Exam 8: Business Markets and Buying Behavior

Of the three types of business purchases, the straight rebuy purchase usually requires the most information.

What factors affect the purchase method that business customers choose?

A fall in consumer demand for a product is likely to result in increased buying from suppliers as consumer goods producers replenish depleted inventories and gear up for the next surge in consumer demand.

Sometimes initial demand for a business product will drop following a price cut if buyers believe that further price reductions are forthcoming.

Scenario 8.1 Use the following to answer the questions. Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives. Refer to Scenario 8.1. What type of business purchase is Samsung undertaking?

What is one of the benefits of industry classification systems like NAICS?

What are the four major factors that influence business buying decisions?

Industrial classification systems are best used in conjunction with other types of data to determine exactly how many and which customers a marketer can reach.

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ____ market.

Christoff's Lawn & Lot is a small business that provides landscaping and lawnmowing services in the spring and summer. Christoff's usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35%, causing Christoff's to pay more for their supplies. The demand for gas despite its price represents ________ demand for Christoff's Lawn & Lot.

Heritage Wines has national distribution agreements with wineries across the United States such as Cakebread and Robert Mondavi in Napa Valley, California. Heritage Wines receives their inventory from their winery suppliers and makes the wine available to customers-restaurants, bars, hotels, etc., through their sales representatives and extensive catalog. What type of business market does Heritage Wines represent?

Business customers are forced to satisfy personal goals in pursuits that lie outside their jobs.

In the long run, business demand becomes totally unrelated to consumer demand.

Sylvia works for Dell Computers in the purchasing department and has been receiving more orders related to tablet and portable computers compared to desktop computers. She's noticed a significant reduction in the number of monitors the company is manufacturing as well as traditional desktop systems. It seems that fewer individuals are purchasing desktop computers for their home offices and many businesses have switched to portable computers since the workforce prefers the capability to work "on the go" rather than be required to complete work at the office. Therefore, it's likely the demand for desktop computers and monitors is

Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety of suppliers in the U.S. and abroad. The volume of your raw materials purchases is a function of the customer demand for your firm's motorcycles. Which of the following best describes the type of demand your firm has for these raw materials?

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

Compare and contrast the three major types of purchases made by business customers.

You recently raised your prices on the products you sell to your business customers. To your surprise, these customers did not change the amount of units they purchase from you. It was as if the price increase did not matter to these customers. Which of the following types of business demand most accurately describes this situation?

What is a primary difference between business and consumer buyers?