
|
False
|
|
Risk-and-gain sharing can be used to offset requested price reductions from customers.
|
True
|
|
Business buying passes though eight stages called the buying centre.
|
False
|
|
During the proposal solicitation stage the buyer invites qualified suppliers to submit proposals.
|
True
|
|
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.
|
True
|
|
Corporate credibility refers to those expenditures tailed to a particular company and value-chain partner.
|
False
|
|
Explain what is meant by direct purchasing; one of the characteristics of business markets.
|
Business buyers often buy directly from manufacturers rather than through intermediaries, especially items that are technically complex or expensive.
|
|
Explain the role that gatekeeprs play in the purchase decision process.
|
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.
|