Organizational Buyer Behavior Chapter 19 Exam Prep

Chapter 19 Test Bank

Multiple Choice Questions

1. Which of the following is true about business e-commerce?

A. More than 75 percent of today’s business buyers are Gen Yers.

B. Personalization doesn’t matter to business customers.

C. Business e-commerce is expected to surpass $5 trillion by 2021.

D. Over 40 percent of today’s business customers use mobile devices in the buying process.

E. All of these choices are correct.

2. What percentage of today’s business buyers are Gen Yers?

A. less than 10 percent

B. 25 percent

C. almost 50 percent

D. almost 75 percent

E. over 90 percent

3. Which of the following influences organizational culture and, thus, organizational buyer behavior?

A. culture

B. marketing activities

C. organizational values

D. motives

E. All of these choices are correct.

4. Which of the following is an external influence on organizational buyer behavior?

A. organizational values

B. motives

C. emotions

D. reference groups

E. learning

5. Which of the following is not an external influence on organization buyer behavior?

A. firmographics

B. culture

C. perception

D. government

E. marketing activities

6. Carlos is trying to understand the organizational buyer behavior of firms in his sales territory. Which of the following is an external influence on an organization's culture that he should examine?

A. organizational values

B. needs

C. desires

D. firmographics

E. motives

7. Firmographics, culture, government, reference groups, and marketing activities are __________ influences on organizational buyer behavior.

A. internal

B. external

C. insignificant

D. primary

E. secondary

8. Matt is currently undergoing sales training and is trying to understand the external influences on organizational buyer behavior. Which of the following is an external influence?

A. firmographics

B. culture

C. government

D. marketing activities

E. All of these choices are correct.

9. Which of the following is an internal influence on organizational buyer behavior?

A. motives

B. firmographics

C. culture

D. reference groups

E. All of these choices are correct.

10. Which of the following is not an internal influence on organizational buyer behavior?

A. firmographics

B. organizational values

C. perception

D. motives

E. memory

11. Maria is a pharmaceutical sales representative who calls on hospitals. She is taking on a new territory, and she is trying to learn the internal influences on each hospital's culture. Which of the following is something that she should consider with respect to internal influences?

A. firmographics

B. organizational values

C. reference groups

D. lead users

E. competitors' marketing activity

12. Which of the following is a stage in the organizational decision process?

A. problem recognition

B. information search

C. alternative evaluation

D. outlet selection and purchase

E. All of these choices are correct.

13. Which of the following is not a stage in the organizational buying decision process?

A. vendor support programs

B. problem recognition

C. information search

D. postpurchase processes

E. alternative evaluation and selection

14. Problem recognition, information search, alternative evaluation and selection, outlet selection and purchase, and postpurchase processes represent

A. external influences.

B. internal influences.

C. organizational culture.

D. the decision process.

E. types of buying decisions.

15. Different functional areas of an organization often do all of the following except

A. play different roles in the purchase process.

B. utilize different information sources.

C. use different evaluative criteria.

D. assign different weights to evaluative criteria.

E. All of these choices are done by different functional areas.

16. The individuals (representing functional areas and management) within an organization who participate in making a given purchase decision make up the

A. strategic business unit (SBU).

B. decision center (DC).

C. decision-making unit (DMU).

D. strategic decision unit (SDU).

E. functional decision unit (FDU).

17. Sinclair is from accounting and is a member of a committee to purchase a new mainframe computer system for his company. Sinclair is a member of the

A. strategic business unit (SBU).

B. decision center (DC).

C. decision-making unit (DMU).

D. strategic decision unit (SDU).

E. functional decision unit (FDU).

18. Decision-making units often function as __________ when they consist of individuals from various areas of the firm, such as accounting, engineering, manufacturing, and marketing, who meet specifically to make a purchase decision.

A. buying centers

B. purchasing agents

C. consultants

D. intermediaries

E. opinion leaders

19. Which of the following is a characteristic of a decision-making unit?

A. They are often relatively permanent for nonroutine decisions.

B. Even less important decisions are likely to involve individuals form a wide variety of functional areas.

C. Large, highly structured organizations ordinarily involve more individuals in a purchase decision than do small, less formal organizations.

D. Decision-making units are typically a separate permanent organizational department in large organizations.

E. Small organizations do not use formalized decision-making units.

20. A difference between large and small organizations when making a purchase decision is

A. small organizations generally involve more individuals in the decision-making process.

B. large organizations generally involve more individuals in the decision-making process.

C. large organizations typically have less specialization.

D. small organizations typically have more specialized purchasing tools.

E. All of these choices are correct.

21. Members of the decision-making unit play which of the following roles?

A. information gatherer

B. key influencer

C. decision maker

D. purchaser

E. All of these choices are correct.

22. Which of the following is not a role played by members of the decision-making unit?

A. information gatherer

B. key influencer

C. regulator

D. user

E. purchaser

23. For which stage of the product life cycle is the size of the decision-making unit typically large?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

24. Bob is an engineer. For which stage of the product life cycle is he likely to be a member of a key function influencing purchase decisions?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

25. For products in which stage of the product life cycle are the engineering and R&D likely to be key functions influencing the purchase decision?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

26. For which stage of the product life cycle is the size of the decision-making unit likely to be neither small nor large, but medium?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

27. For which stage of the product life cycle is the decision-making unit likely to be small?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

28. For products in which stage of the product life cycle is the purchasing function of an organization likely to be the key function influencing the purchase decision?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

29. Madeline works in purchasing for a major corporation. For purchase of products in which stage of the product life cycle is she likely to perform a key function influencing purchase decisions?

A. introduction

B. growth

C. maturity

D. decline

E. fortification

30. Which of the following is an organizational purchase situation?

A. nominal

B. modified rebuy

C. limited

D. extended

E. routine

31. Which type of organizational purchase situation occurs when the purchase is of minor importance and is not complex?

A. nominal

B. modified rebuy

C. limited

D. straight rebuy

E. routine

32. Which type of organizational purchase situation is characterized by low purchase importance, low choice complexity, level of decision-making unit (DMU) at low levels of the organization, a very small DMU, very brief time to decision, and very limited decision search?

A. nominal

B. straight rebuy

C. modified rebuy

D. new task

E. limited

33. Which type of organizational purchase situation is characterized by high purchase importance and complexity, a large and evolving decision-making unit that includes the top of the organization, a long time to decision, extensive information search and analysis techniques, and a dominant strategic focus?

A. nominal

B. straight rebuy

C. modified rebuy

D. new task

E. limited

34. Juan's job as a purchasing agent consists mostly of reordering basic supplies and component parts. Which type of organizational purchase situation does this represent?

A. nominal

B. straight rebuy

C. modified rebuy

D. new task

E. limited

35. The College of Business at a major university is considering the purchase of technology necessary to enable them to put their curriculum online. This decision is very important and includes a very large and evolving decision-making unit. Which type of organizational purchase situation does this represent?

A. nominal

B. straight rebuy

C. modified rebuy

D. new task

E. limited

36. In high-tech markets, who is most likely to recognize a problem or need to purchase?

A. CEO

B. accounting personnel

C. purchasing manager

D. head of a department

E. consumer

37. Which of the following can possibly be part of the informal information search process for organizational buyers?

A. site visits to evaluate a potential vendor

B. laboratory test of a new product or prototype

C. investigation of possible product specifications

D. discussions with sales representatives

E. All of these choices are part of informal information search.

38. Darryl is a chemist at a pharmaceutical company, and he was asked by the decision-making unit at his company to visit and evaluate potential vendors that will supply his company with the chemicals required to manufacture their products and to conduct laboratory tests of a new product that can be used in the manufacture of their products. Darryl is assisting the company with which type of information search?

A. formal

B. informal

C. priority

D. secondary

E. direct

39. Shawn tries to obtain information that might assist his company whenever he talks with sales representatives, attends trade shows, or when he reads the journals related to his industry. Shawn is conducting

A. formal information search.

B. informal information search.

C. direct information search.

D. indirect information search.

E. secondary information search.

40. Which type of decision rule is very common in the first step of a two-stage decision for an organizational purchase?

A. conjunctive

B. disjunctive

C. lexicographic

D. compensatory

E. elimination-by-aspects

41. Marcus works in operations. Which of the following evaluative criteria is not important to him?

A. ease of maintenance of equipment

B. competence of service technicians

C. vendor offers a broad line

D. time needed to install equipment

E. product warranty

42. Payments, warranties, delivery dates, and so forth represent

A. purchase specifications.

B. product specifications.

C. terms and conditions.

D. postpurchase evaluation.

E. relationship marketing.

43. Laura's job is to negotiate the payment schedule, warranties, and delivery dates for major purchases made by her company. Laura deals with the __________ of the purchase.

A. evaluative criteria

B. product specifications

C. terms and conditions

D. postpurchase evaluation

E. relationship marketing aspect

44. B2B buyers use which resource(s) in their online information search?

A. mobile devices

B. social media

C. online B2B videos

D. All of these choices are correct.

E. mobile devices and social media

45. Given the informational role of the web in today’s B2B environment, salespeople need to

A. adopt the role of solution provider.

B. adopt the role of information provider.

C. replace the use of search engines.

D. redesign corporate websites.

E. All of these choices are correct.

46. The beliefs and attitudes an organization's members have about the organization and how it operates is known as

A. policy and procedure.

B. firmographics.

C. lifestyle.

D. organizational style.

E. organizational culture.

47. Organizations have a type of self-concept and lifestyles that the text refers to as

A. organizational ethos.

B. organizational culture.

C. organizational demeanor.

D. organizations structure.

E. None of these choices are correct.

48. Which term is often used to refer to the organizational culture of a business firm?

A. firmographics

B. lifestyle

C. corporate culture

D. corporate style

E. internal style

49. __________ involve both organization characteristics (e.g., size, activities, and location) and characteristics of the composition of the organization (e.g., gender, age, education).

A. Firmographics

B. Psychographics

C. Demographics

D. Geographics

E. Behaviorgraphics

50. Which of the following variables represents an organization's firmographics?

A. size

B. activities and objectives

C. location

D. industry category

E. All of these choices are correct.

51. Which of the following is not a component of firmographics?

A. company size

B. reference groups

C. company objective

D. company location

E. All of these choices are components.

52. Which of the following statements is false regarding a firm's size?

A. Large organizations are more likely than smaller ones to have a variety of specialists who attend to purchasing, finance, marketing, and general management.

B. The same promotional message needs to be targeted to all of the various functions in the firm.

C. Larger organizations are generally more complex than smaller ones because more individuals participate in managing the organization's operations.

D. The purchase decision in a smaller firm might involve only the owner or manager.

E. One message would need to address all the key purchase issues when targeting a smaller firm.

53. Organizational objectives can be categorized as

A. commercial.

B. governmental.

C. nonprofit.

D. cooperative.

E. All of these choices are correct.

54. Which of the following is not a category of organizational objectives?

A. commercial

B. governmental

C. nonprofit

D. cooperative

E. temporal

55. Organizational activities can be categorized as

A. routine.

B. complex.

C. technical.

D. routine and complex.

E. routine, complex, and technical.

56. The American Red Cross participates in fundraising activities all throughout the year. How would this be classified with respect to general organizational objectives and the nature of the organizational activity?

A. commercial objective, routine activity

B. governmental objective, routine activity

C. nonprofit objective, routine activity

D. cooperative objective, routine activity

E. nonprofit objective, complex activity

57. General Electric commits millions of dollars a year to research and development to develop new products. How would this be classified with respect to general organizational objectives and the nature of the organizational activity?

A. commercial objective, routine activity

B. commercial objective, complex activity

C. commercial objective, technical activity

D. cooperative objective, technical activity

E. nonprofit objective, complex activity

58. A commercial firm in which stock is widely traded is known as a(n)

A. public firm.

B. cooperative firm.

C. private firm.

D. open firm.

E. trade firm.

59. Roger owns 200 shares of stock in Home Depot. Which type of commercial firm is Home Depot?

A. public firm

B. cooperative firm

C. private firm

D. open firm

E. trade firm

60. A commercial firm in which one or a few individuals owns a controlling share of the firm is known as a(n)

A. public firm.

B. cooperative firm.

C. private firm.

D. open firm.

E. nontrade firm.

61. Robert Mondavi is a well-known winery in Napa Valley, CA. It is a family-owned business and is not traded on any stock exchange. Which type of commercial firm is this known as?

A. public firm

B. cooperative firm

C. private firm

D. open firm

E. nontrade firm

62. Which of the following is not an objective uncovered through research that drives the management of privately held firms?

A. building a place for the entire family to work and be involved

B. becoming wealthy

C. avoiding corporations and working for others

D. build a lasting “empire”

E. change governmental regulations

63. The types of individuals who work in the organization represent the organization's

A. size.

B. composition.

C. macrosegment.

D. reference group.

E. demographic group.

64. The culture of most organizations is influenced most heavily by which of the following?

A. government

B. overall membership

C. founder and top management

D. competition

E. customers

65. Organizations with distinguishing firmographics can be grouped into market segments through a process called

A. industry identification.

B. infrastructure segmentation.

C. conjoint analysis.

D. macrosegmentation.

E. factor analysis.

66. Which of the following statements regarding culture and government is true?

A. Variations in values and behaviors across cultures affect organizations as well as individuals.

B. In Europe, bribery and similar approaches for making sales are acceptable.

C. In the United States, there is a close working relationship between businesses and government.

D. Worker welfare is more important than corporate profit in most U.S. companies.

E. Plant closure laws, layoff regulations, and worker benefits tend to be much higher in the United States than in European countries.

67. Perhaps the most powerful type of reference group in industrial markets is that of

A. innovators.

B. lead users.

C. government regulators.

D. market mavens.

E. business press.

68. Innovative organizations that derive a great deal of their success from leading change are referred to as

A. innovators.

B. lead users.

C. government regulators.

D. market mavens.

E. opinion leaders.

69. Which of the following is not considered a user reference group in organizational buying?

A. lead user

B. trade press

C. early adopters

D. followers

E. All of these choices are considered a user reference group.

70. Microsoft is a company that has derived a great deal of success from leading change, and other computer-related companies look to Microsoft for cues as to where technology will be heading in the future. Microsoft would be classified as which type of user reference group?

A. lead user

B. industry leader

C. early adopters

D. followers

E. supportive firm

71. Lead users tend to accelerate market adoption, which is labeled as

A. market pull.

B. primary demand.

C. market push.

D. secondary demand.

E. leading indicator.

72. Which of the following is an infrastructure reference group?

A. business press

B. followers

C. early adopters

D. lead firms

E. government regulators

73. __________ refers to the flow of purchase influence within an industry.

A. User reference groups

B. Reference group infrastructure

C. Diffusion of innovations

D. Two-stage decision process

E. Buying centers

74. Which of the following can influence an organization's decision to buy or not buy a given product, or to buy or not buy from a given supplier?

A. trade associations

B. financial analysts

C. dealer organizations

D. business press

E. All of these choices are correct.

75. Lead users tend to accelerate diffusion of information through infrastructure, which is labeled as

A. market pull.

B. primary demand.

C. market push.

D. secondary demand.

E. leading indicator.

76. Which of the following is a value representative of an innovative organization that seeks to change, views problems as opportunities, and rewards individual efforts?

A. Risk taking is discouraged.

B. Cooperation is more important than competition.

C. Change is negative and actively avoided.

D. Hard work comes first, leisure second.

E. Rank or status is more important than performance.

77. Which of the following is the most important element of the communications mix in most industrial markets?

A. advertising

B. sales promotion

C. sales calls

D. public relations

E. pricing

78. For which type of markets are average costs per sales call the highest?

A. industrial

B. service

C. retail

D. wholesale distribution

E. nonprofit

79. Which of the following is a reason for the significant role of salespeople in industrial markets?

A. Because it is the least expensive form of communication for the selling organization.

B. Business buyers prefer to do business with firms they know, like, and trust, and sales personnel are the most common representative of the selling organization.

C. Because advertising has been shown to not have any positive impact on awareness and sales.

D. Business buyers usually are not allowed to purchase without the assistance of a sales representative.

E. None of these choices are correct.

80. Which organization buyer segment doesn’t want value-added service and doesn’t want to pay for it?

A. commodity buyers

B. underperforming buyers

C. partner buyers

D. most-valuable buyers

E. government buyers

81. Which organizational buyer segment is expensive to serve, but loyal and willing to pay for value-added services?

A. commodity buyers

B. underperforming buyers

C. partner buyers

D. most-valuable buyers

E. government buyers

82. Which form of organizational buyer exchange involves single transactions, is short-lived, involves few involvements by the buyer and seller in the relationship, and involves low loyalty?

A. relational

B. transactional

C. procurement

D. transient

E. temporary

83. Which form of organizational buyer exchange involves multiple events, occurs over an extended period of time, and involves higher levels of loyalty?

A. relational

B. transactional

C. procurement

D. transient

E. temporary

84. Various factors beyond functional utility influence organizational decisions.

85. Buying units (BU) are the individuals within an organization who participate in making a given purchase decision.

86. Individual power and expertise have virtually no influence on organizational decisions since it is a group process involving DMUs.

87. Decision-making units are likely to vary over the product life cycle.

88. Organizational purchase situations are known as straight rebuy, modified rebuy, and new task.

89. Limited rebuy is the approach used in an organizational buying situation when the purchase is moderately important to the firm or the choice is somewhat complex.

90. Site visits to potential vendors, laboratory tests of a new product, and investigation of possible product specifications are part of formal information search.

91. A conjunctive decision rule is very common in the first stage of a two-stage decision process with respect to evaluation and search in an organizational buying situation.

92. Power, prestige, security, and similar noneconomic criteria have no role in business purchase decisions.

93. People from different functional areas of an organization in a DMU will always use the same evaluative criteria.

94. Payments, warranties, delivery dates, and so forth are examples of a purchase's terms and conditions.

95. Organizational culture is a concept that is similar to consumer self-concept and lifestyle.

96. Organizational objectives can be categorized as commercial, governmental, nonprofit, and cooperative.

97. In Japan and most of Europe, bribery and similar approaches for making sales are considered acceptable.

98. Early adopters are innovative organizations that derive a great deal of their success from leading change.

99. To process information, a firm must go through the same sequential stages of exposure, attention, and interpretation as consumers.