Chapter 19 Organizational Buyer Behavior

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Chapter 19 Organizational Buyer Behavior


484


Multiple Choice Questions



1.

Which of the following have marketers learned with respect to segmenting business
customers?


A)

The segment of small and moderate
-
sized businesses has a lot of potential.


B)

The segment of small and moderate
-
sized busine
sses has limited potential.


C)

The segment of large businesses is the most attractive.


D)

The segment of large businesses is the least attractive.


E)

Tapping the potential of the small and moderate
-
sized business segment does not
require adapting the

marketing strategy from that used to target larger businesses.


Answer: A Page: 685 Difficulty: moderate



2.

Which of the following is FALSE regarding the similarities and differences between
organization buying decisions and family purchases?


A)

Organizations generally have relatively objective and clearly articulated criteria
(i.e., profit maximization) that guide purchases; families lack such explicit,
overarching goals.


B)

Most organizational purchases are made by individuals unknown to ot
her
organizational members and most purchases have little effect on most other
members of the organization; many family purchases are inherently emotional and
strongly affect the relationships between family members.


C)

Businesses often engage in recipro
cal purchases, which is not common for
households.


D)

Many of the general factors that affect consumer buying also influence
organizational buying.


E)

The extent to which emotions influence organizational purchasing is at least as
strong as it is for f
amily decision making.


Answer: E Page: 686
-
687 Difficulty: moderate



3.

The individuals (representing functional areas and management) within an
organization who participate in making a given purchase decision make up the _____.


A)

strategic bu
siness unit (SBU)


B)

decision center (DC)


C)

decision
-
making unit (DMU)


D)

strategic decision unit (SDU)


E)

functional decision unit (FDU)


Answer: C Page: 687 Difficulty: moderate

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4.

Sinclair is from accounting and is a member of a comm
ittee to purchase a new
mainframe computer system for his company. Sinclair is a member of the _____.


A)

strategic business unit (SBU)


B)

decision center (DC)


C)

decision
-
making unit (DMU)


D)

strategic decision unit (SDU)


E)

functional decision
unit (FDU)


Answer: C Page: 687 Difficulty: moderate



5.

Decision
-
making units often function as _____ when they consist of individuals from
various areas of the firm, such as accounting, engineering, manufacturing, and
marketing, who meet specifi
cally to make a purchase decision.


A)

buying centers


B)

purchasing agents


C)

consultants


D)

intermediaries


E)

opinion leaders


Answer: A Page: 687 Difficulty: moderate



6.

Which of the following is a characteristic of a decision
-
making u
nit?


A)

They are often relatively permanent for nonroutine decisions.


B)

Even less important decisions are likely to involve individuals form a wide variety
of functional areas.


C)

Large, highly structured organizations ordinarily involve more indivi
duals in a
purchase decision than do small, less formal organizations.


D)

Decision
-
making units are typically a separate permanent organizational
department in large organizations.


E)

Small organizations do not use formalized decision
-
making units.


A
nswer: C Page: 687 Difficulty: moderate

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7.

A difference between large and small organizations when making a purchase decision
is _____.


A)

small organizations generally involve more individuals in the decision
-
making
process


B)

large organiza
tions generally involve more individuals in the decision
-
making
process


C)

large organizations typically have less specialization


D)

small organizations typically have more specialized purchasing tools


E)

all of the above


Answer: B Page: 687 and
698 Difficulty: easy



8.

Which of the following influences organizational culture and, thus, organizational
buyer behavior?


A)

culture


B)

marketing activities


C)

organizational values


D)

motives


E)

all of the above


Answer: E Page: 688

Difficulty: easy



9.

Which of the following is an external influence on organizational buyer behavior?


A)

organizational values


B)

motives


C)

emotions


D)

reference groups


E)

learning


Answer: D Page: 688 Difficulty: moderate



10.

Wh
ich of the following is NOT an external influence on organization buyer behavior?


A)

firmographics


B)

culture


C)

perception


D)

government


E)

marketing activities


Answer: C Page: 688 Difficulty: moderate

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11.

Carlos is trying to underst
and the organizational buyer behavior of firms in his sales
territory. Which of the following is an external influence on an organization's culture
that he should examine?


A)

organizational values


B)

needs


C)

desires


D)

firmographics


E)

motives


Answer: D Page: 688 Difficulty: moderate



12.

Firmographics, culture, government, reference groups, and marketing activities are
_____ influences on organizational buyer behavior.


A)

internal


B)

external


C)

insignificant


D)

primary


E)

s
econdary


Answer: B Page: 688 Difficulty: moderate



13.

Matt is currently undergoing sales training and is trying to understand the external
influences on organizational buyer behavior. Which of the following is an external
influence?


A)

firmog
raphics


B)

culture


C)

government


D)

marketing activities


E)

all of the above


Answer: E Page: 688 Difficulty: easy



14.

Which of the following is an internal influence on organizational buyer behavior?


A)

motives


B)

firmographics


C)

culture


D)

reference groups


E)

all of the above


Answer: A Page: 688 Difficulty: moderate

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15.

Which of the following is NOT an internal influence on organizational buyer
behavior?


A)

firmographics


B)

organizational values


C)

perception



D)

motives


E)

memory


Answer: A Page: 688 Difficulty: moderate



16.

Maria is a pharmaceutical sales representative that calls on hospitals. She is taking on
a new territory, and she is trying to learn the internal influences on each hospital
's
culture. Which of the following is something that she should consider with respect to
internal influences?


A)

firmographics


B)

organizational values


C)

reference groups


D)

lead users


E)

competitors' marketing activity


Answer: B Page: 688

Difficulty: moderate



17.

Which of the following is a stage in the organizational decision process?


A)

problem recognition


B)

information search


C)

alternative evaluation


D)

outlet selection and purchase


E)

all of the above


Answer: E Pa
ge: 688 Difficulty: easy



18.

Which of the following is NOT a stage in the organizational buying decision process?


A)

vendor support programs


B)

problem recognition


C)

information search


D)

postpurchase processes


E)

alternative evaluation a
nd selection


Answer: A Page: 688 Difficulty: moderate

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19.

Problem recognition, information search, alternative evaluation and selection, outlet
selection and purchase, and postpurchase processes represent _____.


A)

external influences


B)

in
ternal influences


C)

organizational culture


D)

the decision process


E)

types of buying decisions


Answer: D Page: 688 Difficulty: easy



20.

Different functional areas of an organization often do all of the following EXCEPT
_____.


A)

play d
ifferent roles in the purchase process


B)

utilize different information sources


C)

use different evaluative criteria


D)

assign different weights to evaluative criteria


E)

all of the above are done by different functional areas


Answer: E Page: 6
89
-
694 Difficulty: moderate



21.

Members of the decision
-
making unit play which of the following roles?


A)

information gatherer


B)

key influencer


C)

decision maker


D)

purchaser


E)

all of the above


Answer: E Page: 689 Difficulty: easy




22.

Which of the following is NOT a role played by members of the decision
-
making
unit?


A)

information gatherer


B)

key influencer


C)

regulator


D)

user


E)

purchaser


Answer: C Page: 689 Difficulty: moderate

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23.

For which stage of t
he product life cycle is the size of the decision
-
making unit
typically large?


A)

introduction


B)

growth


C)

maturity


D)

decline


E)

fortification


Answer: A Page: 689 Difficulty: moderate



24.

Bob is an engineer. For which stage of the p
roduct life cycle is he likely to be a
member of a key function influencing purchase decisions?


A)

introduction


B)

growth


C)

maturity


D)

decline


E)

fortification


Answer: A Page: 689 Difficulty: moderate



25.

For products in which stage
of the product life cycle are the engineering and R&D
likely to be key functions influencing the purchase decision?


A)

introduction


B)

growth


C)

maturity


D)

decline


E)

fortification


Answer: A Page: 689 Difficulty: moderate



26.

For whic
h stage of the product life cycle is the size of the decision
-
making unit likely
to be neither small nor large, but medium?


A)

introduction


B)

growth


C)

maturity


D)

decline


E)

fortification


Answer: B Page: 689 Difficulty: moderate

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27.

For which stage of the product life cycle is the decision
-
making unit likely to be
small?


A)

introduction


B)

growth


C)

maturity


D)

decline


E)

fortification


Answer: C Page: 689 Difficulty: moderate



28.

For products in which stage of th
e product life cycle is the purchasing function of an
organization likely to be the key function influencing the purchase decision?


A)

introduction


B)

growth


C)

maturity


D)

decline


E)

fortification


Answer: C Page: 689 Difficulty: moderate




29.

Madeline works in purchasing for a major corporation. For purchase of products in
which stage of the product life cycle is she likely to perform a key function
influencing purchase decisions?


A)

introduction


B)

growth


C)

maturity


D)

declin
e


E)

fortification


Answer: C Page: 689 Difficulty: moderate



30.

Which of the following is an organizational purchase situation?


A)

nominal


B)

modified rebuy


C)

limited


D)

extended


E)

routine


Answer: B Page: 690 Difficulty: mode
rate

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31.

Which type of organizational purchase situation occurs when the purchase is of minor
importance and is not complex?


A)

nominal


B)

modified rebuy


C)

limited


D)

straight rebuy


E)

routine


Answer: D Page: 690 Difficulty: moderate




32.

Which type of organizational purchase situation is characterized by low purchase
importance, low choice complexity, level of decision
-
making unit (DMU) at low
levels of the organization, a very small DMU, very brief time to decision, and very
lim
ited decision search?


A)

nominal


B)

straight rebuy


C)

modified rebuy


D)

new task


E)

limited


Answer: B Page: 690 Difficulty: moderate



33.

Which type of organizational purchase situation is characterized by high purchase
importance and c
omplexity, a large and evolving decision
-
making unit that includes
the top of the organization, a long time to decision, extensive information search and
analysis techniques, and a dominant strategic focus?


A)

nominal


B)

straight rebuy


C)

modified re
buy


D)

new task


E)

limited


Answer: D Page: 690 Difficulty: moderate



34.

Juan's job as a purchasing agent consists mostly of reordering basic supplies and
component parts. Which type of organizational purchase situation does this represent?


A)

nominal


B)

straight rebuy


C)

modified rebuy


D)

new task


E)

limited


Answer: B Page: 690 Difficulty: moderate

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35.

The College of Business at a major university is considering the purchase of
technology necessary to enable them put th
eir curriculum online. This decision is very
important and includes a very large and evolving decision
-
making unit. Which type of
organizational purchase situation does this represent?


A)

nominal


B)

straight rebuy


C)

modified rebuy


D)

new task


E)

limited


Answer: D Page: 690 Difficulty: moderate



36.

In high
-
tech markets, who is most likely to recognize a problem or need to purchase?


A)

CEO


B)

accounting personnel


C)

purchasing manager


D)

head of a department


E)

consumer


Ans
wer: D Page: 691
-
692 Difficulty: hard



37.

Which of the following can possibly be part of the informal information search
process for organizational buyers?


A)

site visits to evaluate a potential vendor


B)

laboratory test of a new product or pr
ototype


C)

investigation of possible product specifications


D)

discussions with sales representatives


E)

all of the above are part of informal information search


Answer: D Page: 691 Difficulty: moderate



38.

Darryl is a chemist at a pharmac
eutical company, and he was asked by the decision
-
making unit at his company to visit and evaluate potential vendors that will supply his
company with the chemicals required to manufacture their products and to conduct
laboratory tests of a new product tha
t can be used in the manufacture of their products.
Darryl is assisting the company with which type of information search?


A)

formal


B)

informal


C)

priority


D)

secondary


E)

direct


Answer: A Page: 691 Difficulty: moderate

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39.

Shawn tr
ies to obtain information that might assist his company whenever he talks
with sales representatives, attends trade shows, or when he reads the journals related to
his industry. Shawn is conducting _____.


A)

formal information search


B)

informal infor
mation search


C)

direct information search


D)

indirect information search


E)

secondary information search


Answer: B Page: 691 Difficulty: moderate



40.

Which type of decision rule is very common in the first step of a two
-
stage decision
for

an organizational purchase?


A)

conjunctive


B)

disjunctive


C)

lexicographic


D)

compensatory


E)

elimination
-
by
-
aspects


Answer: A Page: 692 Difficulty: hard



41.

Marcus works in operations. Which of the following evaluative criteria is N
OT
important to him?


A)

ease of maintenance of equipment


B)

competence of service technicians


C)

vendor offers a broad line


D)

time needed to install equipment


E)

product warranty


Answer: C Page: 694 Difficulty: hard



42.

Payments, warr
anties, delivery dates, and so forth represent _____.


A)

purchase specifications


B)

product specifications


C)

terms and conditions


D)

postpurchase evaluation


E)

relationship marketing


Answer: C Page: 695 Difficulty: moderate

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43.

Laura
's job is to negotiate the payment schedule, warranties, and delivery dates for
major purchases made by her company. Laura deals with the _____ of the purchase.


A)

evaluative criteria


B)

product specifications


C)

terms and conditions


D)

postpurcha
se evaluation


E)

relationship marketing aspect


Answer: C Page: 695 Difficulty: moderate



44.

Which of the following sources is rated as the most important information source for
purchasers and purchase influencers within organization?


A)

onli
ne database services


B)

B
-
go
-
B magazines


C)

salespeople


D)

television business networks


E)

general business press


Answer: B Page: 697 Difficulty: hard



45.

The beliefs and attitudes an organization's members have about the organization an
d
how it operates is known as _____.


A)

policy and procedure


B)

firmographics


C)

lifestyle


D)

organizational style


E)

organizational culture


Answer: E Page: 698 Difficulty: moderate



46.

Organizations have a type of self
-
concept and lif
estyles that the text refers to as _____.


A)

organizational ethos


B)

organizational culture


C)

organizational demeanor


D)

organizations structure


E)

none of the above


Answer: B Page: 698 Difficulty: moderate

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47.

Which term is often us
ed to refer to the organizational culture of a business firm?


A)

firmographics


B)

lifestyle


C)

corporate culture


D)

corporate style


E)

internal style


Answer: C Page: 698 Difficulty: moderate



48.

_____ involve both organization characte
ristics (e.g., size, activities, and location) and
characteristics of the composition of the organization (e.g., gender, age, education).


A)

Firmographics


B)

Psychographics


C)

Demographics


D)

Geographics


E)

Behaviorgraphics


Answer: A Page: 69
8 Difficulty: moderate



49.

Which of the following variables represents an organization's firmographics?


A)

size


B)

activities and objectives


C)

location


D)

industry category


E)

all of the above


Answer: E Page: 698
-
701 Difficulty: eas
y



50.

Which of the following is NOT a component of firmographics?


A)

company size


B)

reference groups


C)

company objective


D)

company location


E)

all of the above are components


Answer: B Page: 698 Difficulty: easy

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51.

Which of t
he following statements is FALSE regarding a firm's size?


A)

Large organizations are more likely than smaller ones to have a variety of
specialists who attend to purchasing, finance, marketing, and general management.


B)

The same promotional message ne
eds to be targeted to all of the various functions
in the firm.


C)

Larger organizations are generally more complex than smaller ones because more
individuals participate in managing the organization's operations.


D)

The purchase decision in a smaller f
irm might involve only the owner or manager.


E)

One message would need to address all the key purchase issues when targeting a
smaller firm.


Answer: B Page: 698 Difficulty: hard



52.

Organizational objectives can be categorized as _____.


A)

c
ommercial


B)

governmental


C)

nonprofit


D)

cooperative


E)

all of the above


Answer: E Page: 699 Difficulty: easy



53.

Which of the following is NOT a category of organizational objectives?


A)

commercial


B)

governmental


C)

nonprofit


D)

cooperative


E)

temporal


Answer: E Page: 699 Difficulty: moderate



54.

Organizational activities can be categorized as _____.


A)

routine


B)

complex


C)

technical


D)

a and b


E)

a, b, and c


Answer: E Page: 699 Difficulty: moderat
e

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55.

The American Red Cross participates in fund raising activities all throughout the year.
How would this be classified with respect to general organizational objectives and the
nature of the organizational activity?


A)

commercial objective, ro
utine activity


B)

governmental objective, routine activity


C)

nonprofit objective, routine activity


D)

cooperative objective, routine activity


E)

nonprofit objective, complex activity


Answer: C Page: 699 Difficulty: moderate



56.

General
Electric commits millions of dollars a year to research and development to
develop new products. How would this be classified with respect to general
organizational objectives and the nature of the organizational activity?


A)

commercial objective, routi
ne activity


B)

commercial objective, complex activity


C)

commercial objective, technical activity


D)

cooperative objective, technical activity


E)

nonprofit objective, complex activity


Answer: C Page: 699 Difficulty: moderate



57.

A commer
cial firm in which stock is widely traded is known as a(n) _____.


A)

public firm


B)

cooperative firm


C)

private firm


D)

open firm


E)

trade firm


Answer: A Page: 699 Difficulty: moderate



58.

Roger owns 200 shares of stock in Home Depot.

Which type of commercial firm is
Home Depot?


A)

public firm


B)

cooperative firm


C)

private firm


D)

open firm


E)

trade firm


Answer: A Page: 699 Difficulty: moderate

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59.

A commercial firm in which one or a few individuals owns a contro
lling share of the
firm is known as a(n) _____.


A)

public firm


B)

cooperative firm


C)

private firm


D)

open firm


E)

nontrade firm


Answer: C Page: 699 Difficulty: moderate



60.

Robert Mondovi is a well
-
known winery in Napa Valley, CA. It

is a family
-
owned
business and is not traded on any stock exchange. Which type of commercial firm is
this known as?


A)

public firm


B)

cooperative firm


C)

private firm


D)

open firm


E)

nontrade firm


Answer: C Page: 699 Difficulty: moderate




61.

Which of the following is NOT an objective uncovered through research that drives
the management of privately held firms?


A)

building a place for the entire family to work and be involved


B)

becoming wealthy


C)

avoiding corporations and work
ing for others


D)

build a lasting “empire”


E)

change governmental regulations


Answer: E Page: 699 Difficulty: hard



62.

The types of individuals who work in the organization represent the organization's
_____.


A)

size


B)

composition


C)

macrosegment


D)

reference group


E)

demographic group


Answer: B Page: 701 Difficulty: moderate

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63.

The culture of most organizations is influenced most heavily by which of the
following?


A)

government


B)

overall membership


C)

founder a
nd top management


D)

competition


E)

customers


Answer: C Page: 701 Difficulty: hard



64.

Organizations with distinguishing firmographics can be grouped into market segments
through a process called _____.


A)

industry identification


B)

infr
astructure segmentation


C)

conjoint analysis


D)

macrosegmentation


E)

factor analysis


Answer: D Page: 701 Difficulty: moderate



65.

Which of the following statements regarding culture and government is true?


A)

Variations in values and beh
aviors across cultures affect organizations as well as
individuals.


B)

In Europe, bribery and similar approaches for making sales are acceptable.


C)

In the United States, there is a close working relationship between businesses and
government.


D)

Wor
ker welfare is more important than corporate profit in most U.S. companies.


E)

Plant closure laws, layoff regulations, and worker benefits tend to be much higher
in the U.S. than in European countries.


Answer: A Page: 701 Difficulty: hard



66.

Perhaps the most powerful type of reference group in industrial markets is that of
_____.


A)

innovators


B)

lead users


C)

government regulators


D)

market mavens


E)

business press


Answer: B Page: 701 Difficulty: moderate

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67.

Innovative
organizations that derive a great deal of their success from leading change
are referred to as _____.


A)

innovators


B)

lead users


C)

government regulators


D)

market mavens


E)

opinion leaders


Answer: B Page: 701
-
702 Difficulty: moderate



68.

Which of the following is NOT considered a user reference group in organizational
buying?


A)

lead user


B)

trade press


C)

early adopters


D)

followers


E)

all of the above are considered a user reference group


Answer: B Page: 702 Difficul
ty: hard



69.

Microsoft is a company that has derived a great deal of success from leading change,
and other computer
-
related companies look to Microsoft for cues as to where
technology will be heading in the future. Microsoft would be classified as w
hich type
of user reference group?


A)

lead user


B)

industry leader


C)

early adopters


D)

followers


E)

supportive firm


Answer: A Page: 702 Difficulty: moderate



70.

Lead users tend to accelerate market adoption, which is labeled as _____.



A)

market pull


B)

primary demand


C)

market push


D)

secondary demand


E)

leading indicator


Answer: C Page: 702 Difficulty: hard

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71.

Which of the following is an infrastructure reference group?


A)

business press


B)

followers


C)

ea
rly adopters


D)

lead firms


E)

government regulators


Answer: A Page: 702 Difficulty: moderate



72.

_____ refers to the flow of purchase influence within an industry.


A)

User reference groups


B)

Reference group infrastructure


C)

Diffusion

of innovations


D)

Two
-
stage decision process


E)

Buying centers


Answer: B Page: 702 Difficulty: moderate



73.

Which of the following can influence an organization's decision to buy or not buy a
given product, or to buy or not buy from a given

supplier?


A)

trade associations


B)

financial analysts


C)

dealer organizations


D)

business press


E)

all of the above


Answer: E Page: 702 Difficulty: easy



74.

Lead users tend to accelerate diffusion of information through infrastructure
, which is
labeled as _____.


A)

market pull


B)

primary demand


C)

market push


D)

secondary demand


E)

leading indicator


Answer: A Page: 702 Difficulty: hard

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75.

Which of the following is a value representative of an innovative organizat
ion that
seeks to change, views problems as opportunities, and rewards individual efforts?


A)

Risk taking is discouraged.


B)

Cooperation is more important than competition.


C)

Change is negative and actively avoided.


D)

Hard work comes first, leisu
re second.


E)

Rank or status is more important than performance.


Answer: D Page: 703 Difficulty: hard



76.

Which of the following is the most important element of the communications mix in
most industrial markets?


A)

advertising


B)

sales pr
omotion


C)

sales calls


D)

public relations


E)

pricing


Answer: C Page: 705 Difficulty: moderate



77.

For which type of industry are average costs per sales call the highest?


A)

manufacturing


B)

service


C)

retail


D)

wholesale distribu
tion


E)

nonprofit


Answer: A Page: 705 Difficulty: hard



78.

Which of the following is a reason for the significant role of salespeople in industrial
markets?


A)

Because it is the least expensive form of communication for the selling
organizat
ion.


B)

Business buyers prefer to do business with firms they know, like, and trust, and
sales personnel are the most common representative of the selling organization.


C)

Because advertising has been shown to not have any positive impact on awareness
and sales.


D)

Business buyers usually are not allowed to purchase without the assistance of a
sales representative.


E)

none of the above


Answer: B Page: 705
-
706 Difficulty: hard

Chapter 19 Organizational Buyer Behavior


504


True/False Questions



79.

Various factors beyond functional ut
ility influence organizational decisions.


Answer: True Page: 686 Difficulty: easy



80.

Buying units (BU) are the individuals within an organization who participate in
making a given purchase decision.


Answer: False Page: 687 Difficulty: mod
erate



81.

Individual power and expertise have virtually no influence on organizational decisions
since it is a group process involving DMUs.


Answer: False Page: 688 Difficulty: moderate



82.

Decision
-
making units are likely to vary over the
product life cycle.


Answer: True Page: 689 Difficulty: moderate



83.

Organizational purchase situations are known as straight rebuy, modified rebuy, and
new task.


Answer: True Page: 690 Difficulty: moderate



84.

Limited rebuy is the app
roach used in an organizational buying situation when the
purchase is moderately important to the firm or the choice is somewhat complex.


Answer: False Page: 690 Difficulty: moderate



85.

Site visits to potential vendors, laboratory tests of a ne
w product, and investigation of
possible product specifications are part of formal information search.


Answer: True Page: 691 Difficulty: easy



86.

A conjunctive decision rule is very common in the first stage of a two
-
stage decision
process with

respect to evaluation and search in an organizational buying situation.


Answer: True Page: 692 Difficulty: moderate

Chapter 19 Organizational Buyer Behavior


505



87.

Power, prestige, security, and similar noneconomic criteria have no role in business
purchase decisions.


Answer: False
Page: 693 Difficulty: moderate



88.

People from different functional areas of an organization in a DMU will always use
the same evaluative criteria.


Answer: False Page: 604 Difficulty: moderate



89.

Payments, warranties, delivery dates, as
so forth are examples of a purchase's terms
and conditions.


Answer: True Page: 695 Difficulty: easy



90.

Organizational culture is a concept that is similar to consumer self
-
concept and
lifestyle.


Answer: True Page: 698 Difficulty: moderate




91.

Organizational objectives can be categorized as commercial, governmental, nonprofit,
and cooperative.


Answer: True Page: 699 Difficulty: moderate



92.

In Japan and most of Europe, bribery and similar approaches for making sales are
cons
idered acceptable.


Answer: False Page: 701 Difficulty: moderate



93.

Early adopters are innovative organizations that derive a great deal of their success
from leading change.


Answer: False Page: 701
-
702 Difficulty: moderate



94.

To pro
cess information, a firm must go through the same sequential stages of
exposure, attention, and interpretation as consumers.


Answer: True Page: 703 Difficulty: moderate



95.

Emotion plays no role in organizational buying.


Answer: False Page:
706 Difficulty: moderate

Chapter 19 Organizational Buyer Behavior


506


Essay Questions



96.

Identify the internal and external influences on organizational buyer behavior.


Page: 688 Difficulty: easy

Answer:

External influences
include firmographics, culture, government, reference group
s,
and marketing activities.
Internal influences

include organizational values,
perception, learning, memory, motives, and emotions.



97.

Compare and contrast the organizational purchase situations of straight rebuy,
modified rebuy, and new task with re
spect to situational and purchasing
characteristics.


Page: 690 Difficulty: hard

Answer:

Table 19
-
2 summarizes the characteristics influencing each type of purchase. Two
situational characteristics
are listed:

a.

Purchase importance
--
low for straight
rebuy; moderate for modified rebuy; high
for new task.

b.

Choice complexity
--
low for straight rebuy; moderate for modified rebuy; high for
new task.


Several
purchasing characteristics
are listed:

a.

Size of DMU
--
very small for straight rebuy; medium for modifie
d rebuy; large,
evolving for new task.

b.

Level of DMU
--
low for straight rebuy; mid
-
level for modified rebuy; top of
organization for new task.

c.

Time to decision
--
very brief for straight rebuy; moderate for modified rebuy; long
for new task.

d.

Information search
--
none/very limited for straight rebuy; moderate for modified
rebuy; extensive for new task.

e.

Analysis techniques
--
none/price comparisons for straight rebuy; several for
modified rebuy; extensive, complex for new task.

f.

Strategic focus
--
none for straight reb
uy; limited for modified rebuy; dominates
for new task.

Chapter 19 Organizational Buyer Behavior


507



98.

Harry is a sales representative for a provider of computer network systems. Part of his
job entails that he understand the firmographics of companies he tries to sell his
company's products a
nd services to. Explain the concept of firmographics, and
discuss the different factors that make up a firm's firmographics and implications for
marketers.


Page: 698
-
701 Difficulty: moderate

Answer:

Firmographics

involve both organizational charac
teristics

for example, size,
activities, objectives, location, and industry category

and characteristics of the
composition of the organization

for example, gender age, education, and income
distribution of employees. Six firmographic factors were discuss
ed in the chapter:

a.

Size
--
large organizations are more likely than smaller organizations to have a
variety of specialists who attend to purchasing, finance, marketing, and general
management. That there are often multiple individuals involved in the purcha
se in
a large organization means advertising and sales force efforts must be targeted at
various functions in the firm, each emphasizing issues of concern only to that
function. Marketing communications targeted to a small firm, however, are more
likely t
o be able to use one message.

b.

Activities and Objectives
--
organizational objectives can be categorized as
commercial, governmental, nonprofit, and cooperative, and the general nature of
organizational activities can be described as routine, complex, or tech
nical. Each
combination implies different concerns for buying organizations (see Table 19
-
7
on page 699).

c.

Location
--
regional subcultures within the U.S. influence organizational cultures as
well as individual lifestyles. Location
-
based differences are ma
gnified when doing
business in foreign cultures.

d.

Industry Category
--
firms of similar size, location, activity, objective, and
ownership can still have sharply differing cultures due to being in differing
industries.

e.

Organization Composition
--
the types of i
ndividuals who work in the
organization also heavily influence organization cultures.

f.

Macrosegmentation
--
organizations with distinguishing firmographics can be
grouped into market segments through this process.

Chapter 19 Organizational Buyer Behavior


508



99.

Name and describe the various referen
ce groups that influence organizational behavior
and purchasing decisions.


Page: 701
-
702 Difficulty: moderate

Answer:

Perhaps the most powerful type of reference group in industrial markets is that of lead
users.
Lead users
are innovative organiza
tions that derive a great deal of their success
from leading change. Other reference groups such as trade associations, financial
analysts, and dealer organizations also influence an organization's decision to buy or
not buy a given product, or to buy or
not buy from a given supplier.
Reference group
infrastructure
refers to the flow of purchase influence within an industry. Figure 19
-
2 combines the concept of lead users with reference group infrastructure to give a
more comprehensive picture of organiza
tional reference group systems.



100.

List five of the eight common business values representative of an innovative
organization that seeks change, views problems as opportunities, and rewards
individual efforts.


Page: 703 Difficulty: hard

Answer:


The eight common business values listed in the chapter are (students only have to list
five):

a.

Risk taking is admired and rewarded.

b.

Competition is more important than cooperation.

c.

Hard work comes first, leisure second.

d.

Individual efforts take precedence o
ver collective efforts.

e.

Any problem can be solved.

f.

Active decision making is essential.

g.

Change is positive and is actively sought.

h.

Performance is more important than rank or status.