Exam 8: Business Markets and Buying Behavior

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

The increase in government purchases has resulted partly from the increase in the number of services provided by the government.

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method?

Grocery stores and supermarkets are a part of producer markets.

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

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?

As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.

​A marketer who starts selling to the business market, after having spent most of his career selling directly to consumers, will quickly come to realize that business customers are very demanding. Business customers place a high value on which of the following aspects of a buying relationship?

On-time delivery is crucial to a business customer, since a late delivery may hold up a production line or cause the firm to lose sales.

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called

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

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

A disadvantage of reciprocity is that it can lead to

How do individual factors affect the business buying decision process?

​Resellers are business intermediaries who buy finished goods and resell them for a profit. Their business model dictates that they consider several factors when deciding which products to buy. Which of the following is a factor the reseller considers when making purchase decisions?

Industrial demand derives from consumer demand.

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

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?​