Exam 7: Business Buying Behavior

Ultimate consumers are generally more rational than business customers.

Administrative assistants that control the flow of information to other people in the organization often play the ____ role in the buying center.

The old Standard Industrial Classification system is more comprehensive than NAICS.

Churches,charitable organizations,and private colleges are considered ____ buyers.

Raw materials are especially affected by joint demand.

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

When the requirements associated with a new-task purchase are changed the second or third time,this is called a ____ purchase.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

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 7.2.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

The four categories of consumer markets are producer,reseller,government,and institutional.

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 7.1.There are many factors that would influence Samsung's business buying decisions.Which one of the following would not?

Interpersonal dynamics are easy to observe and simple for the marketer to assess.

All three NAFTA countries will convert to the NAICS over the next few years.

In what ways do environmental factors affect the business buying decision process?

In industries in which price changes occur frequently,demand fluctuations have practically been eliminated since buyers have become used to these changes and have learned to ignore them.

Orders placed by business customers are usually smaller and more numerous than consumer sales.

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.

Bob Denton of Denton Pest Control buys equipment from a supplier because that supplier hires him to spray the warehouse for insects periodically.This practice is known as

The fourth stage in the business buying decision process is that of searching for products and suppliers.

Discuss how demand for business products differs from demand for consumer products.