Organizational Buying

Organizational buying is primarily characterized by:
A) Simple decision processes
B) Multiple participants and complex decision-making
C) Impulse purchases
D) Emotional factors only
Answer: B

The group of people involved in the buying decision process for organizations is called:
A) Buying center
B) Sales team
C) Marketing department
D) Finance committee
Answer: A

Which of the following is NOT a major type of business buying situation?
A) Straight rebuy
B) Modified rebuy
C) New task
D) Routine purchase
Answer: D

In a “straight rebuy” situation, the buyer:
A) Seeks new suppliers for every purchase
B) Routines reorders without modification
C) Modifies product specifications each time
D) Always negotiates price
Answer: B

The most complex buying situation for organizations is typically:
A) New task
B) Straight rebuy
C) Modified rebuy
D) Routine buy
Answer: A

The organizational buying process often starts with:
A) Supplier selection
B) Problem recognition
C) Purchase order
D) Payment negotiation
Answer: B

Users in the buying center are:
A) Responsible for final purchase approval
B) The people who use the product or service
C) Only from the finance department
D) Legal advisors
Answer: B

Gatekeepers in the buying center are responsible for:
A) Using the product
B) Controlling the flow of information
C) Signing the purchase order
D) Negotiating prices
Answer: B

Which role in the buying center is responsible for making the final purchasing decision?
A) Buyer
B) Decider
C) Influencer
D) Gatekeeper
Answer: B

Influencers in the buying center:
A) Approve final purchases
B) Affect the buying decision by providing information and criteria
C) Always negotiate prices
D) Control budgets
Answer: B

Organizational buying decisions are often influenced by:
A) Personal whims
B) Environmental, organizational, interpersonal, and individual factors
C) Only price
D) Marketing promotions only
Answer: B

Which of the following is a typical step in the organizational buying process?
A) Need recognition
B) Supplier search
C) Proposal solicitation
D) All of the above
Answer: D

Proposal solicitation in the buying process refers to:
A) Requesting offers or bids from suppliers
B) Finalizing the order
C) Approving the payment
D) Testing the product
Answer: A

Performance review as a final step in the buying process involves:
A) Negotiating with new suppliers
B) Evaluating supplier and product performance
C) Searching for proposals
D) Problem recognition
Answer: B

Organizational buying is usually:
A) Less formal than consumer buying
B) More formalized, involving extensive documentation
C) Based on emotions
D) Done by a single individual
Answer: B

A “modified rebuy” occurs when:
A) The buyer reorders without any changes
B) The buyer wants to change product specifications, prices, or suppliers
C) A new supplier is always selected
D) The same product is purchased in bulk
Answer: B

Business-to-business markets often have:
A) Fewer, larger buyers
B) More, smaller buyers
C) Random buyers
D) No buying centers
Answer: A

Organizational purchases are usually for:
A) Personal consumption
B) Resale, use in production, or operations
C) Employee gifts only
D) Marketing promotions
Answer: B

Derived demand means organizational demand is:
A) Unrelated to consumer demand
B) Based on the demand for final consumer goods
C) Fixed and unchanging
D) Set by government policy
Answer: B

Supplier selection criteria in business markets often emphasize:
A) Advertising appeal
B) Product quality, delivery reliability, and price
C) Celebrity endorsements
D) Employee preferences
Answer: B

Which type of buying situation is likely to involve the greatest number of decision participants?
A) Straight rebuy
B) Modified rebuy
C) New task
D) Routine purchase
Answer: C

Organizational buyers often value long-term supplier relationships because:
A) It reduces transaction costs and risks
B) It increases negotiation frequency
C) It guarantees the lowest price
D) It eliminates the need for quality checks
Answer: A

Reciprocity in business buying refers to:
A) Expecting suppliers to become customers in return
B) Buying on credit
C) Bartering for goods
D) Competitive bidding
Answer: A

Vendor-managed inventory (VMI) means:
A) Buyer manages the inventory for the supplier
B) Supplier manages inventories for the buyer
C) Inventory is not tracked
D) The government controls the inventory
Answer: B

In organizational buying, e-procurement systems are used to:
A) Automate the purchasing process
B) Eliminate the need for suppliers
C) Increase manual paperwork
D) Limit competition
Answer: A

Organizational buying is most commonly associated with:
A) Brand loyalty only
B) Longer decision-making cycles and negotiation
C) Impulse buying
D) Direct consumer feedback
Answer: B

“Buying center” members may include all EXCEPT:
A) Users
B) Deciders
C) Influencers
D) Consumers (in personal, household sense)
Answer: D

The process of qualifying potential suppliers is known as:
A) Supplier search
B) Supplier selection
C) Supplier performance review
D) Proposal solicitation
Answer: A

When organizations purchase goods or services to support their operations, it is called:
A) Consumer buying
B) Organizational buying
C) Retail buying
D) End-user buying
Answer: B

After-purchase evaluation in organizational buying is important because:
A) It helps improve future buying decisions
B) It only affects the current transaction
C) It is required by law
D) It replaces the need for supplier selection
Answer: A

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