Exam 6: Business Markets and Business Buyer Behavior

Nancy Willis works for the LeBray Beverage Company. She helps define product specifications and also provides information for evaluating alternatives. Nancy plays the role of a gatekeeper.

Refer to the scenario below to answer the following questions. Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. The warehouse foreman gave inputs regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. -In this instance, Richard plays the role of a(n) ________.

Ross Stuart is a purchasing manager in a Texas-based manufacturing company. He sources most of the raw materials needed by his company from Kramer Corp. However, Ross is unhappy with Kramer's prices. Additionally, he thinks that the quality of the raw materials supplied by Kramer is sub-standard. Which of the following stages in the business buying process is Ross' company currently in?

Which of the following is an organizational factor that influences business buyers?

A company buying a product or service for the first time faces a new task situation.

The government market consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.

What happens in a modified rebuy?

Total government spending is determined by ________.

Refer to the scenario below to answer the following questions. Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation. In the meantime, the purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others. Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. The warehouse foreman gave inputs regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision. -In this scenario, which of the following had the greatest influence on the business buying behavior at Alpha Stampings?

The benefits of e-procurement include access to new suppliers, lower purchasing costs, and more time-efficient order processing and delivery.

In the general needs description of the buying process, the buyer describes the characteristics and quantity of the needed item.

Why is the business buying process more formalized than the consumer buying process?

A ________ creates a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed prices for a set time period.

In a ________ situation, the "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account and the "out" suppliers may see the present situation as an opportunity to make a better offer and gain new business.

In which of the following would the buyer reorder a product without any modifications?

Dora has formal authority to select the suppliers and arrange terms of purchase for many of the items her firm uses. Her role in the buying center is that of a(n) ________.

What is e-procurement? Briefly describe its major advantages.

All of the following are difficulties associated with selling to government buyers EXCEPT ________.

What does the proposal solicitation stage of the business buying process involve?

Which of the following plays the most important role in government buying?