Exam 3: Buying Behavior and the Buying Process

Kevin works for Irish Pub Company,a design and construction outfit that sells completely finished,made-in-Ireland pubs-with everything from beer taps to mosaic floors to decorative pieces like antique whiskey bottles-to American entrepreneurs.Kevin is trying to sell the Irish pub concept to a retired New York City business executive who wants to run his own business,but he is not an experienced pub owner and is reluctant to invest $300,000 in the project.Kevin should consider this a _____ buying situation.

Using the life-cycle costing approach,salespeople can demonstrate that:

Vincent is trying to analyze how important his suppliers are to his business.He wants to know which supplier is best for a long-term relationship.If he has to apply the supplier relationship management (SRM)strategy,Vincent should most likely begin the analysis by first:

LifeStream Industries has used BrightLight light bulbs for years.When it needs new light bulbs,it uses a straight rebuy.The distributor of Tungsram LED light bulbs would like an opportunity to get his product considered by LifeStream.A(n)_____ would be particularly useful for Tungsram,the out-supplier.

Which of the following types of purchase situations requires a longer time compared with others to arrive at a purchase decision in an organizational buying decision process?

Handell has established a small company that manufactures decorative items for homes.One of the company's latest items is a line of thermometers reproduced from ones that were given away for free before World War II.Since quality is essential to the company's success,it has spent a great deal of time and effort locating the best suppliers for the metal,wood,paint,and mercury for its first round of production.The purchase of these components would be an example of a _____ buying situation.

Explain the role an initiator plays in the organizational buying process.

From a salesperson's point of view,the initial steps in the buying process are critical in straight rebuy situations.

Which of the following statements is true about automatic replenishment (AR)management?

Effective selling to government agencies requires:

What is automatic replenishment?

_____ control the flow of information and limit the alternatives considered in the organizational buying decision process.

Vincent has been purchasing goods for his firm from a single supplier for many years.On every purchase,the supplier gives him reasonable discounts.Even though other vendors sell the same goods at lower rates,Vincent states that he has never considered an alternate supplier because the quality of goods provided by his existing supplier has always been exceptional.This is an example of:

Discuss the economic and quality criteria that may influence buying decisions.

The evaluation and selection of products and suppliers are affected by the needs of both the organization and the individuals making the decision.These needs are categorized as:

Global sourcing is a key factor in achieving a sustainable competitive advantage.

The city of Marowa is considering contractors to build a new sports complex.What factors will likely influence the university's buying decision?

The supervisor of an automated teller machine (ATM)facility learns that the machine is not functioning efficiently because it uses an old software.According to the organizational decision buying process,which of the following should the supervisor do next?

Service level agreements (SLAs)are standards for minimum service delivery for specific measures of how a vendor will perform services,and are written into a contract.

How does the organizational buying process differ from the consumer buying process?