BUS 346 Ch. 6 (Davis Ch. 7)

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Business-to-business marketing involves buying and selling goods or services to be used by
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Retailers Manufacturers Wholesalers Producers –(answer on test: “all of these”)
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Business-to-business marketing involves buying and selling goods or services by all of the following except:
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Consumers
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Derek bought a pick-up truck to transport his equipment to fishing tournaments. He also bought a pick-up for his lawn maintenance business. His purchases were:
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B2B and B2C respectively
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Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in ______________________ sales.
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B2B
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Sales of electric components manufactured by Rick’s company depend on sales of new cars. Rick’s company faces ________________ demand.
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Derived
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Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy in order to supply her customers. Paula is concerned with ______________.
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Derived demand
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Whether targeting consumers or B2B Markets, marketers need to focus on:
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Creating value for their customers
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Unlike manufacturers, _________________ buy products from other businesses but do not significantly alter the form of the products they buy.
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Resellers
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A ________________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys.
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Wholesaler
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Malcolm buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Malcolm is a:
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Reseller
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Hospitals, schools, and religious organizations are examples of ____________ buyers.
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Insititutional
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Which of the following is an example of an institutional buyer?
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Mayo Clinic Hospital
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Which of the following is an example of a government buyer?
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US Marine Corps
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In most countries, ________________ is one of the largest purchasers of goods and services.
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The central gov’t
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Both the B2B and B2C buying processes begin with
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Need recognition
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Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are:
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More formal and structured
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Typically, B2B buyers ask potential suppliers to:
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Submit formal proposals
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B2B buying decisions are often made by:
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Committees
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When Goodwish Marketing decided to upgrade its network, many people were involved in the decision. In B2B buying systems decisions are often made:
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By a committee after considerable deliberation
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The first stage of the B2B buying process is:
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Need recognition
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Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying process. She stays in touch with her customers, hoping to find out when they are going through:
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Need recognition
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Edward, the leading salesperson for Harry’s Honda dealership, began hearing customers asking for hybrid automobiles several years ago. Edward alerted Harry, and Harry pre-ordered many Honda hybrids before they became available. In this case, the source of need recognition was:
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Customers
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After need recognition, a business develops ____________ that suppliers might use to develop their proposals.
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Product specifications
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After Hurricane Katrina, many states re-evaluated their coastal area building requirements. These new building codes represented ________________ that building materials companies used in developing new products
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Product specifications
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Charlie is hoping to get a chance to bid on supplying key components to Ned’s business. He is eager to move forward, but he must wait until:
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Ned develops a list of product specifications
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After need recognition and product specification, many firms using the B2B buying process:
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Issue a request for proposals from invited suppliers
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During the RFP stage, B2B buyers:
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Invite suppliers to bid on supplying what is requested
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Frequently a B2B buyer will post its RFP:
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On its website
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Thomas wants to get a number of bids for parts and components for the specialty food-processing equipment his firm will manufacture. He has developed detailed product specifications and has developed an RFP. How will he distribute the RFP to ensure a reasonable supply at a reasonable cost?
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-Use his company’s website -Contact potential suppliers directly -Invite current suppliers to bid -Network through his trade association or Chamber of Commerce –(answer on test: “all of these”)
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After posting an RFP for telecommunication equipment, USF received six proposals from qualified vendors. Next, USF will:
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Evaluate proposals and narrow the choice to a few suppliers
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After evaluating proposals they received for new telecommunication equipment, the buying center for USF Corporation will probably discuss ___________ with qualified suppliers.
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Price Quality Delivery schedule Financing –(answer on test: “all of these”)
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The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the _____________ stage of the business-to-business buying process.
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Vendor negotiation
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When reviewing her firm’s business buying process, Carla noticed a company requirement that they have at least three qualified bids from suppliers for any purchase over $50,000. This requirement is designed to:
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Keep suppliers on their toes
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As the buyer in Northrop’s buying center team, when a decision is made, Craig will specify:
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Price Quantity Deliver schedule Nonperformance penalties –(answer on test: “all of these”)
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Frieda has just received a major order from Northrop Corporation for her firm’s hydraulic lift equipment. After reviewing the order information, Frieda will:
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Send an acknowledgement that the order has been received
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When Jerry was negotiating a total renovation for the local health care clinic, he knew every month the clinic was closed he would lose $10,000 in rent from the various tenants in the clinic. Jerry shrewdly included ___________________ in the renovation contract to encourage the vendor to finish on schedule.
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Nonperformance penalty
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While consumers weigh postpurchase dissonance, business buyers:
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Conduct venor analysis
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Vendor analysis often involves ____________________ important to the buyer.
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Specifications and weighting of issues
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As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will probably:
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Specify the weight and performance factors in weight and performance factors to quantify results
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In most large organizations, several people are responsible for making a purchase decision. This group is called the:
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Buying center
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Which of the following is NOT one of the roles typically played by one of the members of a buying center?
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Auctioneer
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Melissa is the director of human resources, but is known throughout the firm as being one of the first to hear about and use new kinds of communications technologies. When the firm wants to upgrade its network, Melissa will probably function in what role in the firm’s buying center?
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Influencer
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Carlos recently graduated with a degree in marketing, and he has taken an attractive sales position with a B2B firm. He did quite well in school, but one of his strongest assets is the way he works with people. In the firms he plans to visit, he has planned to focus most of his attention on:
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Gatekeepers Initiators Buyers Deciders –(answer on test: “Carlos should focus on all of these”)
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Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom engineers will be asked to evaluate the equipment needs and provide detailed specifications and recommendations. The Raycom engineers will primarily play the ____________ role in the company’s buying center
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Influencer
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At many universities, education faculty members were among the first to ask for personal computers. These faculty members were _____________ in the buying center.
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Initiators
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Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom engineers will specify the type of equipment to be purchased. When the decision is made, Reginald will handle the paperwork and send out the purchase order. Reginald plays the ______________ in the buying center.
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Buyer
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Which of the following is NOT an ethical concern in the pharmaceutical industry?
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All of these are ethical issues
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Whenever Kim, a textbook publisher’s representative, calls on the business faculty at General University, her first stop is to chat with Frank, the business department secretary. From Frank, Kim learns which professors have left or are new, and what courses will be taught next semester. Frank also helps Kim to make appointments to see professors to discuss textbook choices. Frank acts as the _____________ in the business department buying center.
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Gatekeeper
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Whenever Kim, a textbook publisher’s representative, calls on the business faculty at General University, she also meets with several students to get their feedback on the textbooks used by the department. The students are the ____________ in the buying center.
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Users
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Many health insurance policies require patients to call and get pre-approval for tests or procedures, or else pay a much higher co-payment. The health insurance company acts as a __________________ for the purchase of medical services.
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Gatekeeper
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Unlike a firm’s mission statement or employee handbook, a firm’s culture often:
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Exists as a set of unspoken guidelines
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An organization’s culture reflects the _____________________ that guide its employees’ behavior.
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Set of values, traditions, and customs
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While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on Fridays during the summer. Brad is observing part of his firm’s:
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Culture
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While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory accepted this as being part of the pharmaceutical firm’s:
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Culture
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Which of the following is NOT one of the four general types of organizational cultures?
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Capitalist
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Knowing which type of buying center culture is prevalent in a given organization helps sellers to decide:
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How to approach a particular client How to deliver pertinent information To whom to deliver pertinent information To whom to make the sales presentation –(answer on test: “all of these”)
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Olivia knows that one person, who makes all major purchase decisions, dominates the firm she is calling on today. Knowing the type of buying center she is calling on will help Olivia to decide:
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How to approach a particular client How to deliver pertinent information To whom to deliver pertinent information To whom to make the sales presentation –(answer on test: “all of these”)
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The customer Carlotta is calling on today has a(n) __________ buying center culture. This means that the decision process will involve reaching agreement among all members of the buying center.
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Consensus
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Markham Publishing is known for its consultative buying center culture. Recognizing this corporate culture, someone attempting to sell to Markham Publishing should:
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address the concerns of all members of the buying center with particular attention to those of the decision maker
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Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham Hardware should:
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work to facilitate the collective agreement of all members of the buying center
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At the main campus of a large university, faculty always refer to each other as Doctor, wear suits, and guard their academic domains against each other. This leads to frequent name-calling and strenuous debates. Meanwhile, at the various branch campuses, faculty members call each other by their first names, dress casually, and supported each other’s scholarly efforts. This example illustrates the differences in ___________________ that can exist within an organization.
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Organizational culture
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Not knowing the roles of key players in the buying process could cause a sales representative to:
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Waste time and alienate people
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When she gave her presentation to Harmon’s Automotive Supply, Brie did not know the roles of the key players in the buying center. This could cause her to waste a lot of time and to:
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Alienate the real decision maker
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When Leanne gave her presentation to the BigDeal discount buying center team, she treated each member’s question seriously and gave equal time to addressing each. Leanne did not realize BigDeal has an autocratic buying center culture and she needed to focus on answering Beverly’s questions, since she is the decision maker. In addition to wasting time by not understanding BigDeal’s culture, Leanne may have also:
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Alienated Beverly, the real decision-maker
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Jenny was feeling frustrated. “What’s taking them so long to make a decision? It’s been weeks since I first met with them, and they all seem interested in the product. I’ve also jumped through all their paperwork hoops.” Jenny is likely selling to a firm in what kind of buying situation?
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New buy
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Most B2B buying situations can be categorized as new buys, modified rebuys, and:
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Straight rebuys
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The RFP buying situation is most likely to be associated with:
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Either new buy or modified rebuy
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The buying decision is likely to be more complex and take longer to complete in a(n) ___________ B2B buying situation.
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New buy
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In which buying situation is the buyer most likely to proceed through all six steps in the buying process?
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New buy
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Manitoba University is buying a distance learning system. Previously, the school had no distance learning technology. For Manitoba University this represents a(n) _______________ situation.
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New buy
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Olga is the sales rep for ATV communication systems. She wants to bid on the RFP issued by Manitoba University for distance learning technology. She knows she will need to provide considerable information and demonstrations of her firm’s technology because Manitoba University is in a new buy situation and does not have:
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Any experience with the product they wish to purchase
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When Natasha took over as facilities manager for Burlington Furniture Manufacturing she was shocked to see the factory was still heated with a coal-fired boiler. Immediately, she made a decision to upgrade the heating system to something more efficient. For Natasha, this represented a(n) __________________ situation.
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New buy
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In a(n) _________________ situation, the buyer has purchased a similar product in the past but has decided to change some specifications.
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Modified rebuy
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When a business buyer decides to change specifications such as quality or options associated with products he or she has purchased in the past, the buyer is engaged in a(n) __________ situation.
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Modified rebuy
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When Walmart considers re-ordering items for its stores, its buyers are instructed to negotiate price concession, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________________ situation.
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Modified rebuy
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In a modified rebuy situation, _________________ are likely to have an advantage in getting the order.
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Current vendors
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Which of the following circumstance might trigger a modified rebuy instead of a straight rebuy?
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Changing quality levels needed in the product or service Dissatisfaction with the vendor Change in some of the product specifications Changes in the desired price –(answer on test: “all of these”)
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When Val sees the RFP issued by one of his customers, he is concerned that they have changed their specifications since they placed a previous order with him. His company’s products do not meet the new specifications. In this situation, being the current vendor:
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Will probably not be an advantage in getting the new order
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A(n) ___________ occurs when the purchasing agent buys additional units of products that have previously been purchased.
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Straight rebuy
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If a B2B customer is satisfied with an existing supplier, it will probably engage in a(n) ___________ to purchase additional quantities of the item.
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Straight rebuy
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Yvonne uses her customer relationship management (CRM) system to predict when her business customers will need more of her company’s packaging materials. When she thinks a customer should be ready to make another order, she contacts them. Yvonne is using CRM to encourage customers to engage in a(n):
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Straight rebuy
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Phil put down the phone and told Alice, “I just love that customer. I got another big order, and they just keep on coming.” Phil is likely selling to a firm in what kind of buying situation?
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Straight rebuy
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When a business customer engages in a straight rebuy, the member of the buying center most likely to be involved in the purchase is the:
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Buyer
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In established businesses, a large proportion of B2B purchases fall into the ___________ category.
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Straight rebuy
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The three types of buying situations…
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Call for different marketing and selling strategies
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The _____________ situation usually involves more members of a buying center and involves more time to complete than the other buying situations.
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New buy
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A(n) _______________ situation in B2B marketing is similar to limited problem solving in the B2C process.
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Modified rebuy
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Kimberly has just learned that B&B Coffee Supply is looking for a new source of commercial-grade coffee makers, one of the products she sells. She knows B&B has been in business for many years, but she has not been able to get any business from them. When developing her marketing strategy, Kimberly will probably assume that this represents a ___________________ situation for B&B Coffee Supply, and she will want to find out why B&B Coffee Supply is considering alternatives.
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Modified rebuy
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For B2B salespeople, usually the easiest sale is a(n) __________________ situation.
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Straight rebuy
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Normally, BC bottling company attaches plastic labels to its bottles. However, a new company is launching a product that requires the use of fabric labels. In order to use this latest innovation, BC bottling company must now source these fabric labels from another company. This is an example of:
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B2B marketing
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The office policy and procedure states that any purchase requisitions that are $3,000 and over must be given to Ms. Reynolds, who will then get authorization from the CFO for the purchase request. Ms. Reynolds serves as a ___________ in the buying center
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Gatekeeper
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The president of the Northwoods University student body made a formal request to the IT department for additional computers in the main computer lab. The student body president is the ________ in the buying center.
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Initiator
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The Northwoods University IT department is planning to buy additional computers for the computer lab. Pedro Bechara, manager of the lab, is asked for a recommendation, and he suggests buying Macintosh computers instead of Windows PCs. What role does Pedro play in the buying center?
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Influencer
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Bob Roberts founded Robertico, an equipment leasing company, three decades ago. Although he is now in his seventies, he still has a “hands on” management style. His employees have learned that there isn’t much point in making purchase recommendations for new equipment, because Bob is going to choose whatever he thinks is best regardless of their views. Robertico has a(n) ________ buying center culture.
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Autocratic
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A buying center that makes its decisions by majority vote is a(n) ________ buying center.
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Democratic
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The local skydiving team is buying new parachutes. The team’s coach has invited all team members to make recommendations, after which he will select the successful vendor. The skydiving team’s buying center has a(n) ________ organizational culture
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Consultative
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To maximize efficiency, farmers send their eggs to a ______ who handles sales and shipments to supermarkets.
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Distributor
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The chair of the board of the local Humane Society chose the bank where the organization keeps its money; however, the office manager is the primary person who makes deposits, writes checks, and balances the account every month. The office manager is the _______ in the buying center for the bank account.
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User
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B2B partners often connect to each other on the Internet through special __________ designed to facilitate information exchanges and transactions
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Web portals
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A wholesaler is an example of a:
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Reseller
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What type of B2B organization is a retail store such as T.J. Maxx?
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Reseller
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Why did Staples decide to partner with StickK.com to launch the “StickK to It! Business Challenge,” which helps small businesses monitor their success?
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To acquire more small business customers To build customer loyalty To increase brand awareness To increase sales. –(answer on test: “all of these”)
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Which of the following details are included in the order specification stage of the B2B buying process?
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Price and delivery dates

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