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Questions and Answers
What type of buying situation involves ordering from a list of approved suppliers?
What type of buying situation involves ordering from a list of approved suppliers?
Which role in the buying center is primarily responsible for making the final decision on product requirements?
Which role in the buying center is primarily responsible for making the final decision on product requirements?
Which of the following statements best describes a modified rebuy situation?
Which of the following statements best describes a modified rebuy situation?
What is the role of gatekeepers in the buying center?
What is the role of gatekeepers in the buying center?
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How has the role of purchasing departments evolved in many organizations due to competitive pressure?
How has the role of purchasing departments evolved in many organizations due to competitive pressure?
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Which of the following best describes the initiators in a buying center?
Which of the following best describes the initiators in a buying center?
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What impact did Medline Industries achieve by utilizing software in their purchasing department?
What impact did Medline Industries achieve by utilizing software in their purchasing department?
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Which statement accurately characterizes the dynamics of a buying center?
Which statement accurately characterizes the dynamics of a buying center?
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Which characteristic distinguishes business markets from consumer markets?
Which characteristic distinguishes business markets from consumer markets?
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What is derived demand in the context of business markets?
What is derived demand in the context of business markets?
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What role does a buying center play in an organization?
What role does a buying center play in an organization?
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Why is professional purchasing significant in business markets?
Why is professional purchasing significant in business markets?
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What is a consequence of inelastic demand in business markets?
What is a consequence of inelastic demand in business markets?
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How do business-to-business marketers typically attract and retain customers?
How do business-to-business marketers typically attract and retain customers?
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Which of the following is NOT a major industry in the business market?
Which of the following is NOT a major industry in the business market?
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What can be said about the purchasing behavior of business buyers?
What can be said about the purchasing behavior of business buyers?
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Which aspect is typically prioritized by engineers when involved in purchasing decisions?
Which aspect is typically prioritized by engineers when involved in purchasing decisions?
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What is the first stage of the business-buying process?
What is the first stage of the business-buying process?
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During which stage do buyers determine the characteristics and quantity of the needed product?
During which stage do buyers determine the characteristics and quantity of the needed product?
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What criteria do business buyers primarily seek in a market offering?
What criteria do business buyers primarily seek in a market offering?
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Which role in a hospital might be involved in the buying decision for surgical gowns?
Which role in a hospital might be involved in the buying decision for surgical gowns?
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What happens during the Supplier Selection stage?
What happens during the Supplier Selection stage?
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How might a buyer evaluate supplier performance?
How might a buyer evaluate supplier performance?
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What does the term 'Proposal Solicitation' refer to in the business-buying process?
What does the term 'Proposal Solicitation' refer to in the business-buying process?
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What primarily differentiates business markets from consumer markets?
What primarily differentiates business markets from consumer markets?
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Which innovation contributed significantly to Caterpillar's sales growth after World War II?
Which innovation contributed significantly to Caterpillar's sales growth after World War II?
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What aspect of business marketing is emphasized for building customer relationships?
What aspect of business marketing is emphasized for building customer relationships?
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During which historical events were Caterpillar's farm treads notably utilized?
During which historical events were Caterpillar's farm treads notably utilized?
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What is the first step in the organizational buying process?
What is the first step in the organizational buying process?
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Caterpillar is recognized for which of the following characteristics?
Caterpillar is recognized for which of the following characteristics?
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Which statement about organizational buying is accurate?
Which statement about organizational buying is accurate?
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Caterpillar's products are recognized globally for which key feature?
Caterpillar's products are recognized globally for which key feature?
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What was SAS's new slogan aimed at improving its image?
What was SAS's new slogan aimed at improving its image?
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Which of the following is considered a method for marketers to counter price reduction requests?
Which of the following is considered a method for marketers to counter price reduction requests?
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In the context of business partnerships, what does opportunism refer to?
In the context of business partnerships, what does opportunism refer to?
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What is a significant benefit of vertical coordination in business relationships?
What is a significant benefit of vertical coordination in business relationships?
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Which company implemented a multi-year customer value management program?
Which company implemented a multi-year customer value management program?
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What factor is crucial for building long-term relationships in business?
What factor is crucial for building long-term relationships in business?
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Which of the following best describes 'specific investments' in a business context?
Which of the following best describes 'specific investments' in a business context?
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Which market consists of institutions needing goods and services for people in their care?
Which market consists of institutions needing goods and services for people in their care?
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What is a characteristic of organizations like Aramark and the federal government?
What is a characteristic of organizations like Aramark and the federal government?
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What is one of the areas of focus for the federal government in procurement?
What is one of the areas of focus for the federal government in procurement?
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Which reform has the federal government implemented in contracting procedures?
Which reform has the federal government implemented in contracting procedures?
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What is the purpose of the General Services Administration's web-based catalogs?
What is the purpose of the General Services Administration's web-based catalogs?
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How does marketing communication contribute in business markets?
How does marketing communication contribute in business markets?
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What strategy does Makino utilize to build relationships with customers?
What strategy does Makino utilize to build relationships with customers?
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What approach does Kinaxis take in managing communication?
What approach does Kinaxis take in managing communication?
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Which of the following is NOT a challenge faced in the federal government's contracting process?
Which of the following is NOT a challenge faced in the federal government's contracting process?
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Study Notes
Business Markets
- Business markets are substantially larger than consumer markets
- Include all businesses, organizations, and governments
- Businesses buy raw materials, components, equipment, supplies, and services to develop offerings for other businesses and consumers
- Business marketing aims to create market value by developing offerings that meet the needs of business customers
- Caterpillar is an example of a company that effectively meets business customer expectations
Caterpillar
- Founded in 1925 by merging two California-based tractor companies
- The Caterpillar name dates back to the early 1900s, Benjamin Holt
- Holt designed a tractor with wide tracks, not wheels
- Tracks made the tractor suitable for California's terrain
- The use of caterpillar tracks is what gave the company its name
Organizational Buying Process
- The decision-making process by which formal organizations establish needs for purchased products and services
- Identify, evaluate, and choose among alternative brands and suppliers
- Includes all members of the organization playing a role in the purchase decision
- Includes initiators, users, influencers, deciders, approvers, buyers, and gatekeepers
Understanding Business Markets
- Business markets include companies that acquire goods and services to be used in producing a product or service
- Includes industries like aerospace, agriculture, chemical, computer, construction, defense, energy, mining, manufacturing, construction, transportation, communication, public utilities, banking, finance, and insurance, and distribution
- More money changes hands in business-to-business (B2B) transactions than in consumer transactions
Buying Center
- The decision-making unit of a buying organization
- Comprises all members of the organization involved in the purchasing process
- Includes roles such as: Initiators, Users, Influencers, Deciders, Approvers, Buyers, Gatekeepers
Stages in the Business Buying Process
- Problem recognition: Buyer recognizes a need or problem that can be met by an acquisition
- Need description: The buyer specifies the characteristics and quantities of the needed item
- Product specification: The organization develops the item's technical specifications
- Supplier search: Identifying potential suppliers
- Proposal solicitation: Obtaining proposals from potential suppliers
- Supplier selection: Choosing from suppliers
- Contract negotiation: Finalizing the terms of the contract
- Performance review: Evaluating the supplier's performance
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Description
Explore the dynamics of business markets and the organizational buying process with a focus on the Caterpillar company's history. Understand how businesses, governments, and organizations interact in these markets and the significance of meeting customer expectations. This quiz delves into the foundational concepts of business marketing.
