Exam 8: Business Markets and Buying Behavior

Industrial classification systems allow marketers to divide business customers into groups based mainly on the types of goods and services provided.

King Auto Supply sells car and truck parts,as well as tire replacement and balancing services.As King places its order for truck tires with Michelin,it must also place an order for valve stems and balancing weights for the tires.Such business products are characterized as having ____ demand.

After finding out which industries purchase the major portion of an industry's output,the next step is to begin production.

A new-task purchase is one in which the business makes an initial purchase of a new item.

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 ATV's.It also sells its products to independent repair centers,dealers,and other wholesalers in the northeast and southern states.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 states,while dealers who sell to small business landscaping companies tend to be located in the northeastern states.Company executives are considering expansion of its distribution to markets in the Midwest. -Refer to Scenario 8.2.Last year,Precision Brake's sales to the manufacturers of lawn tractors declined,partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass.This decline in sales for Precision Brake is an example of

Business customers generally seek to obtain detailed information about a product before purchasing it.

Most business buying decisions are made by

To obtain the names of specific potential customers,the business marketer is well advised to employ the services of a commercial data company,since this is both cheaper and faster than any other method.

In some cases,the types of services offered by a supplier may constitute a primary advantage over suppliers of similar products.

The group of people within a business who are involved in making business buying decisions is referred to as

There is little or no difference between wholesalers' customers and retailers' customers.

Vendor analysis is a formal,systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price,product quality,delivery service,product availability,and overall company reliability.

When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans,Hunter is part of what type of market for electrical wire?

When buying materials,the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors.Which one of the following is least likely to concern this buyer?

NAICS provides less information about service industries and high-tech products than did the SIC system.

Problem recognition can be stimulated by external sources,such as trade shows or sales representatives.

Individual influencing factors refer to

When certain consumer products are in high demand,producers might buy extra materials and equipment and when demand subsides,producers will cut back on their material purchases.This describes ____ demand.

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?

Draw and label the framework that represents the business buying decision process and the factors that influence it.