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Final consumers are individual shoppers. In contrast, business and organizational buyers are made up of government units, intermediaries, manufacturing and service companies, and nonprofit organizations. Business and organizational customers are any buyers who buy for resale or to produce other goods and services.

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In marketing, business and organizational customers are distinct from:

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Organizations typically focus on economic factors when they make purchase decisions and are usually less emotional in their buying than final consumers.

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Which of the following statements accurately compares marketing to final consumers with marketing to organizational customers?

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Organizational buyers are concerned with meeting a range of economic needs, from the cost and quality of products to the seller's ability to provide maintenance and repair. In business markets, organizational buyers do not bid for suppliers; instead, suppliers offer bids to provide goods and services to organizational buyers.

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Which of the following is not a concern of organizational buyers?

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Like final consumers, organizations make purchases to satisfy needs. But it's often easier to understand an organization's needs because most organizations make purchases for the same basic reason.

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Concerning consumer and business markets:

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It is often easier to understand an organization's needs because most organizations make purchases for the same basic reason. They buy goods and services that will help them meet the demand for the goods and services that they in turn supply to their markets.

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As compared to final consumers, organizations

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Small differences in buying behavior may be important because success often hinges on fine-tuning the marketing mix. Hence, each customer may need to be treated as a different segment.

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If a firm targets business and organizational markets,

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When quality is highly standardized, as is often the case with manufactured items, the specification may simply consist of a brand name or part number.

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Purchasing specifications

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The supermarket buyer is specific about purchasing grade A large eggs. So, he is most likely to buy through purchasing specifications.

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Which of the following buying methods would a supermarket buyer be MOST LIKELY to use in the purchase of grade A large eggs?

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All of these are highly standardized products and can be bought using simple purchase specifications.

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Which of the following products would be bought using purchasing specifications?

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A purchasing manager is most likely to use purchasing specifications to buy on the Internet.

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Which of the following buying methods would a purchasing manager be most likely to use on the Internet?

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ISO 9000 assures a customer that the supplier has effective quality checks in place, without the customer having to conduct its own costly and time-consuming audit.

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Which of the following statements about ISO 9000 is NOT TRUE?

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Deciders are the people in the organization who have the power to select or approve the supplier—often a purchasing manager but perhaps top management for larger purchases.

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Of the many people involved in making an organizational purchase, the one with the most power is usually the:

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The purpose of a vendor analysis isn't just to get a low price from the supplier on a given part or service. Rather, the goal is to lower the total costs associated with purchases as may be achieved through greater efficiencies. For example, analysis might show that the best vendor is the one that helps the customer reduce costs of excess inventory, retooling of equipment, or defective parts.

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After conducting a vendor analysis on potential suppliers, purchasing managers are likely to choose the vendor that:

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Marketers must be very careful to abide by strict ethics, especially as it relates to gifts. Purchasing managers seek to avoid a conflict between their own self‐ interest and company outcomes, and many firms have policies against employees accepting any gift from a supplier.

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Smart tips for selling to business customers include all the following except:

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Buyers are responsible for working with suppliers and arranging the terms of sale.

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. _____ are responsible for working with suppliers and arranging the terms of sale.

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Buyers are responsible for working with suppliers and arranging the terms of sale. In this role, Teresa appears to be acting as a buyer.

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During the purchase of janitorial services for a new building, Teresa has responsibility for working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as

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Deciders are the people in the organization who have the power to select or approve the supplier and gatekeepers are people who control the flow of information within the organization. Natalie and Anthony are acting as decider and gatekeeper, respectively.

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Natalie Simopoulos, director of procurement at Grecian Glass Company must approve every purchase order, and Anthony Markatos, purchasing manager, must authorize any sales rep who wants to talk to a Grecian Glass employee. Natalie and Anthony are acting as _____ and _____, respectively.

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A buying center includes all the people who participate in or influence a purchase. Different people may make up a buying center from one decision to the next.

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A _____ refers to all of the people who participate in or influence a purchase.

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A "buying center" may vary from purchase to purchase as different people make up a buying center from one decision to the next

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A "buying center"

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When a salesperson calls on a new business prospect, he has to move through a proper channel, normally meeting each member of the buying center at different stages.

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When a salesperson calls on a new business prospect,

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With centralized buying in large organizations, a sales rep may be able to sell to facilities all over a country; many large organizations rely on purchasing managers; a geographically bound salesperson can be at a real disadvantage as specific business customs vary from one country to another.

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. Regarding organizational buying,

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Vendor analysis is a formal rating of suppliers on all relevant areas of performance.

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Vendor analysis is a(n)

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In trying to deal with complexities arising while making purchase decisions many firms use vendor analysis—a formal rating of suppliers on all relevant areas of performance. The purpose isn't just to get a low price from the supplier but also to lower the total costs associated with purchases. The purpose of vendor analysis isn't just to get a low price from the supplier on a given part or service. Rather, the goal is to lower the total costs associated with purchases.

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Vendor analysis

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Purchasing managers and others involved in buying decisions look forward to friendly relationships with suppliers. Hence, it becomes imperative for a sales person to balance a purchasing manager's emotional needs and economic needs.

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Regarding selling to organizational buyers,

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A typical purchasing manager tries to satisfy both individual needs and company needs. A seller's marketing mix should therefore satisfy both the needs of the customer company as well as the needs of individuals who influence the purchase.

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A typical purchasing manager:

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Most purchasing managers make purchases from suppliers who deliver on time and with high-quality and keep the total costs associated with purchases low.

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Most purchasing managers:

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Organizational buyers are problem solvers.

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Organizational buyers:

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A requisition is a request to buy something

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A requisition

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The process of turning an authorization into a purchase order may take a few hours for a simple purchase but, for a complex purchase, it may take months.

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All of the following are true of requisitions except

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Marketers sometimes get lazy enjoying an automated straight rebuy situation. As a result, straight rebuy relationships open the door for savvy competitors move in with a better marketing mix.

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Sometimes suppliers take straight rebuy relationships for granted, which can:

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New-task buying situations provide a good opportunity for a new supplier to make in roads with a customer.

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A buyer who has not purchased from a vendor in the past is MOST LIKELY to buy from that vendor when there is:

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New-task buying occurs when a customer organization has a new need and wants a great deal of information. New-task buying can involve setting product specifications and evaluating sources of supply.

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Sweets Galore, the manufacturer of Rainbow brand lollipops, decided to expand into manufacturing liqueur-filled chocolate truffles. Its buying process for the chocolates, liqueurs, and molds was extensive, and included setting product specifications and evaluating sources of supply. This is an example of a

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New-task buying occurs when a customer organization has a new need and wants a great deal of information. New-task buying can involve setting product specifications and evaluating sources of supply.

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Definitely Scrumptious Co., a cookie manufacturer, decides to expand into cake manufacturing. It begins the buying process for cake molds, toppings, and icing equipment by setting product specifications and evaluating sources of supply. This is an example of a

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A vendor is most likely to sell to the buyer who has bought from the vendor before and is doing a straight rebuy as it would be a routine repurchase.

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A vendor is MOST likely to make a sale if the buyer has bought from the vendor before and is doing:

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A vendor is least likely to sell to the buyer who has not bought from the vendor before and is doing a straight rebuy as it is a routine repurchase and there is no reason for the buyer to seek new information or new sources of supply

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A vendor is LEAST LIKELY to make a sale if the buyer has not bought from the vendor before and is doing:

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A straight rebuy is a routine repurchase that may have been made many times before.

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A straight rebuy

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Percy Malik routinely signs purchase orders for office supplies. So, it is a straight rebuy. A straight rebuy is a routine repurchase that may have been made many times before.

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Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs purchase orders for office supplies without further consideration. At Black Mountain, purchases of office supplies are

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This is an example of a straight rebuy as the manager makes routine repurchases. A straight rebuy is a routine repurchase that may have been made many times before.

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Home Sweet Home Co. manufactures and sells handmade wooden furniture. Its manager routinely orders 50 cartons of Supreme Furniture Polish and 10 bottles of Ultra Sheen Varnish from the same vendor. This is an example of a

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This is an example of a straight rebuy as there is a routine order made. A straight rebuy is a routine repurchase that may have been made many times before.

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Circle Z Tires is a retailer of car tires. Unless the store manager requests something different, every month there is an automatic order of 10 XZ Performance Tires and 12 J-1 wheels from Box Tire Supply. This is an example of a

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Modified rebuy is the in-between process where some review of the buying situation is done though not as much as in new-task buying.

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. A purchase having some multiple influence and requiring some information would fit the description of a

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Whitewater Corp. already has the purchase specifications and only needs to look for a new supplier of basic plastics. So, the firm's purchasing agent is most likely to use modified rebuying.

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Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

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Some relationships involve open sharing of information, whether by discussions between personnel or through information systems connected via the Internet-a key facet of B2B e-commerce. However, firms resist sharing information if there's a risk that a partner might misuse it.

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Which dimension of buyer-seller relationships most significantly increases the risk that proprietary knowledge or trade secrets may leak to competitors or the public?

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By establishing operational linkages with suppliers, organizations can receive material precisely on time. This technique can reduce total inventory costs, maintain adequate inventory levels, and keep production lines moving.

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The method by which suppliers provide deliveries to organizations precisely when the buyer needs them ("just in time") involves this dimension of buyer-seller relationships:

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Suppliers to business markets often share information on industry trends with the customer, provide just-in-time delivery, serve as technical consultants to their customers, and agree to negotiated contract buying.

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Suppliers to business markets often

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Operational linkages are direct ties between the internal operations of the buyer and seller firms.

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Operational linkages are

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Just-in-time delivery means reliably getting products there just before the customer needs them.

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_____ refers to reliably getting products there exactly before the customer needs them.

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Creative Electronics only has an idea for a new MP3 accessory and not a detailed description of it. So, it is most likely to use negotiated contract buying. Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.

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Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying

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Chu's Coating Services is providing customized services to Walker County Choppers, which is a relationship-specific adaptation. Relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

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Chu's Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of

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Specific adaptations are usually made when the buying organization chooses to outsource—contract with an outside firm to produce goods or services rather than to produce them internally

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Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

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To help develop effective marketing mixes, marketers should pay close attention to the size, geographic locations, buying procedures, and types of manufacturers.

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Which of the following is not a key variable that marketers need to consider when developing marketing mixes for manufacturers?

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NAICS codes help categorize all types of businesses and begin by listing general industry categories, which are marked by two-digit codes. Subcategories of those top-level groupings then receive codes of three or more digits, signifying greater detail about the products and services offered by firms.

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When referencing NAICS codes, marketers should know that:

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Marketers can find firms that are similar to current B2B-market clients by looking up current customers' NAICS codes and then studying NAICS-coded lists for related firms.

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Which of the following tips would help marketers find new B2B clients that are similar to clients they already serve?

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Internationally, industrial customers are concentrated in countries that are at the more advanced stages of economic development.

answer

Which of the following statements about manufacturers is true?

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U.S. business manufacturing markets tend to be concentrated by industry type, industry size, and geographical location.

answer

U.S. business manufacturing markets tend to be concentrated:

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NAICS stands for North American Industry Classification System.

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"NAICS" means:

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A marketing manager looking for data on the most general breakdown of a particular industry should follow the NAICS codes with the least number of digits. The NAICS code breakdowns become more detailed as the number of digits in the code increase.

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Which of the following NAICS codes would be used by a marketing manager who wanted data on the MOST GENERAL breakdown of a particular industry?

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The NAICS code breakdowns become more detailed and specific as the number of digits in the code increase.

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Which of the following NAICS codes would be used by a marketing manager who wanted data that was the MOST SPECIFIC to a particular type of firm within an industry?

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Purchases by small service firms are often handled by whoever is in charge or their administrative assistant. This may be a doctor, lawyer, owner of a local insurance agency, hotel manager, or their secretary or office manager.

answer

Which of the following statements about purchasing by small service firms is NOT TRUE?

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Manufacturing and service firms alike use e-commerce for purchasing.

answer

Which of these statements regarding manufacturing and service firms is true?

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Decisions to add or drop lines or change buying policies may be handled by a buying committee.

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With regard to retail buying:

question

When a large wholesaler or retailer uses a buying committee, the seller may not get to present her story to the buying committee in person.

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When a large wholesaler or retailer uses a buying committee,

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When large retail chains use a buying committee, the seller may not get to present her story to the buying committee in person. This approach certainly reduces the impact of a persuasive salesperson

answer

Committee buying in large retail chains

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Most large firms use computer systems to control inventory levels. The automated control systems create daily reports showing sales of every product which can be used to assess the profitability of each product.

answer

In large retail firms

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Often the government buyer must accept the lowest bid that meets the specifications. A contract can be landed without the lowest bid when lower bids don't meet minimum or requested specifications. Government buyers in the United States are expected to spend money wisely, so their purchases are usually subject to much public review.

answer

. With regard to government buying

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Government is the largest customer group in many but not all countries.

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All of the following are true of government markets except

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The government unit simply places an order at a previously approved price. To share in this business, a supplier must be on the list of approved suppliers and agree on a price that will stay the same for a specific period—perhaps a year.

answer

Regarding U.S. government market buying,

question

Potential suppliers should focus on targeted government units; they should monitor websites where government contracts are advertised; make sure their marketing mixes are well matched with the different bid procedures; and get permission from the government in its own country when they want to sell to a foreign government.

answer

In selling to government units, a supplier should do each of the following EXCEPT:

question

The Foreign Corrupt Practices Act, passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials. The law was amended in 1988 to allow small grease money payments if they are customary in a local culture. Since 1998, the law applies to foreign firms or foreign individuals who accept payments while in the United States.

answer

The Foreign Corrupt Practices Act:

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