Chapter 3: Understanding Buyers

Question 1

Salespeople will benefit from being able to identify the …..

Answer 1

Buyer’s communication style

Question 2

The role of the salesperson will vary based on the type of …

Answer 2

Buying decision

Question 3

Business markets operate differently than consumer markets, and those differences affect the ….

Answer 3

Selling process

Question 4

Buyer’s needs may be a mix of ….

Answer 4

situational
functional
social
knowledge needs

Question 5

Distinguishing Characteristics of Business Markets:

Answer 5

• Concentrated Demand
• Derived Demand
• Higher Levels of Demand Fluctuation
• Purchasing Professionals
• Multiple Buying Influences
• Close Buyer-Seller Relationships

Question 6

Categories of Buyers:

Answer 6

1. Consumer Markets
2. Business Markets

Question 7

Category of buyers for people (personal use)

Answer 7

Consumer market

Question 8

Category of buyers for firms, institutions, governments, non-profit organizations

Answer 8

Business Markets

Question 9

Buying Decision Process:
(8)

Answer 9

A. INITIATING the relationship
1. Recognition of Need
2. Description of Desired Characteristics

B. DEVELOPING the relationships
3. Determination of Desired Characteristics
4. Search and Qualification of Potential Sources
5. Acquisition and Analysis of Proposals
6. Evaluation of Proposals and Selection of Suppliers
7. Selection of an Order Routine

C. ENHANCING the Relationships
8. Performance Feedback and Evaluation

Question 10

A. Initiating the Relationship
(2)

Answer 10

1. Recognition of Need
2. Description of Desired Characteristics

Question 11

B. Developing the Relationships
(5)

Answer 11

3. Determination of Desired Characteristics
4. Search and Qualification of Potential Sources
5. Acquisition and Analysis of Proposals
6. Evaluation of Proposals and Selection of Suppliers
7. Selection of an Order Routine

Question 12

C. Enhancing the Relationships

Answer 12

8. Performance Feedback and Evaluation

Question 13

Types of Buyer Needs:

Answer 13

1. Situational Needs
2. Functional Needs
3. Social Needs
4. Psychological Needs
5. Knowledge Needs

Question 14

e.g. I need a copier now BECAUSE I have a major project I need to complete.

Answer 14

Situational needs

Question 15

e.g. I need a copier that SORTS AND STAPLES.

Answer 15

Functional needs

Question 16

e.g. I need a state-of-the-art copier SO I WILL BE RECOGNIZED as of the technology-savvy people in this company.

Answer 16

Social needs

Question 17

e.g. I need an EXTENDED WARRANTY with a copier.

Answer 17

Psychological needs

Question 18

e.g. I need COMPREHENSIVE TRAINING on how to use a copier.

Answer 18

Knowledge Needs

Question 19

Employing Buyer Evaluation Procedures to Enhance Selling Strategies:

Answer 19

• Modify the Product Offering Being Proposed
• Alter the Buyer’s Beliefs about the Proposed Offering
• Alter the Buyer’s Beliefs about the Competitor’s Offering
• Alter the Importance Weights
• Call Attention to Neglected Attributes

Question 20

Multi-Attribute Model

Answer 20

P x I = Attribute Score

Question 21

P stands for

Answer 21

Assessment of Product or Supplier Performance

Question 22

l stands for

Answer 22

Assessing the Relative Importance of Each Characteristic

Question 23

Types of Purchasing Decisions:

Answer 23

1. Straight Rebuy Buying Situation
2. Modified Rebuy Buying Situation
3. New Task Buying Situation

Question 24

Type of purchasing decision that is Routinized Response Behavior

Answer 24

Straight Rebuy Buying Situation

Question 25

Type of purchasing decision that is Limited Problem Solving

Answer 25

Modified Rebuy Buying Situation

Question 26

Type of purchasing decision that is Extensive Problem Solving

Answer 26

New Task Buying Situation

Question 27

Complex mix of business buyer needs

Answer 27

Functional attributes and Psychological attributes towards buyer's level of satisfaction

Question 28

Complex mix business buyer needs that is a "must haves" 37% level of influence on buyer's satisfaction

Answer 28

Functional attributes

Question 29

Complex mix business buyer needs that is a "delighters" 63% level of influence on buyers satisfaction

Answer 29

Psychological attributes

Question 30

The process by which the salesperson adjusts his/her communication style to fit that of the customers in order to facilitate effective communication

Answer 30

Communication Style Flexing

Question 31

Buying Center Members:

Answer 31

1. Initiators 2. Users 3. Gatekeepers 4. Influencers 5. Deciders 6. Purchasers

Question 32

Current Developments in Purchasing:

Answer 32

• Target Pricing • Supply Chain Management • Relationship Emphasis on Cooperation and Collaboration • Increasing Use of Information Technology • Increased Importance of Knowledge and Creativity