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Chapter 03: Understanding Buyers
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True / False
1. An individual buying office supplies for an organization is operating in the consumer market.
a.
True
b.
False
ANSWER:
False
2. Increased interdependence and desire to reduce risk of the unknown has led to an emphasis on developing short-term
buyer-seller relationships.
a.
True
b.
False
ANSWER:
False
3. When a buyer's desired state and the actual state are at the same level, the buyer is not motivated to make a purchase.
a.
True
b.
False
ANSWER:
True
4. Knowledge needs represent the desire for personal development, information, and knowledge to increase thought and
understanding as to how and why things happen.
a.
True
b.
False
ANSWER:
True
5. The multiattribute model for evaluating solution alternatives is rarely used by business organizations because it
involves complex math.
a.
True
b.
False
ANSWER:
False
6. The multiattribute model for evaluating solution alternatives utilizes exponential moving averages.
a.
True
b.
False
ANSWER:
False
7. The first step in applying the multiattribute model is to assess the relative importance of each characteristic specified by
suppliers.
a.
True
b.
False
ANSWER:
False
8. The overall evaluation scores of a turbine blade as per ease of application, maximum speed attaining time, durability,
reliability, and shelf-life in storage are 81, 83, 85, 72, and 63 respectively. In a sales presentation, a salesperson should
emphasize the durability of the turbine blade.
a.
True
b.
False
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ANSWER:
True
9. If buyers mistakenly believe that a competitor's offering has higher level attributes or qualities than it actually does,
salespeople should avoid using competitive depositioning.
a.
True
b.
False
ANSWER:
False
10. Conformance to specifications is an example of a psychological attribute.
a.
True
b.
False
ANSWER:
False
11. In modified rebuy decisions, the buyer has no past experience in purchasing a product.
a.
True
b.
False
ANSWER:
False
12. Buyers who are less responsive are mostly task-oriented.
a.
True
b.
False
ANSWER:
True
13. In buying teams, users often serve as initiators and influencers.
a.
True
b.
False
ANSWER:
True
14. Business-to-business e-commerce is rapidly growing. Nearly all the current growth has been in electronic data
interchange over private networks.
a.
True
b.
False
ANSWER:
False
15. The increased interdependence between buyer and seller organizations has led to a decline in the knowledge and
expertise of salespeople.
a.
True
b.
False
ANSWER:
False
Multiple Choice
16. The most common categorization of buyers splits them into which of the following two groups?
a.
Government market and intermediaries
b.
Consumer market and end user market
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c.
Government market and business market
d.
Business market and intermediaries
e.
Consumer market and business market
ANSWER:
e
17. The business market includes:
a.
people who purchase goods and services for their own use or consumption.
b.
people whose purchase decisions are highly influenced by peer group behavior.
c.
people whose purchase decisions are highly influenced by personal taste.
d.
people whose purchase decisions are highly influenced by aesthetics.
e.
people who acquire goods and services to use as inputs into their own manufacturing operations.
ANSWER:
e
18. In the context of types of buyers, which of the following statements is true?
a.
Unlike in business markets, the demand for goods is highly volatile in consumer markets.
b.
Business buyers tend to be smaller in number than consumer buyers.
c.
Business markets and consumer markets are unrelated to each other.
d.
Business buyers tend to be smaller in size than consumer buyers.
e.
Unlike business buyers, consumer buyers are trained as purchasing agents.
ANSWER:
b
19. Jennifer just moved to a job as a retail salesperson in the same company where she was previously working as a
business-to-business salesperson. Which of the following changes can she expect?
a.
She will have to work with a higher number of customers.
b.
She will have to work with a larger size of customers.
c.
She will not have to worry about the buying influences of her customers.
d.
She will have to work in a high demand fluctuation market.
e.
She will not have to know as much about her company's products.
ANSWER:
a
20. When the consumer demand for vehicle tires increases, the demand for rubber also goes up. This increased demand
for rubber due to the increase in demand for tires shows the effect of _____ on business markets.
a.
autonomous demand
b.
acceleration demand
c.
concentrated demand
d.
direct demand
e.
derived demand
ANSWER:
e
21. In the context of the context of types of business markets, which of the following statements is true?
a.
Business buyers tend to be larger in number than consumer buyers.
b.
Unlike business buyers, consumer market buyers are trained as purchasing agents.
c.
Business markets and consumer markets are unrelated to each other.
d.
Business buyers tend to be smaller in size than consumer buyers.
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e.
The demand for goods and services in the business market is more volatile than that of the consumer market.
ANSWER:
e
22. In response to the increasing demand for electronic gadgets with advanced capabilities, Ziff Corp., an electronic
gadget manufacturer, has increased its inventories and plant capacity in order to meet the demand. This increase in
inventories and plant capacity due to an increase in demand for electronic gadgets can be best explained by _____.
a.
the acceleration principle
b.
the demand principle
c.
Hubble's principle
d.
Heisenberg's principle
e.
the alchemist principle
ANSWER:
a
23. In order to be successful in the business market, where buyers are trained to identify suppliers as part of their jobs,
salespeople:
a.
need not think of the buyers as purchasing agents.
b.
need to possess increased levels of knowledge and expertise.
c.
need not be thoroughly informed about their products.
d.
need to adopt a very casual approach to selling.
e.
need not provide a detailed assortment of applications for their products.
ANSWER:
b
24. Reductions in the size of the customer base and increased usage of supply chain management have led to:
a.
decreased levels of buyer-seller interaction.
b.
lower levels of service expectations by buyers.
c.
poor risk management.
d.
development of short-term buyer-seller relationships.
e.
buyers and sellers being more interdependent.
ANSWER:
e
25. Due to the increased interdependence between buyers and sellers and the mutual desire to reduce risk of the unknown:
a.
the emphasis on developing short-term buyer-seller relationships has increased.
b.
buyers do not expect higher levels of service from sellers.
c.
buyer-seller interactions have increased and the service expectations of buyers has risen.
d.
the interdependence of buyers and sellers has reduced.
e.
buyers and sellers are discarding supply chain management.
ANSWER:
c
26. A business buyer's purchase process ends with:
a.
performance feedback and evaluation.
b.
selection of an order routine.
c.
determination of the characteristics of the item needed.
d.
recognition of a problem or need.
e.
acquisition and analysis of proposals.
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ANSWER:
a
27. Allen and Spade, a firearms manufacturer, has received a new order for customized hand guns. The company
understands that the production of this order will require a new set of machinery. With the help of its engineers, the
company has figured out the specifications of the machinery required. Now, the company should begin:
a.
evaluating the performance of the new machines compared to the old ones.
b.
searching for machine manufacturers.
c.
evaluating proposals from machinery providers.
d.
acquiring proposals from machine manufacturers.
e.
purchasing new machines.
ANSWER:
b
28. Allied Co., a technological firm, requires new data servers. Based on the specifications provided by its engineers,
Allied Co. has acquired tenders—from several different companies—for the required number of servers. Now, the
company should begin:
a.
evaluating proposals from server providers.
b.
acquiring proposals from server manufacturers.
c.
purchasing new machines.
d.
evaluating performance of the new servers compared to the old ones.
e.
searching for server manufacturers.
ANSWER:
a
29. Chindanel Hotels, a chain of luxury hotels, wants to install new security systems in all of its franchises. Based on the
specifications provided by Chindanel, a few companies have submitted tenders to acquire the contract. Chindanel Hotels
has shortlisted one company and has decided to give the contract to it. Now, Chindanel Hotels should begin:
a.
acquiring proposals from security system manufacturers.
b.
identifying the faults in the existing security system.
c.
evaluating performance of the new security systems compared to the old ones.
d.
selecting an order routine of the security systems.
e.
evaluating proposals from security system manufacturers.
ANSWER:
d
30. Jason was all set to go home after his day of work. As soon as he stepped out of the office building, it started to rain.
Jason wished he had an umbrella, as he walks to and from work, and now he cannot get home without getting drenched in
rain. Jason's need of an umbrella is a _____.
a.
social need
b.
situational need
c.
psychological need
d.
knowledge need
e.
functional need
ANSWER:
b
31. Sarah recently bought a bicycle. After a few days of cycling, she realized that she needs a basket attached to the
bicycle in which she could keep her bag and other articles while cycling. Sarah's need of a basket is a _____.
a.
social need
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b.
situational need
c.
knowledge need
d.
functional need
e.
psychological need
ANSWER:
d
32. Which of the following is a difference between situational needs and social needs?
a.
Unlike social needs, situational needs are the need for acceptance from and association with others.
b.
Unlike situational needs, social needs represent the need for a specific core task to be performed.
c.
Unlike social needs, situational needs are a result of conditions related to the specific environment, time, and
place.
d.
Unlike social needs, situational needs represent the desire for personal development, information, and
knowledge.
e.
Unlike situational needs, social needs reflect the desire for feelings of assurance and risk reduction.
ANSWER:
c
33. Which of the following is a difference between functional needs and psychological needs?
a.
Unlike functional needs, psychological needs are a result of conditions related to the specific environment,
time, and place.
b.
Unlike functional needs, psychological needs reflect the desire for feelings of assurance and risk reduction.
c.
Unlike functional needs, psychological needs represent the need for a specific core task to be performed.
d.
Unlike psychological needs, functional needs represent the desire for personal development, information, and
knowledge.
e.
Unlike psychological needs, functional needs are the need for acceptance from and association with others.
ANSWER:
b
34. Powell Motors is interested in purchasing new air filters for its automobiles. To select a supplier, the company is to
consider two characteristics: reliability and durability. The purchase decision lies on the performance score and
importance weight of each characteristic. The performance score with respect to reliability of supplier 1, supplier 2,
supplier 3, supplier 4, and supplier 5 are 10, 9, 8, 6, and 7, respectively. The performance score with respect to durability
of supplier 1, supplier 2, supplier 3, supplier 4, and supplier 5 are 5, 7, 8, 8, and 6, respectively. The company, however,
scores the importance weight of reliability as 9 against the score of 8 for durability. According to the multiattribute model,
Powell Motors should select _____.
a.
supplier 3
b.
supplier 2
c.
supplier 1
d.
supplier 4
e.
supplier 5
ANSWER:
b
35. Which of the following strategies leads to an effective sales presentation?
a.
Retaining the product offering being proposed even if it is different from buyer's needs
b.
Giving equal importance to all the attributes irrespective of their importance weights
c.
Altering the buyer's beliefs about the proposed offerings when the buyer underestimates the product
d.
Avoiding calling attention to neglected attributes
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e.
Refraining from altering the buyer's beliefs about the competitor's offerings even when the buyer
overestimates the competitor's product
ANSWER:
c
36. If a buyer mistakenly believes that a competitor's offering has higher level attributes or qualities than it actually does,
the salesperson should attempt to:
a.
reassure the buyer that his or her product is at par with the competitors' offerings.
b.
refrain from modifying the proposed offering just to suit the buyer's needs.
c.
avoid calling attention to neglected attributes.
d.
alter the buyer's beliefs about the competitor's offering by providing accurate information.
e.
alter the importance weights of the buyer's offering.
ANSWER:
d
37. Identify one of the strategies used to plan, create, and deliver an effective presentation.
a.
Avoid modifying the product offering being proposed as per buyer's needs.
b.
Avoid altering the buyer's beliefs about the proposed offerings when the buyer underestimates the product.
c.
Avoid giving equal importance to all the attributes irrespective of their importance weights.
d.
Avoid calling attention to neglected attributes.
e.
Avoid altering the buyer's beliefs about the competitor's offerings when the buyer overestimates the
competitor's product.
ANSWER:
c
38. Jamie is a salesperson making a sales proposal to a potential customer. During the presentation, she learns that some
of the attributes of her product offering will not be able to maximize the buyer's evaluation score when compared to a
competitor's offering. Which the following is probably the best strategy for Jamie to follow?
a.
She should avoid calling attention to neglected attributes.
b.
She should end her presentation without disclosing her product's weaknesses.
c.
She should attempt to explain to the buyer that the characteristics on which her product scores low are not
really important.
d.
She should modify the price to one that is more suited to the current product offering even if her company
incurs a loss.
e.
She should exaggerate a little to improve her score.
ANSWER:
c
39. Jason, a salesperson for Green Tools, proposed a sale of solar panels to Timothy Energy Solutions. Timothy Energy
Solutions was not willing to get into business with Green Tools, however, because its manager believed that their solar
panels were inferior to the ones supplied by Timothy Energy Solutions’ conventional suppliers. Jason presented the
findings of a certified research body that compared the various solar panels that are offered by different companies. It was
evident from the findings that Green Tools' solar panels were superior to those of other companies. This eventually led
Timothy Energy Solutions to buy solar panels from Green Tools. Which of the following strategies was used by Jason to
procure the business?
a.
Electronic data interchange
b.
Competitive depositioning
c.
Continued affirmation
d.
Importance weights alteration
e.
Two-factor evaluation
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ANSWER:
b
40. The overall evaluation scores of a staple pin as per ease of application, strength, durability, reliability, and shelf-life in
storage are 85, 65, 78, 75, and 62, respectively. The importance of which of the following attributes is most likely to be
deemphasized by a salesperson selling the staple pin?
a.
Shelf-life in storage
b.
Durability
c.
Reliability
d.
Ease of application
e.
Strength
ANSWER:
a
41. If a buyer is evaluating a sales offering on its ability to meet standards, the buyer is assessing the sales offering on the
basis of a _____.
a.
situational attribute
b.
knowledge attribute
c.
delighter attribute
d.
must-have attribute
e.
psychological attribute
ANSWER:
d
42. If a buyer is evaluating a sales offering on its eagerness to satisfy, the buyer is assessing the sales offering on the basis
of a _____.
a.
psychological attribute
b.
situational attribute
c.
knowledge attribute
d.
functional attribute
e.
must-have attribute
ANSWER:
a
43. Straight rebuy decisions occur when:
a.
ordering is manual.
b.
the products being purchased are unconventional.
c.
the sources of purchase are different.
d.
needs have been predetermined.
e.
there is a short-term purchase agreement.
ANSWER:
d
44. James has never had a motorcycle before but is planning to purchase one to replace his old bicycle. James is set to
make a _____ purchasing decision.
a.
strategic task
b.
new task
c.
functional task
d.
modified task
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e.
straight task
ANSWER:
b
45. Low-assertive individuals tend to:
a.
control situations.
b.
be deliberate in their communication.
c.
take confrontational positions.
d.
be opinionated.
e.
be fast-paced.
ANSWER:
b
46. In the context of communication styles, _____ are low on responsiveness but high on assertiveness.
a.
analyticals
b.
coequals
c.
drivers
d.
amiables
e.
expressives
ANSWER:
c
47. While selling to amiables, salespeople should adopt a _____ type of communication style.
a.
relationship-oriented and fast-paced
b.
task-oriented and less responsive
c.
task-oriented and slow-paced
d.
task-oriented and highly assertive
e.
relationship-oriented and slow-paced
ANSWER:
e
48. While selling to drivers, salespeople should adopt a _____ type of communication style.
a.
relationship-oriented and fast-paced
b.
relationship-oriented and less assertive
c.
task-oriented and slow-paced
d.
task-oriented and fast-paced
e.
relationship-oriented and highly responsive
ANSWER:
d
49. In the context of buying teams, which of the following is a role of influencers?
a.
To determine which product or service will be purchased
b.
To negotiate final terms of purchase with suppliers
c.
To point out the need for a product and thus initiate the search
d.
To provide inputs and assessments of different product offerings
e.
To facilitate the exchange of information between a salesperson and a buying team
ANSWER:
d
50. In the context of buying teams, which of the following is a role of gatekeepers?
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a.
To point out the need for a product and thus initiate the search
b.
To provide inputs and assessments of different product offerings
c.
To determine which product or service will be purchased
d.
To negotiate final terms of purchase with suppliers
e.
To facilitate the exchange of information between a salesperson and a buying team
ANSWER:
e
51. Which of the following is an impact of information technology on the buying process?
a.
Order times are increased.
b.
Shipping times are reduced.
c.
Postsale services are reduced.
d.
Mistakes are maximized.
e.
Overall cycle times are increased.
ANSWER:
b
52. The overall cycle time in the buying process has been reduced due to:
a.
increased usage of information technology.
b.
increased shipping times.
c.
reduced usage of supply chain management.
d.
reduction in postpurchase services.
e.
maximization of mistakes in the process.
ANSWER:
a
53. Suppliers have more time to devote to postsale services because:
a.
the shipping times of the products have increased over time.
b.
information technology is being used widely in the buying process.
c.
the overall cycle time has increased.
d.
the mistakes in the buying process are maximized.
e.
supply chain management is no longer a concern in the buying process.
ANSWER:
b
54. Due to an increase in the usage of information technology in the buying process:
a.
postsale services are reduced.
b.
order times are increased.
c.
overall cycle times are increased.
d.
shipping times are increased.
e.
mistakes are minimized.
ANSWER:
e
55. Due to a high usage of information technology in the buying process:
a.
some of the power has shifted to buyers, who can accompany more bidders.
b.
buyers have difficulty in accessing information on vendors.
c.
the postpurchase services, provided by the sellers, are reduced.
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d.
the landscape of the buying process has become less competitive.
e.
the overall cycle times of the buying process are increased.
ANSWER:
a
Completion
56. In the context of types of buyers, the _________ consists of firms, institutions, and governments.
ANSWER:
business market
57. One of the distinguishing characteristics of business markets is that there is a smaller number of larger buyers that
account for most of the purchases. This distinguishing characteristic is called _________.
ANSWER:
concentrated demand
58. In the context of the buying process, a _________ refers to the perceived difference between a buyer's desired and
actual state of being.
ANSWER:
needs gap
59. _________ are forms developed by firms and distributed to qualified potential suppliers that help suppliers develop
and submit proposals to provide products as specified by a firm.
ANSWER:
Requests for proposal (RFP)
60. A salesperson engaged in _________ provides information to evidence a more accurate and less favorable picture of a
competitor's attributes.
ANSWER:
competitive depositioning
61. The final phase in the buying process is the _________.
ANSWER:
evaluation of performance and feedback
62. _________ is a postpurchase evaluation process buyers use that evaluates a product purchase using functional and
psychological attributes.
ANSWER:
Two-factor model of evaluation
63. In the context of purchasing decisions, the newness of a problem or need is lowest in _________.
ANSWER:
straight rebuy decisions
64. In the context of purchasing decisions, a(n) _________ encounters the lowest number of buying influences.
ANSWER:
straight rebuy decision
65. In the context of purchasing decisions, a person purchasing daily groceries from a shopping mart is engaged in a(n)
_________.
ANSWER:
straight rebuy decision
66. In the context of purchasing decisions, a(n) _________ requires an extensive information search.
ANSWER:
new task decision
67. In the context of purchasing decisions, the financial risk associated with a purchase is highest in _________.
ANSWER:
new task decisions
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68. _________ refers to the degree to which a person holds opinions about issues and attempts to dominate or control
situations by directing the thoughts and actions of others.
ANSWER:
Assertiveness
69. _________ are teams of individuals in organizations that incorporate the expertise and multiple buying influences of
people from different departments throughout the organization.
ANSWER:
Buying teams
70. Data collected on customer demographics, sales and customer service histories, and marketing preferences and
customer feedback can be easily accumulated through a _________ system and used to better understand customers and
provide customized offerings to best serve their needs.
ANSWER:
customer relationship management (CRM)
71. The ultimate responsibility for determining which product or service will be purchased rests with the role of
_________.
ANSWER:
deciders
