Chapter 2

Question 1

Explain push strategy

Answer 1

deliver info to customers through sales ppl and other communications

Question 2

Explain pull strategy

Answer 2

customers can readily access rich sources of product and market information (websites, social media)

Question 3

What are 5 forces that influence org buying process

Answer 3

buying situation, group, environmental, individual, organizational

Question 4

3 buying situations

Answer 4

New task, modified rebuy, straight rebuy

Question 5

explain new task, problem solving and buying decision approach

Answer 5

New experience, need lots of info

Extensive problem solving

judgemental and strategic

Question 6

explain modified rebuy, problem solving and buying decision approach

Answer 6

re-evaluate alternatives to derive benefits

Limited problem solving (have criteria, need to choose best supplier)

Simplified vs complex

Question 7

explain straight rebuy, problem solving and buying decision approach

Answer 7

no need to evaluate alternatives

routine problem solving

casual and routine low priority

Question 8

4 environmental foces

Answer 8

economic, technological, natural forces, political/legal

Question 9

What are physical risks?

Answer 9

disruptions due to extreme weather or natural distasters

Question 10

What are price risks?

Answer 10

Uncertainty of entering good prices due to climate

Question 11

What are product risks

Answer 11

disruptions in delivery of goods due to climate

Question 12

What are ratings risks

Answer 12

disruptions in daily operations due to climate

Question 13

What are regulation risks

Answer 13

disruption due to govt regulations due to climate

Question 14

What are reputation risks

Answer 14

failure to align management decision making with wishes of stakeholders

Question 15

5 group forces

Answer 15

Users, gatekeepers. influencers, deciders, buyers

Question 16

2 aspects of individual forces

Answer 16

evaluating criteria, reposnive marketing strategy

Question 17

4 selective processes

Answer 17

selective exposure
selective attention
selective perception
selective retention

Question 18

2 aspects of perceived risk

Answer 18

uncertainty of decision outcome
magnitude of consequences for wrong choice

Question 19

How do orgs confront risky decisions?

Answer 19

Larger buyer center
Lots of information search
more effort in purchasing proccess
favour sellers with good track records

Question 20

What is a buyer center?

Answer 20

Consists of individuals who participate in the purchasing decision and share the goals and risks arising from the decision

Question 21

What are 3 procurement approaches an org uses?

Answer 21

Total cost of ownership, e-procurement processes, reverse auctions

Question 22

3 different costs in total costs of ownership

Answer 22

acquisition, possession, usage

Question 23

2 aspects of organizational forces

Answer 23

growing influence of purcahsing
strategic procurement