Exam 8: Business Markets and Buying Behavior

The demand for many business products is inelastic at the industry level.

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered

Which of the following is true with respect to buyers in business markets?

Ben Davideau is assigned by his sales manager to come up with the names and addresses of 20 firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in

Reseller markets consist of intermediaries that buy finished goods and resell them for profit.

Product specifications are best described as

Compared with consumer goods, marketers aiming at business customers

Jennifer is the purchasing manager for the local public school system. Recently, the school received a large grant to make technology-related purchases to enable students to have better access to computers and utilize the Internet. Jennifer is working with the teachers, and they recently developed product specifications that are necessary or required for tablet or laptop computers. What is the next stage in the purchase decision process for Jennifer and the teachers?

Wholesalers sell primarily to ultimate consumers.

Scenario 8.2 Use the following to answer the questions. Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the Northeastern and Southern regions. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern region, while dealers who sell to small business landscaping companies tend to be located in the Northeastern region. Company executives are considering expansion of its distribution to markets in the Midwest. Refer to Scenario 8.2. When Precision Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be ____, part of the buying center.

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?

Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects periodically. This practice is an example of

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. Which of the following groups should Samsung not include in its buying center for the new equipment?

Industrial demand derives from consumer demand.

Inspection refers to a purchasing method in which a representative unit is taken from a lot and evaluated, and the buying decision is based on the conclusions.

Fred is the purchasing manager at Marc's Auto Body? HYPERLINK \l "_msocom_1" and places orders for routine products such as office supplies and items needed for service and repair of vehicles. He typically purchases tools from the Snap-on? HYPERLINK \l "_msocom_2" dealer and orders a variety of nuts, bolts, and hardware from Grainger. He really likes purchasing from Grainger since he can utilize their website where he has an intranet portal to easily place orders and receive a company discount. Grainger makes it easy and convenient as well by providing a list of previously purchased items that Fred can select and simply click "reorder." What type of purchase process does Fred use when buying these items from Grainger?

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called

Explain how purchase decisions for business products may be influenced by persons in a buying center.

Demand for a business product is ____ when two or more items are used in combination to produce a product.