Kotler 2020, 7 kap.

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Questions and Answers

Which factors heavily influence business buyers?

Cultural factors and social events

Only personal emotions

Environmental, organizational, interpersonal and individual factors (correct)

Technological changes only

How do great salespeople impact business buying?

They have a minimal effect on sales volume.

They can increase sales volume and customer satisfaction. (correct)

They primarily focus on economic factors.

They usually lower the prices significantly.

In situations where competing products are very similar, business buyers tend to:

Consult industry experts before making a decision.

Be heavily influenced by personal factors. (correct)

Rely solely on brand reputation.

Only consider economic factors.

What environmental factor can lead business buyers to hold larger inventories?

Current and expected economic conditions. Signup and view all the answers

Which of the following is NOT a category of influence on business buyers?

Societal factors Signup and view all the answers

What role does emotional response play in business buying decisions?

It is equally as important as rational factors. Signup and view all the answers

What influences the decision-making process of business buyers in terms of supply?

Availability of resources and supply shortages. Signup and view all the answers

How does organizational structure affect business buying decisions?

It influences the number of people involved in the buying decision. Signup and view all the answers

What is the primary goal of supplier development?

To systematically develop networks of supplier-partners Signup and view all the answers

What are the consequences of focusing on products that do not require cooperation with suppliers?

Possible return to transaction marketing Signup and view all the answers

Which factor is NOT part of the business buying decision process?

Product replacement options Signup and view all the answers

What role do internal and external factors play in the buying decision process?

They influence the buying centre and decision process Signup and view all the answers

What is the primary concern for companies when balancing costs and quality?

Pressure from shareholders Signup and view all the answers

What is a key component of understanding business buyer behavior according to the provided model?

Recognizing the buying center dynamics Signup and view all the answers

What does the model suggest about the stimuli affecting buyer responses?

They can produce specific buyer responses within organizations Signup and view all the answers

Which of the following questions is NOT suggested by the model of business buyer behavior?

What are the best marketing strategies for competition? Signup and view all the answers

What is the primary advantage of systems selling in a business buying situation?

It simplifies the purchasing process by providing a complete solution. Signup and view all the answers

Who are considered users in the buying centre of an organization?

Members of the organization who will utilize the product or service. Signup and view all the answers

Which role in the buying centre is primarily responsible for helping define specifications?

Influencers Signup and view all the answers

What could be a potential risk when choosing new suppliers over established ones like Scania?

Uncertainty regarding product reliability and quality. Signup and view all the answers

What is a possible disadvantage of opting for the cheapest offer in procurement?

It can jeopardize the company's reputation and quality assurance. Signup and view all the answers

In the business buying process, what role does the decision-making unit play?

They encompass all individuals involved in the purchase decision. Signup and view all the answers

What is a significant reason businesses prefer to buy a complete solution from a single seller?

To ensure all aspects of the problem are considered. Signup and view all the answers

Why might approaching users rather than the formal buying unit be beneficial?

Users can help influence the buying decision in favor of the seller. Signup and view all the answers

Who are the likely formal participants involved in the purchase of a corporate jet?

CEO, board of directors, chief pilot, purchasing agent Signup and view all the answers

What is a potential downside of a corporate jet in terms of organizational practices?

It could reinforce a culture of extensive travel rather than rethinking communication. Signup and view all the answers

Which factor is suggested to strongly influence business buyers' decisions?

Economic factors like price and service Signup and view all the answers

How can informal participants affect the buying decision?

They may influence decisions through personal connections and interest. Signup and view all the answers

What common misconception do experts have regarding product recommendations?

Recommendations may be for products that exceed what the buyer requires. Signup and view all the answers

What is often assumed about the nature of business buying decisions?

They are considered to be a rational process based on reason. Signup and view all the answers

What role does the purchasing agent typically have in the buying center?

To execute the procurement process based on formal decisions. Signup and view all the answers

Why might a board member's informal influence on a buying decision be problematic?

Their influence may not align with the organization's best interests. Signup and view all the answers

What is often a challenge when evaluating interpersonal factors in the buying centre?

They are difficult to assess without internal information. Signup and view all the answers

Which of the following best describes a formal decision-maker's potential frustration?

They might disregard unsolicited marketing attempts. Signup and view all the answers

What impact do individual factors have on the buying decision process?

They influence each participant's motives and preferences. Signup and view all the answers

Which participant in the buying centre might have significant influence without being a formal decision-maker?

A technical expert familiar with products. Signup and view all the answers

How do buyers with different buying styles approach decision-making?

Some may conduct thorough analyses while others negotiate intuitively. Signup and view all the answers

What do business marketers need to understand to effectively engage with the buying centre?

The formal and informal dynamics affecting decisions. Signup and view all the answers

What is a potential influence that a participant in the buying centre may have?

Expertise in different product markets. Signup and view all the answers

In the business buying process, how many stages do buyers typically follow for new, complex buying decisions?

Eight stages Signup and view all the answers

What primarily characterizes business markets compared to consumer markets?

Fewer, larger buyers who are geographically concentrated Signup and view all the answers

What is the first stage in the business buying decision process?

Problem recognition Signup and view all the answers

Which of the following is a type of buying situation in business markets?

Straight re-buy Signup and view all the answers

What is a significant factor in the institutional market?

Captive patrons Signup and view all the answers

What role does the buying centre play in business buying decisions?

It consists of individuals from various departments Signup and view all the answers

Which of the following best describes derived demand in business markets?

Demand that is based on the demand for another product Signup and view all the answers

How does the business buying decision process differ for buyers in new-task situations compared to others?

They always go through all stages of the process Signup and view all the answers

What kind of governments are included in the governmental market?

Regional and local government units Signup and view all the answers

Study Notes

Chapter 7 - Business Markets and Business Buyer Behaviour

Mini Contents:
- Company case -IBM: the world's most valuable business-to-business brand
- Business markets
- Best practice – IKEA: involving suppliers from start to finish
- Company case - STIGA: marketing in industrial markets
- Business buyer behaviour
- The business buyer decision process
- Business-to-business digital and social media marketing
- E-procurement
- Institutional and governmental markets
- Legislation issues

Chapter Preview

This chapter examines business customer buying behaviour, focusing on factors influencing purchases made for production, internal use, or resale.
Businesses, like consumers, require relationship-building and value creation.
IBM's vast business customer base accounts for a significant portion of their revenues, highlighting the importance of this market segment.

Learning Objectives

Define the business market and differentiate it from consumer markets.
Identify key factors influencing business buyer behaviour.
Describe the steps in the business buying decision process.
Compare and contrast institutional and governmental market buying decisions.

Business Markets

Businesses often sell to other businesses (e.g., Aria, Atlas Copco, Google, KPMG).
The public sector (e.g., infrastructure projects in Stockholm, Järna-Linköping) plays a crucial role in business markets.

Business Buyer Behaviour

Buying behaviour of organizations purchasing goods/services for internal use or resale.
Involves determining product/service needs, evaluating suppliers and brands, and building profitable relationships with clientele.

Business Buying Process

A multi-step decision process involving multiple participants.
The process is often more formalized than consumer buying decisions.

Market Structure and Demand

Business markets often deal with fewer, larger buyers (compared to consumer markets).
Demand is often derived from consumer demand.
Demand (and fluctuations) are often more volatile than in consumer markets.

Nature of the Buying Unit

Business purchases typically involve more participants and a more professional approach compared to consumer purchases.
There are clear roles (e.g., users, influencers, gatekeepers, deciders, buyers) in the business buying centre.

Major Types of Buying Situations

Straight Rebuy: Routine reorder without modifications.
Modified Rebuy: An existing product/service with some changes or a new supplier.
New Task: First-time purchase of a major product/service, requiring thorough research.

Participants in the Business Buying Process

Buying Centre: All involved in the purchase decision.
Users, influencers, gatekeepers, deciders, buyers are key roles within the buying centre.

Major Influences on Business Buyers

Environmental: Economic conditions, political factors, regulatory changes, and competitive dynamics.
Organizational: Objectives, policies, procedures, structure, and systems of the purchasing organization .
Interpersonal: Relationships, influence of individuals within the buying centre .
Individual: Personal factors like motives, perceptions, and preferences of individual participants.

E-procurement

Purchasing through online connections.
Offers advantages for both buyers and suppliers, including cost reduction and efficiency gains.
However, e-procurement can sometimes erode long-term customer relationships depending on how it's implemented.

Importance of using digital channels.
Building relationships with business customers through various digital marketing approaches.

Institutional Markets

Institutions like schools, hospitals, nursing homes, and prisons requiring goods and services.
Often characterized by constraints, such as budget limitations, and a need for high quality.

Governmental Markets

Government units (federal, state, and local) purchasing goods and services.
Political considerations, legal frameworks (e.g., public procurement acts) and transparency standards are crucial components of governmental buying decisions.

Legislation Issues

Government procurement regulations, such as those in the European Union, often favor domestic suppliers.
Procedures and compliance regulations significantly influence governmental buying practices.

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Description

Test your knowledge on the various factors that influence business buyers. This quiz covers the decision-making process, emotional responses, and the impact of organizational structure on buying decisions. Understand the key components that drive business buying behavior in a competitive environment.