Chap 7 analyzing business markets dayday

TOP 10 Learning Questions for

Chapter 7:

Analyzing Business Markets Briand Dayday

September 16, 2011

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a. Consumer markets

b. Business markets

c. Demand markets

d. Supplier markets

Question 1:

_______ consists of all the organizations

that acquire goods & services used in the

production of other products & services

that are sold, rented or supplied to others


Leather Shoe

Manufacturers Wholesalers Retailers Consumers

Concept:

What are Business Markets?


Process of Producing and Selling Shoes

Each party in the supply chain also buys goods to support their operations

Concept Explanation:

Definition of Business Markets


Business markets consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

a. Consumer markets

b. Business markets

c. Demand markets

d. Supplier markets

Answer 1:

_______ consists of all the organizations

that acquire goods & services used in the

production of other products & services

that are sold, rented or supplied to others


a. Straight rebuy

b. Modified rebuy

c. New task

d. All of the above

Question 2:

A monthly set order of office

supplies is an example of what?


Concept:

Business Buying Situations


Straight Rebuy

Modified Rebuy

New Task

Purchase decisions are based on these buying situations


Business Buying Situations


• Reorders supplies (office supplies, bulk chemicals) at a routine basis and chooses from list of suppliers.

Straight Rebuy

• The buyer wants to modify product specs, prices, delivery requirements from previous orders.

Modified Rebuy

• Purchaser buys a product for the first time. New Task

a. Straight rebuy

b. Modified rebuy

c. New task

d. All of the above

Answer 2:

A monthly set order of office

supplies is an example of what?


a. Initiators

b. Users

c. Influencers

d. Gatekeepers

e. Deciders

Question 3:

Telephone Operators are examples

of what?


Concept:

Roles in Business Buying Process


• Those requesting the product Initiators

• Those who will use the product or service Users

• Those who influence the buying decision Influencers

• Those who decide on product reqs & suppliers Deciders

• Those authorizing actions of buyers Approvers

• Those who have authority to select supplier & arrange purchase terms Buyers

• Those who prevent information from reaching members of buying center Gatekeepers


Roles in Business Buying Process


Initiators

Users

Influencers

Deciders Approvers

Buyers

Gatekeepers

Buying Center

Department in need

Department to use

Technical Personnel

Department Head Budget Committee

Purchasing Dept.

Telephone Operator

a. Initiators

b. Users

c. Influencers

d. Gatekeepers

e. Deciders

Answer 3:

Telephone Operators are examples

of what?


a. Business marketers need to figure out who are the major decision participants.

b. Business marketers need to consider what decisions do they influence.

c. Business marketers need to determine the evaluation criteria to use for the decision.

d. All of the above.

Question 4:

Which of the ff. is true about

buying center targeting?


Who are the major decision participants?

What decisions do they influence?

What is their level of influence?

What evaluation criteria do they use?

Concept:

To target their efforts properly,

business marketers must figure out:


A company sells disposable surgical gowns to hospitals. The hospital personnel who participate in this buying decision is the VP purchasing, Operating room administrator, and the Surgeons. The VP analyses whether the hospital should buy disposable gowns or reusable gowns.


Buying Center Targeting Situation


Who are the major Decision participants?

What decisions do they influence?

If the findings favour disposable gowns, then the operating-room administrator compares various competitors’ products and prices and makes a choice. The administrator considers absorbency, antiseptic quality, design and cost.


Buying Center Targeting Situation


What is the level of influence?

What evaluation Criteria did they use?

a. Business marketers need to figure out who are the major decision participants.

b. Business marketers need to consider what decisions do they influence.

c. Business marketers need to determine the evaluation criteria to use for the decision.

d. All of the above.

Answer 4:

Which of the ff. is true about

buying center targeting?


a. Problem recognition

b. General need description

c. Product specification

d. Supplier solicitation

e. Order-routine specification

Question 5:

All are stages in the Buying

Process, except?


Concept:

Stages in Buying Process


New Task Modified Rebuy

Straight Buy

Problem recognition

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order-routine specification

Performance review

Maybe

Maybe

Maybe

Maybe

Maybe

Maybe


Stages in Buying Process


Problem recognition

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order routine specification

Performance review

a. Problem recognition

b. General need description

c. Product specification

d. Supplier solicitation

e. Order-routine specification

Answer 5:

All are stages in the Buying

Process, except?


a. Limiting quantity, allowing no refunds, making no adjustments, and providing no services.

b. Allowing no refunds, making no adjustments, providing no services, and limiting quantity.

c. Providing no services, limiting quantity, making no adjustments, and allowing no refunds.

d. None of the above.

Question 6:

Some companies handle price-oriented

buyers by, _______, _______, _______, and

_________.


1. Limit quantity purchased

2. Allow no refunds

3. Make no adjustments

4. Provide no services


Overcoming Price Pressures


a. Limiting quantity, allowing no refunds, making no adjustments, and providing no services.

b. Allowing no refunds, making no adjustments, providing no services, and limiting quantity.

c. Providing no services, limiting quantity, making no adjustments, and allowing no refunds.

d. None of the above.

Answer 6:

Some companies handle price-oriented

buyers by, _______, _______, _______, and

_________.


a. Catalog sites

b. Spot markets

c. Pure Play auction sites

d. Barter markets

e. Buying alliances

Question 7:

Ebay, Amazon, and Sulit.com are

examples of what?


Catalog sites

Vertical markets

Pure play auction sites

Spot markets

Private exchanges

Barter markets

Buying alliances

Concept 7:

Searching for Suppliers



Searching for Suppliers


• Electronic catalogs Catalog sites

• Ordering raw materials from specialized websites (Plastics.com)

Vertical markets

• Online marketplaces (Ebay, Amazon) Pure play auction sites

• On spot electronic markets, prices change by the minute

Spot markets

• Private exchanges to link groups of suppliers over the web

Private exchanges

• Participants offer to trade goods or service Barter markets

• Companies buying the same goods join together to form purchasing consortia

Buying alliances

a. Catalog sites

b. Spot markets

c. Pure Play auction sites

d. Barter markets

e. Buying alliances

Answer 7:

Ebay, Amazon, and Sulit.com are

examples of what?


a. Direct survey; where customers are asked to place a direct dollar value on one or more changes in the market offering

b. Importance ratings; where customers rank their preferences for alternative market offerings or concepts.

c. Conjoint analysis; where customers attack monetary value of 3 levels of a given attribute.

d. None of the above

Question 8:

Which of the following is true?


Check definitions in the Book p. 236

Internal engineering assessment

Field value-in-use assessment

Focus-group value assessment

Direct survey questions

Conjoint analysis

Benchmarks

Compositional approach

Importance ratings

Concept:

Researching Customer Value


a. Direct survey; where customers are asked to place a direct dollar value on one or more changes in the market offering

b. Importance ratings; where customers rank their preferences for alternative market offerings or concepts.

c. Conjoint analysis; where customers attack monetary value of 3 levels of a given attribute.

d. None of the above

Answer 8:

Which of the following is true?


a. Importance of supply

b. Availability of alternatives

c. Complexity of demand

d. Supply market dynamism

e. All of the above.

Question 9:

All are factors of buyer-supplier

relationships, except?


Availability of alternatives

Importance of supply

Complexity of supply

Supply market dynamism


Buyer-supplier Relationship

Factors


a. Importance of supply

b. Availability of alternatives

c. Complexity of demand

d. Supply market dynamism

e. All of the above.

Answer 9:

All are factors of buyer-supplier

relationships, except?


a. Mutually adaptive

b. Cooperative systems

c. Customer is king

d. Bare bones

e. None of the above

Question 10:

Supplier adapting to consumer

requests w/o any demands in return,

is an example of what category?


Basic buying and selling – routine exchanges with moderate levels of cooperation and information exchange

Bare bones – adaptation by the seller and less cooperation and information exchange.

Contractual transaction – defined by a formal contract, with low levels of trust, and cooperation.

Customer supply – competition rather than cooperation is the dominant form of governance.

Concept:

Buyer-seller Relationships


Cooperative systems – united in operational ways, but neither demonstrates commitment through legal means or adaptation.

Collaborative – trust and commitment lead to true partnership.

Mutually adaptive – make many relationship-specific adaptations, but w/o achieving trust and cooperation.

Customer is king – seller adapts to meet the customer needs w/o expecting much adaptation or change in exchange.


Buyer-seller Relationships


a. Mutually adaptive

b. Cooperative systems

c. Customer is king

d. Bare bones

e. None of the above

Answer 10:

Supplier adapting to consumer

requests w/o any demands in return,

is an example of what category?


TOP 10 Learning Questions for

Chapter 7:

Analyzing Business Markets Briand Dayday

September 16, 2011
