Question 1

Extended problem solving normally occurs in straight re-buying situations.

Accepted Answer

A) True 
 B)False

Question 2

The size and structure of buying centre and the level of involvement by its members often depend upon product type, product complexity and importance of purchase in a given situation.

Accepted Answer

A) True 
 B)False

Question 3

Organisational markets tend to be more geographically concentrated than consumer markets and tend to have limited number of buyers.

Accepted Answer

A) True 
 B)False

Question 4

According to the risk continuum as developed by Johnston and Lewin (1996) , when the risk attached to an organisational purchase increases:

Accepted Answer

A)   the buying centre becomes larger with more people involved leading to a potential increase in conflict among buyers
B)   the buying centre becomes smaller with less people involved leading to a potential decrease in conflict among buyers
C)   the buying centre remains the same irrespective of the degree of risk associated with the purchase
D)   the buying centre become irrelevantE) B) and D)
F) B) and C)

Question 5

Which of the following is NOT a stage in the BuyGrid model?

Accepted Answer

A)   High quality market research to establish the need of customers
B)   Determination of characteristics and quantity of needed item
C)   Search for and qualification of potential sources of supply
D)   Evaluation of proposals and selection of suppliers(s) E) A) and D)
F) None of the above

Question 6

As per the risk continuum explored by Thompson et al (1998), as the risk attached to an organisational purchase increases, the buying centre becomes smaller, less people are involved and previously proven suppliers are not preferred.

Accepted Answer

A) True 
 B)False

Question 7

In comparison with consumer decision making, the organizational buying process tends to be:

Accepted Answer

A)   more experiential and embedded in the psychology of decision makers
B)   more static, rigid but informal in nature
C)   more or less similar to consumer decision making process
D)   more complex, time consuming and formal in natureE) All of the above
F) B) and D)

Question 8

Which of the following is NOT a strategy for identifying power or relevant member of the buying centre?

Accepted Answer

A)   Isolate the personal stakeholder
B)   Follow the information flow
C)   Identify the end consumers and their buying power
D)   Trace the connection to the topE) All of the above
F) C) and D)

Question 9

In comparison with final consumers, organizational buyers' perception of the degree of risk involved can be:

Accepted Answer

A)   very low all the time given that organizational support is available if something goes wrong
B)   very high which means they end up spending more time in deliberation and in evaluating various alternatives
C)   moderate all the time irrespective of the nature of product purchased
D)   non-existent all the timeE) C) and D)
F) None of the above

Question 10

Explain the nature of demand as it applies to the organizational markets?

Accepted Answer

Within organisational markets, the deman...

Question 11

Unlike consumer buying, organisational buyer behaviour is influenced by factors related to the buying organisation such as its objectives and goals, purchasing policies, resources, the size and composition of the buying centre and organisation structure.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following correctly illustrates the notion of derived demand within industrial markets?

Accepted Answer

A)   The demand for products and services is linked with inflation
B)   The demand for products and services is linked with Bank of England's rate of interest
C)   The demand for products and services depends on legislations in the country
D)   The demand for products and services is often linked with the demand for consumer products and servicesE) B) and C)
F) A) and D)

Question 13

Explain the notion of rationality as it applies to organizational buying?

Accepted Answer

Organizational decision makers work in a...

Question 14

What is straight re-buying?

Accepted Answer

This is very much like repeat purchases ...

Question 15

Customers in the organisational markets tend to be more emotionally involved with the brands they buy and the frequency of contact with the supplier is relatively limited

Accepted Answer

A) True 
 B)False

Question 16

Routine problem solving applies to which of the following buying classes?

Accepted Answer

A)   Modified re-buying
B)   Straight re-buying
C)   New-task buying
D)   Impulse buyingE) A) and B)
F) C) and D)

Question 17

Extensive information search and evaluation is made in which of the following buying classes?

Accepted Answer

A)   Modified re-buying
B)   Straight re-buying
C)   New-task buying
D)   Impulse buyingE) C) and D)
F) A) and D)

Question 18

Explain organisational products classification.

Accepted Answer

Industrial products can be mainly catego...

Question 19

Which of the following correctly illustrates the nature of buyer seller relationships in organizational markets?

Accepted Answer

A)   Buyer seller relations tend to be non-existent in industrial markets
B)   Buyer seller relations tend to be dynamic, complex and often personal
C)   Buyer seller relations tend to be less important than in consumer markets
D)   Buyer seller relations tend to focus on making a sale and then leaving the buyers alone E) A) and B)
F) None of the above

Question 20

Which of the following statements correctly reflects Process Materials?

Accepted Answer

A)   They do not become part of the final product
B)   They tend to loose their identity when used in final product
C)   They can be standardised and are relatively low in cost
D)   They tend to require significant financial expenditureE) B) and D)
F) All of the above

Exam 13: Organizational Buying Behaviour

Extended problem solving normally occurs in straight re-buying situations.

Correct AnswerverifiedShow Answer

Unlike consumer buying, organisational buyer behaviour is influenced by factors related to the buying organisation such as its objectives and goals, purchasing policies, resources, the size and composition of the buying centre and organisation structure.

Correct AnswerverifiedShow Answer

According to the risk continuum as developed by Johnston and Lewin (1996) , when the risk attached to an organisational purchase increases:

Correct AnswerverifiedShow Answer

In comparison with consumer decision making, the organizational buying process tends to be:

Correct AnswerverifiedShow Answer

Customers in the organisational markets tend to be more emotionally involved with the brands they buy and the frequency of contact with the supplier is relatively limited

Correct AnswerverifiedShow Answer

Extensive information search and evaluation is made in which of the following buying classes?

Correct AnswerverifiedShow Answer

Organisational markets tend to be more geographically concentrated than consumer markets and tend to have limited number of buyers.

Correct AnswerverifiedShow Answer

Routine problem solving applies to which of the following buying classes?

Correct AnswerverifiedShow Answer

Which of the following correctly illustrates the notion of derived demand within industrial markets?

Correct AnswerverifiedShow Answer

Which of the following is NOT a strategy for identifying power or relevant member of the buying centre?

Correct AnswerverifiedShow Answer

In comparison with final consumers, organizational buyers' perception of the degree of risk involved can be:

Correct AnswerverifiedShow Answer

Which of the following is NOT a stage in the BuyGrid model?

Correct AnswerverifiedShow Answer

As per the risk continuum explored by Thompson et al (1998), as the risk attached to an organisational purchase increases, the buying centre becomes smaller, less people are involved and previously proven suppliers are not preferred.

Correct AnswerverifiedShow Answer

Explain the nature of demand as it applies to the organizational markets?

Correct AnswerverifiedWithin organisational markets, the deman...View AnswerShow Answer

Explain organisational products classification.

Correct AnswerverifiedIndustrial products can be mainly catego...View AnswerShow Answer

Explain the notion of rationality as it applies to organizational buying?

Correct AnswerverifiedOrganizational decision makers work in a...View AnswerShow Answer

What is straight re-buying?

Correct AnswerverifiedThis is very much like repeat purchases ...View AnswerShow Answer

Which of the following correctly illustrates the nature of buyer seller relationships in organizational markets?

Correct AnswerverifiedShow Answer

The size and structure of buying centre and the level of involvement by its members often depend upon product type, product complexity and importance of purchase in a given situation.

Correct AnswerverifiedShow Answer

Which of the following statements correctly reflects Process Materials?

Correct AnswerverifiedShow Answer

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Within organisational markets, the deman...
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Industrial products can be mainly catego...
View Answer

Correct Answer
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Organizational decision makers work in a...
View Answer

Correct Answer
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This is very much like repeat purchases ...
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Correct Answer
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Correct Answer
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Correct Answer
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