Procurement Process Quiz

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Questions and Answers

What is the primary role of a buyer in the procurement process?

To trace communication to the top

To use the product in question

To select and purchase products or services (correct)

To isolate personal stakeholders

Which strategy is suggested for selling new-buy products?

Create a need and involve early in the process (correct)

Focus solely on existing customers

Offer the lowest price from the start

Wait for established contracts

What is an essential clue for identifying powerful buying center members?

Following the least influential information flow

Choosing members who ask fewer questions

Identifying the least knowledgeable individuals

Isolating personal stakeholders with the most to gain or lose (correct)

For established products, what should be the first step in the sales strategy?

Start small and learn the company Signup and view all the answers

Which of the following roles does not belong to members of a buying center?

Manufacturer Signup and view all the answers

What should effective salespeople focus on to influence the buying process?

Understanding the buying situation and its stage Signup and view all the answers

Which type of products require salespeople to develop a need early in the process?

New-buy products Signup and view all the answers

Who typically facilitates the exchange in the buying process?

The influencer Signup and view all the answers

What is the first step in the buying process that involves recognizing a need?

Problem recognition Signup and view all the answers

Who is most likely to influence the recognition of a new need?

A salesperson Signup and view all the answers

What does the general description of need aim to establish?

Extent of the problem and purchase options Signup and view all the answers

What determines the structure of the contract during supplier selection?

The product specifications Signup and view all the answers

What is often considered when a buyer is determining product specifications?

New task buy, straight rebuy, modified rebuy Signup and view all the answers

Which of the following steps occurs only when the buying organization lacks adequate information?

Acquisition and analysis of proposals Signup and view all the answers

In established businesses, which type of suppliers are usually considered?

Preferred vendors Signup and view all the answers

What role do professional sellers often seek to play early in the buying process?

To influence the decision-making Signup and view all the answers

How do high interest rates primarily affect different sectors in the economy?

They have no impact on transportation services. Signup and view all the answers

What competitive advantage do foreign competitors like China and India possess?

Strong labor saving costs. Signup and view all the answers

What is a pressing issue that companies face due to technological advancements?

The rapid obsolescence of technology. Signup and view all the answers

Which company faced challenges due to the emergence of digital streaming options?

Blockbuster Signup and view all the answers

What shift is observed in the role of purchasing within companies?

From a passive role to a strategic value-creating function. Signup and view all the answers

How does the Internet impact competition among companies?

It allows global competitors to emerge more easily. Signup and view all the answers

What is a key goal of relationship marketing in purchasing?

To cultivate deeper relationships with purchasers. Signup and view all the answers

What change in purchasing strategy is currently emphasized in organizations?

Aligning purchasing with overall business strategy. Signup and view all the answers

What are usage costs associated with?

Ongoing use of the purchased product Signup and view all the answers

What is a primary goal of value-based strategies in marketing?

To establish longer-term customer relationships based on value Signup and view all the answers

E-procurement primarily aims to improve what aspect of purchasing?

The efficiency of procurement processes Signup and view all the answers

Which type of items are best suited for reverse auctions?

Commodity-type items Signup and view all the answers

What is a strategy to manage a reverse auction process?

Influence bid specifications and vendor qualifications Signup and view all the answers

What effect does e-procurement have on purchasing cycle time?

It cuts the cycle time in half Signup and view all the answers

How does segmenting purchases benefit corporate procurement?

It isolates categories affecting revenues Signup and view all the answers

What is a primary benefit of using the Internet in e-procurement?

Enhances identification of global suppliers Signup and view all the answers

What is one primary reason buyers remember information about a brand?

It elicits a reaction consistent with the buyer's criteria. Signup and view all the answers

What factor significantly affects the success of salespeople?

Understanding and adjusting to buyer psychological needs. Signup and view all the answers

What are the two components of perceived risk in decision-making?

Uncertainty about decision outcomes and magnitude of consequences. Signup and view all the answers

How does the size of a purchase impact the buying center's influence?

Larger purchases increase the significance of higher-ranking members within the buying center. Signup and view all the answers

What is a common behavior of buyers when facing larger purchases?

They conduct extensive outside searches to see similar situations. Signup and view all the answers

What is a characteristic of decentralized purchasing?

It allows local branches to buy what they need. Signup and view all the answers

Which role in the buying center is responsible for initiating the purchasing process?

Initiator Signup and view all the answers

What is a primary benefit of developing key account management programs?

To avoid disjointed selling activities. Signup and view all the answers

Which of the following members of the buying center directly influences the information that decision-makers review?

Gatekeeper Signup and view all the answers

What does centralized purchasing primarily aim to achieve?

Streamlining purchasing across various departments. Signup and view all the answers

Who in the buying center makes the final purchasing decision?

Decider Signup and view all the answers

Which of the following is NOT a role within the buying center?

Supplier Signup and view all the answers

What is a primary focus of decentralized purchasing?

To allow branches to engage with local suppliers directly. Signup and view all the answers

Study Notes

Business Marketing Management - Chapter 2: Organizational Buying Behavior

This chapter explores organizational buying behavior, examining the factors influencing purchasing decisions in businesses.
The organizational buying process is multifaceted, involving several stages, from initial recognition of a need up to evaluating the performance of a chosen supplier.
Inside and outside factors impact organizational buying decisions. These include individual factors, environmental factors, interpersonal factors and organizational factors.
This chapter covers a model of organizational buying behavior. This features a step-by-step process that includes stages such as Need Recognition, Need Description, Product Specification, Supplier Search, Proposal Solicitation, Supplier Selection, Order Routine Specification and Performance Review.
Understanding organizational buying behavior enables marketers to make educated decisions about product design, pricing, and promotion.
Market-driven companies analyze market trends closely with their customers and suppliers. This is paramount to recognizing profitable market segments, locating buying influences, and reaching organizational buyers effectively.
Buying is recognized as a process rather than an isolated event. It involves critical decision points and changing information requirements.
The process often starts with identifying an issue or problem.
The buying process can vary significantly depending on whether it's a new task, straight rebuy, or modified rebuy situation.
- The new task situation requires significant research.
- Straight rebuys are more routine.
- Modified rebuys involve adjustments to existing procedures.
Understanding those involved in the buying process (buying center members) and their roles is also critical for successful selling.
- Roles within the buying center. Examples include Initiators, Influencers, Gatekeepers, Deciders, Buyers, and Users.
- Various factors may affect purchasing decisions, including economic conditions, shifts in organizational objectives, levels of competition and the type of buying situation.
The total cost of ownership is a factor procurement managers consider. Factors involved include acquisition costs, possession costs, and usage costs.
Understanding buyer needs and motivations helps businesses tailor marketing strategies to reach potential clients more effectively.
Marketing strategies for new-task buyers often center on initiating problem recognition and becoming an early participant in the decision-making process.
For established accounts, maintaining and building strong relationships is important.
E-procurement and reverse auctions are two significant technology-driven ways companies purchase.

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Description

Test your knowledge on the roles and strategies involved in the procurement process. This quiz covers aspects such as buyer roles, sales strategies, and the buying center dynamics. Perfect for anyone looking to enhance their understanding of procurement and sales concepts.