9. refers to the people to whom an individual looks when forming attitudes about

Question

9. refers to the people to whom an individual looks when forming attitudes about a particular topic. A. Family B. A social class C. An ethnic group D. A focus group E. A reference group Which of the following products probably would result in the lowest involvement purchase for most consumers? A. Paper towels B. Summer vacation C. CDplayer D. Sweater E. Cough syrup 10. 11. When compared to final consumers, organizations -A. always focus on economic factors to the exclusion of other factors -B. have a wider variety of needs therefore businesses require more varied marketing mixes. c. D. E. require promotion activities that exclusively rely on the use of personal selling. are usually more emotional in their buying than final consumers. have needs that are often easier to understand. 12. TRUE or FALSE: Dependability of supply is usually much less important than price for most business customers. 13. Operational linkages are A. direct ties between the internal operations of buyer and seller firms. 8. changes in a firm's product or procedures that are unique to its relationship partner. C. connections that outline contractual obligations. D. services that link a buyer's production and purchasing departments. E. websites that help buyers conduct reverse auctions 14. Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks a be revised if costs go up more than SI per bag. This purchase involves A an indefinite delivery contract. B. negotiated contract buying. C. a good faith purchase. D. cost reimbursement contracting. E. price allocation purchasing. t a price of $15 per bag. The contract also includes a condition that allows prices to 15. Sweets Galore,, the manufacturer of Rainbow brand lollipops, decided to expand into manufacturing liqueur- filled chocolate truffles. Its buying process for the chocolates, liqueurs, and molds was extensive, and included setting product specifications and evaluating sources of supply. This is an example of a A. straight buy. B. modified rebuy. C. straight rebuy. D. new-task buy. . E. simplified rebuy 16. TRUE or FALSE: A long-term commitment by an organization to a partner may reduce flexibility

Explanation / Answer

Ans 9) Option E: Reference Group

Refers to the people to whom an individual looks when forming attitudes about a particular topic. In the absence of formal information, individual prefers to approach experts. For marketers, they form an important link between potential customer and company's products. Any positive word of mouth can turn up company's fortune. They are also known as influencers.

Ans 10) Option A: Paper Towels

Low involvement product refers to that product whose purchase does not entail thorough market research on buyer's part. For all other options, buyer needs to consider quality, cost, brand etc. but for buying a paper towel there is not much fight for his time and resources.

Ans 11) Option E:

When compared to final consumers, Organizations have needs which are easier to understand. Organisations are different from final consumers in the sense that final consumers demand goods or services for satisfaction of their own needs and wants. It is B2C trade i.e., Business to customer, hence requires more products attribute wise and varied marketing mix to cater to everyone's demand. On the other hand, organisations work for the satisfaction of other firm's needs and wants. In other words it is B2B trade, business to business.

Ans 12) FALSE because Supply is more of prime importance than price.

Ans 13) Option A

Operational Linkages are direct ties between internal operations of the bueyers and sellers firms. It defines how the systems, procedures of the buying firm is related or connected to the seller firm.

Ans 14) Option B: Negotiated Contract Buying

This case is clearly based on Negotiated Contract Buying as the contract explicitly calls for revision of agreed price if the cost goes up by more than $1. Hence, keeping the window for negotiations open

Ans 15) Option D: New-task buy

This case is a classic example of New-task buy as the company is venturing into new territory for which it needs great deal of information involving setting up of detailed product specs and fine evaluation of potential suppliers.

Ans 16) TRUE

Long term commitment is bound by rules and regulations of a contract which are rigid or say fixed for certain number of years thus rendering any such commitment or contract reduced flexibility on account of any changes desired with dynamic environment of business.

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