TBChap 019

Chapter 19
Organizational Buyer Behavior
Multiple Choice Questions

1. Marketers have learned which of the following 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 what drives businesses?
A.
B.
Small and moderate sized businesses have a lot of potential.

Branding doesn't matter.
C.
Personal relationships matter.
D.
Businesses are consumers.
E.
None of the above is false.
3. Which of the following influences organizational culture and thus, organizational buyer behavior?
A.
culture
B.
marketing activities
C.
organizational values
D.
E.
motives
all of the above
19-1
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McGraw-Hill Education.
4. Which of the following is an external influence on organizational buyer behavior?
A.
B.
motives
C.
D.
E.
emotions
reference groups
learning
5. Which of the following is NOT an external influence on organization buyer behavior?
A.
B.
firmographics
culture
C.
perception
D.
government
E.
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.
B.
C.
D.
E.
needs
desires
firmographics
motives
7. Firmographics, culture, government, reference groups, and marketing activities are _____
influences on organizational buyer behavior.
A.
B.
C.
D.
E.
internal
external
insignificant
primary
secondary
19-2
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.
B.
C.
firmographics
culture
government
D.
E.
all of the above
9. Which of the following is an internal influence on organizational buyer behavior?
A.
B.
C.
motives
firmographics
culture
D.
reference groups
E.
all of the above
10. Which of the following is NOT an internal influence on organizational buyer behavior?
A.
B.
C.
D.
E.
firmographics
perception
motives
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.
C.
reference groups
D.
E.
lead users
competitors' marketing activity
19-3
12. Which of the following is a stage in the organizational decision process?
A.
problem recognition
B.
information search
C.
D.
E.
alternative evaluation
outlet selection and purchase
all of the above
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.
E.
postpurchase processes
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.
E.
the decision process

types of buying decisions
15. Different functional areas of an organization often do all of the following EXCEPT _____.
A.
B.
C.
D.
E.
play different roles in the purchase process

utilize different information sources
use different evaluative criteria
assign different weights to evaluative criteria
All of the above are done by different functional areas.
19-4
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.
B.
C.
D.
E.
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 from 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.
19-5
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 the above
21. Members of the decision-making unit play which of the following roles?
A.
information gatherer
B.
key influencer
C.
decision maker
D.
E.
purchaser
all of the above
22. Which of the following is NOT a role played by members of the decision-making unit?
A.
B.
C.
key influencer
regulator
D.
E.
user
purchaser
23. For which stage of the product life cycle is the size of the decision-making unit typically large?
A.
B.
C.
D.
E.
introduction
growth
maturity
decline
fortification
19-6
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.
B.
C.
D.
E.
introduction
growth
maturity
decline
fortification
25. For products in which stage of the product life cycle are engineering and R&D likely to be key
functions influencing the purchase decision?
A.
B.
C.
D.
E.
introduction
growth
maturity
decline
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.
B.
C.
D.
E.
introduction
growth
maturity
decline
fortification
27. For which stage of the product life cycle is the decision-making unit likely to be small?
A.
B.
C.
D.
E.
introduction
growth
maturity
decline
fortification
19-7
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.
B.
C.
D.
E.
introduction
growth
maturity
decline
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.
B.
C.
D.
E.
introduction
growth
maturity
decline
fortification
30. Which of the following is an organizational purchase situation?
A.
B.
C.
nominal
modified rebuy
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.
B.
C.
D.
E.
nominal
modified rebuy
limited
straight rebuy
routine
19-8
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
19-9
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.
E.
discussions with sales representatives

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.
B.
C.
D.
E.
formal
informal
priority
secondary
direct
19-10
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(n) _____.
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.
D.
E.
vendor offers a broad line

time needed to install equipment
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
19-11
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.
C.
D.
E.
relationship marketing aspect
44. Which of the following sources is rated as the most important information source for purchasers
and purchase influencers within organizations?
A.
online database services
B.
B2B magazines
C.
D.
E.
salespeople
television business networks
general business press
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.
E.
redesign corporate websites

all of the above
46. The beliefs and attitudes an organization's members have about the organization and how it
operates is known as _____.
A.
B.
C.
policy and procedure

firmographics
lifestyle
D.
organizational style
E.
19-12
47. Organizations have a type of self-concept and lifestyle that the text refers to as _____.
A.
organizational ethos
B.
C.
organizational demeanor
D.
organizations structure
E.
none of the above
48. Which term is often used to refer to the organizational culture of a business firm?
A.
B.
firmographics
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.
E.
Geographics
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 the above
19-13
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 the above are components of firmographics.
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.
B.
commercial
governmental
C.
nonprofit
D.
cooperative
E.
all of the above
54. Which of the following is NOT a category of organizational objectives?
A.
B.
commercial
governmental
C.
nonprofit
D.
cooperative
E.
temporal
19-14
55. Organizational activities can be categorized as _____.
A.
routine
B.
complex
C.
technical
D.
E.
A and B
A, B, and C
56. 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
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.
B.
commercial objective, complex activity
C.
commercial objective, technical activity
D.
cooperative objective, technical activity
E.
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.
E.
open firm
trade firm
19-15
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.
E.
open firm
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.
E.
open firm
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.
E.
open firm
nontrade firm
62. Which of the following is NOT an objective uncovered through research that drives the
management of privately held firms?
A.
B.
C.
D.
E.
building a place for the entire family to work and be involved

becoming wealthy
avoiding corporations and working for others
building a lasting "empire"
changing governmental regulations
19-16
63. The types of individuals who work in the organization represent the organization's _____.
A.
B.
size
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.
19-17
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.
D.
E.
market mavens
opinion leaders
69. Which of the following is NOT considered a user reference group in organizational buying?
A.
B.
C.
D.
E.
lead user
trade press
early adopters
followers
All of the above 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.
E.
followers
supportive firm
19-18
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.
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 the above
19-19
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.
B.
Risk taking is discouraged.

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.
B.
C.
D.
E.
advertising
sales promotion
sales calls
public relations
pricing
78. For which type of industry are average costs per sales call the highest?
A.
B.
manufacturing
service
C.
D.
E.
retail
wholesale distribution
nonprofit
19-20
79. Which of the following is a reason for the significant role of salespeople in industrial markets?
A. 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. 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 is a reason.
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 valueadded services?
A.
commodity buyers
B.
C.
partner buyers
D.
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.
E.
transient
temporary
19-21
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
True / False Questions

84. Various factors beyond functional utility influence organizational decisions.
True
False
85. Buying units (BU) are the individuals within an organization who participate in making a given
purchase decision.
True
False
86. Individual power and expertise have virtually no influence on organizational decisions because it
is a group process involving DMUs.
True
False
87. Decision-making units are likely to vary over the product life cycle.
True
False
88. Organizational purchase situations are known as straight rebuy, modified rebuy, and new task.
True
False
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.
True
False
19-22
90. Site visits to potential vendors, laboratory tests of a new product, and investigation of possible
product specifications are part of formal information search.
True
False
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.
True
False
92. Power, prestige, security, and similar noneconomic criteria have no role in business purchase
decisions.
True
False
93. People from different functional areas of an organization in a DMU will always use the same
evaluative criteria.
True
False
94. Payments, warranties, delivery dates, and so forth are examples of a purchase's terms and
conditions.
True
False
95. Organizational culture is a concept that is similar to consumer self-concept and lifestyle.
True
False
96. Organizational objectives can be categorized as commercial, governmental, nonprofit, and

cooperative.
True
False
97. In Japan and most of Europe, bribery and similar approaches for making sales are considered
acceptable.
True
False
98. Early adopters are innovative organizations that derive a great deal of their success from leading
change.
True
False
19-23
99. To process information, a firm must go through the same sequential stages of exposure, attention,
and interpretation as consumers.
True
False
100 Emotion plays no role in organizational buying.

.
True False
101 Buyers with higher risk tolerance should prefer relational exchanges.
.
True False
102 A healthy business relationship depends on social relations.
.
True False
Essay Questions
103 Identify the internal and external influences on organizational buyer behavior.
.
19-24
104 Compare and contrast the organizational purchase situations of straight rebuy, modified rebuy,
.
and new task with respect to situational and purchasing characteristics.
105 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.
106 Name and describe the various reference groups that influence organizational behavior and
.
purchasing decisions.
19-25
107 List five of the eight common business values representative of an innovative organization that
.
seeks change, views problems as opportunities, and rewards individual efforts.
19-26
Chapter 19 Organizational Buyer Behavior Answer Key
Multiple Choice Questions

1.
Marketers have learned which of the following 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.
Tapping this potential requires adapting to the unique needs and wants of this customer base.
AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 19-01 Describe the organizational purchase process
Topic: Organizational Buyer Behavior
2.
Which of the following is FALSE regarding what drives businesses?
A.
B.
Small and moderate sized businesses have a lot of potential.

Branding doesn't matter.
C.
Personal relationships matter.
D.
Businesses are consumers.
E.
None of the above is false.
Efforts to build and foster brand image are critical to marketing success.

Blooms: Remember
19-27
3.
Which of the following influences organizational culture and thus, organizational buyer
behavior?
A.
culture
B.
C.
D.
motives
E.
all of the above
Culture, marketing activities, organizational values, and motives all influence organizational
culture.

Blooms: Remember
Difficulty: 1 Easy
4.
Which of the following is an external influence on organizational buyer behavior?
A.
B.
C.
D.
motives
emotions
reference groups
E.
learning
Reference groups influence organizational behavior and purchasing decisions.

Blooms: Remember
19-28
5.
Which of the following is NOT an external influence on organization buyer behavior?
A.
B.
C.
D.
firmographics
culture
perception
government
E.
External influences include firmographics, culture, government, reference groups, and
marketing activities.

Blooms: Remember
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.
B.
C.
D.
needs
desires
firmographics
E.
motives
Firmographics involve both organization characteristics and characteristics of the composition
of the organization.

Blooms: Understand
19-29
7.
Firmographics, culture, government, reference groups, and marketing activities are _____
influences on organizational buyer behavior.
A.
B.
C.
D.
internal
external
insignificant
primary
E.
secondary
All aspects listed are characteristics referred to as external influences in a B2B context.

Blooms: Remember
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.
B.
firmographics
culture
C.
government
D.
E.
all of the above
All aspects listed are characteristics referred to as external influences in a B2B context.

Blooms: Understand
Difficulty: 1 Easy
19-30
9.
Which of the following is an internal influence on organizational buyer behavior?
A.
B.
C.
D.
motives
firmographics
culture
reference groups
E.
all of the above
Internal influences include organizational values, perception, learning, memory, motives, and
emotions.

Blooms: Remember
10.
Which of the following is NOT an internal influence on organizational buyer behavior?
A.
firmographics
B.
C.
perception
D.
motives
E.
memory
emotions.

Blooms: Remember
19-31
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.
B.
C.
D.
firmographics
reference groups
lead users
E.
competitors' marketing activity
emotions.

Blooms: Understand
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 the above
These are all stages in the organizational decision process.

Blooms: Remember
Difficulty: 1 Easy
19-32
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
Problem recognition, information search, alternative evaluation, and outlet selection and
purchase are all stages in the organizational buying decision process.

Blooms: Remember
14.
Problem recognition, information search, alternative evaluation and selection, outlet selection
and purchase, and postpurchase processes represent _____.
A.
external influences
B.
internal influences
C.
D.
the decision process
E.
types of buying decisions
The decision process includes problem recognition, information search, alternative evaluation
and selection, outlet selection and purchase, and postpurchase processes.

Blooms: Remember
Difficulty: 1 Easy
19-33
15.
Different functional areas of an organization often do all of the following EXCEPT _____.
A.
B.
C.
D.
play different roles in the purchase process

utilize different information sources
use different evaluative criteria
assign different weights to evaluative criteria
E.
All of the above are done by different functional areas.
Organizational decisions are generally complex; therefore, marketing efforts are more
complex.

Blooms: Remember
Topic: Steps in the Organizational Decision Process
16.
The individuals (representing functional areas and management) within an organization who
participate in making a given purchase decision make up the _____.
A.
B.
C.
D.
E.
These often function as buying centers, representing individuals from various areas of the firm.

Blooms: Remember
Topic: Decision-Making Unit
19-34
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.
B.
C.
D.
E.
The individuals (representing functional areas and management) within an organization who
participate in making a given purchase decision make up the DMU.

Blooms: Understand
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
These are often relatively permanent for recurring decisions and ad hoc for nonroutine ones.

Blooms: Remember
19-35
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 from 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.
Important decisions are likely to involve individuals from a wider variety of functional areas and
organizational levels than are less important purchase decisions.

Blooms: Remember
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.
D.
large organizations typically have less specialization

small organizations typically have more specialized purchasing tools
E.
all of the above
Important decisions are likely to involve individuals from a wider variety of functional areas and
organizational levels than are less important purchase decisions.

Blooms: Remember
Difficulty: 1 Easy
19-36
21.
Members of the decision-making unit play which of the following roles?
A.
B.
key influencer
C.
decision maker
D.
purchaser
E.
all of the above
A plant manager could play several roles, while corporate engineers may simply be sources of
information.

Blooms: Remember
Difficulty: 1 Easy
22.
Which of the following is NOT a role played by members of the decision-making unit?
A.
B.
C.
D.
key influencer
regulator
user
E.
purchaser
Members of the decision-making unit play various roles, such as information gatherer, key
influencer, decision maker, purchaser, or user.

Blooms: Remember
19-37
23.
For which stage of the product life cycle is the size of the decision-making unit typically large?
A.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification
In the introduction stage, the size of the DMU is large and can include several functions.

Blooms: Remember
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.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification
Engineers and R&D are likely to be involved in the introduction stage, which has the largest
DMU.

Blooms: Understand
19-38
25.
For products in which stage of the product life cycle are engineering and R&D likely to be key
functions influencing the purchase decision?
A.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification
Engineers and R&D are likely to be involved in the introduction stage, which has the largest
DMU.

Blooms: Remember
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.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification
The medium stage of the product life cycle is growth and typically includes production and top
management.

Blooms: Remember
19-39
27.
For which stage of the product life cycle is the decision-making unit likely to be small?
A.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification
The small stage is maturity and typically includes just purchasing.

Blooms: Remember
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.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification

Blooms: Remember
19-40
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.
B.
C.
D.
introduction
growth
maturity
decline
E.
fortification

Blooms: Understand
30.
Which of the following is an organizational purchase situation?
A.
B.
C.
D.
nominal
modified rebuy
limited
extended
E.
routine
This typically involves a product or service that the organization is accustomed to purchasing
but in which the product or the firm's needs have changed.

Blooms: Remember
Topic: Purchase Situation
19-41
31.
Which type of organizational purchase situation occurs when the purchase is of minor
importance and is not complex?
A.
B.
C.
D.
nominal
modified rebuy
limited
straight rebuy
E.
routine
This is generally the case when reordering basic supplies and component parts.

Blooms: Remember
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
This is generally the case when reordering basic supplies and component parts.

Blooms: Remember
19-42
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
This would involve decisions on such things as selecting a new advertising agency or a new
production system.

Blooms: Remember
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
Reordering basic supplies and component parts is known as a straight rebuy.

Blooms: Understand
19-43
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
Decisions on such things as selecting a new advertising agency or new technology is known
as a new task.

Blooms: Remember
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
In high-tech markets, the department head is most likely to recognize a problem or need to
purchase.

Blooms: Remember
Difficulty: 3 Hard
19-44
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.
Informal information search can occur during discussions with sales reps, while attending trade
shows, or when reading industry-specific publications.

Blooms: Remember
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.
B.
C.
D.
formal
informal
priority
secondary
E.
direct
Site visits to evaluation and investigate a new product are part of formal information search.

Blooms: Understand
19-45
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(n) _____.
A.
formal information search
B.
informal information search
C.
direct information search
D.
indirect information search
E.
secondary information search
Informal information search can occur during discussions with sales reps, while attending trade
shows, or when reading industry-specific publications.

Blooms: Understand
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
In this manner, the organization can screen out potential vendors that do not meet all its
minimum criteria.

Blooms: Remember
Difficulty: 3 Hard
19-46
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.
D.
vendor offers a broad line

time needed to install equipment
E.
product warranty
Different members of the decision-making unit have different evaluative criteria.

Blooms: Understand
Difficulty: 3 Hard
42.
Payments, warranties, delivery dates, and so forth represent _____.
A.
purchase specifications
B.
C.
D.
E.
relationship marketing
Purchasing is more concerned with terms and conditions.

Blooms: Remember
19-47
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.
C.
D.
E.
relationship marketing aspect
Purchasing is more concerned with terms and conditions.

Blooms: Understand
44.
Which of the following sources is rated as the most important information source for
purchasers and purchase influencers within organizations?
A.
B.
C.
D.
online database services

B2B magazines
salespeople
television business networks
E.
general business press
B-to-B magazines are the most important information source for purchases and purchase
influencers within organizations.

Blooms: Remember
Difficulty: 3 Hard
Topic: The Internet's Role in the Organizational Decision Process
19-48
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 the above
Salespeople need to adopt the role of solution provider because the customer can find a great
deal of information from the Internet.

Blooms: Remember
Topic: The Internet's Role in the Organizational Decision Process
46.
The beliefs and attitudes an organization's members have about the organization and how it
operates is known as _____.
A.
B.
C.
D.
policy and procedure

firmographics
lifestyle
organizational style
E.
Organizational culture is much like lifestyle in that organizations vary dramatically in how they
make decisions.

Blooms: Remember
Learning Objective: 19-02 Summarize the external factors that influence organizational culture
Topic: Organizational Culture
19-49
47.
Organizations have a type of self-concept and lifestyle that the text refers to as _____.
A.
organizational ethos
B.
C.
organizational demeanor
D.
organizations structure
E.
none of the above
Organizational culture is much like lifestyle in that organizations vary dramatically in how they
make decisions.

Blooms: Remember
48.
Which term is often used to refer to the organizational culture of a business firm?
A.
B.
firmographics
lifestyle
C.
corporate culture
D.
corporate style
E.
internal style
Organizational, or corporate, culture reflects and shapes organizational needs and desires,
which in turn influence how organizations make decisions.

Blooms: Remember
19-50
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
Firmographics are as important to organizations as demographics are to consumers for
understanding purchase behavior.

Blooms: Remember
Topic: Firmographics
50.
Which of the following variables represents an organization's firmographics?
A.
B.
C.
D.
size
activities and objectives
location
industry category
E.
all of the above
An organization's firmographics include both organization characteristics and characteristics of
the composition of the organization.

Blooms: Remember
Difficulty: 1 Easy
19-51
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 the above are components of firmographics.
Reference groups are not a component of firmographics.

Blooms: Remember
Difficulty: 1 Easy
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.
Promotional messages must be tailored to meet the individual needs of the various functions in
the firm.

Blooms: Remember
Difficulty: 3 Hard
19-52
53.
Organizational objectives can be categorized as _____.
A.
commercial
B.
governmental
C.
D.
nonprofit
cooperative
E.
all of the above
General organizational objectives help classify the nature of organizational activity.

Blooms: Remember
Difficulty: 1 Easy
54.
Which of the following is NOT a category of organizational objectives?
A.
commercial
B.
governmental
C.
D.
nonprofit
cooperative
E.
temporal
Organizational objectives can be categorized as commercial, governmental, nonprofit, and
cooperative.

Blooms: Remember
19-53
55.
Organizational activities can be categorized as _____.
A.
routine
B.
complex
C.
technical
D.
A and B
E.
A, B, and C

Blooms: Remember
56.
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.
B.
governmental objective, routine activity
C.
nonprofit objective, routine activity
D.
cooperative objective, routine activity
E.
Fundraising would be classified as a nonprofit objective with a routine activity.

Blooms: Understand
19-54
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.
B.
commercial objective, complex activity
C.
commercial objective, technical activity
D.
cooperative objective, technical activity
E.
New product development is classified as commercial objective, technical activity.

Blooms: Understand
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
A public firm is owned by stockholders.

Blooms: Remember
19-55
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
A public firm is owned by stockholders.

Blooms: Understand
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
A private firm is owned by one or a few individuals.

Blooms: Remember
19-56
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
A private firm is owned by one or a few individuals.

Blooms: Remember
62.
Which of the following is NOT an objective uncovered through research that drives the
management of privately held firms?
A.
B.
C.
D.
building a place for the entire family to work and be involved

becoming wealthy
avoiding corporations and working for others
building a lasting "empire"
E.
changing governmental regulations
Changing government regulations is not a motive that drives the management of private firms.

Blooms: Remember
Difficulty: 3 Hard
19-57
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
The types of individuals who work in the organization heavily influence organization cultures
and are part of the organization's composition.

Blooms: Remember
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
Culture begins at the top, but the overall composition of the organizational membership is also
important.

Blooms: Remember
Difficulty: 3 Hard
19-58
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
These segments are based on differences in needs due to firmographics.

Blooms: Remember
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.
Corporate culture and behavior in a given country will tend to reflect that of the individual.

Blooms: Remember
Difficulty: 3 Hard
Topic: Culture/Government
19-59
67.
Perhaps the most powerful type of reference group in industrial markets is that of _____.
(p. 674)
A.
innovators
B.
lead users
C.
D.
market mavens
E.
business press
Lead users are innovative.

Blooms: Remember
Difficulty: 1 Easy
Topic: Reference Groups
68.
Innovative organizations that derive a great deal of their success from leading change are
referred to as _____.
A.
innovators
B.
lead users
C.
D.
market mavens
E.
opinion leaders
Lead users are perhaps the most powerful type of reference group in industrial markets.

Blooms: Remember
19-60
69.
Which of the following is NOT considered a user reference group in organizational buying?
A.
B.
C.
D.
lead user
trade press
early adopters
followers
E.
All of the above are considered a user reference group.
The trade press is an infrastructure reference group.

Blooms: Remember
Difficulty: 3 Hard
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
Microsoft is an innovative organization that derives a great deal of its success from leading
change.

Blooms: Understand
19-61
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
Accelerating market adoption is known as market push.

Blooms: Remember
Difficulty: 3 Hard
72.
Which of the following is an infrastructure reference group?
A.
B.
C.
D.
business press
followers
early adopters
lead firms
E.
The business press is an infrastructure reference group.

Blooms: Remember
19-62
73.
_____ refers to the flow of purchase influence within an industry.
A.
User reference groups
B.
Reference group infrastructure
C.
D.
Diffusion of innovations
Two-stage decision process
E.
Buying centers
The success of a new technology product depends on how the firm influences the reference
groups along the continuum separating it from its market.

Blooms: Remember
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 the above
These are all part of the infrastructure reference groups that influence purchase within an
industry.

Blooms: Remember
Difficulty: 1 Easy
19-63
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
The tendency of lead users to accelerate diffusion of information through the infrastructure is
referred to as market pull.

Blooms: Remember
Difficulty: 3 Hard
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.
B.
Risk taking is discouraged.

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.
This value is representative of an innovative organization that seeks change, views problems
as opportunities, and rewards individual efforts.

Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 19-03 Summarize the internal factors that influence organizational culture
Topic: Organizational Values
19-64
77.
Which of the following is the MOST important element of the communications mix in most
industrial markets?
A.
B.
C.
D.
advertising
sales promotion
sales calls
public relations
E.
pricing
Advertising is important, but direct sales calls are the most persuasive element in the
communications mix.

Blooms: Remember
Topic: Perception
78.
For which type of industry are average costs per sales call the highest?
A.
B.
manufacturing
service
C.
D.
retail
wholesale distribution
E.
nonprofit
In the manufacturing industry, the cost per sales call is thought to be in the range of $300.

Blooms: Remember
Difficulty: 3 Hard
Topic: Perception
19-65
79.
Which of the following is a reason for the significant role of salespeople in industrial markets?
A.
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. 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 is a reason.
Those relationships are most often formed between members of the firm involved, with sales
personnel being the most common representative of the selling organization.

Blooms: Remember
Difficulty: 3 Hard
Topic: Perception
80.
Which organization buyer segment doesn't want value-added service and doesn't want to pay
for it?
A.
commodity buyers
B.
C.
D.
partner buyers
E.
government buyers
Commodity buyers want the basic product at the lowest price.

Blooms: Remember
Learning Objective: 19-04 Explain the influence of organizational buyer segments on marketing strategy
Topic: Organizational Buyer Segments and Marketing Strategy
19-66
81.
Which organizational buyer segment is expensive to serve, but loyal and willing to pay for
value-added services?
A.
commodity buyers
B.
C.
D.
partner buyers
E.
government buyers
These customers should be managed in a relational manner, with an eye toward increasing the
efficiencies of the relationship to lower costs and increase profits.

Blooms: Remember
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
The transactional buyer is focused only on the transaction, not on what's the cheapest, the
best, or the fastest for the money.

Blooms: Remember
19-67
83.
Which form of organizational buyer exchange involves multiple events, occurs over an
extended period of time, and involves higher levels of loyalty?
relational
A.
B.
transactional
C.
procurement
D.
transient
E.
temporary
The relational customer is focused on finding a distributor he can trust and depend on.

Blooms: Remember
True / False Questions

84.
Various factors beyond functional utility influence organizational decisions.

TRUE
Businesses are made up of individuals, and these individuals make the purchase decisions.

Blooms: Remember
Difficulty: 1 Easy
85.
Buying units (BU) are the individuals within an organization who participate in making a given
purchase decision.
FALSE
Decision-making units (DMUs) are the individuals within an organization who participate in
making a given purchase decision.

Blooms: Remember
19-68
86.
Individual power and expertise have virtually no influence on organizational decisions because
it is a group process involving DMUs.
FALSE
How the final purchase decision is made is determined in part by individual power and
expertise.

Blooms: Remember
87.
Decision-making units are likely to vary over the product life cycle.
TRUE
Decision-making units are likely to vary over the product life cycle (new products versus older
ones).

Blooms: Remember
88.
Organizational purchase situations are known as straight rebuy, modified rebuy, and new task.
TRUE
There are 3 types of purchase situations in organizations and they are straight rebuy, modified
rebuy, and new task.

Blooms: Remember
19-69
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.
FALSE
Modified rebuy is the approach used when the purchase is moderately important to the firm or
the choice is somewhat complex.

Blooms: Remember
90.
Site visits to potential vendors, laboratory tests of a new product, and investigation of possible
product specifications are part of formal information search.
TRUE
These are some of the ways individual buyers search for information.

Blooms: Remember
Difficulty: 1 Easy
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.
TRUE
In this manner, the organization can screen out potential vendors that do not meet all its
minimum criteria.

Blooms: Remember
19-70
92.
Power, prestige, security, and similar noneconomic criteria have no role in business purchase
decisions.
FALSE
For example, research finds that there are organizations that buy "green," similar to "green
consumers."

Blooms: Remember
93.
People from different functional areas of an organization in a DMU will always use the same
evaluative criteria.
FALSE
Different members of the decision-making unit have different evaluative criteria.

Blooms: Remember
94.
Payments, warranties, delivery dates, and so forth are examples of a purchase's terms and
conditions.
TRUE
Terms and conditions are both complex and critical in business-to-business markets.

Blooms: Remember
Difficulty: 1 Easy
95.
Organizational culture is a concept that is similar to consumer self-concept and lifestyle.

TRUE
Organizations have a type of lifestyle in that they have distinct ways of operating.

19-71

Blooms: Remember
96.
Organizational objectives can be categorized as commercial, governmental, nonprofit, and

cooperative.
TRUE

Blooms: Remember
97.
In Japan and most of Europe, bribery and similar approaches for making sales are considered
acceptable.
FALSE
These governments enforce a wide array of laws prohibiting such behaviors.

Blooms: Remember
Topic: Culture/Government
98.
Early adopters are innovative organizations that derive a great deal of their success from
leading change.
FALSE
Lead users are innovative organizations that derive a great deal of their success from leading
change.

Blooms: Remember
19-72
99.
To process information, a firm must go through the same sequential stages of exposure,
attention, and interpretation as consumers.
TRUE
Given the more complex nature of organizations, the processes involved are also more
complex.

Blooms: Remember
Topic: Perception
100.
Emotion plays no role in organizational buying.

FALSE
The risk of making a bad purchase decision can elicit feelings of self-doubt or psychological
discomfort.

Blooms: Remember
Topic: Motives and Emotions
101.
Buyers with higher risk tolerance should prefer relational exchanges.

FALSE
Buyers with lower risk tolerance should prefer relational exchanges because such an approach
reduces uncertainty over access to and quality of the inputs they buy.

Blooms: Remember
102.
A healthy business relationship depends on social relations.

TRUE
This dimension deals with friendship, closeness, and the extent of buyer-seller communication.

19-73

Blooms: Remember
Essay Questions
103.
Identify the internal and external influences on organizational buyer behavior.
External influences include firmographics, culture, government, reference groups, and

marketing activities. Internal influences include organizational values, perception, learning,
memory, motives, and emotions.

Blooms: Understand
Difficulty: 1 Easy
19-74
104.
Compare and contrast the organizational purchase situations of straight rebuy, modified rebuy,
and new task with respect to situational and purchasing characteristics.
Table 19-2 summarizes the characteristics influencing each type of purchase. Two situational
characteristics are listed:
a. Purchase importancelow for straight rebuy; moderate for modified rebuy; high for new
task.
b. Choice complexitylow for straight rebuy; moderate for modified rebuy; high for new task.
Several purchasing characteristics are listed:
a. Size of DMUvery small for straight rebuy; medium for modified rebuy; large, evolving for
new task.
b. Level of DMUlow for straight rebuy; mid-level for modified rebuy; top of organization for
new task.
c. Time to decisionvery brief for straight rebuy; moderate for modified rebuy; long for new
task.
d. Information searchnone/very limited for straight rebuy; moderate for modified rebuy;
extensive for new task.
e. Analysis techniquesnone/price comparisons for straight rebuy; several for modified
rebuy; extensive, complex for new task.
f. Strategic focusnone for straight rebuy; limited for modified rebuy; dominates for new task.

Blooms: Understand
Difficulty: 3 Hard
19-75
105.
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.
Firmographics involve both organizational characteristicsfor example, size, activities,

objectives, location, and industry categoryand characteristics of the composition of the
organizationfor example, gender age, education, and income distribution of employees. Six
firmographic factors were discussed in the chapter:
a. Sizelarge organizations are more likely than smaller organizations to have a variety of
specialists who attend to purchasing, finance, marketing, and general management. That there
are often multiple individuals involved in the purchase in a large organization means
advertising and sales force efforts must be targeted at various functions in the firm, each
emphasizing issues of concern only to that function. Marketing communications targeted to a
small firm, however, are more likely to be able to use one message.
b. Activities and objectivesorganizational objectives can be categorized as commercial,
governmental, nonprofit, and cooperative, and the general nature of organizational activities
can be described as routine, complex, or technical. Each combination implies different
concerns for buying organizations (see Table 19-7).
c. Locationregional subcultures within the United States influence organizational cultures as
well as individual lifestyles. Location-based differences are magnified when doing business in
foreign cultures.
d. Industry categoryfirms of similar size, location, activity, objective, and ownership can still
have sharply differing cultures due to being in differing industries.
e. Organization compositionthe types of individuals who work in the organization also
heavily influence organization cultures.
f. Macrosegmentationorganizations with distinguishing firmographics can be grouped into
market segments through this process.

Blooms: Understand
19-76
106.
Name and describe the various reference groups that influence organizational behavior and
purchasing decisions.
Perhaps the most powerful type of reference group in industrial markets is that of lead users.
Lead users are innovative organizations that derive a great deal of their success from leading
change. Other reference groups such as trade associations, financial analysts, and dealer
organizations also influence an organization's decision to buy or not buy a given product or to
buy or not buy from a given supplier. Reference group infrastructure refers to the flow of
purchase influence within an industry. Figure 19-2 combines the concept of lead users with
reference group infrastructure to give a more comprehensive picture of organizational
reference group systems.

Blooms: Understand
107.
List five of the eight common business values representative of an innovative organization that
seeks change, views problems as opportunities, and rewards individual efforts.
The eight common business values listed in the chapter are (students only have to list five):
a. Risk taking is admired and rewarded.
b. Competition is more important than cooperation.
c. Hard work comes first, leisure second.
d. Individual efforts take precedence over collective efforts.
e. Any problem can be solved.
f. Active decision making is essential.
g. Change is positive and is actively sought.
h. Performance is more important than rank or status.

Blooms: Understand
Difficulty: 3 Hard
Topic: Organizational Values
19-77

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Chapter 19

Organizational Buyer Behavior

Multiple Choice Questions

A. The segment of small and moderate-sized businesses has a lot of potential.

The segment of large businesses is the most attractive.

The segment of large businesses is the least attractive.

Small and moderate sized businesses have a lot of potential.

Personal relationships matter.

Businesses are consumers.

None of the above is false.

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

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

all of the above

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

all of the above

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

vendor support programs

the decision process

play different roles in the purchase process

strategic business unit (SBU)

decision center (DC)

decision-making unit (DMU)

strategic decision unit (SDU)

functional decision unit (FDU)

strategic business unit (SBU)

decision center (DC)

decision-making unit (DMU)

strategic decision unit (SDU)

functional decision unit (FDU)

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

They are often relatively permanent for nonroutine decisions.

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

large organizations typically have less specialization

D. small organizations typically have more specialized purchasing tools

all of the above

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

site visits to evaluate a potential vendor

laboratory test of a new product or prototype

investigation of possible product specifications

discussions with sales representatives

formal information search

informal information search

direct information search

indirect information search

secondary information search

ease of maintenance of equipment

competence of service technicians

vendor offers a broad line

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

terms and conditions

terms and conditions

relationship marketing aspect

online database services

adopt the role of solution provider

adopt the role of information provider

replace the use of search engines

redesign corporate websites

policy and procedure

none of the above

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

activities and objectives

all of the above

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