c.) derived (moderate) pp. 134-135

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Chapter 7 – Analyzing Business Markets and Buyer Behavior
True/False Questions
1. Organizational buying is the decision-process by which organizations establish and satisfy their needs
for goods and services. True (moderate) p. 132
2. Mining, manufacturing, banking, and distribution services are all considered part of the business
market. True (easy) p. 132
3. Characteristics of business markets include that there are more buyers and larger buyers. False
(moderate) p. 134
4. When compared to the consumer market, the demand for goods and services in the business market is
derived. True (moderate) p. 134
5. In selling to the government, the contract is always awarded to the lowest bidder. False (moderate)
pp. 133-135
6. Government buyers differ from business buyers in that government buyers are monitored more
closely by outside publics. True (moderate) pp. 133-135
7. Schools and prisons are considered institutional buying organizations and they tend to have captive
clienteles and limited budgets. True (moderate) p. 133
8. A secretary who prevents salespersons from contacting users or deciders is playing a gatekeeper role.
True (easy) p. 137
9. A “straight rebuy” is a more complex process than a “new task” because the firm is limited to an
approved list of vendors. False (moderate) p. 136
10. Interpersonal factors have almost no influence in business purchasing decisions. False (moderate)
p. 138, 140
11. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation.
True (moderate) p. 136
12. Business buyers pay close attention to numerous economic factors such as interest rates, crossfunctional buying teams, and consumer spending. False (moderate) p. 138
13. The business buying process is influenced by environmental, organizational, and individual factors.
True (moderate) p. 138
14. Reading an advertisement about a new business service in a trade magazine to which the purchasing
agent subscribes would be an example of how a problem might be recognized in an organizational
setting. True (moderate) pp. 141-142
15. In choosing a supplier, the relative importance of different attributes varies with the type of buying
situation. True (moderate) p. 143
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16. Even if a supplier firm has the capacity to deliver a business product or service, that supplier might
not be allowed to submit a proposal in the buying process. True (difficult) p. 143
17. When responding to a request for a written proposal, a business marketer should remember the
document is primarily a technical document explaining the features of the product. False (moderate)
p. 143
18. Product value analysis can involve determining which components can be made cheaper through
redesign or standardization, while keeping the same performance level of those components. True
(moderate) p. 142
19. In the negotiation process, if the potential supplier is faced with the lower price of a competitor, he or
she should always lower his/her price. False (moderate) pp. 143-144
20. A blanket contract or stockless purchase plan establishes a long-term relationship in which the buyer
promises to buy all the stock of a particular seller at agreed-upon prices. False (moderate) p. 144
Multiple Choice Questions
21. The business market differs from the consumer market in that _______________.
a.) more mass media are used to communicate with the business market
b.) it is a much larger market with many more buyers than the consumer market
c.) it is a much smaller market in dollar volume than the consumer market
d.) more product customization takes place in the consumer market
e.) it acquires goods or services in order to use them for another purpose, as opposed to
acquiring goods or services for personal consumption (difficult) p. 132
22. Organizational buying is _______________.
a.) the process by which organizations recognize their needs for goods and services
b.) a way a company can produce a greater variety of high-quality products at lower cost, in less
time, with less labor
c.) the decision-making process by which organizations establish and satisfy their needs for
goods and services (difficult) p. 132
d.) the practice of establishing of strategic partnerships between manufacturers and their suppliers
e.) the practice of buying a total solution for a problem from one seller
23. The _______________ consists of all of the organizations that acquire goods and services used in the
production of other products or services that are sold, rented, or supplied to other customers.
a.) business market (moderate) p. 132
b.) institutional market
c.) consumer market
d.) government market
e.) specialized market
24. All of the following are major industries making up the business market EXCEPT:
a.) agriculture, forestry, fisheries
b.) manufacturing, mining
c.) construction, transportation
d.) banking, finance
e.) governments, institutions (moderate) p. 132
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25. Erin’s secretary developed a file of visiting salespeople, but only allowed a few to actually have time
on Erin’s calendar. Erin is frequently charged with buying expensive office equipment as part of her
job. Erin’s secretary is playing what role in the business buying process?
a.) initiator
b.) user
c.) decider
d.) approver
e.) gatekeeper (moderate) p. 137
26. Business buying behavior differs from consumer buying behavior in that _______________.
a.) the buyers for the business market are typically more geographically dispersed than those for the
consumer market and the demand for products and services in the consumer market is unaffected
by price fluctuations
b.) fewer people typically participate in or influence business buying decisions than in the consumer
market
c.) businesses buy products to accomplish a single goal, which varies by industry and business
d.) the demand for business goods and services is derived from consumers’ final demand
(moderate) pp. 134-135
e.) businesses buy through longer channels with more intermediaries
27. When compared to the consumer market, the demand for goods and services in the business market is
_______________.
a.) far more elastic
b.) significantly more constant
c.) derived (moderate) pp. 134-135
d.) more likely to be affected by changes in price
e.) all of the above
28. Which of the following is true of the U.S. government as a market?
a.) The U.S. government is the largest customer in the world. (moderate) pp. 133-135
b.) Most purchases by the U.S. government are in the billions of dollars, usually for technology.
c.) The U.S. government will always award the contract to the lowest bidder.
d.) A comprehensive bid proposal might take as much as a few days to prepare and “weigh in” at a
few dozen pages.
e.) Cost minimization is the driving force behind buying decisions made by the U.S. government.
29. Business buyers _______________.
a.) are geographically as diverse as consumers
b.) tend to be geographically concentrated with over 1/2 of them in seven states (difficult) pp.
134-135
c.) are largely concentrated in the southwestern United States.
d.) tend to be found in smaller communities and rural areas in the Midwest
e.) use geographical dispersion to keep shipping costs low
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30. 3M has developed a new type of plastic film used for shipping security. It is more durable than any
other form of film on the market. The first year after the product was introduced its sales totaled
$435 million. Analysts have predicted an annual growth of 30 percent as businesses like
transportation companies discover how well the film protects their products. Since the demand for
the new 3M film is dependent on the demand for the products transported within it, the demand for
the film is _______________.
a.) derived (moderate) pp. 134-135
b.) inelastic
c.) routine
d.) elastic
e.) constant
31. The buying department for a nursing home is informed the price of the ibuprofen used for patient
medication has increased by 15 percent. He orders a new supply anyway because he knows he can
pass the increase on to the clients. This is an example of business products having _______________
demand.
a.) routine
b.) inelastic (moderate) pp. 134-135
c.) volatile
d.) accelerated
e.) elastic
32. A llama and emu breeder buys much of the food she needs to feed her livestock from a local farmer.
As a part of the contract between the two parties, the farmer buys all the manure the breeder can
produce for its organic vegetables. This is an example of _______________.
a.) direct purchasing
b.) relationship marketing
c.) leasing
d.) systems selling
e.) reciprocity (moderate) pp. 134-135
33. The institutional market is best described as having _______________.
a.) low budgets and a captive clientele (moderate) p. 133
b.) demand elasticity and geographically concentrated suppliers
c.) contract negotiations and fluctuating demand
d.) derived demand, geographically concentrated suppliers, and budgetary constraints
e.) demand that is elastic, derived, and fluctuating
34. _______________ organizations typically require suppliers to submit bids. Normally, they award the
contract to the lowest bidder, although they sometimes take into account a supplier’s superior quality
or reputation for completing contracts on time.
a.) Business
b.) Institutional
c.) Consumer
d.) Government (moderate) pp. 133, 135
e.) Specialized
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35. Suppliers describe governmental organizations as _______________.
a.) always selecting quality over price when buying products and/or services
b.) avoiding opting for the bottom-line perspective
c.) sometimes considering quality or reputation but primarily rewarding contracts on the basis
of price (difficult) p. 135
d.) requiring minimal paperwork and having a process open to public scrutiny
e.) woefully lacking in specific guidelines for would-be suppliers
36. Which of the following buying situations would represent the purchase of office supplies such as
reams of computer and copier paper, and computer disks?
a.) straight rebuy (easy) p. 136
b.) modified rebuy
c.) new task
d.) routine rebuy
e.) direct purchase
37. The most routine decision process undertaken by business buyers is called a _______________.
a.) straight rebuy (easy) p. 136
b.) modified rebuy
c.) new task
d.) routine rebuy
e.) direct purchase
38. A new supplier is least likely to make a preliminary sale to a prospect involved in which of the
following buying situations?
a.) new task
b.) modified rebuy
c.) functional rebuy
d.) straight rebuy (moderate) p. 136
e.) direct purchase
39. Angelo Weinstein is a produce buyer for Alliant, a large food supplier. He is buying lettuce,
cucumbers, and tomatoes for producing pre-made salads. He orders the same number and quality of
these vegetables as before but notices that his supplier’s prices have increased slightly. Angelo is
conducting a _______________.
a.) straight rebuy (moderate) p. 136
b.) direct purchase
c.) modified rebuy
d.) new task buy
e.) reciprocal buy
40. The _______________ is a situation in which the buyer wants to modify product specifications,
prices, delivery requirements, or other terms.
a.) straight rebuy
b.) direct purchase
c.) modified rebuy (easy) p. 136
d.) new task buy
e.) reciprocal buy
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41. Angelo Weinstein is a produce buyer for Alliant, a large food supplier. He is buying lettuce,
cucumbers, and tomatoes for producing pre-made salads. He orders the same number and quality of
these vegetables as before but notices that his supplier’s prices have increased slightly. If prices from
his usual produce supplier continue to rise, you can expect Angelo to engage in a _______________.
a.) straight rebuy
b.) direct purchase
c.) modified rebuy (moderate) p. 136
d.) new task buy
e.) functional rebuy
42. The _______________ is a buying situation in which a purchaser buys a product or service for the
first time.
a.) straight rebuy
b.) direct purchase
c.) modified rebuy
d.) new task buy (moderate) p. 136
e.) functional rebuy
43. Robison Corp. is a ground beef processing plant. Owners William and Walker Robison attended a
trade show and saw a meat grinding machine that operates at a capacity of 9,000 pounds per hour and
requires only one employee. Until the show, the brothers had no idea such a product existed. As far
as they have learned only one company is manufacturing such a machine. They have calculated that
such a machine could save them up to $185 a day in labor costs. They have contacted the company to
learn more about the $53,000 grinder. The Rogers brothers are engaged in a:
a.) straight rebuy
b.) direct purchase
c.) modified rebuy
d.) new task buy (moderate) p. 136
e.) functional rebuy
44. Advertising usually has its greatest impact at the _____________ stage of new-task buying.
a.) awareness (moderate) p. 136
b.) interest
c.) trial
d.) evaluation
e.) adoption
45. Salespeople usually have their greatest impact at the _______________ stage of new-task buying.
a.) awareness
b.) interest (moderate) p. 136
c.) trial
d.) evaluation
e.) adoption
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46. Which of the following has the most influence in straight rebuy and modified rebuy situations in a
multinational corporation?
a.) finance department
b.) purchasing agents (difficult) p. 137
c.) administrative personnel
d.) engineering department
e.) production managers
47. Purchasing department personnel for a corporate farm would have the most influence when the
organization is _______________.
a.) buying marketing materials for its booth at a national agricultural trade show
b.) purchasing farm equipment for the firm’s agricultural business unit
c.) negotiating the performance specifications for new grain storage facilities
d.) renewing its subscriptions to several trade journals (moderate) p. 137
e.) switching to a new vendor for satellite moisture reporting
48. The _______________ is composed of “all those individuals and groups who participate in the
purchasing decision-making process, who share some common goals and the risks arising from the
decisions.”
a.) buying center (moderate) p. 137
b.) initiating team
c.) purchasing division
d.) engineering division
e.) influencing center
49. In the buying center, _______________ are people who request that something be purchased,
including users or others.
a.) initiators (moderate) p. 137
b.) influencers
c.) deciders
d.) approvers
e.) gatekeepers
50. Office manager Billie has signatory authority for organizational purchases under $2,500. She
delegates the task of finding five new acceptable fax machines to a trusted subordinate, Jules. If Billie
does not involve herself further in the buying process, other than to sign off on what Jules presents to
her, her role is limited to that of _______________.
a.) gatekeeper
b.) decider
c.) influencer
d.) approver (moderate) p. 137
e.) user
51. Which of the following best describes the buying center role in which people have the power to
prevent sellers or information from reaching members of the buying center.
a.) initiators
b.) influencers
c.) deciders
d.) approvers
e.) gatekeepers (moderate) p. 137
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52. The owner of a mulch plant is planning to purchase a $41,000 trailer for hauling bulk product to a
distribution company where the mulch will be packaged into 2 cubic feet bags, and sold at gardening
supply stores. The operator of the distribution company would probably assume the roles of
_______________ in the buying center.
a.) user and gatekeeper
b.) approver and influencer (difficult) pp. 137
c.) initiator, gatekeeper, and decider
d.) decider, user, and influencer
e.) influencer and gatekeeper
53. With the help of the yard operations manager, the owner of Memphis Logistics is planning on buying
a sophisticated loader to move merchandise from trucks onto rail cars. It will be replacing an
obsolete piece of equipment which the yard operations manager describes as hard to operate and
potentially dangerous. In terms of the buying center, the yard operations manager who will be
responsible for the overseeing the employees who operate and maintain the dumper has the roles of
_______________.
a.) gatekeeper and decider
b.) influencer, user, and approver
c.) buyer, influencer, initiator, and gatekeeper
d.) decider, user, and buyer
e.) initiator, influencer, and decider (difficult) pp. 137
54. Interest rates, demand for products, technological change, social responsibility concerns, and
consumer buying patterns are all examples of _______________ influences on business buyers.
a.) environmental (moderate) p. 138
b.) interpersonal
c.) organizational
d.) entrepreneurial
e.) individual
55. Which of the following is an example of an organizational influence on a business buyer for a Korean
manufacturer of designer clothes?
a.) Paris fashion houses have announced the colors for this season will be teal and salmon.
b.) OSHA is investigating why a worker lost her life in a factory accident.
c.) A new dying technology is available that reduces textile fading by 30 percent.
d.) The company has issued new purchasing policies on the selection of fabric, fasteners, and
threads. (difficult) p. 138
e.) Aging consumers are ignoring the fashion designers as increasingly irrelevant.
56. Which of the following is NOT an example of an organizational influence that might affect the
purchasing agent for a multinational conglomerate?
a.) Many of the tasks formerly done by the purchasing agent are now being performed by a
centralized purchasing department.
b.) The conglomerate has adopted just-in-time production in two of its divisions.
c.) The purchasing agent has a “want-the-best” attitude when it comes to buying component
parts. (difficult) p. 138
d.) The organization is negotiating more long-term contracts than in previous years.
e.) The company is doing much of its purchasing through the Internet.
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57. Because Dante is new at her job as company buyer, she is very cautious in her buying decisions even
when engaged in straight rebuys. _______________ influences have the greatest effect on Dante as
she performs her job.
a.) Environmental
b.) Interpersonal
c.) Organizational
d.) Individual (moderate) p. 138
e.) Cultural
58. Which of the following is not employed by companies that use lean production?
a.) just in time (JIT) inventory
b.) long lead-time supply/inputs ordering (moderate) p. 140
c.) single sourcing with early supplier involvement
d.) strict quality control
e.) stable production schedules
59. The gardener in charge of maintaining the beautiful grounds at an amusement park was strolling
through the park looking at the flowers and bushes from a guest’s perspective when he noticed some
Japanese beetles flying around. He made a mental note to himself that he had to order some Japanese
beetle traps when he got back to the office. This is an example of which of the steps in the
purchase/procurement process?
a.) problem recognition (moderate) pp. 141-142
b.) general need description
c.) product specification
d.) supplier selection
e.) supplier search
60. _______________ is an approach to cost reduction in which components are carefully studied to
determine if they can be redesigned or standardized or made by cheaper methods of production.
a.) Product value analysis (moderate) p. 142
b.) Customer cost analysis
c.) Total quality management
d.) Product reengineering
e.) Marketing research
61. Which of the following buy phases would definitely be included in a modified rebuy situation?
a.) problem recognition
b.) general need description
c.) supplier selection
d.) supplier search
e.) product specification (moderate) p. 142
62. A product value analysis is conducted at the _______________ step of the procurement process.
a.) problem recognition
b.) general need description
c.) product specification (moderate) p. 142
d.) supplier search
e.) proposal solicitation
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63. The routine placing of the twice-weekly order to restock a commercial kitchen’s freezer with meats,
poultry, frozen juices, and fresh-frozen “pre-mades” like doughs and stuffed pastas, definitely
includes which of the following stages in the business buying process?
a.) problem recognition
b.) general need description
c.) order-routine specification
d.) supplier search
e.) product specification (moderate) p. 142
64. An online retailer of outdoor equipment was looking for some help with its Web site maintenance so
as to be more user-friendly and convenient. The owner attended the 2002 Web-EX Trade Show and
asked several of her colleagues for recommendations. She is in the _______________ phase of
business buying.
a.) problem recognition
b.) general need description
c.) product specification
d.) supplier search (moderate) p. 143
e.) order-routine specification
65. The Knoll Textile Manufacturing Company is evaluating potential suppliers of zippers to be used in
production of a line of children’s outerwear. The company is concerned about the delivery reliability,
price, and supplier reputation. Knoll is in the _______________ phase of the business buying
process.
a.) supplier selection (moderate) p. 143
b.) proposal solicitation
c.) product specification
d.) performance review
e.) order-routine specification
66. Easter Village store sells Easter-related cards and gifts year-round. The primary source for its
domestic and foreign gifts is Festival Supply, but Easter Village also buys some ornaments from
Pascuali’s Global and from Kernal Distributors. Both of the distributors continue to try to price their
merchandise at prices lower than those of Festival Supply because Pascuali’s and Kernal Distributors
are both:
a.) outsuppliers (moderate) p. 144
b.) outsourcing agents
c.) second-tier suppliers
d.) value-added suppliers
e.) subordinate suppliers
67. As Rikka and the salesperson talked, they agreed Rikka would buy six pallets of American flags, four
12-foot sections of display shelving, and two gross of George W. Bush bobble-head dolls for Rikka’s
arts and crafts supply store. In addition, the salesperson agreed to have the items delivered in ten
working days and give Rikka an 8-percent discount. Rikka and the salesperson are engaged in which
phase of the procurement process?
a.) supplier selection
b.) proposal solicitation
c.) product specification
d.) performance review
e.) order-routine specification (moderate) p. 144
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68. A blanket purchase contract leads to _______________.
a.) buyers being less dependent upon any given supplier
b.) the rebuy process being upgraded to a new task buy each time there’s a reorder
c.) the supplier maintaining the inventory (difficult) p. 144
d.) systems selling
e.) multiple sourcing
69. A(n) _______________ establishes a long-term relationship in which the supplier promises to
resupply the buyer as needed at agreed-upon prices over a specified period.
a.) blanket contract (moderate) p. 144
b.) specialized contract
c.) over-run contract
d.) purchase order contract
e.) superior order contract
70. A company can review the performance of a supplier by _______________.
a.) using a buyflow map
b.) developing a supplier-attribute positioning map
c.) using financial data from Dun and Bradstreet
d.) aggregating the cost of poor performance to come up with an adjusted cost of purchase,
including price (difficult) p. 144
e.) using any of the above methods
Essay Questions
71. Two sales associates, Diz Miller and Nestor Marlboro, enter a room outside the purchasing agent’s
office. The purchasing agent works for a fiberglass manufacturer. Miller has sold to the company
several times in the past. He has stopped by to see if the purchasing agent needs to restock any of his
company’s machine lubricants. Marlboro will try to convince the purchasing agent to buy a machine
for extracting and trimming glass fibers that will reduce waste by 13 percent and costs $44,000. The
furniture company currently does this by employing skilled laborers who use hand tools. Classify the
products being sold in terms of buyclass. What buy phases are associated with each buyclass? In
what buy phase do you think the purchasing agent is now?
Answer:
The lubricants will be a straight rebuy. The only two buy phases for the purchasing agent are product
specification and performance review. The machine sold by Marlboro would be a new task buy and
would require the purchasing agent to go through all the stages of the buy phase—(1) problem
recognition, (2) general need description, (3) product specification, (4) supplier search, (5) proposal
solicitation, (6) supplier selection, (7) order-routine specification, and (8) performance review. The
agent is in the product specification phase with the adhesives. Given the way the question is written,
he is most likely in the supplier search phase for the new task buy.
(difficult) Table 7-2 and accompanying text pages
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72. Rhet and Julie Raymond had a larger-than-average crop of mangos last year. They decided to make
some extra jars of Julie’s mother’s mango chutney to see if they could sell it at a local crafts fair.
Response was very promising and demand was strong. Now Julie and Rhet own a company that
produces gourmet chutneys under the brand name Exoti-Sauce. Working at the company now are
Rhet, Julie, her mother Mandalee, and Rhet and Julie’s nephew Bert who makes deliveries and does
the heavy lifting and cleaning. Rhet is in charge of marketing and helps out in the kitchen. There are
also a number of part-time workers. A salesperson wants to sell them a bottle-labeling system that
will speed up production by 200 percent. It costs about $12,500. In a short essay, discuss how each
of the company’s full-time employees might assume various roles in the buying center.
Answer:
Students’ answers to this question will vary, but the following are some possible answers.
a.) Julie knows how much work it is to glue on labels—so she would definitely be an initiator. She
would also by the same logic be a user. Since the decision is joint, she would be an influencer to
convince the others and a decider, an approver, and a buyer as part owner of the company. She
could take the role of gatekeeper if she knew of a cheaper system but decided not to tell the
others about it.
b.) Rhet is not involved in the production part, but as part owner of the company, he would take the
roles of decider, approver, and buyer. He could take the role of gatekeeper if he refused to let
the salesperson present any other equipment that might be useful in the Exoti-Sauce kitchen.
c.) Mandalee also knows how much work it is to place the labels—so she would definitely take the
roles of initiator and user. Even though she has no ownership rights, she would also act as an
influencer. She could act as a gatekeeper if she knew the building currently used by ExotiSauce was not big enough to hold the system where it could be used efficiently.
d.) Bert is not involved in the production of chutneys except to help clean. Depending on how easy
the new system is to clean, he could be an influencer. He would most likely play no other roles.
(difficult) pp. 137
73. Imagine you are a salesperson for a company that sells office supplies to buyers in different buying
situations. In a short essay, develop three scenarios that illustrate each of the three situations.
Answer:
Students’ answers will vary. The straight rebuy could occur when the buyer has bought from you
previously and is simply restocking its shelves. The modified rebuy could occur when the buyer
wants to modify delivery schedules or payment plans. New task buying would occur if the buyer
were purchasing something it had not previously purchased—such as audiovisual equipment or
instructional or motivational books or networking software.
(easy) pp. 136
74. In a brief essay, explain how an organizational buyer might decide whether a potential supplier is
qualified and whether a proposal should be solicited and/or accepted from that supplier. How can the
supplier improve their odds in the process?
Answer:
Some buyers require that suppliers have external certifications, such as ISO 9000. Better answers
would tell why this is a helpful indicator. Attaining “trusted adviser” status through expertise also
helps a company stand out to the potential buyer. “Out-suppliers” may have to fight harder for a piece
of the business by finding ways to overcome the status quo (e.g., the usual suppliers get all the new
contracts). Some bidders do not have the needed capacity to actually fulfill the contract, and buyers
should carefully consider track records of reliability and potential for bidders who are not well
known. (moderate) pp. 143-144
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75. Explain how the governmental procurement process differs from the business market purchase
process.
Answer:
Government organizations are major buyers of goods and services. Government organizations
typically require suppliers to submit bids and normally they award the contract to the lowest bidder.
Governments will also buy on a negotiated contract basis, primarily in the case of complex projects
involving major R&D costs and risks and in cases where there is little competition. Government
organizations tend to favor domestic suppliers over foreign ones. Because their spending decisions
are subject to public review, government organizations require considerable paperwork from
suppliers. Just as companies provide government agencies with guidelines on how best to purchase
and use their products, governments provide would-be suppliers with detailed guidelines describing
how to sell to the government.
(easy) pp. 133, 135
Mini-Cases
Mini-Case 7-1
Dr. Therese Turek’s Minnesota ear, nose, and throat practice is booming and she needs more office space
to accommodate the growth. She asks her office manager James to help decide the attributes that will
assure that a new space will be adequate for the practice now and in the immediate future. James asks all
the employees for their input as to what is needed in a new office. After much research, James
recommends that the office move to a new medical complex, where office space is priced 30 percent
higher. The new space has an on-site, out-patient surgery center, better wiring for more sophisticated
machinery, and covered parking. James does not include information about more affordably-priced and
available office space in the same complex because he would like a shorter commute to work. Dr. Turek
is impressed with James’ recommendations and announces to staff and patients that the practice will be
relocating in 60 days.
76. Refer to Mini-Case 7-1. In the case, James had what roles in the buying process for new office
space?
a.) initiator and decider
b.) user and approver
c.) influencer and gatekeeper (moderate) p. 137
d.) initiator and user
e.) gatekeeper and initiator
77. Refer to Mini-Case 7-1. Dr. Turek played what roles in the decision to move her practice?
a.) initiator, user, and gatekeeper
b.) initiator, user, and approver (moderate) pp. 137
c.) only initiator
d.) only approver
e.) only influencer
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78. Refer to Mini-Case 7-1. When James withheld information about the closer office possibilities, this
was an example of which type of influence on the buying process?
a.) environmental
b.) organizational
c.) interpersonal
d.) individual (moderate) p. 138
e.) macro
Mini-Case 7-2
Billionaire investor Warren Buffet once called his jet “The Indefensible,” referring to its high price tag.
Later, however, he named it “The Indispensable.” Others share this sentiment because many corporations
today own corporate jets to support efficient schedules and to reach remote locations. Given the
increasingly global nature of business, corporate aircraft makes sense. The GulfStream V, one of the top
of the line executive jets costs $38 million. Its speed is nearly 600 miles per hour. A nonstop flight
between New York and Tokyo takes about 13 hours and 40 minutes on the Gulfstream V and about an
hour and ten minutes longer on a commercial jet. Major manufacturers of corporate jets are Gulfstream,
Cessna, the Beech Division of Raytheon Co., and Dessault Aviation of France. The largest manufacturer
in terms of sales is Bombardier, which makes the Learjet.
79. Refer to Mini-Case 7.2. Most executives, including Warren Buffet, would describe the demand for
corporate jets as _______________.
a.) inelastic (moderate) p. 134
b.) routine
c.) low-involvement
d.) elastic
e.) accelerated
80. Refer to Mini-Case 7-2. Considering how shareholders have felt about the ownership of corporate
jets in general, now when a company considers buying a corporate jet, they will engage in a(n)
_______________.
a.) functional buy
b.) modified rebuy
c.) indirect purchase
d.) new task buy (moderate) p. 136
e.) systems buy
81. Refer to Mini-Case 7.2. The fear of angering shareholders is an example of a(n) _______________
influence on the buying process.
a.) environmental (moderate) p. 138
b.) interpersonal
c.) organizational
d.) entrepreneurial
e.) individual
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