1. 17136C Understanging Buyers Ch.04 Organisational buying behaviour Section A:True or False

2. 1.The business market and the organisational buying market are not the same thing. Answer: Fpage 92 2.Organisational buyers will have different needs and buying patterns across different buying situations. Answer: Tpage 97 3.Woolworths and Repco are both part of the reseller market. Answer: Tpage 98 4.Price is not always the key concern of organisational buyers. Answer: Tpage 99 5.Negotiation is always a longer process in organisational buying than in the consumer market. Answer: Fpage 99

3. 6.A modified rebuy will involve some changes in the purchase decision. Answer: Tpage 100 7.Demand for business products is relatively inelastic because there are not many choices available. Answer: Fpage 101 8.Buyers are responsible for placing orders in the business market. Answer: Fpage 108 9.Major retailers and manufacturers are increasingly centralising their buying. Answer: Tpage 109 10. A ‘value chain’ is a set of linked value creating activities. Answer: Tpage 110

4. 17136C Understanging Buyers Ch.04 Organisational buying behaviour Section B:Multiple Choice

5. Question 1 The business market consists of: a) Wholesalers but not retailers b) All organisations that purchase goods and services c) Profit oriented businesses d) Manufacturers but not retailers Answer: Bpage 92 Question 2 The buying method and style of organisational buyers is: a) Usually formal b) Usually informal c) Non-existent d) The same as for consumers Answer: Apage 98

6. Question 3 In organisational buying, the salesperson’s impact: a) Is more significant than in consumer buying b) Is a major contributor to the decision process c) Can be significant but often less than with consumer purchases d) Is far less significant than in the consumer market Answer: Cpage 98 Question 4 A low importance/difficulty, low organisational involvement decision is generally a: a) New task b) Modified rebuy c) Straight rebuy d) Continuous task Answer: Cpage 100

7. Question 5 A moderate importance/difficulty, moderate organisational involvement decision is generally a: a) New task b) Modified rebuy c) Straight rebuy d) Continuous task Answer: Bpage 100 Question 6 A high importance/difficulty, high organisational involvement decision is generally a: a) New task b) Modified rebuy c) Straight rebuy d) Continuous task Answer: Apage 100

8. Question 7 As involvement increases, so do all of the following, except: a) Group size b) Decision complexity c) Decision importance d) All of the above increase Answer: Dpage 100 Question 8 Organisational buyers: a) Are easily confused because they buy lots of different things b) Are easily convinced by a sales person who has lots of facts and figures c) Have highly developed buying skills from training and experience d) Buy from the sales person who takes them to the best lunches Answer: Cpage 98

9. Question 9 The repurchase of stationery items under a contract by an organisation is a: a) Straight decision b) Straight rebuy decision c) Low involvement decision d) Habitual decision Answer: Bpage 100 Question 10 A computer manufacturer changes its design of a particular model and requires alterations to its hardware. This will most likely result in a: a) Straight rebuy decision b) Modified decision c) Modified rebuy decision d) New task decision Answer: Cpage 100

10. Question 11 The manufacturer of meat pies has decided to branch out into pet food. The purchase of suitable packaging materials will most likely result in a: a) Straight rebuy decision b) New task decision c) Modified decision d) Modified rebuy decision Answer: Bpage 100 Question 12 A building company’s demand for bricks is based on its forecast of the number of homes it is likely to build and sell. This is an example of: a) Derived demand b) Inelastic demand c) Economic constraints d) Fluctuation demand Answer: Apage 101

11. Question 13 Trends in the consumer market are: a) Of no interest to the business marketer b) Interesting in a social context but not a business context c) The basis of estimating future market potential for the business’s products d) The reason demand is elastic Answer: Cpage 101 Question 14 Businesses to business marketers often advertise to the consumer market because: a) They like to see their name on TV b) It can change the elasticity of demand c) It stops demand fluctuating d) Demand is derived from consumer demand Answer: Dpage 101

12. Question 15 Demand in the business market is generally considered: a) Elastic in the short term b) Inelastic in the short term c) Always elastic d) Always inelastic Answer: Bpage 101 Question 16 Demand for business products fluctuates: a) More widely than for the consumer market b) The same as for the consumer market c) Less than for the consumer market d) Doesn’t fluctuate Answer: Apage 101

13. Question 17 Demand for business products fluctuates more widely than consumer demand because: a) Consumers keep changing their minds b) Consumers are fickle c) Business orders vary in size and frequency d) Business orders are dependant on the consumer market Answer: Cpage 101 Question 18 An objective of most organisations when making purchases is: a) Maintaining sales b) Improving performance c) Lowering cost d) b) and c) only Answer: Dpage 102

14. Question 19 Though most organisational decisions tend to be rational: a) The decisions are still being made by an individual or group of individuals who have emotions b) A supplier can still gear a message that appeals to the emotions of individuals making the decisions c) That is why developing a rational organisational benefit should be the first step in a supplier’s communication strategy d) All of the above are true Answer: Dpage 102 Question 20 Any member of a business buying centre may play all of the following roles, except: a) Decider b) Contributor c) Buyer d) Gatekeeper Answer: Bpage 104

15. Question 21 A production manager who decides not to test samples from suppliers that he does not totally trust is performing the role of a: a) Decider b) User c) Gatekeeper d) Influencer Answer: C page 107 Question 22 A production worker asked to test out new safety goggles and indicate which ones he likes best is a: a) Decider b) User c) Gatekeeper d) Influencer Answer: B page 104

16. Question 23 A warehouse manager making a suggestion that the packaging supplier be changed as the current supplier is not delivering on time is a: a) Decider b) User c) Gatekeeper d) Influencer Answer: D page 104 Question 24 It is critical that the first-time experience in a new buyer-seller relationship be positive because: a) A negative experience in a high-involvement decision could damage a relationship for an extended period of time b) The negative consequences of any important organisational purchase decision are not easily unlearned c) An organisation is always firmly and finally judged on first impressions d) a) and b) Answer: Dpage 109

17. Question 25 In the business market, CRM programmes typically include: a) Loyalty schemes b) Direct marketing activities c) Personal birthday cards d) a) and b) Answer: Dpage 109