Ch 3

Ahmad, a purchasing manager for the Jeddah Tool Company, placed his quarterly order for supplies from the Falcon Paper Company. Ahmad has been dealing with Falcon for many years. What type of problem-solving would Ahmad employ in this purchase decision?

• routine problem solving

• limited problem solving

• extended problem solving

• specialized problem solving

As a result of poor delivery performance by a supplier of high-quality metal components, Ali, a purchasing agent at a Toy Company, plans to consider a possible change in suppliers. This illustrates:

• routine problem-solving.

• a modified rebuy

• a straight rebuy

• selective perception

Individuals who control the flow of information into the buying center are performing the role of:

• a user

• a gatekeeper

• a decider

• a buyer

Within the buying center, an individual who has formal authority for selecting a supplier and implementing all procedures connected with securing the product is performing the role of:

• a user

• a gatekeeper.

• a decider

• a buyer

The business market consists of the following three components:

• commercial enterprises, resellers, and government.

• manufacturers, institutions, and defense

• manufacturers, service organizations, and government

• commercial enterprises, institutions, and government

Within the buying center, individuals who actually make the organizational buying decision, whether or not they have formal authority to do so, are performing the role of:

• a user

• a gatekeeper

• a decider

• a buyer.

As the risk associated with an organizational purchase decision increases:

• buying center participants will be motivated to invest greater effort throughout the purchase process

• product quality becomes more important than price

• after-sale service becomes more important than price.

• all of the above

A significant increase in the price of gasoline that leads to a decrease in the purchases of new automobiles is an example of the impact of which environmental force?

• economic factors

• political and legal factors

• technological factors

• all of the above

Strategies that would be appropriate for an "out" supplier to follow when confronting a modified rebuy situation include

• offering performance guarantees

• encouraging the organization to sample the firm's offering

• defining and responding to the organization's problem with the existing supplier

• all of the above

When buying influentials and decision-makers lack well-defined criteria for comparing alternative products and suppliers and they also lack strong predispositions toward a particular solution, they are operating in a stage of a(n) _____ problem solving

• limited

• selective

• routine

• extensive