Business-to-business marketing refers to buying and selling goods or services to consumers.
B2B marketing involves manufacturers, wholesalers, and service firms.
Resellers differ from producers in that resellers significantly alter the form of goods they sell.
The B2B buying process tends to be more formal than the B2C buying.
The RFP process is used by buyers to allow customer input into value creation.
The final step of the B2B buying process is a formal vendor analysis.
Organizational culture may vary by geography.
Most B2B buying situations can be categorized into three categories: new buys, structured rebuys, and automatic rebuys.
In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision.
An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.
A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center.
A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order.
Fabricworld buys fabric from China and sells it to clothing manufacturers in the U.S. Fabricworld is a retailer.
Public institutions do not engage in B2B relationships.
Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process.
Naperville School District realized it needed to upgrade the computers in the school libraries. This represents the product specification stage of the B2B buying process.
A small business may use a web portal as a means of forming a supply chain that can respond to its needs.
Once a vendor receives an order from a firm, it responds by immediately filling the order.
As the owner of a small business with 60 employees that makes custom floor mats, Paul makes all of the buying decisions. Paul is most likely the user.
When you go to the hospital for an operation, you are the decider in the buying process.
Consultative buying centers use one person to make a decision but solicit input from others before doing so.
Linkedin is useful for networking in the B2B marketplace, but Twitter is not typically used.
As Daphne’s business grew, she needed to find a new way to manage payroll for her employees, so she researched payroll companies to see which one would best meet her needs. Daphne was involved in a new buy situation.
Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always ordered. This is a straight rebuy.
Business-to-business marketing involves buying and selling goods or services by all of the following EXCEPT:
Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a trailer for his lawn maintenance business. His purchases were:
D. B2C and B2B, respectively
Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in __________ sales.
Sales of electric components manufactured by Rick’s company depend on sales of new cars. Rick’s company faces __________ demand.
Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy to supply her customers. Paula is concerned with __________ demand.
Whether targeting consumers or resellers, marketers need to focus on :
A. creating value for customers
Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.
Malcolm buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Malcolm is a:
Hospitals, schools, and religious organizations are examples of __________ buyers.
Which of the following is an example of an institutional buyer?
A. Mayo Clinic hospital
Which of the following is an example of a government buyer?
C. US Marine Corps
Both the B2B and B2C buying processes begin with:
B. Need recognition
Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are:
D. more formal and structured
Typically, B2B buyers ask potential suppliers to:
B. submit formal proposals
B2B buying decisions are often made by:
Judy knows it is important to approach business buyers at the right time, which is often during the first stage of their buying process. She stays in touch with her customers, hoping to find out when they are going through:
A. Need recognition
After need recognition, a business develops __________ that suppliers might use to develop their proposals.
D. product specifications
After Hurricane Katrina, many states reevaluated their coastal area building requirements. These new building codes represented __________ that building materials companies used to develop new products.
D. product specifications
Charlie is hoping to get a chance to bid on supplying key components to Ned’s business. He is eager to move forward, but he must wait until:
B. Ned develops a list of product specifications
After need recognition and product specification, many firms using the B2B buying process:
B. issue a request for proposals from invited suppliers
During the RFP stage, B2B buyers:
C. invite suppliers to bid on supplying what is requested
After posting an RFP for telecommunications equipment, USF Corporation received six proposals from qualified vendors. Next, USF will:
E. evaluate the proposals and narrow the choice to a few suppliers.
The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process.
A. vendor negotiation
When reviewing her firm’s business buying process, Carla noticed a company requirement that it must have at least three qualified bids from suppliers for any purchase over $50,000. This requirement is designed to:
C. encourage the bidders to offer their best terms
Frieda has just received a major order from Northrop Corporation for her firm’s hydraulic lift equipment. After reviewing the order information, Frieda will:
A. send an acknowledgement that the order has been received.
While consumers evaluate their decisions and sometimes experience postpurchase dissonance, business buyers :
C. conduct vendor analysis
As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will probably:
B. specify and weight performance factors and score the vendors.
In most large organizations, several people are responsible for making a purchase decision. This group is called the:
D. buying center
Which of the following is NOT one of the roles typically played by one of the members of a buying center?
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as one of the first to hear about and use new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm’s buying center?
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom’s engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company’s buying center.
At many universities, education faculty members were among the first to ask for personal computers. These faculty members were __________ in the buying center.
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. After a vendor is chosen, Reginald will handle the paperwork and send out the purchase order. Reginald plays the role of __________ in the buying center.
Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, she also tries to meet with several students to get their feedback on textbooks. She passes this feedback to her managers to guide the development of the publisher’s future textbooks. The students are the __________ in the buying center.
Unlike a firm’s mission statement or employee handbook, a firm’s organizational culture often:
C. exists of a set of unspoken guidelines
An organization’s culture reflects the __________ that guide(s) its employees’ behavior.
D. set of values, traditions, and customs
While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on Fridays during the summer. Brad is observing part of his firm’s:
A. organizational culture
While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this reflected part of the pharmaceutical firm’s:
Which of the following is NOT one of the four general types of organizational cultures?
The customer Carlotta is calling on today has a(n) __________ buying center culture. This means that the decision process will involve reaching agreement among all members of the buying center.
Fordham3 Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham3 Hardware should:
D. attempt to facilitate the collective agreement of all members of the buying center.
At the main campus of a large university, faculty always refer to each other as doctor, wear suits, and guard their academic domains against each other. This leads to frequent name-calling and strenuous debates. Meanwhile, at the various branch campuses, faculty members call each other by their first names, dress casually, and support each other’s scholarly efforts. This example illustrates the differences in __________ that can exist within an organization.
C. organizational culture
Not knowing the roles of key players in the buying process could cause a sales representative to:
D. waste time and alienate people
When Leanne gave her presentation to the BigDeal buying center team, she treated each member’s question seriously and gave equal time to addressing each. Leanne did not realize BigDeal has an autocratic buying center culture and she needed to focus on answering Beverly’s questions, since she is the decision maker. In addition to wasting time by not understanding BigDeal’s culture, Leanne may have also hurt her chances because she:
D. alienated Beverly, the real decision maker.
Jenny was feeling frustrated. “What’s taking them so long to make a decision? It’s been weeks since I first met with them, and they all seem interested in the product. I’ve also jumped through all their paperwork hoops.” Jenny is likely selling to a firm in what kind of buying situation?
A. new buy
Most B2B buying situations can be categorized as new buys, modified rebuys, and:
B. straight rebuys
The RFP stage of the B2B buying process is NOT required for:
C. straight rebuy
The buying decision is likely to be most complex and take longest to complete in a(n) __________ B2B buying situation.
A. new buy
In which buying situation is the buyer most likely to proceed through all six steps in the buying process?
A. new buy
Manitoba University is buying a distance learning system. Previously, the school had no distance learning technology. For Manitoba University this represents a(n) __________ situation.
D. new buy
Olga is the sales rep for ATV Communication Systems. She wants to bid on the RFP issued by Manitoba University for distance learning technology. She knows she will need to provide considerable information and demonstrations of her firm’s technology because Manitoba University is in a new buy situation and does not have:
B. any experience with the product it wishes to purchase.
When Natasha took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was still heated with a coal-fired boiler. She made an immediate decision to upgrade the heating system to something more efficient, and began to research available options. For Natasha and Burlington Furniture, this represented a(n) __________ situation.
E. new buy
In a(n) __________ situation, the buyer has purchased a similar product in the past but has decided to change some specifications.
B. modified rebuy
When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation.
B. modified rebuy
In a modified rebuy situation, __________ are likely to have an advantage in getting the order.
C. current vendors
When Val sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company’s products do not meet the new specifications. In this situation, being the current vendor:
D. will probably not be an advantage in getting the new order.
A(n) __________ occurs when the purchasing agent orders additional units of products that have previously been purchased.
C. straight rebuy
If a B2B customer is satisfied with an existing supplier, it will probably engage in a(n) __________ to purchase additional quantities of the item.
D. straight rebuy
Yvonne uses her customer relationship management (CRM) system to predict when her business customers will need more of her company’s packaging materials. When she thinks a customer should be ready to make another order, she contacts it. Yvonne is using CRM to encourage customers to engage in a(n):
D. straight rebuy
Phil put down the phone and told Alice, “I just love that customer. I got another big order, and they just keep on coming.” Phil is likely selling to a firm in what kind of buying situation?
C. straight rebuy
When a business customer engages in a straight rebuy, the member of the buying center most likely to be involved in the purchase is the:
In established businesses, a large proportion of B2B purchases fall into the __________ category.
A. straight rebuy
The three types of buying situations:
E. call for different marketing and selling strategies.
A(n) __________ situation in B2B marketing is similar to limited problem solving in the B2C process.
C. modified rebuy
For B2B salespeople, usually the easiest sale is a(n) __________ situation.
D. straight rebuy
The office policy and procedure states that any purchase requests that are $3,000 and over must be given to Ms. Reynolds, who will obtain authorization from the Chief Financial Officer. Ms. Reynolds serves as a __________ in the buying center.
The president of the Northwoods University student body made a formal request to the IT department for additional computers in the main computer lab. The student body president is the __________ in the buying center.
The Northwoods University IT department is planning to buy additional computers for the computer lab. Pedro Bechara, manager of the lab, is asked for a recommendation, and he suggests buying Macintosh computers instead of Windows PCs. What role does Pedro play in the buying center?
Bob Roberts founded Robertico, an equipment leasing company, three decades ago. Although he is now in his seventies, he still has a “hands-on” management style. His employees have learned that there isn’t much point in making purchase recommendations for new equipment, because Bob is going to choose whatever he thinks is best regardless of their views. Robertico has a(n) __________ buying center culture.
A buying center that makes its decisions by majority vote is a(n) __________ buying center.
The local skydiving team is buying new parachutes. The team’s coach has invited all team members to make recommendations, after which he will select the successful vendor. The skydiving team’s buying center has a(n) __________ organizational culture.
To maximize efficiency, farmers send their eggs to a __________ who handles sales and shipments to supermarkets.
The chair of the board of the local Humane Society chose the bank where the organization keeps its money; however, the office manager is the primary person who makes deposits, writes checks, and balances the account every month. The office manager is the __________ in the buying center for the bank account.
B2B partners often connect to each other on the Internet through special __________ designed to facilitate information exchanges and transactions.
C. web portals
A wholesaler is an example of a:
Which of the following details is/are included in the order specification stage of the B2B buying process?
A. prices and delivery dates
Firms typically repurchase office supplies (paper, ink cartridges, pens, etc.) through straight rebuys on their supplier’s website. Should an office supplies sales rep stay in close touch with his/her current customers, and why or why not?
D. Yes; the sales rep might learn about a new opportunity in the need recognition stage.
Suppose that Volkswagen is preparing an RFP for a hands-free phone connection for a new car model. Which of the following would you NOT expect to find in the RFP?
D. vendor analysis
Because they do so much driving while visiting doctors’ offices and hospitals, pharmaceutical sales representatives are often given company cars to drive. When a pharmaceutical company like Merck is preparing to purchase new company cars, sales reps’ feedback will be sought on car models and features, but the final decision will be made by higher levels of management. What role(s) do the sales reps play in the buying center?
D. users and influencers
Kimberly has just learned that Caribou Coffee is looking for a new source of commercial-grade coffee makers, one of the products she sells. She knows Caribou has been in business for many years, but she has not been able to get any business from them. When developing her marketing strategy, Kimberly will probably assume that this represents a __________ situation for Caribou Coffee, and she will want to find out why Caribou is considering alternatives.
C. modified rebuy
CA Technologies, a firm providing software and services to information technology departments, maintains a corporate blog. How can this blog help CA Technologies with B2B marketing?
B. by building brand awareness among potential customers
Linkedin is mainly used for ________ in the B2B marketplace.
D. professional networking
Hinsdale High School has recently decided to sponsor a rugby team. It is in the process of considering where to buy the uniforms. This is a ________ situation.
B. new buy
Which step in the buying process is most likely to happen in a straight rebuy situation?
C. need recognition