Organizational buying refers to:
a) The decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers
b) Buying by individuals for personal consumption
c) Buying done only by government institutions
d) Emotional buying driven by impulse
Answer: a

A buying center is:
a) The physical place where purchases are made
b) A group of individuals who participate in the purchasing decision process
c) The finance department responsible for payments
d) The warehouse for storing goods
Answer: b

Which of the following is not a major type of business market?
a) Reseller market
b) Industrial market
c) Government market
d) Consumer market
Answer: d

The participants in the buying process are collectively called:
a) Buying center
b) Value chain
c) Marketing team
d) Customer committee
Answer: a

In organizational buying, ‘users’ are:
a) People who control the flow of information
b) Members who will use the product or service
c) The top management approving budgets
d) External consultants
Answer: b

‘Deciders’ in a buying center:
a) Have the formal or informal power to choose or approve the supplier
b) Only provide product specifications
c) Are responsible for deliveries
d) Negotiate payment terms
Answer: a

Which of the following best describes a ‘new task’ buying situation?
a) The buyer purchases a product or service for the first time
b) The buyer reorders a routine product without modifications
c) The buyer modifies product specifications or terms
d) The buyer discontinues a product line
Answer: a

A ‘modified rebuy’ involves:
a) Buying a product or service for the first time
b) Routine reordering without changes
c) A change in product specifications, price, or supplier
d) Termination of supplier relationships
Answer: c

A ‘straight rebuy’ occurs when:
a) The buyer purchases a product for the first time
b) The buyer reorders routinely without modifications
c) The buyer changes supplier due to dissatisfaction
d) The product is customized
Answer: b

Which of the following is not a participant in the buying center?
a) Users
b) Influencers
c) Gatekeepers
d) Advertisers
Answer: d

In B2B buying, ‘gatekeepers’ are:
a) Those who control the flow of information to others in the buying center
b) Those who finalize purchase contracts
c) External suppliers
d) End users of the product
Answer: a

The total demand for business products is called:
a) Derived demand
b) Primary demand
c) Selective demand
d) Elastic demand
Answer: a

Derived demand means:
a) Demand that originates from consumer demand for final goods
b) Demand that changes seasonally
c) Demand influenced by competitors’ prices
d) Demand that does not change with consumer preferences
Answer: a

Business markets are generally characterized by:
a) Many small buyers
b) Inelastic demand
c) Mass advertising
d) Emotional decision-making
Answer: b

Which of the following is typically more formalized in business buying than consumer buying?
a) Impulse purchases
b) Decision-making process
c) Peer influence
d) Advertising exposure
Answer: b

A supplier’s performance review evaluates:
a) Product quality, delivery, and service levels
b) Employee satisfaction
c) Competitor activities
d) Marketing budget
Answer: a

Reciprocal buying occurs when:
a) Two organizations agree to buy from each other
b) The buyer returns defective goods
c) Purchases are made on credit
d) A product is exchanged for promotional services
Answer: a

Vendor-managed inventory (VMI) means:
a) The buyer manages supplier stock
b) The supplier manages the buyer’s inventory levels
c) Inventory is jointly managed by buyer and seller
d) Inventory is managed by third-party logistics
Answer: b

A ‘systems buying’ approach means:
a) Purchasing components separately
b) Buying a complete solution from a single supplier
c) Buying from multiple suppliers to reduce risk
d) Buying from the lowest-cost source only
Answer: b

In the stages of the business buying process, the first stage is:
a) Proposal solicitation
b) Problem recognition
c) Supplier selection
d) Order routine specification
Answer: b

‘General need description’ involves:
a) Identifying characteristics and quantity of needed item
b) Selecting final supplier
c) Evaluating supplier performance
d) Writing purchase order
Answer: a

Product specification is prepared during:
a) Supplier selection
b) Need recognition
c) Early problem definition
d) General need description
Answer: d

Proposal solicitation refers to:
a) Inviting qualified suppliers to submit bids
b) Negotiating delivery schedules
c) Conducting after-sales reviews
d) Developing product design
Answer: a

Supplier selection criteria typically include:
a) Price, reliability, service, and technical capability
b) Only lowest price offered
c) Salesperson’s personality
d) Supplier’s advertising budget
Answer: a

Routine order specification is:
a) Final order listing terms, quantities, and delivery schedule
b) Supplier performance audit
c) Post-purchase evaluation
d) Request for quotation
Answer: a

A supplier that receives a major portion of the buyer’s business is known as:
a) Core supplier
b) Marginal supplier
c) Outsourced partner
d) Intermediary
Answer: a

The buygrid framework combines:
a) Buying situations with stages in the buying process
b) Marketing and sales processes
c) Demand and supply chains
d) Production and consumption cycles
Answer: a

In the buygrid framework, the ‘purchase decision’ occurs after:
a) Problem recognition
b) Proposal evaluation
c) Performance review
d) Supplier selection
Answer: d

Organizational buyers are more influenced by:
a) Rational and economic considerations
b) Brand imagery
c) Personal preferences
d) Impulse behavior
Answer: a

Environmental factors influencing organizational buying include:
a) Economic outlook and regulatory environment
b) Employee motivation
c) Cultural habits
d) Social status
Answer: a

Interpersonal factors affect:
a) Group dynamics and influence within the buying center
b) Product specifications
c) Supplier’s technical capacity
d) Delivery time
Answer: a

Individual factors influencing buying decisions include:
a) Age, education, and personality
b) Exchange rates
c) Government regulations
d) Company policies
Answer: a

The ‘value-in-use’ concept means:
a) The product’s worth based on its ability to reduce costs or improve efficiency
b) The product’s resale value
c) The supplier’s brand equity
d) The emotional appeal of the product
Answer: a

Reciprocity can sometimes lead to:
a) Ethical or legal concerns under antitrust laws
b) Lower prices
c) Faster delivery
d) Improved product innovation
Answer: a

A centralized purchasing organization:
a) Concentrates buying decisions at headquarters
b) Allows each branch to buy independently
c) Outsources all procurement
d) Focuses only on local suppliers
Answer: a

Decentralized purchasing allows:
a) Local units to make independent buying decisions
b) Only one supplier to serve all branches
c) Central management control of all purchases
d) Shared budgets for all divisions
Answer: a

Business-to-business e-commerce platforms enable:
a) Streamlined procurement and supplier coordination
b) Consumer impulse purchases
c) Only retail transactions
d) Elimination of supplier competition
Answer: a

Total Cost of Ownership (TCO) includes:
a) Purchase price plus operating and maintenance costs
b) Only purchase price
c) Advertising costs
d) Employee benefits
Answer: a

Supplier development refers to:
a) Working with key suppliers to improve their performance
b) Recruiting new suppliers
c) Reducing supplier base
d) Outsourcing procurement
Answer: a

Reverse auctions are used when:
a) Buyers invite suppliers to bid online for contracts
b) Sellers compete for end customers
c) Consumers purchase directly from manufacturers
d) There is no competition
Answer: a

A buying alliance involves:
a) Independent firms joining together to purchase collectively
b) Suppliers merging with customers
c) Retailers forming chains
d) Competitors sharing patents
Answer: a

E-procurement benefits include:
a) Reduced transaction costs and faster ordering
b) Higher paperwork
c) Slower supplier communication
d) Increased manual processing
Answer: a

An example of an institutional market is:
a) Hospitals and universities purchasing goods
b) Car manufacturers buying steel
c) Supermarkets buying from farmers
d) Consumers buying from retailers
Answer: a

A government market differs because:
a) It emphasizes transparency and bidding
b) It prefers emotional buying
c) It focuses on luxury products
d) It allows informal supplier relationships
Answer: a

Which factor most affects supplier relationship strength?
a) Trust and commitment
b) Advertising frequency
c) Price alone
d) Sales promotions
Answer: a

Organizational buying behavior is often described as:
a) Rational, formal, and multi-person
b) Emotional and individual
c) Impulsive and unstructured
d) Random and informal
Answer: a

Relationship marketing in B2B emphasizes:
a) Long-term collaboration and mutual value creation
b) One-time sales transactions
c) Aggressive discounting
d) Avoiding supplier feedback
Answer: a

Buyers seek suppliers that provide:
a) Superior value across product quality, delivery, and service dimensions
b) Lowest cost alone
c) High advertising visibility
d) Local offices only
Answer: a

The term ‘organizational buying behavior’ was first conceptualized by:
a) Webster and Wind
b) Porter and Kramer
c) Maslow and Herzberg
d) Drucker and Levitt
Answer: a