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Unformatted text preview: Chapter 7 – Analyzing Business Markets and Buyer Behavior True/False Questions 1. Organizational buying is the decision-process by which organizations establish and satisfy their needs for goods and services. True (moderate) p. 132 2. Mining, manufacturing, banking, and distribution services are all considered part of the business market. True (easy) p. 132 3. Characteristics of business markets include that there are more buyers and larger buyers. False (moderate) p. 134 4. When compared to the consumer market, the demand for goods and services in the business market is derived. True (moderate) p. 134 5. In selling to the government, the contract is always awarded to the lowest bidder. False (moderate) pp. 133-135 6. Government buyers differ from business buyers in that government buyers are monitored more closely by outside publics. True (moderate) pp. 133-135 7. Schools and prisons are considered institutional buying organizations and they tend to have captive clienteles and limited budgets. True (moderate) p. 133 8. A secretary who prevents salespersons from contacting users or deciders is playing a gatekeeper role. True (easy) p. 137 9. A “straight rebuy” is a more complex process than a “new task” because the firm is limited to an approved list of vendors. False (moderate) p. 136 10. Interpersonal factors have almost no influence in business purchasing decisions. False (moderate) p. 138, 140 11. A new supplier is least likely to make a sale to a prospect involved in the straight-rebuy situation. True (moderate) p. 136 12. Business buyers pay close attention to numerous economic factors such as interest rates, cross- functional buying teams, and consumer spending. False (moderate) p. 138 13. The business buying process is influenced by environmental, organizational, and individual factors. True (moderate) p. 138 14. Reading an advertisement about a new business service in a trade magazine to which the purchasing agent subscribes would be an example of how a problem might be recognized in an organizational setting. True (moderate) pp. 141-142 15. In choosing a supplier, the relative importance of different attributes varies with the type of buying situation. True (moderate) p. 143 81 16. Even if a supplier firm has the capacity to deliver a business product or service, that supplier might not be allowed to submit a proposal in the buying process. True (difficult) p. 143 17. When responding to a request for a written proposal, a business marketer should remember the document is primarily a technical document explaining the features of the product. False (moderate) p. 143 18. Product value analysis can involve determining which components can be made cheaper through redesign or standardization, while keeping the same performance level of those components. True (moderate) p. 142 19. In the negotiation process, if the potential supplier is faced with the lower price of a competitor, he or she should always lower his/her price. False (moderate) pp. 143-144False (moderate) pp....
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This note was uploaded on 02/22/2012 for the course BUAD 3010 taught by Professor Sullinger during the Spring '08 term at Toledo.
- Spring '08