Module 3

Question 1

A group of people within an organization who make business purchasing decisions.

Answer 1

Buying Centers

Question 2

Functional representation that supports a sales person to create a team-selling approach.

Answer 2

Selling Centers

Question 3

The individual decision maker or group within the customer organization who controls the budget and writes the checks for new product purchases.

Answer 3

Economic Buyer

Question 4

Someone who makes sure that purchasing rules defined in corporate governance procedures are followed.

Answer 4

Infrastructure Buyer

Question 5

Someone who influences the buying decision as the person who will actually use the solution after the purchase decision is made.

Answer 5

User Buyer

Question 6

Individuals who suggest purchasing a product or service for a business

Answer 6

Initiators

Question 7

Individuals within an organization who actually use the product

Answer 7

Users

Question 8

Individuals who have experience or expertise that can help improve the buying decision

Answer 8

Influencers

Question 9

Individuals who will decide if and when one gets access to members of the buying center

Answer 9

Gatekeepers

Question 10

The person who makes the final purchasing decision

Answer 10

Decision Makers

Question 11

The people who sign the contract. Focused on the financial aspects of the purchase and how the purchase can positively impact organizational metrics.

Answer 11

Buyers

Question 12

Persons who are responsible for the management, administration, and supervision of the company’s acquisition programs.

Answer 12

Procurement Officer

Question 13

Process through which industrial buyers make a purchase decision.

Answer 13

Organizational Buying Process

Question 14

Someone recognizes that the organization has a need that can be solved by purchasing a good or service. Users often drive this stage, although others can serve the role of initiator.

Answer 14

Recognizing the Need

Question 15

Usually involves users as well as initiators to put more definition around the type of product or service that will help meet the need.

Answer 15

Defining the Need

Question 16

People involved in the buying process seek out information about the products they are looking for and the vendors who can supply them.

Answer 16

Search for Suppliers

Question 17

Qualified suppliers are asked to complete responses to requests for proposals

Answer 17

Bid Analysis

Question 18

An invitation to submit a bid to supply a good or service.

Answer 18

Request for Proposals (RFP)

Question 19

RFPs are reviewed and the vendor or vendors selected

Answer 19

Supplier Selection

Question 20

Order is typically placed electronically and can be one transaction or continuous

Answer 20

Order Placement

Question 21

Buyer surveys quality and satisfaction levels

Answer 21

Performance Review

Question 22

A company that purchases parts, products, or ingredients to produce other goods and services to sell to other companies or consumers.

Answer 22

Purchases

Question 23

A company that buys finished goods to sell, lease, or rent to other companies or consumers.

Answer 23

Resellers

Question 24

A government agency or nonprofit group that purchases products or services to serve or sell to its constituents.

Answer 24

Organizations

Question 25

The duplicate purchase of identical goods in the identical amount under the identical terms from the identical supplier.

Answer 25

Straight Rebuy

Question 26

A business buying situation in which the buyer purchases a product or service for the first time

Answer 26

New Task Purchase

Question 27

A buying situation in which an individual or organization buys goods that have been purchased previously but changes other element of the previous order.

Answer 27

Modified Rebuy

Question 28

Limited, ongoing relationships that develop when a buyer continues to purchase a product from a seller out of habit, as long as its needs are met.

Answer 28

Functional Relationships

Question 29

A situation where the buyer needs extensive expertise from the seller to make a decision

Answer 29

Affiliative Relationships

Question 30

A partnership in which the buyer and seller commit resources to generate growth for both parties

Answer 30

Strategic Partnership

Question 31

A formal agreement among companies who want to share resources to create a competitive advantage.

Answer 31

Alliance Agreement

Question 32

Businesses join to develop a specific product or service.

Answer 32

Joint R&D Agreements

Question 33

An agreement where companies share resources to market their products together.

Answer 33

Co-marketing Agreements

Question 34

An investment by one organization in another organization in which the investor firm holds less than 50% of the shares.

Answer 34

Minority Investments