Chapter 4 ("Business Buying Behavior") Flashcards
- Which of the following is a difference between B2B markets and consumer markets?
This is a difference between business markets and consumer markets.
- Business customers are more geographically dispersed than consumer markets.
- There is more reliance on personal selling versus advertising in serving business markets than in reaching consumer markets.
- There tends to be fewer transactions with smaller total dollar amounts for business markets than in consumer markets.
- Larger numbers of fewer-transaction customers exist in the business markets than in the consumer market.
- There is less customization of products for business markets than in consumer markets.
-There is more reliance on personal selling versus advertising in serving business markets than in reaching consumer markets.
- Clint Winchester works as a sales representative for Bosch, a supplier of component parts to the automotive industry. Clint only sells to business customers in the automotive industry and never to consumers. Which section topic explains why he should be concerned if consumer purchases of automobiles decrease?
fluctuating demand derived demand inelastic demand market demand bullwhip demand
derived demand
The decreased demand for cars will decrease the demand for the parts by Clint’s customers in the automotive industry.
Derived demand: Demand that springs from, or is derived from, a secondary source other than the primary buyer of the product.
When it comes to B2B sales, that source is consumers. If consumers aren’t demanding the products produced by businesses, the firms that supply products to these businesses are in big trouble.
joint demand
When the demand for one product increases the demand for another.
fluctuating demand
Demand that fluctuates sharply in response to a change in consumer demand.
derived demand
Demand that springs from, or is derived from, a secondary source other than the primary buyer of the product.
- During her annual beach vacation, Mary enjoys going to Pete’s SnowCone Shack to buy delicious syrup-covered shaved ice to beat the heat. Pete’s SnowCone Shack would be considered which type of B2B buyer?
Pete’s produces snow cones for customers.
producer reseller institution government consumer
producer
Producers are companies that purchase goods and services that they transform into other products. They include both manufacturers and service providers.
institutional markets
Nonprofit organizations such as the American Red Cross, churches, hospitals, charitable organizations, private colleges, and civic clubs.
- As an administrative assistant to the CEO, Helen Gallagher possesses a lot of power in the buying center of Grender International. She knows who will be involved in deciding on the company’s new information system and when the decision will be made. Helen is a ________.
Helen is a gatekeeper.
buyer user influencer gatekeeper decider
gatekeeper
People who decide if and when a salesperson gets access to members of the buying center.
- Which important buying center member should salespeople make every effort to quickly identify in order to make the sale?
Identifying the decider in the buying center is important for salespeople to discover.
buyers users influencers gatekeepers deciders
deciders
The person who makes the final purchasing decision.
7 Stages in the B2B Buying Process
- A need is recognized.
- The need is described and quantified.
- Potential suppliers are searched for.
- Qualified suppliers are asked to complete responses to requests for proposal (RFPs).
- The proposals are evaluated and supplier(s) selected.
- An order routine is established.
- A postpurchase evaluation is conducted and the feedback provided to the vendor.
- What is the correct sequence of stages in the B2B buying process that occurs before the last stage of post-purchase evaluation?
- need recognition, establishment of an order routine, search for suppliers, request for proposals sought, and description and quantity of purchase need
- search for suppliers, description and quantity of purchase need, request for proposals sought, establishment of an order routine, and need recognition
-request for proposals sought, establishment of an order routine, need recognition, description and quantity of
purchase need, and search for suppliers
- description and quantity of purchase need, need recognition, request for proposals sought, search for suppliers, and establishment of an order routine
- need recognition, description and quantity of purchase need, search for suppliers, request for proposals sought, and establishment of an order routine
-need recognition, description and quantity of purchase need, search for suppliers, request for proposals sought, and establishment of an order routine
- Which type of buying situation is most advantageous to firms who are the current supplier of goods or services of a B2B customer?
Straight rebuys offer a steady, reliable stream of revenue for the seller.
new task modified rebuy straight rebuy modified task new rebuy
straight rebut
Straight rebuys offer a steady, reliable stream of revenue for the seller.
Sellers like straight rebuys because the buyer doesn’t consider any alternative products or search for new suppliers. The result is a steady, reliable stream of revenue for the seller.
- A major university has provided limited vending machines on campus. Due to pressure from student government, the administration is considering increasing the number of machines and the selection of items from the machines. Which type of B2B buying situation does this describe?
new task modified rebuy straight rebuy modified task new rebuy
modified rebuy
When a company wants to buy the same type of product it has in the past but make some modifications to it.
reverse auction
When the buyer lists what he or she wants to buy and also states how much he or she is willing to pay. The reverse auction is finished when at least one firm is willing to accept the buyer’s price.
sell-side site
A Web site in which a single seller sells products to many different buyers.
