The document discusses key concepts around organizational buying in business markets. It defines organizational buying as the process by which organizations establish needs, identify and evaluate alternatives, and choose suppliers. It identifies the three types of buying situations as straight rebuy, modified rebuy, and new task buying. It also discusses characteristics of business markets like fewer larger buyers and fluctuating demand.

1. 10 Questions for learning (Analyzing Business Markets: Chapter 7) Leeyhan Frank B. Dizon September 3, 2010

2. 1. ______ decision-making process by which formal organizations establish the need to purchase products and services Organizational Buying Straight Rebuy Market Buying Outsourcing Direct Purchasing

3. 1. ______ decision-making process by which formal organizations establish the need to purchase products and services Organizational Buying Straight Rebuy Market Buying Outsourcing Direct Purchasing

4. Concept: Organizational buying is the decision-making process by which formal organizations establish the need to purchase products and services and identify, evaluate and choose among alternative brands and suppliers. http://ch7businessmarkets.blogspot.com/

5. 2. All are characteristics of Business Markets except Fewer, Larger Buyers Direct and Indirect Purchasing System Inelastic Demand Fluctuating Demand Close supplier-customer relationships

6. 2. All are characteristics of Business Markets except Fewer, Larger Buyers Direct and Indirect Purchasing System Inelastic Demand Fluctuating Demand Close supplier-customer relationships

7. Concept: Slide number 3 from the reading materials “ Characteristics of Business Markets”

8. 3. The three types of buying situations are: straight rebuy, modified rebuy and ________ Original Task Common Task New Task Buying Task Purpose Task

9. 3. The three types of buying situations are: straight rebuy, modified rebuy and ________ Original Task Common Task New Task Buying Task Purpose Task

10. Concept: Three types of buying situations are the (1) straight rebuy, (2) modified rebuy and (3) new task. http://ch7businessmarkets.blogspot.com/

11. 4. Which of the following is true? A. Business Markets have less geographically concentrated buyers. B. Suppliers must be prepared to adapt their offers to the special needs and procedures which are found in institutional and government markets. C. To improve effectiveness and efficiency, business suppliers and customers are focusing on one way to manage their business relationships. D. Inelastic demand is one of the characteristics of a service market. E. Purchasing departments were perceived to occupy a high position in the management hierarchy, in spite of often managing more than half the company’s costs.

12. 4. Which of the following is true? A. Business Markets have less geographically concentrated buyers. B. Suppliers must be prepared to adapt their offers to the special needs and procedures which are found in institutional and government markets. C. To improve effectiveness and efficiency, business suppliers and customers are focusing on one way to manage their business relationships. D. Inelastic demand is one of the characteristics of a service market. E. Purchasing departments were perceived to occupy a high position in the management hierarchy, in spite of often managing more than half the company’s costs.

13. Concept: Institutional & Government Markets consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies. Suppliers must be prepared to adapt their offers to the special needs and procedures found in institutional and government markets. http://ch7businessmarkets.blogspot.com/

14. 5. __________________consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Organizational Markets Public and Private Instituitions Service Markets Suppliers and Consumers Instituitional and Government Markets

15. 5. __________________consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Organizational Markets Public and Private Instituitions Service Markets Suppliers and Consumers Instituitional and Government Markets

16. Concept: Institutional & Government Markets consist of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies. Suppliers must be prepared to adapt their offers to the special needs and procedures found in institutional and government markets. http://ch7businessmarkets.blogspot.com/

17. 6. When Whirlpool acquired the services of IBM to facilitate faster and more efficient inventory management, it is an example of: Systems Buying Merging Total Quality Management Outsourcing Straight Rebuy

18. 6. When Whirlpool acquired the services of IBM to facilitate faster and more efficient inventory management, it is an example of: Systems Buying Merging Total Quality Management Outsourcing Straight Rebuy

19. Concept: Many business buyers prefer to buy a total solution to a problem from one seller. This is called systems buying. http://ch7businessmarkets.blogspot.com/

20. 7. The first stage in the buying process is usually called: Observation of current market General Description of the need Product and Supplier Specification Problem recognition Probing and Identifying the need.

21. 7. The first stage in the buying process is usually called: Observation of current market General Description of the need Product and Supplier Specification Problem recognition Probing and Identifying the need.

22. Concept: Stages in the buying process include: (1) problem recognition (2) general need description (3) product specification (4) supplier search (5) proposal solicitation (6) supplier selection (7) order-routine specification (8) performance review http://ch7businessmarkets.blogspot.com/

23. 8. Systems buying is defined as: Buyers improve the system by acquiring a new company with a better facility. General merging of 2 partner companies for better system management. Product and Supplier Relationship made better by new and advanced system Outsourcing of new system from other parties. Buyers prefer to buy a total solution to a problem from one seller

24. 8. Systems buying is defined as: Buyers improve the system by acquiring a new company with a better facility. General merging of 2 partner companies for better system management. Product and Supplier Relationship made better by new and advanced system Outsourcing of new system from other parties. Buyers prefer to buy a total solution to a problem from one seller

25. Concept: Many business buyers prefer to buy a total solution to a problem from one seller. This is called systems buying. http://ch7businessmarkets.blogspot.com/

26. 9. Which of the following is false? A. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies B. Usually, performance review is an option when talking about the buying process. C. Business Markets as compared with Consumer Markets have fewer, larger buyers. D. Business marketers must form strong bonds and relationships with their customers and provide them added value. E. Closer relationships are driven in part by supply chain management, early supplier involvement and purchasing alliances.

27. 9. Which of the following is false? A. Buyers for government organizations tend to require a great deal of paperwork from their vendors and to favor open bidding and domestic companies B. Usually, performance review is an option when talking about the buying process. C. Business Markets as compared with Consumer Markets have fewer, larger buyers. D. Business marketers must form strong bonds and relationships with their customers and provide them added value. E. Closer relationships are driven in part by supply chain management, early supplier involvement and purchasing alliances.

28. Concept: Stages in the buying process include: (1) problem recognition (2) general need description (3) product specification (4) supplier search (5) proposal solicitation (6) supplier selection (7) order-routine specification (8) performance review http://ch7businessmarkets.blogspot.com/

29. 10. Participants in the business buying process include: (1) initiators (2) users (3) influencers (4) deciders (5) approvers (6) buyers and (7)________ ? Stakeholders Board of Officers Gatekeepers Suppliers Evaluators

30. 10. Participants in the business buying process include: (1) initiators (2) users (3) influencers (4) deciders (5) approvers (6) buyers and (7)________ ? Stakeholders Board of Officers Gatekeepers Suppliers Evaluators

31. Concept: Participants in the business buying process include: (1) initiators (2) users (3) influencers (4) deciders (5) approvers (6) buyers (7) gatekeepers http://ch7businessmarkets.blogspot.com/