Professional Documents
Culture Documents
1. Which of the following have marketers learned with respect to segmenting business
customers?
A) The segment of small and moderate-sized businesses has a lot of potential.
B) The segment of small and moderate-sized businesses has limited potential.
C) The segment of large businesses is the most attractive.
D) The segment of large businesses is the least attractive.
E) Tapping the potential of the small and moderate-sized business segment does not
require adapting the marketing strategy from that used to target larger businesses.
2. Which of the following is FALSE regarding the similarities and differences between
organization buying decisions and family purchases?
A) Organizations generally have relatively objective and clearly articulated criteria
(i.e., profit maximization) that guide purchases; families lack such explicit,
overarching goals.
B) Most organizational purchases are made by individuals unknown to other
organizational members and most purchases have little effect on most other
members of the organization; many family purchases are inherently emotional and
strongly affect the relationships between family members.
C) Businesses often engage in reciprocal purchases, which is not common for
households.
D) Many of the general factors that affect consumer buying also influence
organizational buying.
E) The extent to which emotions influence organizational purchasing is at least as
strong as it is for family decision making.
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5. 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
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7. 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 the above
10. Which of the following is NOT an external influence on organization buyer behavior?
A) firmographics
B) culture
C) perception
D) government
E) marketing activities
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11. 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
12. Firmographics, culture, government, reference groups, and marketing activities are
_____ influences on organizational buyer behavior.
A) internal
B) external
C) insignificant
D) primary
E) secondary
13. 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 the above
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16. Maria is a pharmaceutical sales representative that 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
18. 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
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19. 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
20. 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 the above are done by different functional areas
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 the above
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
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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
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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
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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
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
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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 the above 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
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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
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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. Which of the following sources is rated as the most important information source for
purchasers and purchase influencers within organization?
A) online database services
B) B-go-B magazines
C) salespeople
D) television business networks
E) general business press
45. 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
46. 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 the above
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47. 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
48. _____ 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
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55. The American Red Cross participates in fund raising 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
56. 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
57. 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
58. 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
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59. 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. 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
62. 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
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63. 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
64. 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
65. 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 U.S. than in European countries.
66. 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
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67. 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
68. 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 the above are considered a user reference group
69. 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
70. 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
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73. 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 the above
74. 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
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76. 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
77. For which type of industry are average costs per sales call the highest?
A) manufacturing
B) service
C) retail
D) wholesale distribution
E) nonprofit
78. 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 the above
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True/False Questions
80. Buying units (BU) are the individuals within an organization who participate in
making a given purchase decision.
81. Individual power and expertise have virtually no influence on organizational decisions
since it is a group process involving DMUs.
82. Decision-making units are likely to vary over the product life cycle.
83. Organizational purchase situations are known as straight rebuy, modified rebuy, and
new task.
84. 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.
85. Site visits to potential vendors, laboratory tests of a new product, and investigation of
possible product specifications are part of formal information search.
86. 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.
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87. Power, prestige, security, and similar noneconomic criteria have no role in business
purchase decisions.
88. People from different functional areas of an organization in a DMU will always use
the same evaluative criteria.
89. Payments, warranties, delivery dates, as so forth are examples of a purchase's terms
and conditions.
92. In Japan and most of Europe, bribery and similar approaches for making sales are
considered acceptable.
93. Early adopters are innovative organizations that derive a great deal of their success
from leading change.
94. To process information, a firm must go through the same sequential stages of
exposure, attention, and interpretation as consumers.
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Essay Questions
96. Identify the internal and external influences on organizational buyer behavior.
97. Compare and contrast the organizational purchase situations of straight rebuy,
modified rebuy, and new task with respect to situational and purchasing
characteristics.
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98. Harry is a sales representative for a provider of computer network systems. Part of his
job entails that he understand the firmographics of companies he tries to sell his
company's products and services to. Explain the concept of firmographics, and
discuss the different factors that make up a firm's firmographics and implications for
marketers.
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99. Name and describe the various reference groups that influence organizational behavior
and purchasing decisions.
100. List five of the eight common business values representative of an innovative
organization that seeks change, views problems as opportunities, and rewards
individual efforts.
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