Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 03 Buying Behavior and the Buying Process Answer Key
True / False Questions
1.
Salespeople selling original equipment manufacturer (OEM) products need to demonstrate
that their products help customers produce products that will offer superior value.
2.
Resellers consider two elements when making decisions about what products to sell:
customer profiles and targeted return.
3.
End-user buying situations exclude the purchase of capital equipment and services.
4.
Global sourcing is a key factor in achieving a sustainable competitive advantage.
5.
Derived demand means demand is derived from an increase in GDP.
6.
Salespeople often trigger the buying process by demonstrating how their products can
improve the efficiency of the customer's operation.
7.
Creeping commitment means that a customer becomes increasingly committed to a
particular course of action while going through the steps in the buying process.
8.
From a salesperson's point of view, the initial steps in the buying process are critical in
straight rebuy situations.
9.
When the office manager of an established dentist orders a case of the same brand of
dental floss that the dentist's office has been using for years from the same source, it is
considered a straight rebuy.
10.
A buying center is an informal, cross-department group of people involved in a purchase
decision.
11.
Gatekeepers are usually the ones who start the buying process.
12.
In general, senior executives get more involved in important purchase decisions that have
a greater effect on the performance of their organization.
13.
Life-cycle costing is also known as quality-based costing.
14.
Emotional needs are directly related to the performance of a product rather the personal
gratification an individual gets from the product.
15.
Service level agreements (SLAs) are standards for minimum service delivery for specific
measures of how a vendor will perform services, and are written into a contract.
16.
"Always a share" is a strategy for risk reduction employed by buying centers.
17.
Customers usually view information from independent sources to be less credible than
company advertising.
18.
Automatic replenishment is a form of supplier relationship management (SRM).
19.
The ultimate goal of just-in-time (JIT) inventory control is to eventually eliminate all
inventory except products in production and transit.
20.
In the context of developing the close coordination needed for just-in-time (JIT) inventory
control systems, the selection criterion for manufacturers is the lowest cost, not the ability
to be flexible.
21.
The first step in supplier relationship management is to determine end-user spending
patterns.
22.
One outcome of supplier relationship management (SRM) is the ability to consolidate
purchases and negotiate better terms.
23.
The primary objective of supplier relationship management (SRM) is to increase the
profits.
24.
The multiattribute model is usually not used in complex decisions involving several
vendors.
25.
In the context of the multiattribute model of product evaluation and choice, a company's
final decision to select a product from among its alternatives is based on the relationship
between the performance evaluations of the product's characteristics and the company's
needs.
26.
During performance evaluations of various vendors, the importance weights of all
characteristics are considered equal.
27.
A person's overall evaluation of a product can be quantified by multiplying the sum of the
performance ratings of the product by the importance weight of each characteristic.
28.
By increasing the rating of a competitive product, salespeople can improve customers'
perception of their product.
29.
Salespeople should not focus on the areas of superior product performance that are not
important to their customer.
30.
Using the multiattribute model, salespeople decide how to alter the content of their
presentation based on customer beliefs and needs.
Multiple Choice Questions
31.
When P.C. Logic, a fax machine manufacturer, purchases ceramic printing heads from
Kyocera to install in its fax machines, it is acting as a(n):
32.
Which of the following is usually considered a major financial commitment for
manufacturers?
33.
Clara is the head of the sales department of a firm. She wants to know the volume of sales
generated by her sales department and how quickly the firm's products are sold in the
regional market. In this case, Clara is most likely calculating the:
34.
Eva is considering adding new products to her store and is concerned about her profit
margin. She is concerned about:
35.
Effective selling to government agencies requires:
36.
Which of the following types of purchase situations requires a longer time compared with
others to arrive at a purchase decision in an organizational buying decision process?
37.
Salespeople need to understand that purchases made by their customers' customers are
based on:
38.
Weston makes uniforms and overalls for employees in any industry where there is a risk of
fire injury. It uses fabric from Indie Fabric Co. for all of the uniforms it manufactures. If
there is a decrease in the demand for products in the chemical industry, then there will be
a decrease in employment in that industry. This will lead to a decrease in the demand for
Weston's uniforms. Since fewer uniforms will be needed, the sales for Indie Fabric will
decrease. This is an example of:
39.
Almac Aluminum is a large manufacturer of can sheets that are used to manufacture
beverage cans. Its ability to sell to Pearl Brewing Company is directly related to how many
people buy Pearl Beer. This is an example of:
40.
The chief executive of Norell, an agency that supplies businesses with temporary workers,
realizes that the health care industry requires temporary workers as much, if not more, as
goods-oriented businesses. Which of the following stages of the buying process does this
illustrate?
41.
Alia is the logistics manager of a firm. She has recognized that her firm's poor
performance is because of the faulty supply chain management software that the firm is
currently using. According to the organizational buying process, which of the following
should Alia do next?
42.
The last step in the organizational buying process is the:
43.
Regan wants to develop a long-term relationship with his customers. To accomplish this
objective, Regan will need to pay close attention to:
44.
Neil wants to buy raw materials for his automobile firm. After identifying the type of raw
materials needed and their specifications, he compiles a list of new vendors. During the
buying process, he becomes more involved with a specific vendor and focuses his
attention more on buying from that vendor than from other vendors. This is an example of:
45.
Handell has established a small company that manufactures decorative items for homes.
One of the company's latest items is a line of thermometers reproduced from ones that
were given away for free before World War II. Since quality is essential to the company's
success, it has spent a great deal of time and effort locating the best suppliers for the
metal, wood, paint, and mercury for its first round of production. The purchase of these
components would be an example of a _____ buying situation.
46.
Kevin works for Irish Pub Company, a design and construction outfit that sells completely
finished, made-in-Ireland pubs—with everything from beer taps to mosaic floors to
decorative pieces like antique whiskey bottles—to American entrepreneurs. Kevin is trying
to sell the Irish pub concept to a retired New York City business executive who wants to
run his own business, but he is not an experienced pub owner and is reluctant to invest
$300,000 in the project. Kevin should consider this a _____ buying situation.
47.
Which of the following types of purchase situations requires the least number of people in
the organizational buying decision process?
48.
Plasto is a Spanish company that manufactures stadium seating for sports venues. It is
one of many such manufacturers. The city of Marsia, which is going to host the next
Olympic Games, forms a committee to make purchases of equipment that would be
required at its venues. The committee has limited knowledge of the available products, but
eventually decides to purchase Plasto stadium seating for the venues. This purchase by
the recently formed committee is an example of a _____ situation.
49.
A manufacturer of aquariums for consumers' homes is most likely to go through all eight
steps of the organizational buying process when it is:
50.
A salesperson for the Big Apple Sign Corporation was trying to get the owner of a
hardware store to buy a new kind of advertising tool called floor graphics—an opaque vinyl
film that applies directly to the floor, is easy to remove, and can be used to promote in-
store specials. Since the store owner has purchased advertising before—just not this
particular kind of advertising tool—this is an example of a _____ situation.
51.
The supervisor of an automated teller machine (ATM) facility learns that the machine is
not functioning efficiently because it uses an old software. According to the organizational
decision buying process, which of the following should the supervisor do next?
52.
Maynard, the head of the research and development department of a pharmaceutical firm,
rejects a new drug manufactured by the firm because the drug does not meet the required
quality standards. According to Miller and Heiman, Maynard is most likely a(n):
53.
Kenneth, the operations manager of a cosmetic firm, rejects a particular promotional
strategy for use by the firm because he estimates that the financial costs of conducting
such a campaign would be extremely high and the strategy would yield no return.
According to Miller and Heiman, Kenneth is most likely a(n):
54.
A hospital is considering changing its supplier of replacement joints. While surgeons make
the final decision, the hospital's purchasing department is promoting Kyocera because it
manufactures one of the cheapest and most durable hip joints on the market. In terms of
the buying center, the purchasing department is a(n):
55.
_____ control the flow of information and limit the alternatives considered in the
organizational buying decision process.
56.
The evaluation and selection of products and suppliers are affected by the needs of both
the organization and the individuals making the decision. These needs are categorized as:
57.
Ruth markets rock concerts. She is looking for a company that will handle all of the various
mailing needed to promote the purchase of concert tickets. She wants to use Graham Mail
House because she is a good friend of the mailing house's operations manager, but others
involved in the decision making want to take bids from other mailing houses. In this
example, Ruth is expressing a(n) _____ need in the buying process.
