Exam 8: Business-To-Business Behaviour

Systems buying allows a purchaser to buy a whole solution to his or her problem while avoiding the necessity of making a series of separate decisions over time.

Ned and John, owners of a chicken processing plant, recently attended a trade show where they saw a breast deboning machine that operates at a capacity of 900 birds per hour and requires only one employee. Until the show, the brothers had no idea such a product existed. As far as they have learned, only one company is manufacturing such a machine. They have calculated that such a machine could save them up to $200 a day in labour costs. They have contacted the company to learn more about the $67,000 deboning machine. The Rogers brothers are engaged in which type of purchase?

Colonial Antiques specialises in handling merchandise from deceased estates and derelict colonial homesteads. The company purchases entire lots of household contents which it subsequently breaks up into smaller units and which are sold to suburban antique dealers, second hand furniture stores and markets. Colonial Antiques is an example of a(n):

At which step of the procurement process would a company be MOST likely to carry out a value analysis?

When a company lists items such as technical specifications, quantity needed, expected time of delivery, return policies and warranties, it is MOST likely engaged in which stage of the business procurement process?

Tama Ropati and Milly Wilson had a bumper crop of cherries two years ago. They decided to make some extra jars of Milly's mother's cherry salsa and see if they could sell it at a local crafts fair. Response was great. Demand was high. Now Milly and Tama own a company that produces gourmet salsa under the brand name Eagle Rock. Working at the company now are Tama, Milly, her mother Grace, and Tama and Milly's son- in- law Bob who makes deliveries and does the heavy lifting and cleaning. Tama is in charge of marketing and helps out in the kitchen. There are also a number of part- time workers. A salesperson wants to sell them a canning system that will speed up production by 300 per cent. It costs about $23,000. Discuss how each of the company's full- time employees might assume various roles in the buying centre.

Derived demand occurs when marketers contrive or collude to create demand for products and services.

Joe is currently searching through trade directories, doing a computer search of potential suppliers and phoning around other companies asking for recommendations. Which stage of the business buying process is Joe MOST likely to be engaged?

Select the words that BEST complete the following sentence. Many institutional markets are characterised by ___ _____budgets and ___ ______ patrons.

Select the word that BEST completes the following sentence. Government organisations typically require suppliers to submit:

Briefly describe the three major types of buying situations a firm may face. Then describe the conditions under which each of the three business buying situations would take place for Pukekohe Print Place (PPP) that has decided to purchase some colour copying machines.

Two salespeople, Roy Yardley and Natasha Adams, enter a room outside the purchasing agent's office. The purchasing agent works for a furniture manufacturer. Yardley has sold to the company several times in the past. He has stopped by to see if the purchasing agent needs to restock any of his company's adhesives. Adams will try to convince the purchasing agent to buy a machine for cutting and shaping veneers that will reduce wastage by 15 per cent and costs $65,000. The furniture company currently does this by employing skilled labourers who use hand tools. Classify the products being sold in terms of buying situation. What steps in the business buying process are associated with each buying situation? In what steps in the business buying process do you think the purchasing agent is now?

When a company turns over ordering and inventory responsibilities to its suppliers, this is known as:

Value analysis is an approach to cost reduction in which components are carefully studied to determine if they can be redesigned or standardised or made by cheaper methods of production.

Which type of organisational purchasing approaches gives the buyer greater purchasing power?

Harriet Jones is the buyer for Otway Meats. She is ordering casings for sausages and other meat products. She orders the same number and quality of casings as in previous orders, but notices that her supplier's prices have increased slightly. What type of purchase is Harriet making?

The purchasing officer for a major hospital has been informed that the price of hypodermic needles has increased by almost 20 per cent. He orders a new supply anyway because he knows he can pass the increase on to his patients. This is an example of business products having which type of demand?

Briefly discuss the structure and demand characteristics of organisational markets. What are their marketing implications?

The office manager at Morwell Manufacturing sent the following email to the oompany's purchasing agent: Tom, Please order another six cases of the laser- cut computer paper and twelve dozen more rolls of standard adding- machine tape from our usual paper products supplier. We need this by next Thursday. Thank you. Terry. This situation should be described as a:

The growth of centralised purchasing has encouraged the use of a national account sales force.